What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-22 compared with 2023-02-27 · 110 added, 85 removed, 379 unchanged (34% of the section changed)

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Performance, security, and building the most engaging applications are paramount to driving mission success for Fastly’s customers.

The edge cloud is an emerging category of Infrastructure as a Service ("IaaS") that enables developers to build, secure, and deliver digital experiences, at the edge of the Internet.

The edge cloud is a category of Infrastructure as a Service (“IaaS”) that enables developers to build, secure, and deliver digital experiences, at the edge of the Internet.

This service represents the convergence of the Content Delivery Network (“CDN”) with functionality that has been traditionally delivered by hardware-centric appliances such as Application Delivery Controllers (“ADC”), Web Application Firewalls (“WAF”), Bot Detection, Distributed Denial of Service (“DDoS”), and observability solutions.

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We have located these POPs near major cloud providers and peered with Internet exchange points around the world, so that we can deliver content as close to end users as possible.

Because our POPs are powerful and well-connected to the Internet, we are able to operate fewer units and still achieve optimal performance relative to traditional POPs.

Because our POPs are powerful and well-connected to the Internet, we are able to operate fewer of them and still achieve optimal performance relative to traditional POPs.

• Software-defined network.

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This has allowed us to provide real-time responses by ensuring our customers’ traffic is routed in the most optimal manner on our network.

• Network Resilience .

Our network is built to withstand common performance degradation or connectivity issues with internet transit providers.

With fast path failover we automatically detect and re-route underperforming edge connections at the transport layer.

Precision Path detects underperforming origin connections and automatically reroutes the connection to the best alternative in real-time.

AutoPilot is an automated egress traffic engineering solution which enables us to reliably deliver high traffic events without manual intervention.

• Fully programmable.

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To address this need, we built a powerful compute environment on top of our programmable platform.

We give customers access to our serverless compute environment through our compute offering, Compute@Edge.

We give customers access to our serverless compute environment through our compute offering, Fastly Compute.

App developers can use this offering to build high performance, personalized apps on our programmable edge without the complexity of managing the underlying infrastructure.

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Our Network Services are designed to speed up and optimize the delivery of web and application traffic while ensuring developers and engineers do not lose visibility or control.

Whether customers are looking to move apps to the cloud or scale their DevOps practices, our Network Services provide the speed, security and engaging experiences that users demand.

Whether customers are looking to deliver engaging web and streaming experiences to their users, move apps to the cloud or scale their DevOps practices, our Network Services provide the speed, security and flexibility needed.

Content Delivery Network

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• Instant Purge .

Lets customers clear the cached copy of their content globally in an average of 150 milliseconds or less.

Allows customers to clear the cached copy of their content globally in milliseconds, not seconds.

We allow customers to send a command to our platform that invalidates an old version of their content throughout our global edge infrastructure.

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Compresses content with technologies like Gzip and Brotli, providing direct performance improvements and a more responsive web experience for end users.

• Reliability .

Features and technologies that support the availability of customer content include origin health checks, a ‘grace mode’ feature that will continue serving content even when customer origin(s) fail, Multipath TCP, and real time error dashboards and API feeds that are backed by a 100% uptime Service Level Agreement ("SLA").

• Reliability Features .

Support the availability of customer content with features including origin health checks, a ‘grace mode’ feature that will continue serving content even when customer origin(s) fail, Multipath TCP, and real time error dashboards and API feeds that are backed by a 100% uptime Service Level Agreement ( “ SLA”).

Enables customers to push data in real time to many users, such as synchronous communication of messages in a chatroom, server updates to IoT devices and other types of data between devices.

Realtime messaging is used in a wide range of data streaming applications, including IoT, live commenting, end user notifications, chat and more.

Provides customers with a real-time and programmatic means for checking domain availability.

A programmatic solution for verifying trust for domains is especially useful for platform customers.

Using Domainr's APIs, customers can embed these functions directly into their workflows.

• Modern protocols and performance.

Helps our customers, and the Internet in general, receive the best possible performance regardless of user device, connectivity or location though supporting the development of next generation web technologies and protocols such as HTTP/3, QUIC, client hints and HTTP prioritization.

Fastly offers several privacy enablement capabilities.

Our OHTTP Relay solution provides fast, reliable separation and isolation of end user data, while passing along non-identifying requests to the business server.

Fastly’s OHTTP Relay is designed to enhance online privacy for users of several of the largest internet vendors.

