Fastly Inc (FSLY) 2024 Q3 法說會逐字稿

Good afternoon. My name is Tamika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly third-quarter, 2024 earnings conference call. (Operator Instructions)

午安.我叫塔米卡，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 Fastly 2024 年第三季財報電話會議。（操作員說明）

I will now hand today's call over to Vernon Essi, Investor Relations at Fastly. Please go ahead, sir.

現在我將把今天的電話會議交給 Fastly 投資者關係部的 Vernon Essi。請繼續，先生。

Thank you and welcome everyone to our third quarter, 2024 earnings conference call. We have fast food, CEO, Todd Nightingale; and CFO, Ron Kisling with us today.

謝謝並歡迎大家參加我們的 2024 年第三季財報電話會議。我們有快餐，執行長托德·南丁格爾；財務長 Ron Kisling 今天和我們在一起。

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 7543239, shortly after the conclusion of today's call.

本次電話會議的網路直播可透過我們的網站 fastly.com 訪問，並將存檔一年。此外，在今天的電話會議結束後不久，您可以撥打 800-770-2030 並輸入會議 ID 號碼 7543239 來重播。

A copy of today's earnings press release related financial tables and investor supplement, all of which are furnished in our 8-K filing today can be found in the investor relations portion of Fastly website.

今天的收益新聞稿相關的財務表格和投資者補充資料的副本（所有這些都在我們今天的 8-K 文件中提供）可以在 Fastly 網站的投資者關係部分找到。

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.

在本次電話會議中，我們將做出前瞻性陳述，包括與我們業務未來財務表現的預期表現、產品銷售策略、長期成長和整體未來前景相關的陳述。這些陳述受到已知和未知的風險、不確定性和假設的影響，可能導致實際結果與電話會議期間預測或暗示的結果有重大差異。

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 third quarter 2024, earnings release and supplement for a discussion of the factors that could cause our results to differ.

有關我們業務風險因素的更多信息，請參閱我們向SEC 提交的文件，包括我們以10-K 表格提交的最新年度報告和以10-Q 表格提交給SEC 的季度報告以及我們2024 年第三季度的收益發布和補充，討論可能導致我們的結果不同的因素。

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's date and we undertake no obligation to update any forward-looking statements except as required by law.

請特別參閱標題為「風險因素」的部分。我們鼓勵您閱讀這些文件。另請注意，本次電話會議的前瞻性陳述基於截至今日我們掌握的信息，除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

Also during this call, we will discuss certain non-GAAP financial measures unless otherwise noted all numbers we discussed today other than revenue will be on an adjusted non-GAAP basis. Reconciliations to 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.

此外，在本次電話會議中，我們還將討論某些非公認會計準則財務指標，除非另有說明，我們今天討論的除收入之外的所有數字都將基於調整後的非公認會計準則。我們的投資者關係網站上的收益發布和補充中提供了與最直接可比較的公認會計原則財務指標的調節。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。

According to get our prepared comments, please note that during the fourth quarter, we will be attending the RBC Capital Markets, Global Technology, Internet, Media and Telecommunications Conference in New York on November 19 and the UBS Global Technology and AI conference in Scottsdale, Arizona on December 4.

根據我們準備好的評論，請注意，在第四季度，我們將參加11 月19 日在紐約舉行的加拿大皇家銀行資本市場、全球科技、互聯網、媒體和電信會議以及在斯科茨代爾舉行的瑞銀全球科技與人工智慧會議， 12 月 4 日，亞利桑那州。

Now I'll turn the call over to Todd. Todd?

現在我將把電話轉給托德。托德？

Thanks Vern. Hi everyone and thank you so much for joining us. Today, I will cover our Q3 results and the progress we've made especially in growing revenue outside of our largest customers and in continuing to improve the profitability of Fastly. I will also discuss our go to market and technology initiatives. I will then hand the call over to Ron to discuss our third quarter financial results and our guidance in detail.

謝謝弗恩。大家好，非常感謝您加入我們。今天，我將介紹我們第三季的業績以及我們所取得的進展，特別是在增加我們最大客戶以外的收入以及繼續提高 Fastly 的獲利能力方面。我還將討論我們的市場推廣和技術舉措。然後我會將電話轉交給羅恩，詳細討論我們第三季的財務表現和我們的指導。

We reported third quarter revenue of $137.2 million coming in above the high end of our guidance range due to better than expected strength in some of our larger media customers and a balanced mix of share gains outside of our top 10 customers. We reported an operating loss of $520,000, the best result we have achieved in more than four years and materially better than the guidance range.

