Edge cloud platform provider Fastly Inc. reported record quarterly revenue in its fiscal first quarter of 2023, driven by strong customer growth.
For the quarter that ended March 31, Fastly reported a non-generally accepted accounting principles loss of $14 million or nine cents per share, down from a loss of $17.74 million or 15 cents per share in the first quarter of 2022. Revenue came in at $117.6 million, up 15% year-over-year and a new record for Fastly.
Both figures were beats, with analysts polled by Zacks Investment Research having expected an earnings per share loss of 10 cents on revenue of $116.2 million.
More customers equal more revenue, and Fastly saw its total customer count hit 3,100 in the first quarter, up 38 from the fourth quarter of 2022. Enterprise customers grew to 540, up seven from the previous quarter.
While the headline figures were positive, Fastly did see some of its key stats decline. The company’s trailing 12-month net retention rate decreased to 116% in the first quarter, down from 119% in the previous quarter, while its dollar-based net expansion rate was 121%, down from 123%. In perspective, though, neither of those numbers is bad – most companies would be happy with either of those figures.
In another record for the company, Fastly’s streaming bandwidth reached 81.9 Tbps during a successful Super Bowl live stream, supported by its automated traffic routing systems AutoPilot and Precision Path.
Fastly introduced a new partner program in the quarter, featuring a new tiered model with simplified pricing and packaging. Alongside the release, Fastly also launched a new managed security service to protect enterprises from rising web application attacks.
“We are pleased with the revenue and operating performance of the first quarter, exceeding the top end of our guidance range,” Todd Nightingale, chief executive officer of Fastly, said in the company’s earnings release. “As we continue to gain customer mind share with these efforts, we will be focused on accelerating market share gains as well.”
For its outlook, Fastly predicts an EPS loss of nine cents to 11 cents in its second quarter on revenue of $117 million to $120 million. For the full year 2023, the company expects an EPS loss of 21 cents to 27 cents on revenue of $495 million to $505 million.
Investors liked the figures, with Fastly shares up over 1% in late trading.