Fastly has worked with others to develop and standardize the technology behind Private Access Tokens.

As an alternative to CAPTCHAs, Privacy Access Tokens provide better user privacy by helping ensure there is no leakage of non-essential data.

Video / Streaming

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We allow customers to manage traffic across multiple IaaS providers, data centers, and hybrid clouds.

We also provide improved performance and cost savings over Application Delivery Controllers, especially during a spike or surge in traffic.

We also provide improved performance and cost savings over ADCs, especially during a spike or surge in traffic.

Image Optimization

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It supports delivery and management of hundreds of thousands of certificates, supported by our worldwide TLS termination and acceleration solution.

• Certainly :

In August 2023, we launched Certainly, our own publicly-trusted TLS Certification Authority (“CA”).

Fastly customers can use a certificate issued by Certainly to secure any website or API endpoint served by our CDN.

Origin Connect

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Our modern approach to application security provides the accuracy, flexibility, and ease-of-use that our customers have come to know and expect.

Fastly provides a range of security solutions for businesses that focus on protecting websites, apps, and APIs from various threats, including DDoS attacks and application layer attacks.

Fastly provides a range of security solutions for businesses that focus on protecting websites, apps, and APIs from various threats, including DDoS attacks, application layer attacks and abusive behavior from automated software.

These solutions are designed to be real-time, scalable, and customizable, offering businesses the ability to tailor their security to their specific needs.

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Next-Gen WAF .

Our next-generation Web Application Firewall (“WAF”) (powered by Signal Sciences) protects applications from malicious attacks that seek to compromise apps and APIs.

Our next-generation Web Application Firewall (“WAF”) protects applications from malicious attacks that seek to compromise apps and APIs.

Our solution requires no tuning, and is more accurate than the traditional rule or signature-based approaches.

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Key features include:

• Bot Protection.

• Bot Management.

Bad bots can perform content scraping, tie up system resources, perform account brute forcing and other harmful actions.

Our solution monitors web application and API traffic for automated bot activity, allowing customers to automatically block malicious bot-generated web requests.

Our solution monitors web application and API traffic for automated bot activity, allowing customers to automatically block malicious bot-generated web requests, while providing access for wanted or verified bots.

• API Protection.

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Our high-bandwidth, globally distributed network is built to absorb DDoS attacks without impacting performance.

Customers can respond to attacks in real time, filtering malicious requests at the network edge, before they reach their origin.

Customers can respond to attacks in real time, filtering and rate limiting malicious requests at the network edge, before they reach the customers' origin.

We speed up the caching and delivery of sensitive content at the edge, helping customers meet data compliance and privacy regulations such as the Health Insurance Portability and Accountability Act (“HIPAA”), the European Union's General Data Protection Regulation (“EU GDPR”) and the United Kingdom’s GDPR (“U.K.

GDPR”), in addition to industry standards such as PCI Data Security Standard and SOC.

Fastly is also certified to the ISO/IEC 27001:2013 standard for its Information Security Management System (ISMS).

Fastly is also certified to the ISO/IEC 27001:2013 standard for its Information Security Management System.

Our Assurance Services offering includes support for additional documentation and audit procedures for customers with these needs.

Compute@Edge allows app developers to build high performance, personalized apps on Fastly's programmable edge without the cost and complexity of managing the underlying infrastructure.

Like all our offerings, Compute@Edge is built to be secure, performant and scalable.

Compute@Edge supports a multitude of use cases, including:

Fastly Compute allows app developers to build high performance, personalized apps on Fastly's programmable edge without the cost and complexity of managing the underlying infrastructure.

Like all our offerings, Compute is built to be secure, performant and scalable.

Compute supports a multitude of use cases, including:

• Enhancing Search Engine Optimization ranking by managing redirects at the edge to improve site performance and gain real-time visibility;

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• Enabling low latency ad personalization by allowing our customers to serve ads quickly from the edge based on user data.

Key features of Compute@Edge include:

Key features of Compute include:

• Serverless execution environment:

Compute offers a fast, secure serverless code execution engine.

It allows customers to deploy code across Fastly’s global edge cloud infrastructure, and execute the code close to the user for low latency.

Compute also exposes the power of Fastly’s global infrastructure via a set of powerful developer API’s for fine grained programmatic control (e.g.

Cache API’s).

• Language support.