我們報告稱，第三季營收為 1.372 億美元，高於我們指導範圍的上限，原因是我們一些大型媒體客戶的實力好於預期，以及我們十大客戶之外的均衡份額增長。我們報告的營業虧損為 52 萬美元，這是我們四年多來取得的最佳業績，大大優於指導範圍。

This was the result of higher revenue and gross margins coupled with the cost benefits from a faster than projected execution of our restructuring. I'm also excited to share with you that Fastly reported a net profit of $2.4 million and positive adjusted EBIDA of $13.3 million in the third quarter, both record levels for the company.

這是收入和毛利率提高以及重組執行速度快於預期帶來的成本效益的結果。我還很高興與您分享，Fastly 報告第三季淨利潤為 240 萬美元，調整後的 EBIDA 為 1,330 萬美元，均為該公司的創紀錄水平。

I'm pleased to share with you the progress we made in diversifying our revenue. This resulted in a more diverse revenue mix in the third quarter, as we grew our top line 7% year over year. In the third quarter, our top 10 customers represented 33% of revenue down from 40% last year and down from 34% quarter over quarter.

我很高興與您分享我們在收入多元化方面取得的進展。這導致第三季的收入組合更加多樣化，我們的收入年增了 7%。第三季度，我們的十大客戶佔營收的 33%，低於去年的 40%，也低於上一季的 34%。

This is a good indicator of continued progress in diversifying our revenue and strengthening our business. Revenue outside of our top 10 accounts, which is key to our strategy and goals for the long-term success and growth at Fastly grew 20% year over year, significant improvement from last quarter 13%.

這是我們在收入多元化和加強業務方面持續取得進展的良好指標。我們十大客戶以外的營收年增 20%，較上季的 13% 顯著提高，這是我們實現 Fastly 長期成功和成長的策略和目標的關鍵。

Last quarter, we call this an inflection point and a moment of transition for Fastly. While the transition doesn't happen in a single moment, we are already experiencing the benefits of a more focused investment in product customer success and go to market.

上個季度，我們將其稱為 Fastly 的轉折點和過渡時刻。雖然這種轉變不會在一瞬間發生，但我們已經體驗到了對產品客戶成功和市場投放進行更集中投資的好處。

Specifically, we released a major expansion to our security portfolio onboarded new sales leadership pivoted to a more bespoke engagement model with our largest multi-vendor customers and launched a new self-service [Demandgen motion]. We are seeing early progress in our revenue diversification, customer acquisition growth and renewed focus on our largest enterprise customers.

具體來說，我們發布了對安全產品組合的重大擴展，新的銷售領導層轉向與我們最大的多供應商客戶更加客製化的互動模型，並推出了新的自助服務 [Demandgen 動議]。我們看到收入多元化、客戶獲取成長以及重新關注我們最大的企業客戶方面取得了早期進展。

There is more to come. These changes will drive revenue diversification and faster, more reliable growth for Fastly. Our customer acquisition efforts showed solid gains year over year in the third quarter, our enterprise customer count was 576 compared to 547 representing a 5% growth rate year over year.

還有更多的事情要做。這些變化將推動 Fastly 實現收入多元化以及更快、更可靠的成長。第三季我們的客戶獲取工作年增率強勁，我們的企業客戶數量從 547 家增至 576 家，年成長率為 5%。

Quarter of a quarter enterprise customer count actually declined 4%. We saw more customers that just below our $100,000 run rate, enterprise definition this quarter. We do see quarterly volatility in our enterprise customer account methodology. But we'll be tracking this very carefully and looking to drive growth in all of our midsized accounts.

四分之一季度的企業客戶數量實際上下降了 4%。本季我們看到更多客戶的營運費用略低於我們的企業定義 10 萬美元。我們確實看到我們的企業客戶帳戶方法存在季度波動。但我們將非常仔細地追蹤這一情況，並尋求推動我們所有中型帳戶的成長。

We experienced normal churn levels with churn flat quarter over quarter. And while we saw 5% year over year growth rate in enterprise customer account, we aren't satisfied with this result and hope to accelerate our growth in enterprise customers in 2025. We had 3,638 customers at the end of Q3 and a net increase of 343 quarter over quarter for a growth rate of 10%.

