Fastly reported 20% third-quarter revenue growth Nov. 4 as its 10 largest customers accounted for 39% of sales, compared with a 32% share for the top 10 a year earlier.
The edge-cloud company’s revenue reached $190.2 million for the quarter ended Sept. 30, up from $158.2 million. The concentration comparison describes the highest-revenue accounts in each period, not necessarily an identical group of customers.
Security grows faster than network services
Network services revenue increased 16% to $138 million. Security revenue rose 32% to $44.7 million, expanding faster in percentage terms but remaining the smaller business.
Fastly also reported a 119% last-12-month net retention rate, compared with 117% in the preceding quarter. That revenue-based measure reflects expansion, contraction and churn within an existing customer base; it is not the percentage of accounts retained.
GAAP loss narrows
Fastly reported a net loss of $11.3 million under generally accepted accounting principles, compared with a $29.5 million loss a year earlier. Its separately reported non-GAAP net income was $31.6 million; that adjusted measure is not GAAP profit.
Operating cash flow was $40 million, compared with $28.9 million a year earlier.
The company forecast fourth-quarter revenue of $198 million to $202 million. That range is management’s projection, not a reported result.
The release advances the questions in Kevin Laird’s earlier earnings preview, particularly the balance between security growth and dependence on large accounts.