From Yahoo Finance · · 1m 30s
Fastly Reports 43% Security Growth
Fastly's security revenue surged 43% as AI traffic drives edge computing opportunities.
In brief
Fastly's security revenue surged 43% as AI traffic drives edge computing opportunities. Fastly's security revenue grew 43% year over year to $183 million, driven by AI traffic and edge computing demand. Originally reported by Yahoo Finance.
Fastly Revenue Growth
Fastly's revenue rose 23% year over year to $183 million, led by 43% growth in security revenue and 17% growth in delivery services.
AI Traffic Opportunity
AI-driven machine traffic is creating near-term opportunities for Fastly's bot management and DDoS protection products.
Security Momentum Drivers
Fastly attributed security momentum to expanded product portfolio and improved sales execution, with bot management and DDoS each delivering triple-digit growth.
Net Retention High
Fastly reported net retention of 117%, a four-year high, reflecting delivery-service upsells and security cross-selling.
AI Traffic Growth Rate
Machine traffic grows at 6.5 times human traffic pace, representing nearly half of total requests on Fastly's network.
Edge Computing Strategy
Fastly focuses on software-defined edge network using existing hardware to support multi-cloud, model-neutral edge computing solutions.
Gross Margin Efficiency
Fastly achieved 96% gross-margin flow-through over the last 12 months, meaning 96 cents of every incremental revenue dollar became gross profit.
Potential Demand Events
Fastly identified potential episodic demand drivers including Grand Theft Auto VI releases and U.S. midterm elections.
Investor Day Plans
Fastly plans to hold an investor day at Nasdaq MarketSite in New York to discuss long-term operating model and multi-product adoption.
The headline
Fastly's security revenue grew 43% year over year to $183 million, driven by AI traffic and edge computing demand.
