Fastly, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $144.5 million, an increase of 8% from $133.5 million in the same period last year. The company experienced a net loss of $39.1 million, a slight improvement compared to a net loss of $43.4 million in the prior year. The gross profit for the quarter was $76.8 million, resulting in a gross margin of 53%, down from 55% in the previous year, primarily due to increased bandwidth costs and depreciation expenses.
In terms of operational metrics, Fastly's total customer count decreased to 3,035 from 3,290 year-over-year, while the number of enterprise customers rose to 595, contributing significantly to revenue. The Last-Twelve Months Net Retention Rate (LTM NRR) was reported at 100.0%, a decline from 114.0% in the previous year, indicating challenges in retaining revenue from existing customers. The company’s revenue was predominantly driven by existing customers, with new customer contributions remaining below 10%.
Fastly's revenue breakdown by product line showed Network Services generating $113.3 million, a 7% increase, while Security services brought in $26.4 million, also up 7%. The "Other" category, which includes Compute solutions, saw a significant increase of 64%, reaching $4.8 million. Geographically, U.S. revenue accounted for 77% of total revenue, increasing by 12%, while international revenue decreased by 3%.
The company has made strategic investments in its platform and infrastructure, which contributed to a 12% rise in cost of revenue to $67.7 million. Operating expenses decreased by 4% to $115.0 million, with notable reductions in general and administrative costs. Fastly continues to focus on expanding its market presence and enhancing its product offerings, despite facing challenges such as a material weakness in internal controls over financial reporting, which the company is actively working to remediate.
Looking ahead, Fastly remains committed to investing in its edge cloud platform and expanding its customer base, particularly in international markets. The company anticipates continued operating losses as it prioritizes growth and innovation, while also navigating the complexities of the current economic environment.
About Fastly, Inc.
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