Compute@Edge works with any WASM-supported languages, including JavaScript, Rust, Go, Ruby and more.

Compute works with any WASM-supported languages, including JavaScript, Rust, Go, Ruby and more.

Customers also have the ability to create their own language Software Development Kits.

Support for languages that developers already know and want to code in is key for adoption and we will continue to add more over time.

Compute@Edge has a number of features that makes it easier and faster to access data at the edge instead of having to go back to the central cloud.

Compute has a number of features that makes it easier and faster to access data at the edge instead of having to go back to the central cloud.

This helps developers innovate faster and unlocks more latency-sensitive use cases at the edge.

◦ Device Detection and Geolocation.

App developers can access data on end-user devices being used to interact with their apps and the location of these devices.

This allows them to better tailor app

experiences for different users–e.g., serving lower resolution images to users in low bandwidth regions.

KV Store offers global, durable storage for compute functions at the edge.

With fast reads and writes from both the edge or via API, customers can store, control, or cache their data to reduce origin dependency and unlock new use cases.

◦ Config Store.

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Config Store supports this by allowing them to store multiple common code configurations at the edge, which they can then deploy instantly, instead of having to push new code for every single configuration change.

◦ Secret Store:

Secret Store is a secure and performant storage system for Compute customers' most sensitive data like API keys, passwords, certificates, and other credentials.

It leverages the Hashicorp vault to centrally store, access, and manage secrets across Fastly's cloud infrastructure.

• Visibility.

In addition to real-time logs and metrics, which all our products benefit from, Compute@Edge also features log tailing and tracing to improve developer visibility.

In addition to real-time logs and metrics, which all our products benefit from, Compute also features log tailing and tracing to improve developer visibility.

◦ Log Tailing.

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This helps avoid difficult third party log management and debugging challenges.

For customers building apps with Compute@Edge, we tag individual end-user requests with unique identifiers and maintain request tracing parameters by tracking when users enter and exit our serverless platform.

For customers building apps with Compute, we tag individual end-user requests with unique identifiers and maintain request tracing parameters by tracking when users enter and exit our serverless platform.

This feature allows developers to more easily track the performance of application functions post-deployment.

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The Developer Relations team guides developers through training materials, events, and tooling aimed at building a deep understanding of our products.

By maintaining code samples published to Fastly Developer Hub and building testing tools like Fastly Fiddle, we engage developers with our products, such as Compute@Edge, that integrate directly into DevOps tools and internal developer platforms.

By maintaining code samples published to Fastly Developer Hub and building testing tools like Fastly Fiddle, we engage developers with our products, such as Compute, that integrate directly into DevOps tools and internal developer platforms.

We also facilitate testing on our platform with rapid global deploy times and live logs, in addition to debugging.

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(“Glitch”) in May of 2022.

Glitch is a popular tool for web-based development with over 2M registered developers as of December 31, 2022.

We are now working on integrating Compute@Edge with Glitch’s easy-to-use interface, so Glitch’s community of developers can seamlessly deploy code to Fastly’s serverless compute environment.

Glitch is a popular tool for web-based development with a total lifetime user count of over 2.6M registered developers as of December, 2023.

We are now working on integrating Compute with Glitch’s easy-to-use interface, so Glitch’s community of developers can seamlessly deploy code to Fastly’s serverless compute environment.

• Open Source Support.

Fastly launched Fast Forward:

a set of programs designed to empower and support developers, open source projects, and nonprofits that share our vision of an internet that is free, open, and safe for all.

As of November 2022, any eligible open source project can apply to receive free Fastly products.

Our Fast Forward program is designed to empower and support developers, open source projects, and nonprofits that share our vision of an internet that is free, open, and safe for all.

Any eligible open source project can apply to receive free Fastly products.

Observability

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Our metrics, APIs and dashboards provide real-time, per-second visibility and historical reporting.

• Stats Page.

The stats page allows customers to monitor their real-time analytics and view historical caching statistics for their services on the web interface.

• Origin Inspector.

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They can account for every domain request, byte, and status code or quickly determine edge or origin issues with our combined edge and aggregated origin metrics, all without needing to send log data to a third-party data collector.

• Edge Observer :

Provides per-second visibility and historical reporting on the performance and activity of multiple Fastly services in a single pane of glass.

Metrics and logs along with every part of the request path are available for consumption in real-time without adding latency.

Professional Services.

