Fastly, Inc.

Good afternoon. My name is Josh, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly second quarter 2020 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. I would now like to turn the conference over to Maria Lukens, Vice President of Investor Relations. Please go ahead.

Hi, everyone. Thank you for joining our second quarter 2020 earnings call. We have Fastly CEO Joshua Dixie, Chief Architect and Executive Chairperson Archer Bergman, and CFO Adria Alarez with us today. I want to remind everyone about the format of our call. We published a shareholder letter on our Investor Relations website and with the SEC about an hour ago. We hope everyone had a chance to read it. Since the letter provides a lot of details, we'll make some brief opening remarks and reserve the rest of the time for your questions. During this call, we will be making forward-looking statements, including statements related to the expected performance of our business, future financial results, strategy, long-term growth, and overall future prospects. These statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected or implied during the call. Please take a look at our filings with the SEC, in particular, the risk factors within those filings, and our Q2 2020 shareholder letter for a discussion of the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements except as required by law. Also during this call, we will discuss certain non-GAAP financial measures, Reconciliations to the most directly comparable GAAP financial measures are provided in the shareholder letter on our investor relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call is being webcast and will be archived on our website shortly afterwards. With that, I'll turn the call over to Joshua.

Thanks, Maria. Hi, everyone, and welcome. Thank you for joining us today. We hope that you are all keeping healthy and safe. Q2 was another exceptionally strong quarter for Fastly in a world that continues to change rapidly. The structural and societal changes resulting from this pandemic have continued to significantly accelerate the need for organizations to prioritize their digital transformation. We are in some of the most uncertain times in modern history, but we now see clearly that the major shift to digital will be long-lasting. the need for a trustworthy and modern edge platform has never been greater. Developers and security operators are at the center of this transformation and they can only drive transformation effectively if they can build quickly and securely. We believe in developer and security operator empowerment. We partner with them to create simplified, frictionless, fast and secure solutions at scale to support the evolving needs of billions of users around the world. The strength of our edge platform continues to show in our results. Fastly delivered another quarter of solid execution, thanks to the team's continued focus and performance. We delivered exceptional top-line growth, generating $75 million in revenue, which was up 62% year over year. Despite these turbulent times, we continue to see robust customer adoption of our edge platform and security products by both new and existing customers across multiple verticals and geographies. We grew our total customer count to 1,951 from 1,837 in the previous quarter, the largest quarterly increase since going public. Our enterprise customer count grew to 304, up from 297 last quarter. We are pleased with the number of new enterprise customers, as well as customers who grew into the enterprise category. However, this strong growth was offset by some customers falling out of the category in COVID impacted industries. In addition, ByteDance, the operator of TikTok, was our largest customer in the quarter. Any ban of the TikTok app by the U.S., would create uncertainty around our ability to support this customer. While we believe we are in a position to backfill the majority of this traffic in case they are no longer able to operate in the US, the loss of this customer's traffic would have an impact on our business. Our average enterprise customer spend increased to $716,000 from $642,000 in the previous quarter. Our existing customers are relying on us more and more as reflected in our increased net retention rate of 138% up from 130% last quarter and dollar-based net expansion rate of 137% up from 133% last quarter. Looking ahead, developers now more than ever need to build differentiation at the edge and rapidly adopt new architectures. This is why we continue to invest in our network and offerings specifically, Computed Edge and security. Many of our customers are further embracing Computed Edge, our real-time serverless architecture for high-performance applications. This quarter, we enhanced our offering with valuable new observability features, including logging, tracing, and granular real-time metrics, bringing observability to the forefront of the serverless computing environment. We are on track for and expect to further expand the availability of Computed Edge, We continue to learn from our customers and are inspired by the variety of innovative use cases we are enabling, including new ways they are thinking about security. As transformation drives more code and applications to the edge, it's evolving into an increasingly critical place to secure websites and applications. This quarter, we delivered new key security features, including Fastly Flow Control. Security has always been a key focus for us, and we will continue to invest significantly in this area. We are also continuing to scale and build our network at a record pace to meet today's digital demand. We reached 100 terabits per second of global capacity, an important milestone for us, representing 35% growth since the beginning of the year. Our results and guidance reflect that Fastly is uniquely positioned to empower our customers and will continue to drive growth during these uncertain times. With that, I will turn it over to Adriel to walk through the financial details.