Fastly, Inc. · NASDAQ:FSLY
Fastly — Investor Presentation (March 2021)
26 slides from Fastly's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
fastly Investor Presentation March 2021
Slide 2: Who Is Fastly?
Who Is Fastly? Fastly provides developers with a secure and programmable edge cloud platform
Slide 3: Momentum-at-a-Glance
fastly Momentum-at-a-Glance rm Revenue $145M / 38% YoY For the year ended December 31, 2018 $291M / 45% YoY For the year ended December 31, 2020 ® % $530K $782K Average Revenue Across All For the year ended December 31, 2018 Q4 2020 Enterprise Customers* aa? fall 132% 143% Dollar Based Net Expansion
Slide 4: The Modern Internet Has New Requirements
The Modern Internet Has New Requirements Applications Software Era Digital —_______., Transformation Built, Not Bought Empowering Developers Pre COVID, 56% a ™ of companies 75% of New Architecture described their digital applications will be 75% of data will be transformation as built, not bought**
Slide 5: Fastly Powers Mission-Critical Application Experiences
Fastly Powers Mission-Critical Application Experiences Ehe New York Cimes o) ©2021 Fastly, Inc. Scale: ° 56 million requests per minute on election night Edge Compute: © Paywall/Entitlement/Personalization Security: o Fastly WAF and DDoS protection improved NYT’s security posture Total Cost of Owner
Slide 6: Digital Innovators Choose Fastly
Digital Innovators Choose Fastly O New Relic. Blackboard @ brave FOX stripe BuzzFeep EheNewYorkEimes —-¢inktree imgur wa vist: CONDE, NAST Pinterest Al) tisiz2iv6 yelpss %e ANHEUSER-BUSCH HomeAway" wealthfront © reddit affirm) Bankrate yy TODAY RE 7) partner Google Cloud 7 H Partners> aws network Pa
Slide 7: Evolution of Web Architecture: Edge Cloud Extends Developer Control
Evolution of Web Architecture: Edge Cloud Extends Developer Control IT Control Users Network CDN fo) Edge POP a & CO London London a Servers Load WAF Bot DDOS Edge fe) 5 Balancing Appliance Appliance Appliance Router Edge POP [aN Appliance New York New York End-to-End Developer Control Edge Cloud Lo
Slide 8: Fastly: Innovators Platform
Fastly: Innovators Platform [Global Network | Developer-first () Programmable v) Easy to Use ©) Usage-Based Model We operate at global scale o) ©2021 Fastly, Inc.
Slide 9: Fastly @Edge Vision
Fastly @Edge Vision Web Apps & APIs Expanded capaltes rom Fastly Edge Caen Cloud Platform 10/1/2020 DELIVER SECURE COMPUTE © 02021 Fastiy, inc.
Slide 10: Security Will Accelerate Edge Computing Adoption
Security Will Accelerate Edge Computing Adoption Accelerates 9 adoption of edge computing © Safely and easily integrate new technology at the edge
Slide 11: Competitive Differentiators
fastly Competitive Differentiators Software-defined P Customer Empowerment Programmable Edge Modern Network Safety in Depth Philosophy Empowering developers with a secure and programmable edge cloud platform
Slide 12: Why We Win
Why We Win Existing Offerings Why Customers Choose fastly + g Signal Sciences YVisibility, Agility and Control . Y Cost Efficiency Legacy CDNs Giamai Level(3) ©Limelight,. . ¥ Modern, Developer-Friendly Architecture vReliable Technical Customer Support v Better Performance v Instant Scaling . aws ¥
Slide 13: Enterprise Customers Are Driving Growth
Enterprise Customers Are Driving Growth # of Enterprise Customers* cy 2018, cy 2019 cy 2020 % of LTM Revenue* Average Spend Per Enterprise Customer Increasing both our enterprise customer count and spend ‘terprise custom Jef r with LTM revenue in f $100,000 over th us 12-mont! ©2021 Fastly, Inc.
