Fastly (FSLY) investor relations material

Strategic priorities and platform evolution

• Focus on a unified, global edge platform delivering six product suites, enabling cross-sell and deeper customer relationships, with 72% of customers using two or more suites and 30% using four or more, up from 7% two years ago.

• Expansion into under-penetrated verticals (industrials, financial services, pharmaceuticals) and geographies (India, Latin America, Middle East, Malaysia, Thailand), leveraging a bifurcated control plane, local partnerships, and new sales resources.

• Emphasis on outcome-driven solutions, democratizing and simplifying the platform for broader enterprise and AI agent adoption, with investments in usability, automation, and actionable business intelligence.

• Launch of Fastly for AI, including AI Runtime Control, AI Firewall, and API Enforcement, positioning the platform as cloud- and model-neutral for flexible enterprise integration.

• Enhanced customer value through integrated capabilities, higher retention, and efficient infrastructure utilization, with a shift from a developer-centric approach to broader customer segments.

Financial performance and guidance

• Achieved three consecutive quarters of 20%+ year-over-year growth, five straight quarters of improving NRR (117% last quarter), and six quarters of positive free cash flow.

• Gross margins improved from 59% to 66% year-over-year, with operating margin turning from -$5M to +$27M and $34M in free cash flow over the last 12 months.

• 2029 targets: revenue of $1.1B–$1.3B (14%–21% CAGR from 2026), gross margin 67%–71%, operating margin 20%–22%, and free cash flow margin 12%–15%, with CapEx at 10%–12% of revenue.

• Capital-efficient network and disciplined OPEX leverage expected to drive 700–1,000 bps of operating margin expansion by 2029.

• Transitioning to single revenue line reporting in 2027, introducing multi-product adoption metrics to better reflect customer buying patterns and platform strategy.

Competitive differentiation and market trends

• Unified, hyperconverged network architecture enables higher gross margins, efficient CapEx, and rapid product deployment compared to competitors with siloed platforms.

• Platform is cloud- and AI model-neutral, supporting multi-cloud, private infrastructure, and diverse AI agent environments, addressing enterprise needs for flexibility and control.

• Security portfolio now includes five products, with security as a key on-ramp for new business; security and Compute are expected to outpace core delivery growth.

• AI and agentic traffic are driving new use cases and product demand, with AI-related traffic growing 6.5x faster than human traffic and new privacy and API enforcement needs emerging.

• Recognized as a leader by Gartner and Forrester, with edge positioned as the control point for AI, inspecting 130,000+ apps and APIs through its security layer.