EX-99.2 3 ex992-investorsupplement33.htm EX-99.2 Document
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First Quarter 2024 Investor Supplement
Product Innovation and Developments
•Released Fastly Bot Management Solution to help organizations combat automated “bot” attacks at the edge and minimize the business impact of fraud, DDoS attacks, account takeovers, and other abuse.
•Simplified our product bundles, making it easier for customers to choose Fastly by offering a predictable billing experience across our product portfolio.
•Enabled self-service adoption with Universal Login and the addition of Fastly product trials and upgrades to our Control Panel.
•Deepened protection for modern APIs and services with the addition of gRPC Inspection and Advanced Rate Limiting in our Next-Gen WAF.
•Expanded our Compute platform with the Secret Store, a secrets management service, allowing organizations to run more of their services entirely on the edge.
•Released Edge Rate Limiting to protect Compute services from Layer 7 DDoS attacks and automated abuse.
•Released Edge Observability, a unified dashboard with real-time and historic metrics, and Alerts, which automatically notifies customers of service-related performance metrics and impending outages.
Customer and Partner Highlights
•New deal registrations and related revenue contribution more than doubled year-over-year in the first quarter.
•Closed more Fastly product package deals in the first quarter of 2024 than the first half of 2023.
•MWM, a leading app publisher in France, selected Fastly’s content delivery and image optimization services.
•Bending Spoons, a leading mobile app development company, selected Fastly for its Network Services offering.

Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Customer Metrics:
LTM Net Retention Rate (NRR)(1)
117 %118 %119 %116 %116 %114 %113 %114 %
Enterprise Customer Count(2)
499 511 533 540 551 547 578 577 
Enterprise Customer Revenue %90 %91 %92 %91 %92 %92 %92 %91 %
Total Customer Count(2)
3,025 3,039 3,062 3,100 3,072 3,102 3,243 3,290 
Annual Revenue Retention Rate (ARR)(7)
— %— %98.9 %— %— %— %99.2 %— %
Revenue Metrics (in millions):

Network Services Revenue
$81.8$87.1$96.8$94.3$98.5$102.5$109.8$106.0
Security Revenue
$19.1$19.8$20.7$21.2$22.5$23.3$25.8$24.6
Other Revenue
$1.5$1.6$1.8$2.0$1.8$1.9$2.2$2.9
Remaining Performance Obligation (RPO)3
$173.2$173.0$198.3$242.4$230.9$247.6$235.7$227.0

Exhibit 99.2
Corporate Highlights
•Published “API Security Study 2024," an assessment of Europe-based companies' API security concerns based on insights from cybersecurity decision makers, experts, and practitioners.
•Launched Xcelerate, a series of in-person global events to help Fastly’s network of developers, security professionals and business leaders deliver superior digital experiences at the edge.
•Fastly’s OHTTP Relay won the 2024 DEVIES award for best innovation in services: application development.
Key Metrics Highlights
•Last 12-month net retention rate (LTM NRR)1 increased to 114% in the first quarter from 113% in the fourth quarter of 2023.
•Total customer count2 was 3,290 in the first quarter, up 47 from the fourth quarter of 2023; 577 were enterprise customers2 in the first quarter, down 1 from the fourth quarter of 2023.
•Remaining performance obligations (RPO)3 were $227 million, down 4% from $236 million in the fourth quarter of 2023.
•Total revenue of $133.5 million, representing 14% year-over-year growth. Network services revenue of $106.0 million, representing 12% year-over-year growth. Security revenue of $24.6 million, representing 16% year-over-year growth.
Second Quarter and Full Year 2024 Guidance
Q2 2024Full Year 2024
Total Revenue (millions)$130.0 - $134.0$555.0 - $565.0
Non-GAAP Operating Loss (millions)(4)
($16.0) - ($12.0)($28.0) - ($22.0)
Non-GAAP Net Loss per share (5)(6)
($0.10) - ($0.06)($0.12) - ($0.06)






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Key Metrics
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 due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
2.Our number of customers is calculated based on the number of separate identifiable operating entities with which we have a billing relationship in good standing, from which we recognized revenue during the current quarter. Our enterprise customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
3.Remaining performance obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied.
4.For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement.
5.Assumes weighted average basic shares outstanding of 137.7 million in Q2 2024 and 137.9 million for the full year 2024.
6.Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2024.
7.Annual revenue retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from 100%. Our “Annual Revenue Churn” is calculated by multiplying the final full month of revenue from a customer that terminated its contract with us (a “Churned Customer”) by the number of months remaining in the same calendar year.







