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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2024 
FASTLY, INC.
(Exact name of Registrant as Specified in Its Charter)
 
Delaware001-3889727-5411834
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)

475 Brannan Street, Suite 300
San Francisco, CA 94107
(Address of principal executive offices) (Zip code)
(844) 432-7859
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report) 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading
Symbol(s)
 Name of each exchange
on which registered
Class A Common Stock, $0.00002 par value “FSLY” New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐







Item 2.02                   Results of Operations and Financial Condition.

On November 6, 2024, Fastly, Inc. (the "Company") announced its financial results for the quarter ended September 30, 2024 by issuing a press release. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Attached hereto as Exhibit 99.2 and incorporated by reference herein is the Company’s investor supplement, regarding results of the quarter ended September 30, 2024 (the “Investor Supplement”). The Investor Supplement will be posted to http://investors.fastly.com immediately after the filing of this Form 8-K.

The information furnished on this Form 8-K, including the exhibits attached, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.



Item 9.01                   Financial Statements and Exhibits.
 
(d)Exhibits
 





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
FASTLY, INC.
Dated:November 6, 2024 By: /s/ Ronald W. Kisling
   Ronald W. Kisling
   Chief Financial Officer



Exhibit 99.1
Fastly Announces Third Quarter 2024 Financial Results

Reports GAAP loss of $38.0 million and record non-GAAP income of $2.4 million
Delivers record adjusted EBITDA of $13.3 million

SAN FRANCISCO — November 6, 2024 — Fastly, Inc. (NYSE: FSLY), a leader in global edge cloud platforms, today announced financial results for its third quarter ended September 30, 2024.
“Fastly delivered significant upside on our revenue guidance in Q3 along with record non-GAAP net income and adjusted EBITDA,” said Todd Nightingale, CEO of Fastly. “This was driven by better-than-expected strength in some of our largest customers, continued share gains outside of our top ten customers, and faster-than-projected execution of our restructuring.”

“Our transformation initiatives are helping us focus on the broader market with revenue outside of our ten largest customers growing 20% year-over-year,” continued Nightingale. “This diversification of our revenue base will drive more reliable, predictable long-term growth, enabling us to invest in continued edge cloud innovation and go-to-market reach.”

Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Revenue$137,206 $127,816 $403,097 $368,211 
Gross margin
GAAP gross margin54.5 %51.7 %54.8 %51.8 %
Non-GAAP gross margin57.7 %55.9 %58.3 %56.0 %
Operating loss
GAAP operating loss$(40,590)$(58,342)$(133,584)$(155,444)
Non-GAAP operating loss$(520)$(12,552)$(22,857)$(34,411)
Net income (loss) per share
GAAP net loss per common share — basic and diluted$(0.27)$(0.42)$(0.91)$(0.86)
Non-GAAP net income (loss) per common share — basic and diluted
$0.02 $(0.06)$(0.10)$(0.18)
For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this press release.
Third Quarter 2024 Financial Summary
Total revenue of $137.2 million, representing 7% year-over-year growth. Network services revenue of $107.4 million, representing 5% year-over-year growth. Security revenue of $26.2 million, representing 12% year-over-year growth. Other revenue of $3.6 million, representing 85% year-over-year growth. Network services revenue includes solutions designed to improve performance of websites, apps, APIs, and digital media. Security revenue includes products designed to protect websites, apps, APIs, and users. Other revenue includes Compute and Observability solutions.
GAAP gross margin of 54.5%, compared to 51.7% in the third quarter of 2023. Non-GAAP gross margin of 57.7%, compared to 55.9% in the third quarter of 2023.
GAAP net loss of $38.0 million, compared to $54.3 million in the third quarter of 2023. Non-GAAP net income of $2.4 million, compared to non-GAAP net loss of $8.0 million in the third quarter of 2023.
GAAP net loss per basic and diluted share of $0.27, compared to $0.42 in the third quarter of 2023. Non-GAAP net income per diluted share of $0.02, compared to non-GAAP net loss per basic and diluted share of $0.06 in the third quarter of 2023.
Key Metrics
Enterprise customer1 count was 576 in the third quarter, down 25 from the second quarter of 2024. Total customer count1 was 3,638 in the third quarter, up 343 from the second quarter of 2024.





