What changed in this filing

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Item 1. Business

2025-02-26 compared with 2024-02-22 · 70 added, 51 removed, 438 unchanged (22% of the section changed)

35 unchanged sentences

We continue to invest in our business and had a net loss of $158.1 million, $133.1 million and $190.8 million for the fiscal years ended December 31, 2024, 2023 and 2022, respectively.

We measure the revenue growth from existing customers attributable to increased usage of our platform and features, and purchase of additional products and services with our Dollar-Based Net Expansion Rate ("DBNER"), Net Retention Rate ("NRR") and Last-Twelve Months Net Retention Rate ("LTM NRR") metrics.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Business Metrics" for further discussion of DBNER, NRR and LTM NRR.

We measure the revenue growth from existing customers attributable to increased usage of our platform and features, and purchase of additional products and services with our Last-Twelve Months Net Retention Rate ("LTM NRR") metrics.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Business Metrics" for further discussion of LTM NRR.

Products & Services

49 unchanged sentences

Through our observability offerings, we also provide real-time insights to inform continuous performance improvements and facilitate faster debugging during development.

S ee Compute and Observability sections below for more details.

See “ Compute” and “Observability” secti ons below for more details.

Network Services

30 unchanged sentences

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.

Real-time 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.

3 unchanged sentences

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

3 unchanged sentences

In addition, we partner with multiple video platform vendors to improve the flexibility and scale of live-streaming workflows and reduce the total cost of ownership.

• Live Event Monitoring.

With real-time monitoring, streaming delivery, request collapsing, capacity planning, and flexible deployment, Fastly Live Event Monitoring gives customers insights into their live streaming performance and the ability to troubleshoot immediately–all while reducing costs.

• Video on Demand.

15 unchanged sentences

Transforming images at the edge eliminates latency and reduces traffic to a customer’s origin servers, allowing them to save on infrastructure and egress costs.

TLS Encryption

• Transport Layer Security (“TLS”).

As part of our standard product, our platform terminates HTTPS connections at our network edge, offloading encrypted traffic from our customers’ web servers for better performance.

We provide a number of different certificate procurement and hosting options.

• Platform TLS.

Our Platform TLS offering is designed to allow customers with multiple web properties to manage TLS certificates at scale, while enabling a fast, secure experience for their end-users.

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

8 unchanged sentences

Next-Gen WAF .

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

Our next-generation Web Application Firewall 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.

4 unchanged sentences

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, while providing access for wanted or verified bots.

Our solution (available as part of our Next-Gen WAF) 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.

4 unchanged sentences

Attackers test stolen credentials in an automated manner called “credential stuffing.” Our Account Takeover Protection empowers customers to automatically block and alert on credential stuffing attacks.

Bot Management.

Fastly's Bot Management is an add-on service that provides customers with visibility into bot traffic, allowing them to differentiate between good and bad bots at the network edge, closer to where requests arrive and further from their origin.

They can then enforce rulesets and policies in the Fastly Next-Gen WAF control panel as part of their web asset and application protection measures.

Advanced Rate Limiting .

Advanced Rate Limiting enables customers to stop malicious and anomalous high volume web requests and reduce resource consumption while allowing legitimate traffic through to application and API endpoints—doing so means companies can provide a superior customer experience that scales to meet increasing demand.

Our DDoS protection is an always-on service that provides immediate protection from network and application layer attacks, so web apps and APIs are always available and performant.

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

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

Customers using Fastly’s CDN automatically get access to our always-on DDoS protection capabilities.

These capabilities provide immediate protection from Layer 3 and 4 DDoS attacks which can target network infrastructure by flooding systems with large volumes of traffic.Our high-bandwidth, globally distributed network is built to absorb these network layer DDoS attacks, helping to ensure websites and services stay up and running despite attacks.

Fastly DDoS Protection is an add-on service which provides extra application layer protection against DDoS attacks.

Fastly DDoS Protection blocks application DDoS attacks without requiring any upfront tuning.

When unexpected volumetric attack events arise, our proprietary attribute unmasking techniques validate their legitimacy, and if malicious, begin scanning a comprehensive list of characters to find the attacker and quickly mitigate their attacks, even if they rotate IPs.

Fastly DDoS Protection offers a zero attack fee billing model ensuring customers are not billed for attack traffic.

TLS Encryption

• Transport Layer Security (“TLS”).

As part of our standard product, our platform terminates HTTPS connections at our network edge, offloading encrypted traffic from our customers’ web servers for better performance.

We provide a number of different certificate procurement and hosting options.

• Platform TLS.

Our Platform TLS offering is designed to allow customers with multiple web properties to manage TLS certificates at scale, while enabling a fast, secure experience for their end-users.

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

Certainly is 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.

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.

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.

28 unchanged sentences

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

Fastly Object Storage is an Amazon S3-compatible large object storage solution that works seamlessly with Fastly’s Compute service.

Customers can store large file sizes with Fastly, improving latency, increasing cache hit ratios, and reducing egress charges.

Objects stored in Fastly Object Storage are accessible via an S3 - compatible interface.

• AI Accelerator .