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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 substantial risks and uncertainties. Forward-looking statements generally relate to future events or Fastly's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue," “would,” or the negative of these words or other similar terms or expressions that concern Fastly's expectations, goals, strategy, priorities, plans, projections, or intentions. Forward-looking statements in this investor supplement include, but are not limited to, statements regarding Fastly’s future financial and operating performance, including its outlook and guidance; the performance of our existing and new products and product enhancements; the growth and success of Fastly's partner program; and Fastly's strategies, product and business plans. Fastly's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: Fastly is unable to attract and retain customers; Fastly's existing customers and partners do not maintain or increase usage of Fastly's platform; Fastly's platform and product features do not meet expectations, including due to defects, interruptions, security breaches, delays in performance or other similar problems; Fastly is unable to adapt to meet evolving market and customer demands and rapid technological change; Fastly is unable to comply with modified or new industry standards, laws and regulations; Fastly is unable to generate sufficient revenues to achieve or sustain profitability; Fastly’s limited operating history makes it difficult to evaluate its prospects and future operating results; Fastly is unable to effectively manage its growth; and Fastly is unable to compete effectively. The forward-looking statements contained in this investor supplement are also subject to other risks and uncertainties, including those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2023. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and other filings and reports that Fastly may file from time to time with the SEC. The forward-looking statements in this investor supplement are based on information available to Fastly as of the date hereof, and Fastly disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss) and non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, executive transition costs, net gain on extinguishment of debt, impairment expense and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense, depreciation and other amortization expenses, amortization of acquired intangible assets, acquisition-related expenses, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, impairment expense, other income (expense), net, and income taxes.
Acquisition-Related Expenses: consists of acquisition-related charges that are not related to ongoing operations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because these charges may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-

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cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash and non-cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs and advance payments made related to capital expenditures. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Impairment Expense: consists of impairment charge related to our computer and networking equipment, including software, we expect to not be used. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-Based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management

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considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because it is a non-cash expense not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
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 and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this investor supplement.









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Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share amounts)

Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Revenue$102,518 $108,504 $119,321 $117,564 $122,831 $127,816 $137,777 $133,520 
Cost of revenue(1)
56,466 55,825 56,738 57,310 58,617 61,730 62,003 60,286 
Gross profit46,052 52,679 62,583 60,254 64,214 66,086 75,774 73,234 
Operating expenses:
Research and development(1)
38,717 38,957 37,197 37,431 37,421 39,068 38,270 38,248 
Sales and marketing(1)
46,760 47,006 44,623 44,271 47,797 51,043 48,662 49,607 
General and administrative (1)
29,543 32,481 29,225 25,827 28,823 30,001 31,426 31,639 
Impairment expense— — — — — 4,316 — — 
Total operating expenses115,020 118,444 111,045 107,529 114,041 124,428 118,358 119,494 
Loss from operations(68,968)(65,765)(48,462)(47,275)(49,827)(58,342)(42,584)(46,260)
Net gain on extinguishment of debt54,391 — — — 36,760 — 15,656 — 
Interest income1,502 1,967 2,894 4,186 4,508 4,908 4,584 3,848 
Interest expense(1,530)(1,381)(1,354)(1,213)(1,232)(862)(744)(579)
Other income (expense), net
(1,673)1,877 46 (250)(803)(16)(763)(89)
Loss before income taxes(16,278)(63,302)(46,876)(44,552)(10,594)(54,312)(23,851)(43,080)
Income tax expense (benefit)159 118 (223)135 110 (1)(465)347 
Net loss$(16,437)$(63,420)$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)
Net loss per share attributable to common stockholders, basic and diluted$(0.14)$(0.52)$(0.38)$(0.36)$(0.08)$(0.42)$(0.18)$(0.32)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted121,242 122,339 123,587 125,418 127,863 129,873 131,843 134,587 
__________
(1)Includes stock-based compensation expense as follows:
Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Cost of revenue$3,188 $2,978 $2,938 $2,681 $2,837 $2,860 $3,278 $2,779 
Research and development13,889 14,488 11,469 11,481 12,205 12,122 12,019 10,323 
Sales and marketing10,184 10,920 7,885 6,705 9,877 9,061 8,060 7,843 
General and administrative7,717 10,992 9,126 7,284 12,073 11,670 12,090 10,876 
Total$34,978 $39,378 $31,418 $28,151 $36,992 $35,713 $35,447 $31,821 