Fastly's top ten customers accounted for 33% of revenue in the third quarter compared to 40% in the third quarter of 2023. Revenue from the top ten customers declined 11% year-over-year compared to revenue growth of 20% year-over-year from customers outside the top ten.
Last 12-month net retention rate (LTM NRR)2 decreased to 105% in the third quarter from 110% in the second quarter of 2024.
Remaining performance obligations (RPO)3 were $235 million, up 6% from $223 million in the second quarter of 2024.
Third Quarter Business and Product Highlights
Fastly Threat Insights Report revealed 91% of cyberattacks now target multiple organizations using mass scanning.
Fastly’s “Bots Wars: How Bad Bots are Hurting Businesses” research revealed 59% of organizations reported an increase in bot attacks over the past year, with significant attacks costing organizations $2.9 million on average.
Hosted Xcelerate Sydney, a curated customer event bringing together thought leaders and industry pioneers for a jam-packed day of innovation.
Enhanced Fastly Next-Gen WAF with new capabilities that reduced the time to activate the product, enriched detection signals, and provided additional context to data with Country and IP Corp/Site lists.
Updated Fastly Bot Management with new bot analysis capability to provide customers with visibility and control of their bot management expenses, while also enabling customers to provide logos for bot challenges.
Enhanced the Fastly trials experience with access to combined trials for full product lines, helping customers discover new tools and unlock the full value of the Fastly Edge Cloud Platform.
Added the Fastly Support Portal to the Fastly single sign-on experience, allowing customers to seamlessly navigate across the Fastly Control Panel, Next-Gen WAF Console and Support Portal.

Fourth Quarter and Full Year 2024 Guidance

Q4 2024Full Year 2024
Total Revenue (millions)$136.0 - $140.0$539.0 - $543.0
Non-GAAP Operating Loss (millions)($5.0) - ($1.0)($28.0) - ($24.0)
Non-GAAP Net Income (Loss) per share (4)(5)
($0.02) - $0.02($0.12) - ($0.08)
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Fastly’s future GAAP financial results.
Conference Call Information

Fastly will host an investor conference call to discuss its results at 1:30 p.m. PT / 4:30 p.m. ET on Wednesday, November 6, 2024.

Date: Wednesday, November 6, 2024
Time: 1:30 p.m. PT / 4:30 p.m. ET
Webcast: https://investors.fastly.com
Dial-in: 888-330-2022 (US/CA) or 646-960-0690 (Intl.)
Conf. ID#: 7543239

Please dial in at least 10 minutes prior to the 1:30 p.m. PT start time. A live webcast of the call will be available at https://investors.fastly.com where listeners may log on to the event by selecting the webcast link under the “Quarterly Results” section.

A telephone replay of the conference call will be available at approximately 5:00 p.m. PT, November 6 through November 20, 2024 by dialing 800-770-2030 or 647-362-9199 and entering the passcode 7543239.





About Fastly, Inc.
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Neiman Marcus, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.

Forward-Looking Statements

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, our operating performance, our ability to innovate, the success of our products and product enhancements, investment in continued edge cloud innovation, the capabilities of Fastly Next-Gen WAF, the capabilities of Fastly Bot Management, expectations regarding customer experiences with the Fastly trials experience and Support Portal, our customer acquisition and go-to-market efforts, our ability to monetize, expectations regarding customer mix and diversification of our revenue base, and our ability to deliver on our long-term strategy. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2023, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (GAAP), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss) and non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of acquired intangible assets, net gain on extinguishment of debt, impairment expense and amortization of debt discount and issuance costs.

Adjusted EBITDA: excludes stock-based compensation expense, depreciation and other amortization expenses, amortization of acquired intangible assets, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, impairment expense, other income (expense), net, and income taxes.

Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can





be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.

Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash and non-cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs and advance payments made related to capital expenditures. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Impairment Expense: consists of charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.





Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-Based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because it is a non-cash expense not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this press release.
Key Metrics
1 Our number of customers is calculated based on the number of separate identifiable operating entities with which we have a billing relationship in good standing, from which we recognized revenue during the current quarter. Our enterprise customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
2 We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
3 Remaining performance obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied.
4 Non-GAAP Net Income (Loss) per share is calculated as Non-GAAP Net Income (Loss) divided by weighted average basic shares for 2024.
5 Assumes weighted average basic shares outstanding of 141.0 million in Q4 2024 and 137.5 million for the full year 2024.





Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Revenue$137,206 $127,816 $403,097 $368,211 
Cost of revenue(1)
62,466 61,730 182,222 177,657 
Gross profit74,740 66,086 220,875 190,554 
Operating expenses:
Research and development(1)
31,884 39,068 105,238 113,920 
Sales and marketing(1)
45,994 51,043 148,560 143,111 
General and administrative(1)
27,173 30,001 87,245 84,651 
Impairment expense559 4,316 3,696 4,316 
Restructuring charges9,720 — 9,720 — 
Total operating expenses115,330 124,428 354,459 345,998 
Loss from operations(40,590)(58,342)(133,584)(155,444)
Net gain on extinguishment of debt— — — 36,760 
Interest income3,819 4,908 11,604 13,602 
Interest expense(473)(862)(1,516)(3,307)
Other expense, net(317)(16)(213)(1,069)
Loss before income tax expense(37,561)(54,312)(123,709)(109,458)
Income tax expense (benefit)455 (1)1,463 244 
Net loss$(38,016)$(54,311)$(125,172)$(109,702)
Net loss per share attributable to common stockholders, basic and diluted$(0.27)$(0.42)$(0.91)$(0.86)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted139,237 129,873 137,097 127,735 
__________
(1)Includes stock-based compensation expense as follows:
Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Cost of revenue$1,911 $2,860 $6,734 $8,378 
Research and development7,378 12,122 25,684 35,808 
Sales and marketing7,113 9,061 22,014 25,643 
General and administrative8,614 11,670 28,553 31,027 
Total$25,016 $35,713 $82,985 $100,856 








Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Gross profit
GAAP gross profit$74,740 $66,086 $220,875 $190,554 
Stock-based compensation1,911 2,860 6,734 8,378 
Amortization of acquired intangible assets2,475 2,475 7,425 7,425 
Non-GAAP gross profit$79,126 $71,421 $235,034 $206,357 
GAAP gross margin54.5 %51.7 %54.8 %51.8 %
Non-GAAP gross margin57.7 %55.9 %58.3 %56.0 %
Research and development
GAAP research and development$31,884 $39,068 $105,238 $113,920 
Stock-based compensation(7,378)(10,426)(25,684)(34,112)
Executive transition costs— (2,406)— (2,406)
Non-GAAP research and development$24,506 $26,236 $79,554 $77,402 
Sales and marketing
GAAP sales and marketing$45,994 $51,043 $148,560 $143,111 
Stock-based compensation(7,113)(9,061)(22,014)(25,643)
Amortization of acquired intangible assets(2,300)(2,576)(6,901)(7,726)
Non-GAAP sales and marketing$36,581 $39,406 $119,645 $109,742 
General and administrative
GAAP general and administrative$27,173 $30,001 $87,245 $84,651 
Stock-based compensation(8,614)(11,670)(28,553)(31,027)
Non-GAAP general and administrative$18,559 $18,331 $58,692 $53,624 
Operating loss
GAAP operating loss$(40,590)$(58,342)$(133,584)$(155,444)
Stock-based compensation25,016 34,017 82,985 99,160 
Restructuring charges9,720 — 9,720 — 
Executive transition costs— 2,406 — 2,406 
Amortization of acquired intangible assets4,775 5,051 14,326 15,151 
Impairment expense559 4,316 3,696 4,316 
Non-GAAP operating loss$(520)$(12,552)$(22,857)$(34,411)
Net loss
GAAP net loss$(38,016)$(54,311)$(125,172)$(109,702)
Stock-based compensation25,016 34,017 82,985 99,160 
Restructuring charges9,720 — 9,720 — 
Executive transition costs— 2,406 — 2,406 
Amortization of acquired intangible assets4,775 5,051 14,326 15,151 
Net gain on extinguishment of debt— — — (36,760)
Impairment expense559 4,316 3,696 4,316 
Amortization of debt discount and issuance costs358 502 1,061 2,021 
Non-GAAP net income (loss)$2,412 $(8,019)$(13,384)$(23,408)
Non-GAAP net income (loss) per common share — basic and diluted$0.02 $(0.06)$(0.10)$(0.18)
Weighted average basic common shares139,237 129,873 137,097 127,735 
Weighted average diluted common shares143,415 129,873 137,097 127,735 







Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, unaudited) (continued)
Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Reconciliation of GAAP to Non-GAAP diluted shares
GAAP diluted shares
139,237 129,873 137,097 127,735 
Other dilutive equity awards
4,178 — — — 
Non-GAAP diluted shares
143,415 129,873 137,097 127,735 
Non-GAAP diluted net income (loss) per share
$0.02 $(0.06)$(0.10)$(0.18)

Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Adjusted EBITDA
GAAP net loss$(38,016)$(54,311)$(125,172)$(109,702)
Stock-based compensation25,016 34,017 82,985 99,160 
Restructuring charges9,720 — 9,720 — 
Executive transition costs— 2,406 — 2,406 
Net gain on extinguishment of debt— — — (36,760)
Impairment expense559 4,316 3,696 4,316 
Depreciation and other amortization13,781 13,202 40,624 38,412 
Amortization of acquired intangible assets4,775 5,051 14,326 15,151 
Amortization of debt discount and issuance costs358 502 1,061 2,021 
Interest income(3,819)(4,908)(11,604)(13,602)
Interest expense115 360 455 1,286 
Other expense, net317 16 213 1,069 
Income tax expense (benefit)455 (1)1,463 244 
Adjusted EBITDA$13,261 $650 $17,767 $4,001 





Condensed Consolidated Balance Sheets
(in thousands, unaudited)
As of
September 30, 2024
As of
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$217,514 $107,921 
Marketable securities, current90,733 214,799 
Accounts receivable, net of allowance for credit losses116,800 120,498 
Prepaid expenses and other current assets28,011 20,455 
Total current assets453,058 463,673 
Property and equipment, net180,288 176,608 
Operating lease right-of-use assets, net47,700 55,212 
Goodwill670,356 670,356 
Intangible assets, net47,776 62,475 
Marketable securities, non-current— 6,088 
Other assets72,576 90,779 
Total assets$1,471,754 $1,525,191 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$11,354 $5,611 
Accrued expenses40,854 61,818 
Finance lease liabilities, current4,882 15,684 
Operating lease liabilities, current23,857 24,042 
Other current liabilities33,261 40,539 
Total current liabilities114,208 147,694 
Long-term debt344,498 343,507 
Finance lease liabilities, non-current— 1,602 
Operating lease liabilities, non-current40,565 48,484 
Other long-term liabilities3,029 4,416 
Total liabilities502,300 545,703 
Stockholders’ equity:
Common stock
Additional paid-in capital1,929,397 1,815,245 
Accumulated other comprehensive loss(22)(1,008)
Accumulated deficit(959,924)(834,752)
Total stockholders’ equity969,454 979,488 
Total liabilities and stockholders’ equity$1,471,754 $1,525,191 








Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Cash flows from operating activities:
Net loss$(38,016)$(54,311)$(125,172)$(109,702)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense13,656 13,055 40,251 38,015 
Amortization of intangible assets4,900 5,175 14,699 15,525 
Non-cash lease expense5,463 5,464 16,819 17,227 
Amortization of debt discount and issuance costs358 501 1,061 2,020 
Amortization of deferred contract costs4,773 4,082 13,877 11,253 
Stock-based compensation25,016 35,713 82,985 100,856 
Deferred income taxes339 — 900 — 
Provision for credit losses1,054 211 2,400 1,311 
(Gain) loss on disposals of property and equipment— (42)444 505 
Amortization of premiums (discounts) on investments(1,064)(403)(3,466)344 
Impairment of operating lease right-of-use assets371 401 371 588 
Impairment expense559 4,316 3,696 4,316 
Net gain on extinguishment of debt— — — (36,760)
Other adjustments520 71 83 (257)
Changes in operating assets and liabilities:
Accounts receivable(3,976)(20,538)1,298 (10,355)
Prepaid expenses and other current assets(2,589)5,019 (7,420)4,602 
Other assets(2,705)(4,286)(7,729)(16,269)
Accounts payable4,754 314 4,514 1,258 
Accrued expenses2,707 340 (4,142)(6,253)
Operating lease liabilities(7,329)(4,505)(19,341)(16,937)
Other liabilities(3,789)1,033 (4,942)6,452 
Net cash provided by (used in) operating activities5,002 (8,390)11,186 7,739 
Cash flows from investing activities:
Purchases of marketable securities(37,902)(73,091)(155,099)(73,091)
Sales of marketable securities— — 775 
Maturities of marketable securities113,032 86,030 289,709 428,125 
Advance payment for purchase of property and equipment— — (790)— 
Purchases of property and equipment(1,996)(325)(5,361)(8,283)
Proceeds from sale of property and equipment— 13 24 49 
Capitalized internal-use software(6,818)(4,951)(20,492)(15,390)
Net cash provided by investing activities66,316 7,677 107,991 332,185 
Cash flows from financing activities:
Cash paid for debt extinguishment— — — (196,934)
Repayments of finance lease liabilities(3,296)(6,041)(12,404)(21,243)
Payment of deferred consideration for business acquisitions— — (3,771)(4,393)
Proceeds from exercise of vested stock options19 1,137 310 2,008 
Proceeds from employee stock purchase plan2,168 2,222 6,083 7,009 
Net cash used in financing activities(1,109)(2,682)(9,782)(213,553)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash109 (47)48 538 
Net increase (decrease) in cash, cash equivalents, and restricted cash70,318 (3,442)109,443 126,909 
Cash, cash equivalents, and restricted cash at beginning of period147,196 273,892 108,071 143,541 
Cash, cash equivalents, and restricted cash at end of period217,514 270,450 217,514 270,450 
Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows:
Cash and cash equivalents217,514 270,300 217,514 270,300 
Restricted cash, current— 150 — 150 
Total cash, cash equivalents, and restricted cash$217,514 $270,450 $217,514 $270,450 











