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Second Quarter 2025 Investor Supplement
Product Innovation and Developments
•Enhanced Fastly DDoS Protection with Attack Insights, providing organizations with deeper visibility into attack mitigation and efficacy validation.
•Released Fastly AI Bot Management to GA, providing customers with granular control over how AI bots interact with their content and infrastructure without compromising performance.
•Introduced IPv6 to Origin support in Fastly Delivery, expanding customer reach and flexibility with full dual-stack traffic handling.
•Added Shielding support to Compute for the Rust SDK, enabling customers to improve cache hit ratio, reduce origin load, and cut egress costs.
•Fastly Application Security Solutions Delivered 235% ROI Over Three Years according to a commissioned Forrester Consulting Total Economic Impact™ (TEI) study.
•Expanded into Mexico with the first installed Point of Presence, bringing improved speed, lower latency, and better reliability to customers in the region.
Customer Highlights
•Product package deals in the second quarter grew more than 50% year-over-year, and those involving renewals grew over 130% year-over-year.
•A cloud-native, software-as-a-service (SaaS) core banking platform, selected Fastly for its Network Services and Security offerings.
•A premier programmable financial services company selected Fastly's DDOS technology in a key cross-selling opportunity.
•A leading global omnichannel retailer of sports fashion and outdoor brands selected Fastly’s full platform.
•A major international warehouse club selected Fastly’s full platform offerings.
Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Revenue by Product (in millions):
Network Services Revenue$102.5$109.8$106.0$104.2$107.4$110.1$113.3$114.9
Security Revenue$23.3$25.8$24.6$25.4$26.2$26.9$26.4$29.3
Other Revenue$1.9$2.2$2.9$2.8$3.6$3.6$4.8$4.5
Total Revenue$127.8$137.8$133.5$132.4$137.2$140.6$144.5$148.7
Key Metrics:
Enterprise Customer Count(1)
547 578 577 601 576 596 595 622 
Enterprise Customer Revenue %92 %92 %91 %91 %92 %93 %93 %94 %
Total Customer Count(1)
3,102 3,243 3,290 3,295 3,638 3,061 3,035 3,097 
Top Ten Customer Revenue %40 %40 %38 %34 %33 %32 %33 %31 %
LTM Net Retention Rate (NRR)(2)
114 %113 %114 %110 %105 %102 %100 %104 %
Annual Revenue Retention Rate (ARR)(7)
— %99.2 %— %— %— %99.0 %— %— %
Remaining Performance Obligation (RPO)(3)
$247.6$235.7$227.0$223.1$235.4$244.4$303.0$315.1

Corporate Highlights
•Fastly Q2 Executive Appointments: Kip Compton (Chief Executive Officer), Albert Thong (Chief Marketing Officer), Tara Seracka (Chief Legal Officer).
•Richard Wong appointed Chief Financial Officer, succeeding Ronald Kisling, who is leaving to pursue new opportunities.
•Scott Lovett, Fastly’s Chief Revenue Officer named President, Go to Market, bringing together the revenue and marketing organizations under his leadership. Chief Marketing Officer Albert Thong will report to Scott.
Key Financial & Metrics Highlights
•Total revenue of $148.7 million, representing 12% year-over-year growth highlighted by security revenue growing 15% year-over-year and representing 20% of total revenue.
•Generated $10.9 million of positive free cash flow compared to $18.5 million of negative free cash flow in the second quarter of 2024.
•Enterprise customer count1 was 622 in the second quarter, up 21 from the second quarter of 2024. Total customer count1 was 3,097 in the second quarter, down 198 from the second quarter of 2024.
•Last 12-month net retention rate (LTM NRR)2 increased to 104% in the second quarter from 100% in the first quarter of 2025.
•Remaining Performance Obligations (RPO)3 were $315 million, up 41% from $223 million in the second quarter of 2024.
Third Quarter and Full Year 2025 Guidance
Q3 2025Full Year 2025
Total Revenue (millions)$149.0 - $153.0$594.0 - $602.0
Non-GAAP Operating Income (Loss) (millions)(4)
($1.0) - $3.0($9.0) - ($3.0)
Non-GAAP Net Income (Loss) per share(5)(6)
($0.02) - $0.02($0.10) - ($0.04)