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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
(unaudited, in thousands, except per share amounts)

Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Gross Profit
GAAP gross Profit$46,052 $52,679 $62,583 $60,254 $64,214 $66,086 $75,774 $73,234 
Stock-based compensation3,188 2,978 2,938 2,681 2,837 2,860 3,278 2,779 
Amortization of acquired intangible assets2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 
Non-GAAP gross profit51,715 58,132 67,996 65,410 69,526 71,421 81,527 78,488 
GAAP gross margin44.9 %48.6 %52.4 %51.3 %52.3 %51.7 %55.0 %54.8 %
Non-GAAP gross margin50.4 %53.6 %57.0 %55.6 %56.6 %55.9 %59.2 %58.8 %
Research and development
GAAP research and development38,717 38,957 37,197 37,431 37,421 39,068 38,270 38,248 
Stock-based compensation(13,889)(14,488)(11,469)(11,481)(12,205)(10,426)(11,728)(10,323)
Executive transition costs— — — — — (2,406)(385)— 
Non-GAAP research and development24,828 24,469 25,728 25,950 25,216 26,236 26,157 27,925 
Sales and marketing
GAAP sales and marketing46,760 47,006 44,623 44,271 47,797 51,043 48,662 49,607 
Stock-based compensation(10,184)(10,920)(7,885)(6,705)(9,877)(9,061)(8,060)(7,843)
Amortization of acquired intangible assets(2,710)(2,897)(2,575)(2,575)(2,575)(2,576)(2,300)(2,300)
Non-GAAP sales and marketing33,866 33,189 34,163 34,991 35,345 39,406 38,302 39,464 
General and administrative
GAAP general and administrative29,543 32,481 29,225 25,827 28,823 30,001 31,426 31,639 
Stock-based compensation(7,717)(7,959)(9,126)(7,284)(12,073)(11,670)(12,090)(10,876)
Executive transition costs— (4,207)— — — — — — 
Acquisition-related expenses(1,912)— — — — — — — 
Non-GAAP general and administrative19,914 20,315 20,099 18,543 16,750 18,331 19,336 20,763 
Operating loss
GAAP operating loss(68,968)(65,765)(48,462)(47,275)(49,827)(58,342)(42,584)(46,260)
Stock-based compensation34,978 36,345 31,418 28,151 36,992 34,017 35,156 31,821 
Executive transition costs— 4,207 — — — 2,406 385 — 
Amortization of acquired intangible assets5,185 5,372 5,050 5,050 5,050 5,051 4,775 4,775 
Impairment expense
— — — — — 4,316 — — 
Acquisition-related expenses1,912 — — — — — — — 
Non-GAAP operating loss(26,893)(19,841)(11,994)(14,074)(7,785)(12,552)(2,268)(9,664)
Net loss
GAAP net loss(16,437)(63,420)(46,653)(44,687)(10,704)(54,311)(23,386)(43,427)
Stock-based compensation34,978 36,345 31,418 28,151 36,992 34,017 35,156 31,821 
Executive transition costs— 4,207 — — — 2,406 385 — 
Amortization of acquired intangible assets5,185 5,372 5,050 5,050 5,050 5,051 4,775 4,775 
Acquisition-related expenses1,912 — — — — — — — 
Net gain on extinguishment of debt (54,391)— — — (36,760)— (15,656)— 
Impairment expense— — — — — 4,316 — — 
Amortization of debt issuance costs776 714 716 716 803 502 456 354 
Non-GAAP net income (loss)
$(27,977)$(16,782)$(9,469)$(10,770)$(4,619)$(8,019)$1,730 $(6,477)
GAAP net loss per common share—basic and diluted$(0.14)$(0.52)$(0.38)$(0.36)$(0.08)$(0.42)$(0.18)$(0.32)
Non-GAAP net income (loss) per common share—basic and diluted
$(0.23)$(0.14)$(0.08)$(0.09)$(0.04)$(0.06)$0.01 $(0.05)
Weighted average basic common shares121,242 122,339 123,587 125,418 127,863 129,873 131,843 134,587 
Weighted average diluted common shares
121,242 122,339 123,587 125,418 127,863 129,873 141,162 134,587 


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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
(unaudited, in thousands, except per share amounts)

Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares121,242 122,339 123,587 125,418 127,863 129,873 131,843 134,587 
Other dilutive equity awards— — — — — — 9,319 — 
Non-GAAP diluted shares121,242 122,339 123,587 125,418 127,863 129,873 141,162 134,587 
Non-GAAP diluted net income (loss) per share
(0.23)(0.14)(0.08)(0.09)(0.04)(0.06)0.01 (0.05)

Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Adjusted EBITDA
GAAP net loss$(16,437)$(63,420)$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)
Stock-based compensation34,978 36,345 31,418 28,151 36,992 34,017 35,156 31,821 
Depreciation and other amortization10,860 10,786 11,903 12,179 13,030 13,202 13,727 13,400 
Amortization of acquired intangible assets5,185 5,372 5,050 5,050 5,050 5,051 4,775 4,775 
Amortization of debt discount and issuance costs776 714 716 716 803 502 456 354 
Executive transition costs— 4,207 — — — 2,406 385 — 
Net gain on extinguishment of debt(54,391)— — — (36,760)— (15,656)— 
Impairment expense
— — — — — 4,316 — — 
Acquisition-related expenses1,912 — — — — — — — 
Interest income(1,502)(1,967)(2,894)(4,186)(4,508)(4,908)(4,584)(3,848)
Interest expense754 667 638 497 429 360 288 225 
Other (income) expense, net1,673 (1,877)(46)250 803 16 763 89 
Income tax (benefit) expense159 118 (223)135 110 (1)(465)347 
Adjusted EBITDA$(16,033)$(9,055)$(91)$(1,895)$5,245 $650 $11,459 $3,736 


























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Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Revenue$102,518 $108,504 $119,321 $117,564 $122,831 $127,816 $137,777 $133,520 
Cost of revenue (1)(2)
50,803 50,372 51,325 52,154 53,305 56,395 56,250 55,032 
Gross profit51,715 58,132 67,996 65,410 69,526 71,421 81,527 78,488 
Operating expenses:
Research and development(1)(3)
24,828 24,469 25,728 25,950 25,216 26,236 26,157 27,925 
Sales and marketing(1)(2)
33,866 33,189 34,163 34,991 35,345 39,406 38,302 39,464 
General and administrative (1)(3)(4)
19,914 20,315 20,099 18,543 16,750 18,331 19,336 20,763 
Total operating expenses(5)
78,608 77,973 79,990 79,484 77,311 83,973 83,795 88,152 
Loss from operations(1)(2)(3)(4)
(26,893)(19,841)(11,994)(14,074)(7,785)(12,552)(2,268)(9,664)
Interest income1,502 1,967 2,894 4,186 4,508 4,908 4,584 3,848 
Interest expense(6)
(754)(667)(638)(497)(429)(360)(288)(225)
Other income (expense), net(1,673)1,877 46 (250)(803)(16)(763)(89)
Income (loss) before income tax expense (benefit)(7)
(27,818)(16,664)(9,692)(10,635)(4,509)(8,020)1,265 (6,130)
Income tax expense (benefit)(8)
159 118 (223)135 110 (1)(465)347 
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)
$(27,977)$(16,782)$(9,469)$(10,770)$(4,619)$(8,019)$1,730 $(6,477)
Net income (loss) per share attributable to common stockholders, basic and diluted
$(0.23)$(0.14)$(0.08)$(0.09)$(0.04)$(0.06)$0.01 $(0.05)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic121,242122,339123,587125,418127,863129,873131,843134,587
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted121,242122,339123,587125,418127,863129,873141,162134,587
(1) Excludes stock-based compensation. See GAAP to Non-GAAP reconciliations.
(2) Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(3) Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
(4) Excludes acquisition-related and other expenses. See GAAP to Non-GAAP reconciliations.
(5) Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
(6) Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(7) Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.
(8) Excludes acquisition-related tax benefit. See GAAP to Non-GAAP reconciliations.




