Slide 1: Fourth Quarter and Annual Year 2021 Investor Supplement
Fourth Quarter and Annual Year 2021 Investor Supplement Product Developments Security: ● Deployed our Next Gen WAF to Fastly’s Edge Cloud Network, a key milestone in the integration of Signal Sciences’ industry-leading WAF with Compute@Edge. This launch delivers on Fastly’s vision for the first and
Slide 2: Footnotes and metric definitions
1 We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion
Slide 3: Forward-Looking Statements
Forward-Looking Statements This investor supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve subst
Slide 4: Non-GAAP measure definitions
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Amortization of acquired intangible assets is included in the following cost and expense line items of our GAAP presentation: cost of revenue
Slide 5: Use of non-GAAP financial measures
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods an
Slide 6: Condensed Operations
fastly, Condensed Consolidated Statements of Operations (in thousands, except per share amounts, unaudited) Revenue Cost of revenue" Gross profit Operating expenses: Research and development” Sales and marketing” General and administrative” Total operating expenses Loss from operations Interest inco
Slide 7: Condensed Consolidated Balance Sheets
fastly, Condensed Consolidated Balance Sheets (in thousands, unaudited) Current assets: ash and cash equivalents Marketable securities ‘Accounts receivable, net Restricted cash Prepaid expenses and other current assets, Total current assets Property and equipment, net ‘Operating lease right-of-use a
Slide 8: Condensed Cash Flows
fastly, Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) Year ended December 31, 2021 2020 Cash flows from operating activities: Net loss s (222,697) $ (95,932) ‘Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 28,799
Slide 9: Condensed Cash Flows—Continued
fastly, Condensed Consolidated Statements of Cash Flows—Continued (in thousands, unaudited) Year ended December 31, 2021 2020 ‘Supplemental disclosure of cash flow information: Cash paid for interest s 1938 $ 1,590 Cash paid for income taxes, net of refunds received $ 267 $ 4,219 Property and equipm
Slide 10: Reconciliation of GAAP to Non-GAAP Financial Measures
fastly, Reconciliation of GAAP to Non-GAAP Financial Measures (@m thousands, unaudited) Gross Profit GAAP gross Profit Stock based compensation—Cost of revenue Amortization of acquired intangible assets Non-GAAP gross profit, GAAP gross margin Non-GAAP gross margin Research and development GAAP rese
Slide 11: Operations — Quarterly
fastly, Consolidated Statements of Operations — Quarterly (unaudited, in thousands, except per share amounts) Q12020° Q22020 32020 42020 © Qi2021 == 22021 3202142021 oats $ 62,924 $ 74663 $ 70638 $ 82649 $ 84852 $ 85,026 $ 86735 $ 97,717 Cost of revenue? 27,265 29,697 29,292 33,753, 37,494 40,320 41
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
fastly, Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (unaudited, in thousands, except per share amounts) Q12020 22020 Q32020 42020 Q12021_ 22021 3202142021 ross Prone GAAP gross Profit $ 35659 $ 44966 § 41346 48806 § 47358 —$ 44706 $ a54o1 $4973 ARIS Caos 6151090 2912858186187 6
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
fastly, Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued) (unaudited, in thousands, except per share amounts) Adjusted EBITDA GAAP net loss ‘Stock-based compensation Depreciation and other amortization ‘Amortization of acquired intangible assets, Interest income Interest
Slide 14: Non-GAAP Operations - Quarterly
fastly, Non-GAAP Consolidated Statements of Operations - Quarterly (unaudited, in thousands, except per share amounts) Revenue Cost of revenue" Gross profit Operating expenses: Research and development" Sales and marketing”? General and administrative" Total operating expenses Income (loss) from ope
Slide 15: Consolidated Balance Sheets - Quarterly
fastly, Consolidated Balance Sheets - Quarterly (unaudited, in thousands, except par value) Assets Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Restricted cash Prepaid expenses and other current assets Total current assets Property and equipment, net Opera
Slide 16: Cash Flows — Quarterly
fastly. Consolidated Statements of Cash Flows — Quarterly (unaudited, in thousands) ‘Cash flows from operating activities: Net fos ‘Adjustments to reconcile net loss to net ash used in operating activities: Depreciation and amortization Amortization of acquired intangibles Amortization of right-of-u
Slide 17: Cash Flows — Quarterly (Continued)
fastly, Consolidated Statements of Cash Flows ~ Quarterly (Continued) (unaudited, in thousands) Effects of exchange rate changes on cash, Cash equivalents and restncted cash Net increase (decrease) in cash, cash equivalents, and restricted cash 6359 234917 52550 (316,175) 885,883 (260,797) (405,942)