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Key Metrics
1.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.
2.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.
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 148.2 million in Q3 2025 and 146.9 million for the full year 2025.
6.Non-GAAP Net Income (Loss) per share is calculated as Non-GAAP Net Income (Loss) divided by weighted average basic shares for 2025.
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 that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance and shareholder returns, including our outlook and guidance; our ability to enrich our revenue mix with platform enhancements; the performance of our existing and new platform enhancements; the performance and capabilities of Fastly DDoS Protection, Fastly AI Bot Management, Fastly Delivery, Fastly Compute, and Fastly Next-Gen WAF; expectations regarding customer experiences with Fastly DDoS Protection, Fastly AI Bot Management, Fastly Delivery, Fastly Compute, and Fastly Next-Gen WAF; expectations regarding Fastly’s expansion into certain international markets; Mr. Wong’s appointment as CFO; Mr. Lovett’s appointment as President, Go to Market; and Fastly's strategies, platform, and business plans. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including those more fully described in Fastly's Annual Report on Form 10-K for the year ended December 31, 2024. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and other filings and reports that Fastly may file from time to time with the SEC. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
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 income (loss), non-GAAP basic and diluted net income (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 income (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 capitalized stock-based compensation - cost of revenue, amortization of acquired intangible assets, 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, 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.
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-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.

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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.
Gain on Modification of Lease: consists of a one-time non-cash charge recognized with respect to the modification of our leases. 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.
Impairment Expense: consists of charges related to our long-lived assets. 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.
Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. 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.
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 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

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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.
Amortization of Capitalized Stock-Based Compensation - Cost of Revenue: in order to reflect the performance of our core business, ongoing operating results, or future outlook, and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies, similar to stock-based compensation, management considers it appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures.
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)

Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Revenue$127,816 $137,777 $133,520 $132,371 $137,206 $140,579 $144,474 $148,709 
Cost of revenue(1)
61,730 62,003 60,286 59,470 62,466 65,516 67,676 67,593 
Gross profit66,086 75,774 73,234 72,901 74,740 75,063 76,798 81,116 
Operating expenses:
Research and development(1)
39,068 38,270 38,248 35,106 31,884 32,742 37,429 42,221 
Sales and marketing(1)
51,043 48,662 49,607 52,959 45,994 50,050 49,313 51,100 
General and administrative (1)
30,001 31,426 31,639 28,433 27,173 26,154 28,235 24,323 
Impairment expense4,316 — — 3,137 559 448 — 415 
Restructuring charges
— — — — 9,720 — — — 
Total operating expenses124,428 118,358 119,494 119,635 115,330 109,394 114,977 118,059 
Loss from operations(58,342)(42,584)(46,260)(46,734)(40,590)(34,331)(38,179)(36,943)
Net gain on extinguishment of debt— 15,656 — — — 1,365 — — 
Interest income4,908 4,584 3,848 3,937 3,819 3,267 2,975 3,084 
Interest expense(862)(744)(579)(464)(473)(1,231)(3,173)(3,164)
Other income (expense), net
(16)(763)(89)193 (317)(815)(80)39 
Loss before income tax expense (benefit)
(54,312)(23,851)(43,080)(43,068)(37,561)(31,745)(38,457)(36,984)
Income tax expense (benefit)(1)(465)347 661 455 1,141 691 557 
Net loss$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)
Net loss per share attributable to common stockholders, basic and diluted$(0.42)$(0.18)$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)$(0.26)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted129,873 131,843 134,587 137,444 139,237 141,085 143,284 145,780 
__________
(1)Includes stock-based compensation expense as follows:
Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Cost of revenue$2,860 $3,278 $2,779 $2,044 $1,911 $1,910 $1,939 $2,573 
Research and development12,122 12,019 10,323 7,983 7,378 7,922 8,893 11,755 
Sales and marketing9,061 8,060 7,843 7,058 7,113 7,047 6,693 8,176 
General and administrative11,670 12,090 10,876 9,063 8,614 8,066 8,057 3,831 
Total$35,713 $35,447 $31,821 $26,148 $25,016 $24,945 $25,582 $26,335 