Free Cash Flow
(in thousands, unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2024202320242023
Net cash provided by (used in) operating activities$5,002 $(8,390)$11,186 $7,739 
Capital expenditures(1)
(12,110)(11,304)(38,233)(44,867)
Advance payment for purchase of property and equipment(2)
— — (790)— 
Free Cash Flow$(7,108)$(19,694)$(27,837)$(37,128)
__________
(1)Capital expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
(2)In the nine months ended September 30, 2024, we received $11.9 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.


Contacts
Investor Contact
Vernon Essi, Jr.
ir@fastly.com

Media Contact
Spring Harris
press@fastly.com

Source: Fastly, Inc.

fastlylogo-redxjpega.jpg                                                  Exhibit 99.2

Third Quarter 2024 Investor Supplement
Product Innovation and Developments
Enhanced Fastly Next-Gen WAF with new capabilities that reduced the time to activate the product, enriched detection signals, and provided additional context to data with Country and IP Corp/Site lists.
Updated Fastly Bot Management with new bot analysis capability to provide customers with visibility and control of their bot management expenses, while also enabling customers to provide logos for bot challenges.
Enhanced the Fastly trials experience with access to combined trials for full product lines, helping customers discover new tools and unlock the full value of the Fastly Edge Cloud Platform.
Added the Fastly Support Portal to the Fastly single sign-on experience, allowing customers to seamlessly navigate across the Fastly Control Panel, Next-Gen WAF Console and Support Portal.
Customer and Partner Highlights
Product package deals in the third quarter more than doubled year-over-year, and new logo packages tripled, representing 43% of packages sold compared to 16% in the third quarter of 2023.
New deal registrations grew 33% year-over-year in the third quarter, and year-to-date bookings grew 46% year-over-year.
Cineverse, an entertainment company encompassing digital cinema, streaming channels, content marketing, and distribution, selected Fastly’s Media Video Delivery offering.
Connected Television Group, a video distribution solutions and services provider, selected Fastly’s CDN and Support services.

Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Revenue by Product (in millions):
Network Services Revenue$96.8$94.3$98.5$102.5$109.8$106.0$104.2$107.4
Security Revenue$20.7$21.2$22.5$23.3$25.8$24.6$25.4$26.2
Other Revenue$1.8$2.0$1.8$1.9$2.2$2.9$2.8$3.6
Total Revenue
$119.3$117.6$122.8$127.8$137.8$133.5$132.4$137.2
Key Metrics:
Enterprise Customer Count(1)
533 540 551 547 578 577 601 576 
Enterprise Customer Revenue %92 %91 %92 %92 %92 %91 %91 %92 %
Total Customer Count(1)
3,062 3,100 3,072 3,102 3,243 3,290 3,295 3,638 
Top Ten Customer Revenue %37 %35 %37 %40 %40 %38 %34 %33 %
LTM Net Retention Rate (NRR)(2)
119 %116 %116 %114 %113 %114 %110 %105 %
Annual Revenue Retention Rate (ARR)(7)
98.9 %— %— %— %99.2 %— %— %— %
Remaining Performance Obligation (RPO)(3)
$198.3$242.4$230.9$247.6$235.7$227.0$223.1$235.4