我們經歷了正常的流失水平，但每季流失率持平。雖然我們看到企業客戶帳戶年增率為 5%，但我們對此結果並不滿意，希望在 2025 年加快企業客戶的成長。截至第三季末，我們擁有 3,638 名客戶，季減 343 名，成長率為 10%。

We believe this is the result of our new self-service sales motions which I will discuss in a moment. Our transition leans heavily into our technology innovation heritage, and we believe it is key to the continued success in customer acquisition and wallet share growth.

我們相信這是我們新的自助銷售動議的結果，我稍後將討論該動議。我們的轉型很大程度上依賴我們的技術創新傳統，我們相信這是在客戶獲取和錢包份額成長方面持續取得成功的關鍵。

Fastly's platform is a software driven edge network that offers best in class delivery network services, security compute and observability. We continue to focus investment in leading technology and innovation that not only solidifies our platform but also extends its features for the future of web application development.

Fastly 的平台是一個軟體驅動的邊緣網絡，可提供一流的交付網路服務、安全運算和可觀測性。我們繼續專注於投資領先的技術和創新，這不僅鞏固了我們的平台，而且還擴展了其功能，以適應未來的 Web 應用程式開發。

The functionality we offer allows our customers to bring their applications to life around the world. We believe that our unified platform approach will significantly enhance our customer retention and create efficiencies for fast and supporting our customer success.

我們提供的功能使我們的客戶能夠將他們的應用程式帶到世界各地。我們相信，我們的統一平台方法將顯著提高我們的客戶保留率，並提高效率，以快速支持我們的客戶成功。

Let me share with you some important developments taking place in our security offerings in particular. We continue to experience a favorable customer response from bot mitigation, since its release in the first quarter. Our bot mitigation solution wholly developed within Fastly attracts customers looking for simple onboarding and ease of use.

讓我與您分享一些特別是在我們的安全產品方面發生的重要進展。自第一季發布以來，我們繼續感受到客戶對機器人緩解措施的正面回應。我們完全在 Fastly 內開發的機器人緩解解決方案吸引了尋求簡單入門和易用性的客戶。

Opening the door for continued opportunities for cross sell and upsell. Fast following on the heels of our successful launch of bot mitigation, we announced the general availability of Fastly adaptive DDoS protection on the platform.

為交叉銷售和追加銷售的持續機會打開大門。繼我們成功推出機器人緩解措施之後，我們宣佈在該平台上全面推出 Fastly 自適應 DDoS 防護。

This solution provides automatic protection from layer seven and other application-level DDoS attacks. Our platform enables frictionless onboarding and implementation of this solution with just the click of a button. We've had a long heritage of DDoS protection of Fastly partnering with some of the largest, most sophisticated customers in the industry.

此解決方案提供針對第七層和其他應用程式級 DDoS 攻擊的自動保護。只需單擊一個按鈕，我們的平台即可輕鬆啟動和實施該解決方案。我們在 Fastly 方面擁有悠久的 DDoS 保護傳統，與業內一些最大、最成熟的客戶合作。

We are tapping into this intellectual property and productizing it to address the entire market so that our broader customer base can benefit. Additionally, this solution allows us to layer proprietary auto adaptive response intelligence within the offer.

我們正在利用這項智慧財產權並將其產品化以適應整個市場，以便我們更廣泛的客戶群能夠受益。此外，此解決方案可讓我們在產品中分層專有的自動自適應響應智慧。

We believe this innovative DDoS releases a new enterprise customer acquisition vector for Fastly, in addition to driving customer growth and cross sell opportunities. Last quarter, I shared with you that we launched the beta version of our AI accelerator. An AI proxy capable of delivering performance and cost savings to application builders leveraging large language models.

我們相信，除了推動客戶成長和交叉銷售機會之外，這種創新的 DDoS 還為 Fastly 釋放了新的企業客戶獲取向量。上個季度，我與大家分享了我們推出了人工智慧加速器的測試版。人工智慧代理能夠利用大型語言模型為應用程式建構者提供效能並節省成本。

The interest and response has been very favorable from our customers, and we've added LLM support beyond OpenAI to include Google Gemini as well. We expect AI accelerator will be generally available for purchase by the end of the year and I'm excited to make this announcement as it demonstrates the increase of innovation velocity Fastly and I look forward to announcing more product launches before year end.

