which one to live tweet in 30 mins 🧐
fastly it is --->
they did $75mm in revenue, up 62% YOY
(The guidance for $74.5 million in third-quarter revenue is essentially flat from the June quarter's $75 million.)
(The guidance for $74.5 million in third-quarter revenue is essentially flat from the June quarter's $75 million.)
Q2 significantly accelerated the needs for organizations to prioritize their digital transformation. This will be a long-lasting change.
The needs for a modern platform will accelerate. Developer and security operator empowerment is important - we partner with them to create fast and simple solutions at scale. The strength of our edge platform shows.
Despite the turbulent times, we continue to see robust adoption. Customers grew to 1,951 from 1,837 in the previous quarter, largest quarterly increase since going public. however, strong growth was offset by some customers falling out off the category due to covid
they specifically called out Bytedance, $FSLY's largest customer. "any ban of the tik tok app in the US would create uncertainty about this" and would adversely affect Fastly's business
Looking ahead, developers need to build differentiation at the edge and rapidly adopt new architectures —> this is why we continue to invest in computed edge and security.
As transformation drives more code and applications to the edge, it’s evolving into an increasingly critical place. Security has always been a core focus and we will continue to invest in it.
Q: it's early for computed edge, but what are some of the interesting use cases?
AB: Yes, we are seeing more beta customers doing things like (1) online retailer wants to migrate availability to live updates (2) online retailer wants to do smarter waiting room so they can be more responsive with a simplified architecture
they want to cache more data at the edge and personalize responses...
Q: Joshua, what percentage of traffic is US vs ROW and rev too?
JB: < 50% of traffic is in the US... tik tok, we have looked at this risk and we wanted to make sure everyone heard about it, as I stated in the prepared remarks.
Q: Can you talk about more broadly what factors are informing Q3 guidance?
JB: Q2 to this year, relative to previous years... in previous years Q1 to Q2 is relatively flat. the normal seasonality is affected by a very strong Q2
Q: Benefits of gross margin - how do we think about the trajectory?
JB: We are pleased to see that we could deliver meaningful growth YOY and QOQ. on an annual basis, but I still believe we will contribute well over 100 basis points YOY.
[this call keeps cutting out, hard to follow]
shoulda done ETSY smh
JB: we are investing heavily in computed edge, which continues to separate us from the competitive set in the enterprise category... ppl want to continue to do more there.
Q: what is the security use case? can you elaborate on the opportunity?
JB: people do not understand our security DNA, ppl don't understand how deeply we invest in this area. there are number of things that makes us unique - (1) secure network (2) our own culture --> we drive data privacy into our own culture. education, ecomm...
all of those categories are coming bc of our culture of privacy. the way webuilt computed edge to isolate each of these requests and responses... we see many use cases we are seeing that are security-related. but we continue to look for partners who are proven leaders with rev
Q: what can you tell us about the size and wallet?
JB: in the last few months, we really saw strength and wisdom of going to largest aggregators (shopify, wix, adobe, etc). that's a strong place for us and something we want to continue to do
JB: in the last few months, we really saw strength and wisdom of going to largest aggregators (shopify, wix, adobe, etc). that's a strong place for us and something we want to continue to do
Q: can you elaborate on education vertical?
JB: we have one university using Fastly to bring the classes online. in general, what we are seeing is a rethink of education... those institutions are struggling with how to get content online quickly.
JB: we have one university using Fastly to bring the classes online. in general, what we are seeing is a rethink of education... those institutions are struggling with how to get content online quickly.
JB: all of these questions play beautifully into the story arc of developers' being new decision makers... that innovation is leading to personalized, frictionless, secure experiences. universities are at the forefront of that.
Q: Can you talk more about how this compares to AWS and other competitors?
F: It is a serverless product, but one adapted to run at the edge and deliver functionality at the edge. one of the key things we need to do is weigh the security requirements against the speed and efficiency requirements...
F: we can deliver this kind of value at scale, we have a core technology differentiation.
Q: Plans to hire a new head of sales?
JB: That's me I'm doing that currently. we are looking for someone. we want to make sure we get the right person and we have time to do that.
JB: That's me I'm doing that currently. we are looking for someone. we want to make sure we get the right person and we have time to do that.
Q: month to month, how is traffic trending given covid? is may, june, july still growing and how does it compare to prior years seasonality?
F: yes, traffic growth in march and april was dramatic. in may, june, july, it was less dramatic. the issue with parsing this out is the lack of comparison with seasonality. traffic grew more in Q2 than all of our prior Q2s.
F: biggest traffic increase was school closures... it's hard to answer exactly how the split is. maybe some people just started going outside, as they usually do in june/july. how much of that was elevated covid? we don't really know.
F: Q2 was unique in that the entire world was in shelter-in-place orders. it's uncertain how Q3 and Q4 will play out.
Q: there are competitors in edge cloud, you've spoken about your technical advantages. are there other applications that you are particularly appealing to?
F: in general, when you think of migration to serverless, a lot of that is new development and new applications. the way i look at it is if you're processing data that is targeted to one user, it makes to assemble that user and process it as close to the user as possible (edge)
F: if you're collecting it into a large warehoouse, it belongs in a central cloud. the display i'm seeing as the end user pulls data from a bunch of different sources... we have to authenticate and secure the client, then go out and get the data.
F: you assemble the data at the edge and then hand it off to the client. if it's data that's assembled and personalized and authenticated for one specific user, it makes sense to move that logic as close to the user as possible
F: edge will not replace the central cloud and that's not what our position is. for example, ML training is very well suited to the central cloud. but once you've trained the alg and you want to infer from it - that's a great use case for the edge.
F: the majority of our customers code at the edge, they use our security features... these are all bundled together. maybe 5 years ago, you might have had someone come to you who wanted you to deliver content but not secure it. that conversation doesn't exist anymore.