Corporate Highlights
Fastly Threat Insights Report revealed 91% of cyberattacks now target multiple organizations using mass scanning.
Fastly’s “Bots Wars: How Bad Bots are Hurting Businesses” research revealed 59% of organizations reported an increase in bot attacks over the past year, with significant attacks costing organizations $2.9 million on average.
Hosted Xcelerate Sydney, a curated customer event bringing together thought leaders and industry pioneers for a jam-packed day of innovation.
Key Metrics Highlights
Enterprise customer1 count was 576 in the third quarter, down 25 from the second quarter of 2024. Total customer count1 was 3,638 in the third quarter, up 343 from the second quarter of 2024.
Fastly's top ten customers accounted for 33% of revenue in the third quarter compared to 40% in the third quarter of 2023. Revenue from the top ten customers declined 11% year-over-year compared to revenue growth of 20% year-over-year from customers outside the top ten.
Last 12-month net retention rate (LTM NRR)2 decreased to 105% in the third quarter from 110% in the second quarter of 2024.
Remaining performance obligations (RPO)3 were $235 million, up 6% from $223 million in the second quarter of 2024.
Fourth Quarter and Full Year 2024 Guidance
Q4 2024Full Year 2024
Total Revenue (millions)$136.0 - $140.0$539.0 - $543.0
Non-GAAP Operating Loss (millions)(4)
($5.0) - ($1.0)($28.0) - ($24.0)
Non-GAAP Net Income (Loss) per share (5)(6)
($0.02) - $0.02($0.12) - ($0.08)



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Key Metrics
1.Our number of customers is calculated based on the number of separate identifiable operating entities with which we have a billing relationship in good standing, from which we recognized revenue during the current quarter. Our enterprise customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
2.We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
3.Remaining performance obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied.
4.For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement.
5.Assumes weighted average basic shares outstanding of 141.0 million in Q4 2024 and 137.5 million for the full year 2024.
6.Non-GAAP Net Income (Loss) per share is calculated as Non-GAAP Net Income (Loss) divided by weighted average basic shares for 2024.
7.Annual revenue retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from 100%. Our “Annual Revenue Churn” is calculated by multiplying the final full month of revenue from a customer that terminated its contract with us (a “Churned Customer”) by the number of months remaining in the same calendar year.








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Forward-Looking Statements

This investor supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Fastly's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue," “would,” or the negative of these words or other similar terms or expressions that concern Fastly's expectations, goals, strategy, priorities, plans, projections, or intentions. Forward-looking statements in this investor supplement include, but are not limited to, statements regarding Fastly’s future financial and operating performance, including its outlook and guidance; the performance of our existing and new products and product enhancements; the capabilities of Fastly Next-Gen WAF and Fastly Bot Management; expectations regarding customer experiences with the Fastly trials experience and Support Portal; expectations regarding customer mix; and Fastly's strategies, product and business plans. Fastly's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: Fastly is unable to attract and retain customers; Fastly's existing customers and partners do not maintain or increase usage of Fastly's platform; Fastly's platform and product features do not meet expectations, including due to defects, interruptions, security breaches, delays in performance or other similar problems; Fastly is unable to adapt to meet evolving market and customer demands and rapid technological change; Fastly is unable to comply with modified or new industry standards, laws and regulations; Fastly is unable to generate sufficient revenues to achieve or sustain profitability; Fastly’s limited operating history makes it difficult to evaluate its prospects and future operating results; Fastly is unable to effectively manage its growth; and Fastly is unable to compete effectively. The forward-looking statements contained in this investor supplement are also subject to other risks and uncertainties, including those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2023, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and other filings and reports that Fastly may file from time to time with the SEC. The forward-looking statements in this investor supplement are based on information available to Fastly as of the date hereof, and Fastly disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss), non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, executive transition costs, net gain on extinguishment of debt, impairment expense and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense, depreciation and other amortization expenses, amortization of acquired intangible assets, acquisition-related expenses, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, impairment expense, other income (expense), net, and income taxes.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net


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income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash and non-cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs and advance payments made related to capital expenditures. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Impairment Expense: consists of charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-Based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Although


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stock-based compensation is an expense for the Company and is viewed as a form of compensation, management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because it is a non-cash expense not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this investor supplement.