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We offer various levels of engagements, from a light helping hand, to acting as an extension of developer teams, with global support and flexible professional services hours.

From initial deployment of our Next-Gen WAF, to ongoing training and deep integration into a customer’s systems and processes, our team of application security experts can help every step of the way.

Whether our customer is a smaller business with a one-person security team, or a large enterprise, we partner with them for success.

• Managed Security Service.

The Fastly Managed Security Service is a full-service offering for our Next-Gen WAF, DDoS and Edge Rate Limiting customers who require comprehensive monitoring over their environments.

• Response Security Service.

Fastly’s Response Security Service provides Next-Gen WAF customers with priority, direct access to Fastly’s Customer Security Operations Center 24/7/365 along with regular configuration maintenance and an industry-leading response SLA.

Fastly’s Managed CDN provides maximum control and flexibility.

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Support Plans.

Fastly offers three levels of support plans.

Fastly offers three levels of support plans and available technical support add-ons with dedicated technical specialists and account managers that provide extended security expertise.

The Standard support plan gives every Fastly customer immediate access to our Community Forum and extensive documentation.

Customer support is available via email during business hours.

The Gold support plan offers enhanced product support, priority routing for support cases, and expedited 24/7 incident response times.

• Enterprise .

Enterprise level support equips customers with 24/7 online support for incidents and general inquiries, 15-minute escalation response times, phone support, access to a private Slack channel, and a team of technical experts to help optimize a customer’s Fastly service, including compliance support.

Our Growth Strategy

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We will simplify customer onboarding and service usage, through easy access to self-training information from within the Fastly app, and more code samples and support.

Lastly, we plan on simplifying our pricing and packaging in order to make it easier for customers to buy and renew our services.

With our growing emphasis on security, in October 2020 we completed our acquisition of Signal Sciences to bolster our security offerings.

We began integrating the application security capabilities of Signal Sciences into our edge cloud platform and launched our Next-Gen WAF in Q1 of 2022.

In 2023, we simplified our pricing and packaging in order to make it easier for customers to buy and renew our services.

We launched our Next-Gen WAF in Q1 of 2022.

This enables us to protect customers’ applications and APIs on premise, in the cloud and on the edge.

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This helps expand our worldwide network of partners dedicated to protecting and delivering customers’ content.

We have recently expanded the reach and breadth of these partners to include cross-selling delivery and security products to

increase our program’s global expansion.

We have made significant investments in this area by adding additional channel sales and marketing resources, enhancing our pricing and packaging offerings, and building an enhanced partner program to offer partners even more benefits.

In 2022, we announced a strategic partnership with HUMAN Security, Inc.

(“HUMAN”) to enable customers to purchase HUMAN’s industry-leading bot protection to shield customers from online attacks like ATO, payment fraud, content manipulation, and more.

Customers can now get access to all of the benefits of our Next-Gen WAF paired with HUMAN’s exceptional bot protection and remediation capabilities.

We have expanded the reach and breadth of these partners to include cross-selling delivery and security products.

We have made significant investments in this area by adding additional channel sales and marketing resources, technical training and enablement, a new partner portal, enhanced pricing and packaging offerings, and an elevated partner program to offer partners even more benefits.

Cloud Partners .

We integrate with major cloud providers to enhance their services and create solutions that are powerful, scalable, and secure.

We have exclusive Private Network Interconnects (PNIs) and peering arrangements with key cloud providers such as Google Cloud Platform, Microsoft Azure, AWS, and others to eliminate or minimize egress fees, enhance security, and improve overall performance.

We have exclusive Private Network Interconnects (PNIs) and peering arrangements with key cloud providers such as Google Cloud Platform, AWS, and others to eliminate or minimize egress fees,

enhance security, and improve overall performance.

We are also available for purchase on the Google Cloud Marketplace and AWS Marketplace which can help eliminate the need for customers to have separate billing arrangements and makes Fastly services eligible for Google Cloud and AWS committed spends.

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We integrate with a number of third party partners who offer complementary technology across a number of strategic use-cases and industries.

These partners help expand our reach into new markets by offering customers a complementary solution that seamlessly integrates with their existing technology stack making our technology even stickier.

Here are some examples of our integration partners:

These partners help expand our reach into new markets by offering customers a solution that seamlessly integrates with their existing technology stack making our technology even stickier.

