Fastly Posts Record Q4 Revenue, Net Retention Jumps 110% YoY
Fastly reported record fourth-quarter revenue, gross margin and operating profit, while trailing 12-month net retention rose 110% year-over-year. The content delivery network company also issued better-than-expected guidance and prompted several analysts to raise price targets following consecutive revenue and EPS beats.
1. Fourth Quarter Financial Highlights
Fastly delivered record quarterly performance with revenue, gross margin and operating profit all reaching new highs. The company also achieved a 110% year-over-year increase in trailing twelve-month net retention, marking its ninth revenue beat in ten quarters and eighth EPS beat in ten.
2. Guidance and Analyst Response
Fastly provided better-than-expected guidance for the coming quarter, citing continued customer expansion and improved product uptake. Multiple analysts responded by raising price targets, reflecting heightened confidence in the company's growth trajectory and profit potential.