Fastly, Inc.

Good afternoon. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to the FASLI fourth quarter 2025 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 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Thank you. I would now like to turn the conference over to Vern Essie, investor relations at Fastly. Please go ahead.

Thank you, and welcome everyone to our fourth quarter 2025 earnings conference call. We have Fastly CEO Kip Compton and CFO Rich Wong with us today. The webcast of this call can be accessed through our website, Fastly.com, and will be archived for one year. Also, a replay will be available by dialing 800-770-2030 and referencing conference ID number 754-3239 shortly after the conclusion of today's call. A copy of today's earnings press release, related financial tables, and supplement, all of which are furnished in our 8K filing today, can be found in the Investor Relations portion of Fastly's website. along with the investor presentation. During this call, we will make forward-looking statements, including statements related to the expected performance of our business, future financial results, product sales, 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. For further information regarding risk factors for our business, Please refer to our filings with the SEC, including our most recent annual report filed on Form 10-K and quarterly reports filed on Form 10-Q filed with the SEC and our fourth quarter 2025 earnings release and supplement for discussion of the factors that could cause our results to differ. Please refer in particular to the sections entitled risk factors. We encourage you to read these documents. Also note that the forward-looking statements on this call are based on information available to us as of today. We undertake no obligation to update any forward-looking statements except as required by law. Also during this call, we will discuss certain non-GAAP financial measures. Unless otherwise noted, all numbers we discuss today, other than revenue, will be on an adjusted non-GAAP basis. Reconciliations for the most directly comparable GAAP financial measures are provided in the earnings release and supplement on our investor relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Before we begin our prepared comments, please note that during the first quarter, we will be attending the Raymond James 47th Annual Institutional Investors Conference in Orlando on March 2nd. Now I'll turn the call over to Kip.

Thanks, Vern. Hi, everyone, and thank you for joining us. When I became CEO seven months ago, I shared a vision to accelerate our growth and drive towards profitability through disciplined execution. Thanks to our team's strong performance, that vision is becoming reality. Our exceptional Q4 results reflect this reality as we exceeded expectations across the board. We delivered our fourth consecutive quarter of revenue acceleration, closing out the year with record revenue of $173 million in the fourth quarter. This represented 23% annual growth, the highest in over three years, and exceeded the top end of our guidance. Our stronger than expected top line results drove strong incremental flow through. This resulted in record gross margins of 64%, demonstrating the operating leverage and efficiency in our business. This enabled our operating margin and operating income to both reach all-time highs in absolute dollars and as a percentage of revenue, leading to our fourth straight quarter of positive free cash flow. Our stellar Q4 results also capped off a strong 2025, marking our first profitable fiscal year. Our teams drove this success with discipline, focus, and execution, and we are excited to carry this momentum into 2026. In the fourth quarter, network services grew 19% year over year, outpacing market growth. This is attributable to stronger than expected event performance and larger customers directing traffic to our platform due to their prioritization of network stability, performance, and resilience. Our go-to-market motion is operating with increased rigor and clarity. At the same time, our new product launches, especially in security, have allowed us to deliver more business outcomes for our customers, enabling us to grow faster than the market. Security revenue growth accelerated to 32% year-over-year, up from 30% in the third quarter, and notching another record high. As we discussed on previous calls, we are focused on building a more comprehensive, ever-growing suite of security products aligned with customer requirements. This enables a stronger security-led sales motion, supplementing our well-established differentiation in performance and better positioning faculty to engage with customers on their critical security needs, all while providing an additional entry point into high-value, long-term customer relationships. In Q4, we continued investment in our platform strategy to drive multi-product adoption and build upon our cross-sell momentum. We're investing heavily in security and resilience, with the latter becoming top of mind for customers in recent months. These efforts drove meaningful feature launch momentum highlighted by several fourth quarter releases, including API Inventory, enabling customers to review, catalog and manage APIs to identify ownership, prioritize proactive optimization and accelerate incident response. API Inventory builds upon API Discovery launched in Q3 of 2025 to expand Fastly's API security and management offerings. We're proud of the remarkable progress in building out our API suite, and in the fourth quarter, Gartner Peer Insights recognized Fastly with a 2025 Customer's Choice Award for Cloud Web Application and API Protection. We are the only company to have earned this recognition seven straight years. Also now available are custom dashboards and alerts. All customers across the Fastly platform can tailor at a glance insights that they need for intelligent execution and access the actual alerts that they need to accelerate incident response. We also launched AI Assistant in beta. This context aware in console agentic feature accelerates Fastly platform adoption by enterprise software engineering teams with step by step guidance and personalized recommendations. Our go-to-market team has focused on customers and verticals best aligned to our platform strengths, particularly performance and resiliency. These efforts were reflected in balanced revenue growth across product lines, geographic regions, and customer segments in 2025, positioning us to drive continued growth in 2026. Given this momentum, our go-to-market teams are focused on accelerating customer acquisition to further support our future growth. Our go-to-market focus also enabled us to accelerate upsell and cross-sell engagement, maximizing value with our largest customers. This is evidenced by several recent expansions and new customers where the Fastly platform addressed mission-critical performance and security requirements for our customers. For example, a Fortune 500 restaurant chain recently selected the Fastly platform to secure and deliver their application traffic. By displacing a legacy provider, they simplified their architecture and reduced management overhead. This was also a case where performance mattered. After switching to Fastly, the customer experienced their best digital day on record. A Fortune 500 home retailer expanded their use of the Fastly platform, displacing their security incumbent after a rigorous review of our next-gen WAF and managed security service. In addition to a stronger security posture, the customer offloaded complex traffic control management to Fastly's platform, freeing their teams to focus on innovation. A leading cloud observability and security provider expanded their use of the Fastly platform to include Fastly compute as well as Fastly security portfolio. Our platform enables them to execute complex workloads and rapid product iterations while maintaining granular data protection. A leading print-on-demand marketplace recently expanded its use of the Fastly platform to include Fastly Bot Management and Fastly Compute. They required the high granularity visibility and control that our platform provides to manage complex traffic and security requirements. As the internet moves into the age of agentic AI, it's clear that the edge will play a pivotal role. Our infrastructure is designed to power this edge intelligence layer, optimizing authorized AI agents and blocking abuse. As one of the leading edge cloud providers, Fastly is well positioned to capitalize on this transition. We see AI increasingly as a tailwind for our business with increasing agentic AI traffic, AI bot management opportunities, and AI workloads running on our platform. As we look to our 2026 guidance, we are leaning into our momentum and see continued upside in the business. Our first quarter and 2026 revenue growth guidance of 18% and 14%, respectively, reflect confidence that our business will outpace market growth while maintaining a prudent approach to longer-term visibility, especially amid greater macroeconomic and geopolitical uncertainty. Rich will now walk through our financial results in 2026 guidance in more detail. Rich, over to you.