Here are some examples:

Our Next-Gen WAF seamlessly integrates with third-party tools to help customers enhance their workflows, empower DevOps processes, increase their security visibility, and drive operational efficiencies.

Examples include:

VMware (Tanzu), Palo Alto Networks, Cisco, Datadog, Citrix, PagerDuty, Okta, and more.

VMware (Tanzu), Palo Alto Networks, Cisco, Datadog, Citrix, PagerDuty and more.

In May 2023, we announced a partnership with A10.

The Fastly Next-Gen WAF was integrated into the A10 ADC appliances and offered as an optional Application Security control for their customers.

The A10-Fastly partnership gives us access to new customers, many of whom use their own data centers, have less of a public cloud footprint, and are located in different geographic areas than Fastly's traditional customer base.

• Logging & Analytics:

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Examples include:

DataDog, Looker, SumoLogic, Logentries, Google Cloud, Microsoft, and more.

We work with a growing ecosystem of partners who are tapping into our powerful Compute@Edge serverless technology to extend their solutions across a variety of different use-cases.

DataDog, Looker (Google Cloud), SumoLogic, Logentries, Google Cloud Platform, Microsoft (Azure Blob Storage), and more.

We work with a growing ecosystem of partners who are tapping into our powerful Compute serverless technology to extend their solutions across a variety of different use-cases.

• Media & Entertainment:

We have partnerships across a number of technology providers in the media & entertainment industry to use our enhanced performance features, modern security offerings, and real-time metrics.

We have partnerships across a number of technology providers in the media & entertainment industry to enhance our edge platform’s performance features, modern security offerings, and real-time metrics.

Our platform spans several markets from cloud computing and cloud security to CDNs.

We segment the competitive landscape into six key categories:

• Application and API security vendors like Akamai, AWS, Cloudflare, F5 and Imperva;

• CDN providers, which now offer serverless edge compute functionality like Akamai (Linode), AWS, and Cloudflare;

• Cloud hosting providers that have added CDN & WAF capabilities like Alphabet (Google Cloud Platform), AWS, and Microsoft (Azure);

• Legacy CDNs like Akamai, Edgio, and Lumen;

• Niche CDN players like Section.io and StackPath;

• Traditional on-premise, data center appliance vendors for load balancing, WAF, and DDoS like Citrix, F5, Imperva, and Radware.

• Legacy CDNs like Akamai and Edgio;

• Application and API security vendors like Akamai, AWS, Cloudflare, F5, and Thales (Imperva);

• Point CDN players like Bunny CDN, CDNetworks, and CDN77;

• CDN providers, which now offer serverless edge compute functionality like Akamai (Linode), and Cloudflare;

• Cloud hosting providers (or public cloud providers) that have added CDN & WAF capabilities like AWS, Google Cloud Platform, and Microsoft (Azure);

• Traditional on-premise, data center appliance vendors for load balancing, WAF, and DDoS like F5, Thales (Imperva), NetScaler, and Radware.

The principle competitive factors in our market include:

• Ability to support modern application development processes;

• Brand awareness, reputation, and trust;

• platform functionality, scalability, performance, ease of use, ease of integration and programmability, reliability, security availability, and cost effectiveness;

• global network coverage and availability;

• ability to support modern application development processes and utilize new and proprietary technologies to offer services and features previously not available in the marketplace;

• ability to identify new markets, applications, and technologies;

• ability to attract and retain customers;

• brand, reputation, and trustworthiness;

• credibility with developers;

• Ease of integration and programmability;

• Global network coverage;

• Platform reliability and security;

• Platform scalability and performance;

• Price and network cost savings;

• Strength of the sales and marketing efforts;

• quality of customer support;

• ability to recruit software engineers and sales and marketing personnel;

• ability to protect intellectual property;

• ability to identify opportunities for acquisitions and strategic relationships and successfully execute on them.

We believe we generally compete favorably with our competitors on the basis of these factors.

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We also use employee engagement surveys to collect employee feedback and assess the effectiveness of our culture, our strategy, and various health and well-being programs.

During the COVID-19 pandemic, we have taken steps to protect the health and safety of our workforce.

We instituted employee wellness days, provided a monthly Internet stipend, and held virtual workshops on topics such as mental health and leading and supporting hybrid teams.

As of December 31, 2023, we had a total of 1,207 employees worldwide and 250 employees located outside of the United States;

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Fastly’s marketing efforts have a significant impact on new logo acquisition and demand generation.