我們的客戶對我們的興趣和反應非常滿意，我們在 OpenAI 之外添加了法學碩士支持，其中還包括 Google Gemini。我們預計人工智慧加速器將在今年年底普遍上市，我很高興宣布這一消息，因為它展示了創新速度的快速增長，我期待在年底前宣布更多產品的推出。

I'll now discuss the transition taking place within our go to market efforts. Since joining us in the second quarter, our new CRO, Scott Lovett has taken the first steps towards driving transformation within the sales order to close more new enterprise logos.

我現在將討論我們進入市場工作中所發生的轉變。自從第二季加入我們以來，我們的新 CRO Scott Lovett 已邁出了推動銷售訂單轉型的第一步，以關閉更多新的企業商標。

He's particularly focused on driving wins in security with new and existing customers and with our new security offerings and deep experience in this space, we're excited about the opportunities ahead. Beyond sales, our go to market success is also the combination of branding messaging and sharing our expertise with subject matter experts.

他特別專注於推動新舊客戶在安全方面取得勝利，憑藉我們新的安全產品和在該領域的豐富經驗，我們對未來的機會感到興奮。除了銷售之外，我們進入市場的成功還在於品牌訊息傳遞以及與主題專家分享我們的專業知識。

In the third quarter, we released the Fastly threat insights report providing the latest attack trends across the web application and API security landscape. The report found that 91% of cyber-attacks targeted multiple customers using mass scanning techniques to exploit vulnerabilities.

第三季度，我們發布了 Fastly 威脅洞察報告，提供了整個 Web 應用程式和 API 安全領域的最新攻擊趨勢。報告發現，91% 的網路攻擊針對多個客戶，使用大規模掃描技術來利用漏洞。

We also released the results of our new survey bot wars. How bad bots are hurting businesses which revealed 59% of IT professionals reported an increase in bot attacks over the past year with significant incidents costing companies an average of $2.9 million.

我們也發布了新的調查機器人大戰的結果。糟糕的機器人對企業的傷害有多大，59% 的 IT 專業人士表示，過去一年機器人攻擊增加，重大事件平均造成公司 290 萬美元的損失。

These results seem closely in line with the interest we're seeing in our security portfolio and our new security offers. We are now in the 2nd year of our packaging efforts which truly demonstrates our focus on simplicity, not just in our product but in pricing and our ease of implementation.

這些結果似乎與我們對我們的證券投資組合和新的證券產品的興趣非常一致。我們現在正處於包裝工作的第二年，這真正體現了我們對簡單性的關注，不僅在我們的產品上，而且在定價和易於實施方面。

Our new self-service model with mix and match packages was rolled out last quarter. Kicking off our initial PLG efforts at fast. These efforts have resulted in our overall customer count while also attracting critical developers to the fast-food platform.

我們的新自助服務模式與混搭套餐於上季推出。快速啟動我們最初的 PLG 工作。這些努力增加了我們的整體客戶數量，同時也吸引了關鍵的開發人員加入快餐平台。

In the third quarter, our packaging efforts demonstrated strong growth and we more than doubled the number of packages sold year over year. Our new logo packages tripled and represented 43% of the packages sold in the third quarter compared to 16% a year ago.

第三季度，我們的包裝工作表現出強勁成長，銷售的包裝數量比去年同期增加了一倍以上。我們的新商標包裝增加了兩倍，佔第三季銷售包裝的 43%，而去年同期為 16%。

Lastly, our channel partners rounded out our go to market efforts in the third quarter, our deal registrations grew 33% year over year and our year-to-date bookings grew 46% year over year. We anticipate more opportunities to leverage our channel and drive top line growth as we move forward.

最後，我們的通路夥伴在第三季完成了我們的市場推廣工作，我們的交易註冊量年增 33%，年初至今的預訂量年增 46%。隨著我們的前進，我們預計會有更多機會利用我們的管道並推動收入成長。

Now, let me conclude with the discussion on our outlook as we close out the year. Looking back one year ago, we did not foresee all the challenges we faced. In 2024, we suffered revenue declines from our largest customers and this in turn prompted us to realign our growth strategy and our investment strategy.

現在，讓我結束對今年結束時我們的展望的討論。回顧一年前，我們並沒有預見到所面臨的所有挑戰。2024 年，我們最大客戶的收入下降，這反過來促使我們重新調整成長策略和投資策略。

Ultimately, we implemented a workforce reduction and overall transition that impacted every department of Fastly. I believe we are pulling through these difficult times and we are turning a corner, the cost discipline and financial rigor on our drive towards profitability growth has never been better.