AI Accelerator is a semantic caching solution designed to enhance performance and reduce costs for Large Language Model (LLM) generative AI applications.

The solution leverages Fastly Edge Cloud Platform to cache responses for repeated queries, eliminating the need to make individual calls to AI providers.

AI Accelerator supports OpenAI, Azure OpenAI Service, Gemini and LLMs with OpenAI-compatible APIs.

• Visibility.

14 unchanged sentences

(“Glitch”) in May of 2022.

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.

Glitch is a popular tool for web-based development with a total lifetime user count of over 3.1 million registered developers as of December 2024.

Glitch has become a cornerstone for Fastly’s developer community, supporting learning initiatives, code samples, and demos created by developers from all corners of the internet.

• Open Source Support.

8 unchanged sentences

We support a number of protocols that allow our customers to stream logs to a variety of locations, including third-party services, for storage and analysis.

• Live Event Monitoring.

• Logging Insights.

Logging Insights provides actionable intelligence that can be used to diagnose and troubleshoot issues for optimal performance and user experience.

Fastly Logging Insights is a professional services package that provides actionable intelligence that can be used to diagnose and troubleshoot issues for optimal performance and user experience.

Our expert consultants implement a guided customization of preconfigured dashboards tailored to a customer’s specific goals.

1 unchanged sentence

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

• Log Explorer & Insights.

This feature allows customers to store, inspect and monitor their log data directly on our platform, eliminating the need for third-party tools to view and analyze logs.

Using the Insights dashboard, customers get a variety of views of their logging data so they can visualize and identify trends.

Log Explorer facilitates troubleshooting by allowing customers to view, filter and analyze logs using the Fastly control panel and API.

• Origin Inspector.

65 unchanged sentences

Our channel program provides partners with the flexibility to accommodate different go-to-market models and allows each partner to customize their offerings to provide their own differentiated value.

The two primary channel partner types we work with are:

The three primary channel partner types we work with are:

• Referral partners:

1 unchanged sentence

• Reseller partners:

Act as a reseller to offer additional value on top of Fastly’s products and services and include partners like value-added resellers, managed service providers, managed security service providers, system integrators, and more.

Resellers work with Fastly’s sales and presales teams to scale sales cycle support.

Act as a reseller to offer additional value on top of Fastly’s products and services and include partners like value-added resellers, system integrators, and more.

• MSP and MSSP partners:

Utilize Fastly technology to enhance and optimize the offerings to their customer base.

Fastly works with a broad range of the service provider community, entities such as Managed Service Providers (MSP) and Managed Security Service Providers (MSSP).

Partners work with Fastly’s sales and presales teams to scale sales cycle support.

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

3 unchanged sentences

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, 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.

2 unchanged sentences

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 solution that seamlessly integrates with their existing technology stack making our technology even stickier.

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:

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We segment the competitive landscape into six key categories:

• 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;

• Legacy CDNs like Akamai;

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

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

• 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:

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

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

The principal competitive factors in our market include:

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

21 unchanged sentences

Our Hiring Strategy

We are dedicated to building a diverse workforce and leadership team that reflects our values and the unique needs of our global customer base.

We are dedicated to building an inclusive workforce and leadership team that reflects our values and the unique needs of our global customer base.

We strive to be a company full of talented, highly effective, kind, honest, passionate, and high-integrity people.

5 unchanged sentences

We use a mix of competitive base salary, equity compensation awards, and other employee benefits.

We are building a global, healthy, safe, and diverse workforce and an inclusive culture that empowers and supports our employees and customers.

We are building a global, healthy, and safe workforce and an inclusive culture that empowers and supports our employees and customers, regardless of background.

We onboard all new employees with training programs on our values, certain aspects of our business, and important policies, including our Safe, Welcoming, and Productive Work Environment Policy.

1 unchanged sentence

Our employee engagement efforts currently include company-wide newsletters and all-hands meetings, through which we aim to keep our employees well-informed and increase transparency.

Our Employee Resource Groups are open to all employees and focus on making Fastly a better place where all employees are included, valued and engaged.

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.

29 unchanged sentences

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 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.

5 unchanged sentences

Infrastructure

Our infrastructure team is responsible for the design, deployment, and maintenance of the servers and network hardware that form the foundation of our mission critical edge cloud environment in 79 markets as of December 31, 2023.

Our infrastructure team is responsible for the design, deployment, and maintenance of the servers and network hardware that form the foundation of our mission critical edge cloud environment.

We invest in research into global Internet geography to identify optimal colocation site selection, network partner identification, and network-to-network interconnection opportunities.

8 unchanged sentences

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

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.

As of December 31, 2024, in the United States, we had 105 issued or allowed patents, which expire between August 2033 and March 2042, and three patent applications pending for examination.

As of such date, we also had 25 issued patents and nine patent applications published or pending for examination in foreign jurisdictions, all of which are related to U.S.

patents and patent applications.

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

In addition, as of December 31, 2024, we had 20 registered trademarks and two pending trademarks in the United States.

As of such date, we also had 35 registered trademarks in foreign jurisdictions.

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.

3 unchanged sentences

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.

24 unchanged sentences

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