Fastly (NYSE:FSLY) Q4 2023 Earnings: Record Revenue, Improved Margins, and Stock Tumbles
Fastly, Inc. (NYSE:FSLY) reported a better-than-expected EPS of $0.01 for Q4 2023, beating expectations of $-0.02. The company's revenue for the quarter was $137.8 million, representing a 15% year-over-year growth and 8% quarter-over-quarter. Fastly's CEO, Todd Nightingale, highlighted the company's customer acquisition, product developments, and go-to-market efforts, emphasizing the growth in enterprise customers and the success in expanding wallet share with existing customers. The company's gross margin improved to 59.2% in Q4, up from 55.9% in Q3, and the annual gross margin for 2023 was 56.9%, up 330 basis points over 2022. Fastly's CFO, Ron Kisling, discussed the company's financial results, including positive net income in Q4 for the first time since Q2 2020, and the reduction of convertible debt principle balance by more than 50% from 2022 to 2023. The company's outlook for Q1 and full year 2024 reflects strong top-line growth driven by improved customer acquisition and upsell and cross-sell expansion in existing customers.