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

Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Gross Profit
GAAP gross Profit$66,086 $75,774 $73,234 $72,901 $74,740 $75,063 $76,798 $81,116 
Stock-based compensation2,860 3,278 2,779 2,044 1,911 1,910 1,939 2,573 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,013 1,022 1,155 1,184 1,338 1,371 1,641 1,581 
Amortization of acquired intangible assets2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 
Non-GAAP gross profit72,434 82,549 79,643 78,604 80,464 80,819 82,853 87,745 
GAAP gross margin51.7 %55.0 %54.8 %55.1 %54.5 %53.4 %53.2 %54.5 %
Non-GAAP gross margin56.7 %59.9 %59.6 %59.4 %58.6 %57.5 %57.3 %59.0 %
Research and development
GAAP research and development39,068 38,270 38,248 35,106 31,884 32,742 37,429 42,221 
Stock-based compensation(10,426)(11,728)(10,323)(7,983)(7,378)(7,922)(8,893)(11,755)
Executive transition costs(2,406)(385)— — — — — — 
Non-GAAP research and development26,236 26,157 27,925 27,123 24,506 24,820 28,536 30,466 
Sales and marketing
GAAP sales and marketing51,043 48,662 49,607 52,959 45,994 50,050 49,313 51,100 
Stock-based compensation(9,061)(8,060)(7,843)(7,058)(7,113)(7,047)(6,693)(8,176)
Amortization of acquired intangible assets(2,576)(2,300)(2,300)(2,301)(2,300)(2,299)(2,301)(2,279)
Non-GAAP sales and marketing39,406 38,302 39,464 43,600 36,581 40,704 40,319 40,645 
General and administrative
GAAP general and administrative30,001 31,426 31,639 28,433 27,173 26,154 28,235 24,323 
Stock-based compensation(11,670)(12,090)(10,876)(9,063)(8,614)(8,066)(8,057)(3,831)
Executive transition costs— — — — — — (335)— 
Gain on modification of lease
— — — — — — — 736 
Non-GAAP general and administrative18,331 19,336 20,763 19,370 18,559 18,088 19,843 21,228 
Operating loss
GAAP operating loss(58,342)(42,584)(46,260)(46,734)(40,590)(34,331)(38,179)(36,943)
Stock-based compensation34,017 35,156 31,821 26,148 25,016 24,945 25,582 26,335 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,013 1,022 1,155 1,184 1,338 1,371 1,641 1,581 
Restructuring charges
— — — — 9,720 — — — 
Executive transition costs2,406 385 — — — — 335 — 
Gain on modification of lease— — — — — — — (736)
Amortization of acquired intangible assets5,051 4,775 4,775 4,776 4,775 4,774 4,776 4,754 
Impairment expense
4,316 — — 3,137 559 448 — 415 
Non-GAAP operating income (loss)
(11,539)(1,246)(8,509)(11,489)818 (2,793)(5,845)(4,594)
Net loss
GAAP net loss(54,311)(23,386)(43,427)(43,729)(38,016)(32,886)(39,148)(37,541)
Stock-based compensation34,017 35,156 31,821 26,148 25,016 24,945 25,582 26,335 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,013 1,022 1,155 1,184 1,338 1,371 1,641 1,581 
Restructuring charges
— — — — 9,720 — — — 
Executive transition costs2,406 385 — — — — 335 — 
Gain on modification of lease— — — — — — — (736)
Amortization of acquired intangible assets5,051 4,775 4,775 4,776 4,775 4,774 4,776 4,754 
Net gain on extinguishment of debt — (15,656)— — — (1,365)— — 
Impairment expense4,316 — — 3,137 559 448 — 415 
Amortization of debt issuance costs502 456 354 349 358 318 217 217 
Non-GAAP net income (loss)
$(7,006)$2,752 $(5,322)$(8,135)$3,750 $(2,395)$(6,597)$(4,975)
GAAP net income (loss) per common share — basic and diluted
$(0.42)$(0.18)$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)$(0.26)
Non-GAAP net income (loss) per common share — basic and diluted
$(0.05)$0.02 $(0.04)$(0.06)$0.03 $(0.02)$(0.05)$(0.03)
Weighted average basic common shares129,873 131,843 134,587 137,444 139,237 141,085 143,284 145,780 
Weighted average diluted common shares
129,873 141,162 134,587 137,444 143,415 141,085 143,284 145,780 

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(1)Similar to stock-based compensation, we believe it is also appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. However, we have not historically done so. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2025, we are excluding amortization of capitalized stock-based compensation from our non-GAAP financial measures and we have accordingly recast the presentation for all prior periods presented to reflect this change. Refer to Non-GAAP Financial Measures definition for further details.