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Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share amounts)

Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Revenue$119,321 $117,564 $122,831 $127,816 $137,777 $133,520 $132,371 $137,206 
Cost of revenue(1)
56,738 57,310 58,617 61,730 62,003 60,286 59,470 62,466 
Gross profit62,583 60,254 64,214 66,086 75,774 73,234 72,901 74,740 
Operating expenses:
Research and development(1)
37,197 37,431 37,421 39,068 38,270 38,248 35,106 31,884 
Sales and marketing(1)
44,623 44,271 47,797 51,043 48,662 49,607 52,959 45,994 
General and administrative (1)
29,225 25,827 28,823 30,001 31,426 31,639 28,433 27,173 
Impairment expense— — — 4,316 — — 3,137 559 
Restructuring charges
— — — — — — — 9,720 
Total operating expenses111,045 107,529 114,041 124,428 118,358 119,494 119,635 115,330 
Loss from operations(48,462)(47,275)(49,827)(58,342)(42,584)(46,260)(46,734)(40,590)
Net gain on extinguishment of debt— — 36,760 — 15,656 — — — 
Interest income2,894 4,186 4,508 4,908 4,584 3,848 3,937 3,819 
Interest expense(1,354)(1,213)(1,232)(862)(744)(579)(464)(473)
Other income (expense), net
46 (250)(803)(16)(763)(89)193 (317)
Loss before income taxes(46,876)(44,552)(10,594)(54,312)(23,851)(43,080)(43,068)(37,561)
Income tax expense (benefit)(223)135 110 (1)(465)347 661 455 
Net loss$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)
Net loss per share attributable to common stockholders, basic and diluted$(0.38)$(0.36)$(0.08)$(0.42)$(0.18)$(0.32)$(0.32)$(0.27)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted123,587 125,418 127,863 129,873 131,843 134,587 137,444 139,237 
__________
(1)Includes stock-based compensation expense as follows:
Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Cost of revenue$2,938 $2,681 $2,837 $2,860 $3,278 $2,779 $2,044 $1,911 
Research and development11,469 11,481 12,205 12,122 12,019 10,323 7,983 7,378 
Sales and marketing7,885 6,705 9,877 9,061 8,060 7,843 7,058 7,113 
General and administrative9,126 7,284 12,073 11,670 12,090 10,876 9,063 8,614 
Total$31,418 $28,151 $36,992 $35,713 $35,447 $31,821 $26,148 $25,016 











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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
(unaudited, in thousands, except per share amounts)

Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Gross Profit
GAAP gross Profit$62,583 $60,254 $64,214 $66,086 $75,774 $73,234 $72,901 $74,740 
Stock-based compensation2,938 2,681 2,837 2,860 3,278 2,779 2,044 1,911 
Amortization of acquired intangible assets2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 
Non-GAAP gross profit67,996 65,410 69,526 71,421 81,527 78,488 77,420 79,126 
GAAP gross margin52.4 %51.3 %52.3 %51.7 %55.0 %54.8 %55.1 %54.5 %
Non-GAAP gross margin57.0 %55.6 %56.6 %55.9 %59.2 %58.8 %58.5 %57.7 %
Research and development
GAAP research and development37,197 37,431 37,421 39,068 38,270 38,248 35,106 31,884 
Stock-based compensation(11,469)(11,481)(12,205)(10,426)(11,728)(10,323)(7,983)(7,378)
Executive transition costs— — — (2,406)(385)— — — 
Non-GAAP research and development25,728 25,950 25,216 26,236 26,157 27,925 27,123 24,506 
Sales and marketing
GAAP sales and marketing44,623 44,271 47,797 51,043 48,662 49,607 52,959 45,994 
Stock-based compensation(7,885)(6,705)(9,877)(9,061)(8,060)(7,843)(7,058)(7,113)
Amortization of acquired intangible assets(2,575)(2,575)(2,575)(2,576)(2,300)(2,300)(2,301)(2,300)
Non-GAAP sales and marketing34,163 34,991 35,345 39,406 38,302 39,464 43,600 36,581 
General and administrative
GAAP general and administrative29,225 25,827 28,823 30,001 31,426 31,639 28,433 27,173 
Stock-based compensation(9,126)(7,284)(12,073)(11,670)(12,090)(10,876)(9,063)(8,614)
Non-GAAP general and administrative20,099 18,543 16,750 18,331 19,336 20,763 19,370 18,559 
Operating loss
GAAP operating loss(48,462)(47,275)(49,827)(58,342)(42,584)(46,260)(46,734)(40,590)
Stock-based compensation31,418 28,151 36,992 34,017 35,156 31,821 26,148 25,016 
Restructuring charges
— — — — — — — 9,720 
Executive transition costs— — — 2,406 385 — — — 
Amortization of acquired intangible assets5,050 5,050 5,050 5,051 4,775 4,775 4,776 4,775 
Impairment expense
— — — 4,316 — — 3,137 559 
Non-GAAP operating loss(11,994)(14,074)(7,785)(12,552)(2,268)(9,664)(12,673)(520)
Net loss
GAAP net loss(46,653)(44,687)(10,704)(54,311)(23,386)(43,427)(43,729)(38,016)
Stock-based compensation31,418 28,151 36,992 34,017 35,156 31,821 26,148 25,016 
Restructuring charges
— — — — — — — 9,720 
Executive transition costs— — — 2,406 385 — — — 
Amortization of acquired intangible assets5,050 5,050 5,050 5,051 4,775 4,775 4,776 4,775 
Net gain on extinguishment of debt — — (36,760)— (15,656)— — — 
Impairment expense— — — 4,316 — — 3,137 559 
Amortization of debt issuance costs716 716 803 502 456 354 349 358 
Non-GAAP net income (loss)
$(9,469)$(10,770)$(4,619)$(8,019)$1,730 $(6,477)$(9,319)$2,412 
GAAP net loss per common share — basic and diluted
$(0.38)$(0.36)$(0.08)$(0.42)$(0.18)$(0.32)$(0.32)$(0.27)
Non-GAAP net income (loss) per common share — basic and diluted
$(0.08)$(0.09)$(0.04)$(0.06)$0.01 $(0.05)$(0.07)$0.02 
Weighted average basic common shares123,587 125,418 127,863 129,873 131,843 134,587 137,444 139,237 
Weighted average diluted common shares
123,587 125,418 127,863 129,873 141,162 134,587 137,444 143,415 



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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
(unaudited, in thousands, except per share amounts)

Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares123,587 125,418 127,863 129,873 131,843 134,587 137,444 139,237 
Other dilutive equity awards— — — — 9,319 — — 4,178 
Non-GAAP diluted shares123,587 125,418 127,863 129,873 141,162 134,587 137,444 143,415 
Non-GAAP diluted net income (loss) per share
(0.08)(0.09)(0.04)(0.06)0.01 (0.05)(0.07)0.02 

Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Adjusted EBITDA
GAAP net loss$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)
Stock-based compensation31,418 28,151 36,992 34,017 35,156 31,821 26,148 25,016 
Depreciation and other amortization11,903 12,179 13,030 13,202 13,727 13,400 13,443 13,781 
Amortization of acquired intangible assets5,050 5,050 5,050 5,051 4,775 4,775 4,776 4,775 
Amortization of debt discount and issuance costs716 716 803 502 456 354 349 358 
Restructuring charges
— — — — — — — 9,720 
Executive transition costs— — — 2,406 385 — — — 
Net gain on extinguishment of debt— — (36,760)— (15,656)— — — 
Impairment expense
— — — 4,316 — — 3,137 559 
Interest income(2,894)(4,186)(4,508)(4,908)(4,584)(3,848)(3,937)(3,819)
Interest expense638 497 429 360 288 225 115 115 
Other (income) expense, net(46)250 803 16 763 89 (193)317 
Income tax (benefit) expense(223)135 110 (1)(465)347 661 455 
Adjusted EBITDA$(91)$(1,895)$5,245 $650 $11,459 $3,736 $770 $13,261 



























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Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Revenue$119,321 $117,564 $122,831 $127,816 $137,777 $133,520 $132,371 $137,206 
Cost of revenue (1)(2)
51,325 52,154 53,305 56,395 56,250 55,032 54,951 58,080 
Gross profit (1)(2)
67,996 65,410 69,526 71,421 81,527 78,488 77,420 79,126 
Operating expenses:
Research and development(1)(3)
25,728 25,950 25,216