We are focused on optimizing the return on our marketing investment to drive top-of-funnel demand across our portfolio and regions.

We are focused on optimizing the return on our marketing investment to drive demand across our portfolio and regions.

Our sales and marketing organizations work together closely to cultivate customer relationships with developers and business leaders at enterprises and technology-savvy organizations to drive revenue growth.

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Our land and expand sales strategy for enterprise customers has successfully demonstrated our platform’s capabilities, and our customer support enables broad adoption of our technology within an organization.

The majority of our revenue is derived from customers who enter into negotiated contracts with us.

These contracts typically include specific pricing and a minimum monthly commitment.

As developers expand their usage of our platform, our relationships often evolve to include business leaders within their organizations.

Customers who sign up online can access our self-service pricing matrix which is publicly available.

Customer Support

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They act as a single point of contact for our support, product, and engineering teams.

Our support model is global, with 24/7 coverage and support offices located in the United States, EMEA, and Japan.

Our support model is global, with 24/7 coverage and support offices located in North America, EMEA, and APAC.

Research & Development

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Our philosophy of customer empowerment guides our research processes.

Our product managers regularly engage with customers and developers, DevOps and site reliability engineering communities, as well as our internal stakeholders and subject matter experts, in order to understand customer needs.

Our engineering team is comprised of experts with deep experience who intimately understand customers’ technical challenges and build solutions accordingly.

Our product managers regularly engage with customers and developers, DevOps and site reliability engineering communities, as well as our internal stakeholders and subject

matter experts, in order to understand customer needs.

Our engineering team includes experts with deep experience who intimately understand customers’ technical challenges and build solutions accordingly.

Throughout the strategic design and build phases of our product life cycle, our development organization works closely with our product, infrastructure, operations, and compliance teams to design, develop, test, and launch any given solution.

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As of December 31, 2023, we had 422 employees in our research and development group.

Our research and development expenses were $155.3 million in the year ended December 31, 2022.

Our research and development expenses were $152.2 million for the year ended December 31, 2023.

Infrastructure

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We intend to grow the number of data center colocation sites as traffic on our network grows and as demands for new markets justify investment.

We uphold transparency and trustworthiness as company values.

Our security, compliance and data governance teams, as well as other departments across the company, continually iterate on our trust programs to better meet growing customer needs, updated regulatory requirements, and the evolving security threat landscape.

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We also rely on a number of registered and unregistered trademarks to protect our brand.

As of December 31, 2022, in the United States, we had 91 issued or allowed patents, which expire between August 2033 and February 2041, 33 patent applications pending for examination, as well as 3 pending provisional applications.

As of such date, we also had 23 issued patents and 12 patent applications pending for examination in foreign jurisdictions and 3 Patent Cooperation Treaty patent applications pending for examination, all of which are related to U.S.

As of December 31, 2023, in the United States, we had 103 issued or allowed patents, which expire between August 2033 and February 2042, and 19 patent applications pending for examination.

As of such date, we also had 24 issued patents and 10 patent applications pending for examination in foreign jurisdictions and one Patent Cooperation Treaty patent application pending for examination, all of which are related to U.S.

patents and patent applications.

In addition, as of December 31, 2022, we had 17 registered trademarks and 2 pending trademarks in the United States.

In addition, we seek to protect our intellectual property rights by requiring our employees and independent contractors involved in development of intellectual property on our behalf to enter into agreements acknowledging that all works or other intellectual property generated or conceived by them on our behalf are our property, and assigning to us any rights, including

intellectual property rights, that they may claim or otherwise have in those works or property, to the extent allowable under applicable law.

In addition, as of December 31, 2023, we had 19 registered trademarks and one pending trademark in the United States.

Despite our efforts to protect our technology and proprietary rights through intellectual property rights, licenses, and other contractual protections, unauthorized parties may still copy or otherwise obtain and use our software and other technology.

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Further, companies in the communications and technology industries own large numbers of patents, copyrights, and trademarks and frequently threaten litigation, or file suit based on allegations of infringement or other violations of intellectual property rights.

We are currently subject to, and expect to face in the future, allegations that we have infringed the intellectual property rights of third parties.

We are currently subject to, and

expect to face in the future, allegations that we have infringed the intellectual property rights of third parties.

From time to time, we also receive demands for indemnification from our customers under the terms of our contracts with them for infringement of a third-party’s intellectual property rights.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business