Fastly, Inc. Class A Common Stock Technology Leadership Forum 2026
Review the key takeaways and the transcript of this earnings call.
- Fastly reported accelerating revenue growth with 23.3% year-over-year growth in the last quarter and over 20% growth in the prior three quarters.
- The company achieved record gross margins of 65.8% and reported $27 million of operating profit, marking the fourth consecutive quarter of operating profits and six consecutive quarters of free cash flow generation.
- Fastly's compute revenue grew 70% year over year, contributing to revenue diversification alongside its content delivery and security products.
- The company operates a single network supporting all products, which enhances capital efficiency and contributes to lower infrastructure capital expenditures compared to peers.
- Fastly's top ten customers represent 26% of revenue, a concentration level that has drawn some investor concern but the company remains confident in growing this cohort and maintaining strong customer relationships.
- Net retention reached 117% on a trailing 12-month basis, a four-year high, indicating strong customer retention and recurring revenue.
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Transcript
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All right. Morning, everybody. My name is Jackson Ader, Enterprise Software Analyst here at KeyBanc Capital Markets. Welcome to the Technology Leadership Forum 2026 edition, second year in Park City or Deer Valley, whichever you prefer, I guess. We are thrilled to have Fastly to kick off our post-keynote, the fireside chat portion of the conference. We've got Rich and Vern here, CFO and head of IR from Fastly. Just a quick reminder for everybody in the room, we're going to run through. I have a bunch of questions for these guys, but if you have questions, feel free to raise your hand. I will do my best to ping people throughout so that you hear me and these two over and over again. Do you guys just mind introducing yourselves and introducing the company, and then we'll get into it?
Sure. Rich Wong here, the Chief Financial Officer at Fastly. I've been here for about a year, so this month is actually my one-year anniversary since joining Fastly. My background, this is my third time as a CFO. It's a great place to be, and I joined because I believe in the space we play in. For those who don't know us, we are an Edge Cloud company. Edge Cloud meaning that we basically provide edge services, which is around content delivery, security, and compute observability to our users, where we really partner with the central cloud and customers to speed up the internet and make it faster and more reliable and safe.
Hi, I'm Vern Essi. I run the IR practice at Fastly. My background, I started my career on the sell side, equity research analyst, very similar to Jackson here. Not as successful, but certainly.
Oh. You escaped. And went to the corporate side to run corp dev and IR functions across a couple of companies in the semiconductor industry for about a decade, maybe a little less, then joined Fastly about 5 years ago, and have seen it go through a lot of changes and certainly am excited about what's happened over the last 12 months as we've gotten, I think, a really good team in place and starting to see some good momentum around our fundamentals and our strategy.
Can we actually start with, Rich, you mentioned it's been a year, but there's been kind of a reset in the leadership of late, and I think that that has been really, not to disparage, but it's been really beneficial to the company and to the stock. Do you guys mind just running through, kind of laying the foundation, who's new, where they came from, and why it's been helpful to the strategy?
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