Fastly's Q2 Earnings Call Highlights: Revenue Growth, Improving Margins, and New Customer Acquisitions Drive Positive Market Reaction

Fastly's Q2 revenue of $148.7 million exceeded analyst estimates, with a 12.3% YoY growth. The company attributed the outperformance to new customer acquisitions, expanded security offerings, and improved network efficiency. Management also highlighted progress in diversifying its customer base. Adjusted EPS beat estimates, and revenue guidance for the full year was above analyst estimates.

Content delivery company Fastly (NYSE: FSLY) reported robust financial performance for the second quarter of 2025, with total revenue reaching $148.7 million, marking a 12% year-over-year (YoY) increase. This figure exceeded analyst expectations by 2.7% [1]. The company's adjusted earnings per share (EPS) also beat estimates, coming in at -$0.03 versus -$0.05 expected by analysts, representing a $0.02 beat [1].

Fastly attributed its strong performance to several factors, including new customer acquisitions, expanded security offerings, and improved network efficiency. Security revenue accounted for 20% of total revenue, highlighting the growing importance of cybersecurity in the company's revenue mix [2]. The company's gross margin improved by 170 basis points to 54.5%, and its operating loss was reduced to $4.6 million, indicating a notable improvement in financial health [2].

Additionally, Fastly reported progress in diversifying its customer base. Revenue outside its top 10 customers outpaced overall growth, suggesting a positive trend in customer acquisition and retention [3]. The company's total customer count reached 3,097, with enterprise customers increasing by 27% from the previous quarter [2].

Looking ahead, Fastly raised its full-year revenue guidance to $598 million at the midpoint, above analyst estimates of $590 million. The company also expects to generate positive free cash flow for the year, a significant improvement from previous quarters [1].

References:
[1] https://finance.yahoo.com/news/fastly-nyse-fsly-beats-q2-220040382.html
[2] https://www.ainvest.com/news/fastly-exceeds-q2-revenue-guidance-sets-record-security-revenue-improves-margins-2508/
[3] https://stockstory.org/us/stocks/nyse/fsly/news/earnings-call/the-5-most-interesting-analyst-questions-from-fastlys-q2-earnings-call