Fastly, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Fastly generated revenue of $137.2 million, a 7% increase from $127.8 million in the same period of 2023. For the nine months, revenue rose 9% to $403.1 million from $368.2 million. The growth was driven by increased demand for Network Services and Security products, which saw respective revenue increases of 5% and 12% for the quarter. Gross profit for the quarter was $74.7 million, up 13% from $66.1 million, resulting in a gross margin of 54%, compared to 52% in the prior year.

Despite the revenue growth, Fastly reported a net loss of $38.0 million for Q3 2024, an improvement from a net loss of $54.3 million in Q3 2023. However, the net loss for the nine months increased to $125.2 million from $109.7 million year-over-year. The company’s accumulated deficit grew to $(959.9 million) as of September 30, 2024, from $(834.8 million) at the end of 2023.

Fastly's total current assets decreased slightly to $453.1 million from $463.7 million at the end of 2023, while total assets fell to $1.471 billion from $1.525 billion. Cash and cash equivalents increased significantly to $217.5 million from $107.9 million, reflecting improved liquidity.

The company undertook restructuring efforts, incurring charges of $9.7 million primarily for employee-related severance and termination benefits. This restructuring is part of a broader strategy to reduce expenses and improve operational efficiency. Research and development expenses as a percentage of revenue decreased to 23% in Q3 2024 from 31% in Q3 2023, indicating a focus on cost management.

Fastly's customer base expanded to 3,638 as of September 30, 2024, up from 3,102 a year earlier, with enterprise customers generating 92% of total annualized current quarter revenue. The company aims to enhance its market presence and customer retention through increased investments in sales and marketing, despite facing challenges such as geopolitical risks and potential customer attrition.

Overall, Fastly's financial performance reflects a mix of growth in revenue and customer base, alongside ongoing challenges in profitability and strategic adjustments to enhance operational efficiency.