Summary
Fastly reported fourth quarter revenue of $140.6 million, up 2.0% from $137.8 million in the prior-year quarter. Full-year revenue reached $543.7 million, up 7.4% from $506.0 million. Gross profit was $75.1 million in the quarter, down 0.9% from $75.8 million. For the full year, gross profit rose 11.1% to $295.9 million from $266.3 million. Gross margin slipped to 53.4% in the quarter from 55.0%, but full-year gross margin improved to 54.4% from 52.6%. The operating loss narrowed to $34.3 million from $42.6 million in the quarter, and the full-year operating loss narrowed to $167.9 million from $198.0 million. Net loss widened to $32.9 million from $23.4 million in the quarter, and the full-year net loss widened to $158.1 million from $133.1 million. Full-year diluted EPS was -$1.14, down from -$1.03.
Cash generation improved. Operating cash flow was $5.2 million in the quarter, up from negative $7.4 million in the prior-year quarter. Full-year operating cash flow was $16.4 million, up from $0.4 million. Capital expenditures were $5.0 million in the quarter, up 84.5% from $2.7 million. For the full year, capital expenditures were $10.3 million, down 5.9% from $11.0 million. Deferred revenue fell 22.5% to $29.6 million from $38.2 million. Remaining performance obligations were $244.4 million, up 3.7% from $235.7 million. Operating margin was -24.4% in the quarter, up 6.5 percentage points from -30.9%. Full-year operating margin was -30.9%, up 8.3 percentage points from -39.1%.
Operational metrics showed mixed trends. Enterprise customer count was 596, up 20 from the third quarter of 2024. The top ten customers accounted for 32% of revenue in the fourth quarter, down from 40% in the fourth quarter of 2023. Revenue from the top ten customers declined 18% year over year, while revenue from customers outside the top ten grew 16% year over year. Last 12-month net retention rate decreased to 102% from 105% in the third quarter of 2024. Annual revenue retention rate was 99.0% in 2024, down from 99.2% in 2023. Product launches included Fastly DDoS Protection, Fastly AI Accelerator to general availability, Fastly Object Storage, and Log Explorer Insights. Customer packages grew over 60% year over year, and packages involving new logos grew 70% year over year. In 2024, customer packages grew over 150%.
Guidance points to modest growth. For the first quarter of 2025, Fastly guided revenue to $136.0 million to $140.0 million. For the full year 2025, revenue guidance is $575.0 million to $585.0 million. The company guided first quarter non-GAAP operating loss to $11.0 million to $7.0 million and full year non-GAAP operating loss to $15.0 million to $9.0 million. First quarter non-GAAP net loss per share is guided to $0.09 to $0.05, and full year non-GAAP net loss per share is guided to $0.15 to $0.09. Risks include customer concentration, with the top ten customers at 32% of revenue, and uncertainty around TikTok, one of Fastly's largest customers for 2024, after legislation that could ban the app in the United States. Other risks include data localization and cross-border data transfer rules, competition, network capacity constraints, higher international bandwidth costs, and the need to invest in sales and marketing and research and development.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $140.6M | $137.2M | +2.5% | $137.8M | +2.0% |
| Gross profit | $75.1M | $74.7M | +0.4% | $75.8M | -0.9% |
| Gross margin | 53.4% | 54.5% | -1.1 pp | 55.0% | -1.6 pp |
| Research & development | $32.7M | $31.9M | +2.7% | $38.3M | -14.4% |
| Sales & marketing | $50.0M | $46.0M | +8.8% | $48.7M | +2.9% |
| General & administrative | $26.2M | $27.2M | -3.8% | $31.4M | -16.8% |
| Total operating expenses | $109.4M | $115.3M | -5.1% | $118.4M | -7.6% |
| Operating income (loss) | -$34.3M | -$40.6M | +15.4% | -$42.6M | +19.4% |
| Operating margin | -24.4% | -29.6% | +5.2 pp | -30.9% | +6.5 pp |
| Net income (loss) | -$32.9M | -$38.0M | +13.5% | -$23.4M | -40.6% |
| Net margin | -23.4% | -27.7% | +4.3 pp | -17.0% | -6.4 pp |
| Diluted EPS | -$0.24 | -$0.27 | +$0.03 | -$0.18 | -$0.06 |
Risks
TikTok was one of Fastly's largest customers for the year ended December 31, 2024 and remains a customer, while U.S. legislation could effectively ban TikTok unless ByteDance divests and a January 20, 2025 executive order delayed enforcement for 75 days. The 10 largest customers generated 33% of revenue in the trailing 12 months ended December 31, 2024, down from 37% in 2023, but loss of or reduced usage by TikTok could reduce revenue.
Last-twelve Months Net Retention Rate declined to 102.3% for the trailing twelve months ended December 31, 2024 from 113.4% for 2023, and total customer count fell to 3,061 from 3,243 as of December 31, 2023. MD&A notes usage-based revenue and largest customers can create volatility.
Revenue growth slowed to 2.0% in FY2024 Q4 versus the prior-year quarter and 7.4% year to date, while deferred revenue declined 22.5% in the current quarter versus the prior-year quarter. MD&A states the majority of revenue is usage based and changes in usage by largest customers can create volatility.
The remaining 2026 Notes with $188.6 million principal mature March 15, 2026, and $150.0 million of 2028 Notes mature June 1, 2028; if the stock price is below the conversion price, holders likely will not convert and Fastly must repay in cash. Total debt obligation was $338.6 million as of December 31, 2024.
Net loss widened to $158.1 million for FY2024 from $133.1 million for FY2023, and Q4 net loss widened 40.6% to $32.9 million, even as operating loss narrowed. Accumulated deficit was $992.8 million.
Fastly faces pricing pressure and competition from Akamai, Cloudflare, AWS, Google Cloud, Microsoft Azure, and others, and some customers pursue do-it-yourself CDNs or multi-vendor policies. MD&A notes competition for sales personnel and the need to differentiate the platform.
Gross margin declined 1.6 percentage points to 53.4% in FY2024 Q4 versus the prior-year quarter, though it rose 1.8 percentage points year to date. MD&A notes bandwidth costs are higher outside the U.S. and Europe and network investments can pressure gross margins.
Fastly initiated a restructuring plan in 2024 to reduce expenses including a workforce reduction, incurring $9.7 million in severance and termination benefits. This may disrupt operations and affect the ability to retain sales and technical talent.
Fastly and certain officers are defendants in a putative securities class action filed May 24, 2024, with an amended complaint filed November 1, 2024, and related stockholder derivative actions; defendants filed a motion to dismiss on January 15, 2025. Defense is costly and diverts management attention.
Fastly has experienced DDoS attacks of significant size and severity and phishing and social engineering schemes, and its multi-tenant architecture means an attack on one customer could affect others. It also relies on third-party data centers and network providers.
Evolving data localization and cross-border data transfer laws create uncertainty for customers in Europe and elsewhere, which could impact customer growth and acquisition. MD&A highlights this as a factor affecting performance.
Fastly relies on a limited number of suppliers for server components, and component delays, shortages, or price increases could interrupt server construction and capacity expansion. In 2024 it recognized $4.1 million in equipment, internal-use software, and right-of-use asset write-offs.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Total Customer Count
Non-GAAP Operating Loss
Remaining Performance Obligations (RPO)
Enterprise Customer Revenue %
Adjusted EBITDA
Top Ten Customer Revenue %
Annual Revenue Retention Rate (ARR)
Enterprise Customer Count (>$100K ARR)
Summary, forecast, risks and KPIs are extracted from Fastly, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.