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

Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares129,873 131,843 134,587 137,444 139,237 141,085 143,284 145,780 
Other dilutive equity awards— 9,319 — — 4,178 — — — 
Non-GAAP diluted shares129,873 141,162 134,587 137,444 143,415 141,085 143,284 145,780 
Non-GAAP diluted net income (loss) per share
(0.05)0.02 (0.04)(0.06)0.03 (0.02)(0.05)(0.03)

Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Adjusted EBITDA
GAAP net loss$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)
Stock-based compensation34,017 35,156 31,821 26,148 25,016 24,945 25,582 26,335 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,013 1,022 1,155 1,184 1,338 1,371 1,641 1,581 
Gain on modification of lease— — — — — — — (736)
Depreciation and other amortization13,202 13,727 13,400 13,443 13,781 13,911 13,650 13,505 
Amortization of acquired intangible assets5,051 4,775 4,775 4,776 4,775 4,774 4,776 4,754 
Amortization of debt discount and issuance costs502 456 354 349 358 318 217 217 
Net gain on extinguishment of debt— (15,656)— — — (1,365)— — 
Impairment expense
4,316 — — 3,137 559 448 — 415 
Executive transition costs2,406 385 — — — — 335 — 
Restructuring charges
— — — — 9,720 — — — 
Interest income(4,908)(4,584)(3,848)(3,937)(3,819)(3,267)(2,975)(3,084)
Interest expense360 288 225 115 115 913 2,956 2,947 
Other (income) expense, net16 763 89 (193)317 815 80 (39)
Income tax (benefit) expense(1)(465)347 661 455 1,141 691 557 
Adjusted EBITDA$1,663 $12,481 $4,891 $1,954 $14,599 $11,118 $7,805 $8,911 
(1)Similar to stock-based compensation, we believe it is also appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. However, we have not historically done so. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2025, we are excluding amortization of capitalized stock-based compensation from our non-GAAP financial measures and we have accordingly recast the presentation for all prior periods presented to reflect this change. Refer to Non-GAAP Financial Measures definition for further details.








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Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Revenue$127,816 $137,777 $133,520 $132,371 $137,206 $140,579 $144,474 $148,709 
Cost of revenue(1)(2)(3)
55,382 55,228 53,877 53,767 56,742 59,760 61,621 60,964 
Gross profit(1)(2)
72,434 82,549 79,643 78,604 80,464 80,819 82,853 87,745 
Operating expenses:
Research and development(1)(4)
26,236 26,157 27,925 27,123 24,506 24,820 28,536 30,466 
Sales and marketing(1)(3)
39,406 38,302 39,464 43,600 36,581 40,704 40,319 40,645 
General and administrative (1)(4)(5)
18,331 19,336 20,763 19,370 18,559 18,088 19,843 21,228 
Total operating expenses(1)(2)(3)(4)(5)(6)(7)
83,973 83,795 88,152 90,093 79,646 83,612 88,698 92,339 
Income (loss) from operations(1)(2)(3)(4)(5)(6)(7)
(11,539)(1,246)(8,509)(11,489)818 (2,793)(5,845)(4,594)
Interest income4,908 4,584 3,848 3,937 3,819 3,267 2,975 3,084 
Interest expense(8)
(360)(288)(225)(115)(115)(913)(2,956)(2,947)
Other income (expense), net(16)(763)(89)193 (317)(815)(80)39 
Income (loss) before income tax expense (benefit)(1)(2)(3)(4)(5)(6)(7)(8)(9)
(7,007)2,287 (4,975)(7,474)4,205 (1,254)(5,906)(4,418)
Income tax expense (benefit)
(1)(465)347 661 455 1,141 691 557 
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)(9)
$(7,006)$2,752 $(5,322)$(8,135)$3,750 $(2,395)$(6,597)$(4,975)
Net income (loss) per share attributable to common stockholders, basic and diluted
$(0.05)$0.02 $(0.04)$(0.06)$0.03 $(0.02)$(0.05)$(0.03)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic129,873131,843134,587137,444139,237141,085143,284145,780
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted129,873141,162134,587137,444143,415141,085143,284145,780

(1)Excludes stock-based compensation. See GAAP to Non-GAAP reconciliations.
(2)Excludes amortization of capitalized stock-based compensation - cost of revenue. See GAAP to Non-GAAP reconciliations.
(3)Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(4)Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
(5)Excludes gain on modification of lease. See GAAP to Non-GAAP reconciliations.
(6)Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
(7)Excludes restructuring charges. See GAAP to Non-GAAP reconciliations.
(8)Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(9)Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.