Slide 14: Expanding Customer Usage
Expanding Customer Usage Expand INITIAL DEPLOYMENT Implemented Fastly for origin offload, cloud optimization and as a redundant solution to their incumbent provider Adopt™* DIGITAL TRANSFORMATION Moving application logic to the edge to enable DevOps and digitally transform their workflows with Fastl
Slide 15: Strong Customer Loyalty and Retention Metrics
Strong Customer Loyalty and Retention Metrics 143% cy 2018 cy 2019 cy 2020 cy 2018 cy 2019 cy 2020 ©2021 Fastly, Inc.
Slide 16: Financial Overview
Financial Overview
Slide 17: Financial Highlights
Financial Highlights Stal Strong Topline Growth 6) RY Expanding Gross Margin OD Significant Operating Leverage st Investing With Purpose
Slide 18: Positioned to Capture a Large and Growing Market
Positioned to Capture a Large and Growing Market $36.2B ~~ v Edge Computing* $18.6B > v WAF, Bot Detection, and DDoS App Services and Prevention”: ‘ Security at the Edge: v Application Delivery and Control’***** ~ ~ $17.5B v Web Performance Optimization™ CON: streaming v Media Delivery™ YY 2022 o) ©
Slide 19: Strong Revenue Growth
Strong Revenue Growth Note: U.S. Dollars (in millions) $82.6 36% CAGR svar $70.6 $62.9 $589 $498 sis $402 $40.8 $36.8 saa $925 $30.0 $26.2 s2aa $243 Il Q117) G27 Q317 417 QTI8.Q218_ 318 G41 «TID. «219. Q319. Q4I9.GI20-G220 320 Q420 A5% x: Growth 39% 38% “a $144.6 al cy 2017 cy 2018 cy 2019 cy 2020 $
Slide 20: Multiple Levers Drive Gross Margin Expansion
Multiple Levers Drive Gross Margin Expansion Non-GAAP Gross Margin* cy 2018 cy 2019 cy 2020 41g 420 Levers include: Bandwidth continues to be largest variable contributor to Cost of Revenue People / Colocation expected to grow at slower rate than bandwidth / D&A as we reach global coverage Increased
Slide 21: Investments in Tech Platform to Drive Growth
Investments in Tech Platform to Drive Growth With Continued FCF Leverage Cash Capital Expenditures* as % of revenue cys st yrzor ey 2020 ©2021
Slide 22: Building To Support Increased Scale and Growth
Building To Support Increased Scale and Growth Non-GAAP Sales & Marketing as a % of Revenue* 34% 34% 34% 33% | | | | ~ | | | | cy 2018 cy 2019 cy 2020 419 420 Aggressively pursuing market share while balancing capital optimization for go-to-market Increasing demand generation and account-based marke
Slide 23: Thank You!
Thank You! fastly
Slide 24: Appendix
Appendix
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation FY2018 FY2019 FY2020 Q12019 Q2'2019 Q3'2019) Q4'2019) Q1'2020 02'2020 Q3'2020 Q4'2020 GAAP Gross Profit 79.1 112.1 170.8 25.8 25.4 275 33.4 357 45.0 41.3 48.9 Stock-based compensation 03 14 39 04 03 0.4 05 0.6 MW 0.9 1.3 Amortization of acquired intangible assets = =
Slide 26: GAAP to Non-GAAP Reconciliation (Cont'd)
GAAP to Non-GAAP Reconciliation (Cont'd) _ FY2018° FY2019 FY2020 Q1'2019 Q2'2019 Q3'2019 Q4'2019 Q1'2020 Q2'2020 Q3'2020 Q4'2020 GAAP net loss ($30.9) ($51.6) ($95.9) ($9.7) ($15.6) ($12.2) ($14.1) ($12.0) ($14.5) ($23.8) ($45.7) Stock-based compensation 41 12.1 64.4 15 2.2 3.8 46 6.3 16.3 12.1 29.7