What were the key takeaways from Fastly's earnings call?

What were the key takeaways from Fastly’s earnings call?

What factors drove the changes in Fastly's revenue and profit?

What is Fastly's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Fastly year over year?

What does Fastly do and what are its main business segments?

What is the market's earnings forecast for Fastly next quarter?

What is Fastly's gross profit margin?

- **Revenue Growth & Margin Expansion**: Q3 revenue up 15% YoY to $158.2M, with gross margin improving 410bps to 62.8%. Full-year guidance raised to $610-614M.
- **Strategic Win & Security Momentum**: A top 10 customer adopted all three product lines, driving security revenue growth of 30% YoY.
- **Innovation Leadership**: Launch of advanced security features (API Discovery, next-gen WAF) and AI integration, enhancing platform value.
- **Free Cash Flow Turnaround**: Q3 free cash flow of $18.1M vs. negative $36M in 2024, with full-year target of $25-35M.
- **APJ Expansion**: Early success in Asia-Pacific with dedicated sales leadership, positioning for future growth.

**【CEO Summary Section】**
- **Record Q3 Performance**: Revenue of $158.2M (+15% YoY), exceeding guidance, with gross margin of 62.8% (up 410bps YoY). Operating income of $11.6M and free cash flow of $18.1M.
- **Strategic Cross-Sell Win**: A top 10 customer adopted all three product lines, driving security revenue growth of 30% YoY.
- **Innovation Highlights**: Launch of API Discovery, next-gen WAF with deception tech, and AI integration with MCP Server.
- **Guidance Raise**: Full-year revenue updated to $610-614M (+13% YoY), with free cash flow of $25-35M.
- **Platform Momentum**: 106% trailing 12-month net retention rate, RPO of $268M (+16% YoY).

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Network services ($118.8M, +11% YoY), security ($34M, +30% YoY), other products ($5.4M, +51% YoY).
- **Gross Margin Leverage**: 62.8% driven by scale and engineering efficiency, with $1.6M non-recurring cost tailwind.
- **Operating Expenses**: $87.7M (+10% YoY), disciplined spend leading to 15% OPEX growth vs. 15% revenue growth.
- **Q4 Guidance**: Revenue $159-163M, gross margin 61.5%±50bps, operating profit $8-12M.
- **Liquidity**: $343M cash, with $188M convertible notes maturing in March 2026.

**【Q&A Highlights】**
- **Security Growth Sustainability**: 30% YoY expansion driven by cross-sell and new products; no one-time revenue recognition.
- **APJ Expansion**: Early wins from dedicated sales leadership, with focus on sales coverage and opportunity capture.
- **Seasonality**: Network services traffic trends normal, Q4 sequential growth cautious due to Q3 upside.
- **Gross Margin Outlook**: 60-61% for 2025, sustained by scale and engineering investments.
- **TikTok Impact**: U.S. traffic <2% of revenue; minimal expected impact from regulatory changes.

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