Fastly, Inc. Class A Common Stock Piper Sandler 5th Annual Growth Frontiers Conference

Sure. I think overall, I think we're continuing to see strong, healthy demand for the spend that our customers are spending. We did 23% year-over-year growth, $183 million last quarter. And it was broad-based. It was actually across the three different revenue lines that we do, right? So delivery services grew 17% year over year. We had security growing 43% year over year, and we have other, which is primarily our compute. I think that from a demand perspective, we see it broad-based across all three areas. And we're also seeing, especially given the component shortages that are happening, customers willing to make more commitments. And so we see that transpire in the RPO and the CRPO. So you'll see that the RPO grew 38% last quarter on a year-over-year basis. And then our current portion of the RPO grew 44%.

I would just say continued strong demand and pretty consistently across all the products and within even the willingness to do commits.

Episodic events. Episodic, sorry. Episodic.

Yeah, actually, really good question. Historically, we've been very strong on the live events, streaming side of it, because it's just more complex. Customers really depend on reliability. They rely on being consistently there, having the network built, and we tend to win where performance matters. As a result, we've always historically been strong there just because it's been really good. I would say that the portfolio has really built out to your point, which is now the delivery has that side, and then we have what we call the full site delivery. On the full site delivery side, those are the e-commerce sites, the hospitality, the different market segments that we sell into. I would say that growth and demand continues to be strong in both. I think that on the first side, we continue to still be better than our competitors on reliability, fewer outages.

We just consistently show up for our customers there. I would say that with the complexity of the traffic that's happening, we're seeing a lot of demand on the full site delivery. When I say complexity of the traffic, there's just more machine traffic now with bots and DDoS attacks getting more complicated. You see full site delivery customers who really want a broader suite and being able to protect them, and thinking traffic is the front door to a lot of that. Then I think that more and more with agentic, there's a lot of demand even for Compute, and so you see that play out with that other side. I'd say broad-based strength on both sides of the market.

The way I look at agentic and the way even AI traffic is, there is a difference on the traffic side from a gigabytes transferred and the number of requests that come in. I would say that we published articles that talked about machine traffic being 6.5 times as fast as human traffic. That is measured on a request basis. The number of requests from machine to machine, it is really high and it is growing faster, and it is almost half of the total request traffic that we see overall, but it is still a very small portion of gigabytes transferred. It is hard to compare when you are doing 4K video or live demand video on high definition. Those are just big gigabytes of transferred data that is being transferred. I think that there is a difference between the two.

I would say the way AI and agentic is playing out for us, the nearest term beneficiary and the tailwind we see is in security side. With the proliferation of machine traffic, there is just more customer demand for, "Hey, is that good traffic or bad traffic? How do you block that when it comes out?" We see the benefits in DDoS, and then we see the benefit in Bot Management. Monetization models are getting altered and impacted. Our customers are demanding those two. I think the nearest term impact is security, and specifically with Bot Management and DDoS products. I would say that longer term, the beneficiary tailwind from AI would probably be in the compute side. I just think that the edge has a bigger role to play with AI.