Fastly, Inc.

Good afternoon. My name is Christian, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Fastly First Quarter 2021 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 then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. I would now like to turn the conference over to your host, Ms. Maria Lukens, Vice President of Investor Relations. Ma'am, please go ahead.

Maria Lukens Hi, everyone. Thank you for joining our first quarter 2021 earnings call. We have Fastly CEO Joshua Vicksby and CSO Adria Laras with us today. Before we start, I want to remind everyone about the usual format of our call. We published a shareholder letter on our investor relations website and with the SEC about an hour ago. 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 and our Q1 2021 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 thanks for joining us today. We had another outstanding quarter, delivering 35% year-over-year top-line growth with revenues of nearly $85 million. We are now over a year into the pandemic, and digital transformation is showing no signs of slowing. In fact, it's accelerating, and we believe we are at the start of a new era. We are innovating and building the delivery, edge computing, and security products necessary to accelerate the digital capability of every organization in the world. Fastly makes your online experience everywhere around the world fast and secure. Unlike Q2 of 2020, which was extraordinary in many ways, 2021 appears to be more in line with our historical trends. Typically, we sign new customers in Q1 and Q2, which then ramp on our platform in the latter half of the year. Historically, usage expansion on the platform is slower in Q2 as people tend to spend more time outside and less time on devices. This year, we believe this effect will be somewhat exaggerated as the world begins to reopen. Despite the challenging year-over-year compare, we remain confident in our continued growth. If you take a long-term view, you'll note that we're exiting Q1 and subsequently guiding Q2 at a CAGR of over 35% from Q1 and Q2 of 2019, which continues to exceed our expectations from the time of our IPO. Our current guidance reflects continued growth and is more in line with our seasonal trends, where Q2 is roughly flat with Q1, followed by an uptick in growth in the second half of the year, as indicated by our increased revenue outlook for full year 2021. This quarter, thanks in part to the integration of Signal Sciences and the tremendous leadership and sense of urgency we have seen from Brett as our new Chief Revenue Officer, we saw significant cross-sell and joint selling opportunities as demonstrated by customer wins across multiple verticals. In less than two quarters since the closing of the Signal Sciences acquisition, we've made it possible for customers to purchase Fastly and Signal Sciences offerings on a single unified contract, simplifying the ordering process and shortening sales cycles. Additionally, we are very pleased with the continued maturity of Computed Edge, which continues to drive customer interest as well as produce major operational efficiencies in our product development. Our customers have communicated to us that a key difference of the platform is our position and technology to support privacy. Privacy is core to who we are and we view it as inseparable from security. The most tangible benefit of securing the enterprise is to ensure the privacy of their customers. The intersection of edge compute, security, and privacy is ripe for innovation. By making user security and privacy a core focus of our efforts, we can provide more benefits to a wider array of customers around the world. All of these things fueled strong demand in the beginning of 2021. Our total customer count, excluding Signal Sciences, increased to 2,207, up from 2,084 in Q4 2020. And enterprise customers increased to 336, up from 324 in Q4 2020. We saw several customer wins across high-tech, e-commerce, digital publishing, financial services, cryptocurrency, and healthcare, including human security, a leading bot mitigation provider relied on by many of the Internet's largest advertising platforms or enterprises, a leading provider of multilayered network switches and software-defined networking solutions, and a leading automotive insurance SaaS provider, among others. In addition to generating new customer demand, we continue to execute on our land and expand strategy among existing customers, with average enterprise customer spend increasing to 800,000, up from 782,000 in the prior quarter, and another strong dollar-based net expansion rate of 139%. We believe our Edge Cloud platform, which seamlessly combines delivery, edge computing, and security, presents a tremendous market opportunity, and we will continue to invest in it to position our company for future growth. Before I turn it over to Adriel to go over the financials, I'd like to take a moment to address some news we shared in our press release and shareholder letter, that Adriel will be stepping down from his role as CFO after five years of service. Adriel will continue in his role as CFO for a transition period during which we expect to appoint a successor and for a period of time after as an advisor to ensure a smooth transition. On behalf of the entire board and management team, Adriel, you will be greatly missed and we wish you the best of luck in your future endeavors. We're also deeply appreciative that you will remain with Fastly to help facilitate a smooth leadership transition. Now, I'll turn it over to Adriel to go over the financials.