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Consolidated Balance Sheets - Quarterly
(unaudited, in thousands)
Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Assets
Current assets:
Cash and cash equivalents$270,300 $107,921 $150,809 $147,196 $217,514 $286,175 $125,484 $82,487 
Marketable securities158,055 214,799 178,677 164,569 90,733 9,707 181,808 238,721 
Accounts receivable, net98,622 120,498 107,517 113,878 116,800 115,988 119,035 117,318 
Prepaid expenses and other current assets24,481 20,455 23,207 25,312 28,011 28,325 26,243 26,137 
Total current assets551,458 463,673 460,210 450,955 453,058 440,195 452,570 464,663 
Property and equipment, net171,914 176,608 177,574 177,058 180,288 179,097 177,876 181,770 
Operating lease right-of-use assets, net52,927 55,212 54,420 52,451 47,700 50,433 48,802 54,001 
Goodwill670,356 670,356 670,356 670,356 670,356 670,356 670,356 670,356 
Intangible assets, net67,375 62,475 57,576 52,676 47,776 42,876 37,976 32,814 
Marketable securities, non-current32,280 6,088 1,743 — — — — — 
Other assets94,353 90,779 84,044 79,176 72,576 68,402 61,665 59,573 
Total assets$1,640,663 $1,525,191 $1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 $1,463,177 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$5,723 $5,611 $5,485 $5,532 $11,354 $6,044 $9,802 $13,344 
Accrued expenses56,595 61,818 35,555 34,445 40,854 41,622 37,165 45,282 
Current debt— — — — — — 187,871 188,051 
Finance lease liabilities19,250 15,684 11,974 8,178 4,882 2,328 617 80 
Operating lease liabilities21,533 24,042 22,580 25,399 23,857 25,155 26,988 23,673 
Other current liabilities40,234 40,539 44,633 35,748 33,261 29,307 38,442 42,373 
Total current liabilities143,335 147,694 120,227 109,302 114,208 104,456 300,885 312,803 
Long-term debt
472,823 343,507 343,837 344,167 344,498 337,614 149,874 149,883 
Finance lease liabilities, noncurrent3,860 1,602 440 — — — — — 
Operating lease liabilities, noncurrent47,775 48,484 46,857 44,634 40,565 39,561 36,615 48,577 
Other long-term liabilities4,298 4,416 2,756 3,382 3,029 4,478 4,848 9,267 
Total liabilities672,091 545,703 514,117 501,485 502,300 486,109 492,222 520,530 
Stockholders’ equity:
Common stock
2 3 3 3 3 3 3 3 
Additional paid-in capital1,781,870 1,815,245 1,870,503 1,903,374 1,929,397 1,958,157 1,989,108 2,012,312 
Accumulated other comprehensive loss(1,934)(1,008)(521)(282)(22)(100)(130)(169)
Accumulated deficit(811,366)(834,752)(878,179)(921,908)(959,924)(992,810)(1,031,958)(1,069,499)
Total stockholders’ equity968,572 979,488 991,806 981,187 969,454 965,250 957,023 942,647 
Total liabilities and stockholders’ equity$1,640,663 $1,525,191 $1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 $1,463,177 