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Consolidated Balance Sheets - Quarterly
(unaudited, in thousands)
Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Assets
Current assets:
Cash and cash equivalents$62,510 $87,897 $143,391 $348,463 $273,742 $270,300 $107,921 $150,809 
Marketable securities419,905 445,048 374,581 198,116 123,605 158,055 214,799 178,677 
Accounts receivable, net68,218 72,914 89,578 85,344 78,295 98,622 120,498 107,517 
Prepaid expenses and other current assets29,037 31,321 28,933 29,717 29,500 24,481 20,455 23,207 
Total current assets579,670 637,180 636,483 661,640 505,142 551,458 463,673 460,210 
Property and equipment, net173,950 179,080 180,378 179,922 179,045 171,914 176,608 177,574 
Operating lease right-of-use assets, net69,861 72,374 68,440 60,615 56,733 52,927 55,212 54,420 
Goodwill670,186 670,158 670,185 670,192 670,356 670,356 670,356 670,356 
Intangible assets, net93,978 88,482 82,900 77,725 72,550 67,375 62,475 57,576 
Marketable securities, non-current284,951 186,066 165,105 117,518 78,042 32,280 6,088 1,743 
Other assets60,199 73,258 92,622 94,798 95,550 94,353 90,779 84,044 
Total assets$1,932,795 $1,906,598 $1,896,113 $1,862,410 $1,657,418 $1,640,663 $1,525,191 $1,505,923 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$10,011 $8,265 $4,786 $4,668 $5,561 $5,723 $5,611 $5,485 
Accrued expenses49,943 54,186 61,161 42,311 47,001 56,595 61,818 35,555 
Finance lease liabilities28,088 27,807 28,954 24,763 22,233 19,250 15,684 11,974 
Operating lease liabilities19,243 20,919 23,026 20,516 20,575 21,533 24,042 22,580 
Other current liabilities33,705 33,422 34,394 32,942 36,234 40,234 40,539 44,633 
Total current liabilities140,990 144,599 152,321 125,200 131,604 143,335 147,694 120,227 
Long-term debt, less current portion703,375 704,042 704,710 705,378 472,369 472,823 343,507 343,837 
Finance lease liabilities, noncurrent26,479 21,027 15,507 10,858 7,026 3,860 1,602 440 
Operating lease liabilities, noncurrent60,657 62,750 61,341 56,275 51,448 47,775 48,484 46,857 
Other long-term liabilities7,556 7,201 7,076 6,144 7,217 4,298 4,416 2,756 
Total liabilities939,057 939,619 940,955 903,855 669,664 672,091 545,703 514,117 
Stockholders’ equity:
Common stock
2 2 2 2 2 2 3 3 
Additional paid-in capital1,597,869 1,634,666 1,666,106 1,710,498 1,747,959 1,781,870 1,815,245 1,870,503 
Accumulated other comprehensive loss(12,542)(12,678)(9,286)(5,594)(3,152)(1,934)(1,008)(521)
Accumulated deficit(591,591)(655,011)(701,664)(746,351)(757,055)(811,366)(834,752)(878,179)
Total stockholders’ equity993,738 966,979 955,158 958,555 987,754 968,572 979,488 991,806 
Total liabilities and stockholders’ equity$1,932,795 $1,906,598 $1,896,113 $1,862,410 $1,657,418 $1,640,663 $1,525,191 $1,505,923 







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Consolidated Statements of Cash Flows – Quarterly
(unaudited, in thousands)

Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Cash flows from operating activities:
Net loss$(16,437)$(63,420)$(46,653)$(44,687)$(10,704)$(54,311)$(23,386)$(43,427)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense10,736 10,662 11,371 12,040 12,920 13,055 13,587 13,277 
Amortization of intangible assets5,309 5,496 5,582 5,175 5,175 5,175 4,899 4,899 
Non-cash lease expense5,608 8,133 5,793 6,115 5,648 5,464 5,451 5,556 
Amortization of debt discount and issuance costs775 715 715 716 803 501 456 354 
Amortization of deferred contract costs2,138 2,031 2,896 3,425 3,746 4,082 4,295 4,573 
Stock-based compensation34,978 39,378 31,418 28,151 36,992 35,713 35,447 31,821 
Deferred income taxes
— — — — — — (900)228 
Provision for credit losses402 1,253 624 533 567 211 714 953 
(Gain) loss on disposals of property and equipment586 — — 251 296 (42)— 399 
Amortization and accretion of discounts and premiums on investments894 771 515 449 298 (403)(990)(1,158)
Impairment of operating lease right-of-use assets — — 2,083 — 187 401 156 — 
Impairment expense
— — — — — 4,316 — — 
Net gain on extinguishment of debt(54,391)— — — (36,760)— (15,656)— 
Other adjustments(67)(353)3,980 (243)(85)71 905 (259)
Changes in operating assets and liabilities:
Accounts receivable5,097 (5,949)(17,288)3,701 6,482 (20,538)(22,590)12,028 
Prepaid expenses and other current assets(2,701)(975)(971)(634)217 5,019 4,107 (2,700)
Other assets(3,948)(13,505)(15,492)(7,212)(4,771)(4,286)(6,868)(1,814)
Accounts payable3,336 (4,301)(1,267)(175)1,119 314 (876)101 
Accrued expenses(3,729)3,328 3,799 (6,827)234 340 (1,603)(8,760)
Operating lease liabilities(5,349)(7,462)(4,335)(5,750)(6,682)(4,505)(5,137)(7,606)
Other liabilities83 (3,436)5,102 (3,889)9,308 1,033 612 2,667 
Net cash provided by (used in) operating activities(16,680)(27,634)(12,128)(8,861)24,990 (8,390)(7,377)11,132 
Cash flows from investing activities:
Purchases of marketable securities(207,286)— — — — (73,091)(59,142)(56,948)
Sales of marketable securities159,552 — 65 — 774 1 24,850 — 
Maturities of marketable securities127,333 72,857 94,303 227,211 114,884 86,030 5,642 99,080 
Business acquisitions, net of cash acquired (25,224)(1,746)1,843 — — — — — 
Advance payment for purchase of property and equipment(29,310)(1,964)(10,923)— — — — — 
Purchases of property and equipment(1)
(6,428)(2,631)(8,529)(3,494)(4,464)(325)(2,693)(1,603)
Proceeds from sale of property and equipment241 125 126 22 14 13 — — 
Capitalized internal-use software(4,926)(5,120)(4,290)(4,209)(6,230)(4,951)(5,902)(6,845)
Net cash provided by (used in) investing activities(1)
13,952 61,521 72,595 219,530 104,978 7,677 (37,245)33,684 
Cash flows from financing activities:
Cash paid for debt extinguishment(177,082)— — — (196,934)— (113,606)— 
Repayments of finance lease liabilities(1)
(3,870)(7,076)(4,427)(8,645)(6,557)(6,041)(5,932)(4,872)
Cash received for restricted stock sold in advance of vesting conditions— — — — — — — — 
Cash paid for early sale of restricted shares(3,539)(3,618)— — — — — — 
Payment of deferred consideration for business acquisitions— — — — (4,393)— — — 
Proceeds from exercise of vested stock options1,721 555 364 336 535 1,137 161 111 
Proceeds from employee stock purchase plan1,571 1,749 (949)2,596 2,191 2,222 1,550 2,881 
Net cash used in financing activities(1)
(181,199)(8,390)(5,012)(5,713)(205,158)(2,682)(117,827)(1,880)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash(100)(110)39 116 469 (47)70 (48)
Net increase (decrease) in cash, cash equivalents, and restricted cash(184,027)25,387 55,494 205,072 (74,721)(3,442)(162,379)42,888 
Cash, cash equivalents, and restricted cash at beginning of period246,687 62,660 88,047 143,541 348,613 273,892 270,450 108,071 
Cash, cash equivalents, and restricted cash at end of period$62,660 $88,047 $143,541 $348,613 $273,892 $270,450 $108,071 $150,959 
__________
(1)Amounts disclosed for Q2 2022 have been revised from the amounts disclosed in our previous investor supplements to match amounts reported in the applicable Quarterly Reports on Form 10-Q.

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Free Cash Flow
(in thousands, unaudited)
Quarter ended
Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024
Cash flow provided by (used in) operations$(16,680)$(27,634)$(12,128)$(8,861)$24,990 $(8,390)$(7,377)$11,132 
Capital expenditures(1):
Purchases of property and equipment(6,428)(2,631)(8,529)(3,494)(4,464)(325)(2,693)(1,603)
Proceeds from sale of property and equipment241 125 126 22 14 13 — — 
Capitalized internal-use software(4,926)(5,120)(4,290)(4,209)(6,230)(4,951)(5,902)(6,845)
Repayments of finance lease liabilities(3,870)(7,076)(4,427)(8,645)(6,557)(6,041)(5,932)(4,872)
Advance payment for purchase of property and equipment (2)
(29,310)(1,964)(10,923)— — — — — 
Free Cash Flow$(60,973)$(44,300)$(40,171)$(25,187)$7,753 $(19,694)$(21,904)$(2,188)
__________
(1)Capital expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
(2)In the three months ended March 31, 2024, we received $3.7 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.