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

Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Cash flows from operating activities:
Net loss$(54,311)$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense13,055 13,587 13,277 13,318 13,656 13,786 15,167 14,962 
Amortization of intangible assets5,175 4,899 4,899 4,900 4,900 4,900 4,900 4,878 
Non-cash lease expense5,464 5,451 5,556 5,800 5,463 5,655 5,655 5,694 
Amortization of debt discount and issuance costs501 456 354 349 358 316 217 217 
Amortization of deferred contract costs4,082 4,295 4,573 4,531 4,773 4,746 4,850 4,847 
Stock-based compensation35,713 35,447 31,821 26,148 25,016 24,945 25,582 26,335 
Deferred income taxes
— (900)228 333 339 893 422 327 
Provision for credit losses211 714 953 393 1,054 1,434 946 1,048 
(Gain) loss on disposals of property and equipment(42)— 399 45 — 96 — (43)
Amortization of discounts on investments
(403)(990)(1,158)(1,244)(1,064)(507)(626)(1,356)
Impairment of operating lease right-of-use assets401 156 — — 371 — — — 
Impairment expense4,316 — — 3,137 559 448 — 415 
Net gain on extinguishment of debt— (15,656)— — — (1,365)— — 
Other adjustments71 905 (259)(178)520 (897)376 (84)
Changes in operating assets and liabilities:
Accounts receivable(20,538)(22,590)12,028 (6,754)(3,976)(622)(3,993)669 
Prepaid expenses and other current assets5,019 4,107 (2,700)(2,131)(2,589)(207)2,216 121 
Other assets(4,286)(6,868)(1,814)(3,210)(2,705)(4,140)(2,095)(6,076)
Accounts payable314 (876)101 (341)4,754 (3,903)2,575 3,446 
Accrued expenses340 (1,603)(8,760)1,911 2,707 1,220 (3,383)1,577 
Operating lease liabilities(4,505)(5,137)(7,606)(4,406)(7,329)(7,200)(5,556)(2,332)
Other liabilities1,033 612 2,667 (3,820)(3,789)(1,492)9,183 8,694 
Net cash provided by (used in) operating activities(8,390)(7,377)11,132 (4,948)5,002 5,220 17,288 25,798 
Cash flows from investing activities:
Purchases of marketable securities(73,091)(59,142)(56,948)(60,249)(37,902)— (179,486)(93,440)
Sales of marketable securities1 24,850 — — — — — — 
Maturities of marketable securities86,030 5,642 99,080 77,597 113,032 81,480 7,969 37,836 
Advance payment for purchase of property and equipment— — — (790)— — — — 
Purchases of property and equipment
(325)(2,693)(1,603)(1,762)(1,996)(4,969)(2,605)(9,852)
Proceeds from sale of property and equipment13 — — 24 — — — 44 
Capitalized internal-use software(4,951)(5,902)(6,845)(6,829)(6,818)(5,602)(4,763)(4,542)
Net cash provided by (used in) investing activities
7,677 (37,245)33,684 7,991 66,316 70,909 (178,885)(69,954)
Cash flows from financing activities:
Payments of debt issuance costs— — — — — (5,729)— — 
Cash paid for debt extinguishment— (113,606)— — — — — — 
Repayments of finance lease liabilities(6,041)(5,932)(4,872)(4,236)(3,296)(2,554)(1,711)(537)
Payment of deferred consideration for business acquisitions— — — (3,771)— — — — 
Proceeds from exercise of vested stock options1,137 161 111 180 19 805 408 279 
Proceeds from employee stock purchase plan2,222 1,550 2,881 1,034 2,168 161 2,131 1,240 
Net cash provided by (used in) financing activities
(2,682)(117,827)(1,880)(6,793)(1,109)(7,317)828 982 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash(47)70 (48)(13)109 (151)78 177 
Net increase (decrease) in cash, cash equivalents, and restricted cash(3,442)(162,379)42,888 (3,763)70,318 68,661 (160,691)(42,997)
Cash, cash equivalents, and restricted cash at beginning of period273,892 270,450 108,071 150,959 147,196 217,514 286,175 125,484 
Cash, cash equivalents, and restricted cash at end of period$270,450 $108,071 $150,959 $147,196 $217,514 $286,175 $125,484 $82,487 


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Free Cash Flow
(in thousands, unaudited)
Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Net cash provided by (used in) investing activities
$(8,390)$(7,377)$11,132 $(4,948)$5,002 $5,220 $17,288 $25,798 
Capital expenditures(1):
Purchases of property and equipment(325)(2,693)(1,603)(1,762)(1,996)(4,969)(2,605)(9,852)
Proceeds from sale of property and equipment13 — — 24 — — — 44 
Capitalized internal-use software(4,951)(5,902)(6,845)(6,829)(6,818)(5,602)(4,763)(4,542)
Repayments of finance lease liabilities(6,041)(5,932)(4,872)(4,236)(3,296)(2,554)(1,711)(537)
Advance payment for purchase of property and equipment(2)
— — — (790)— — — — 
Free Cash Flow$(19,694)$(21,904)$(2,188)$(18,541)$(7,108)$(7,905)$8,209 $10,911 
__________
(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 six months ended June 30, 2025, we received $6.5 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.