最終，我們實施了裁員和整體轉型，這影響了 Fastly 的每個部門。我相信我們正在渡過這些困難時期，我們正在扭轉困境，我們在推動獲利成長方面的成本紀律和財務嚴謹性從未如此出色。

We've shown signs of progress this quarter that should make the team proud and though there's more work on the horizon, I'm pleased with the efforts across the board over these past three months. Heading into the fourth quarter, typically very seasonally strong we do not believe we will be benefiting from as much of the typical sequential lift we've experienced in prior years and this is reflected in our fourth quarter revenue cuts.

本季我們已經顯示出取得進展的跡象，這應該會讓團隊感到自豪，儘管還有更多工作即將完成，但我對過去三個月的全面努力感到滿意。進入第四季度，通常季節性強勁，我們認為我們不會從前幾年經歷的典型連續增長中受益，這反映在我們第四季度的收入削減中。

While this could be dismissed as conservatism on our part, it is more the result of what we have shared over the past three quarters with the dynamics we are seeing taking place at some of these largest accounts. We do believe that we've moved past the worst of these impacts and have a strategy in place to keep our strong position at these very large accounts while also focusing heavily on healthy revenue growth outside of our largest customers, driving important revenue diversification.

雖然這可能被視為我們的保守主義，但這更多的是我們在過去三個季度所分享的結果以及我們看到的一些最大帳戶中發生的動態的結果。我們確實相信，我們已經度過了最嚴重的影響，並製定了一項策略，以保持我們在這些非常大的客戶中的強勢地位，同時也重點關注我們最大客戶之外的健康收入增長，推動重要的收入多元化。

I'm very optimistic on Fastly's prospects in 2025 and continue to believe our inherent platform advantages, afford us the opportunity to capture more share of the world's web application workloads. And now to discuss the financial details of the quarter and guidance in detail, I will turn the call over to Ron.

我對 Fastly 2025 年的前景非常樂觀，並繼續相信我們固有的平台優勢，使我們有機會在全球 Web 應用程式工作負載中佔據更多份額。現在，為了詳細討論本季的財務細節和指導，我將把電話轉給羅恩。

Thank you, Todd and thank you everyone for joining us today. I'll discuss our financial results and business metrics before turning to our forward guidance note that unless otherwise stated, all financial results in my discussion are non-GAAP based revenue for the third quarter increased 7% year over year to $137.2 million. Coming in well ahead of the midpoint of our guidance of $130 million to $134 million.

謝謝托德，也謝謝大家今天加入我們。在轉向我們的前瞻性指引之前，我將討論我們的財務業績和業務指標，除非另有說明，否則我討論的所有財務業績均基於非 GAAP，第三季度收入同比增長 7% 至 1.372 億美元。遠高於我們指導的 1.3 億美元至 1.34 億美元的中位數。

Network services revenue grew 5% year over year to $107.4 million. And security revenue grew 12% year over year to $26.2 million. Lastly, our other segment which represents our emerging products category grew 85% year over year to $3.6 million driven primarily by compute.

網路服務營收年增 5%，達到 1.074 億美元。安全收入年增 12%，達到 2,620 萬美元。最後，代表新興產品類別的其他細分市場主要由運算驅動，年增 85%，達到 360 萬美元。

In the third quarter, we saw better than expected strength in live sports and gaming with a balanced mix of share gains outside of our top 10 customers offsetting traffic headwinds at certain of our largest customers that we've previously discussed.

第三季度，我們看到現場體育和遊戲的實力好於預期，前 10 名客戶之外的份額收益均衡組合，抵消了我們之前討論過的某些最大客戶的流量逆風。

Our top 10 customers comprise 33% of our total revenues in the third quarter of 2024 compared to 34% in Q2 2024, reflecting the impact of the revenue declines from some of our largest customers. And our strategy of targeting a more diverse customer base. Also, no customer accounted for more than 10% of revenue in the third quarter.

我們的十大客戶佔 2024 年第三季總收入的 33%，而 2024 年第二季為 34%，反映了我們一些最大客戶收入下降的影響。我們的策略是瞄準更多元化的客戶群。此外，沒有客戶佔第三季營收超過10%。

Revenue from customers outside of our top 10 customers grew 20% year over year. Our continued focus on customer acquisition has resulted in revenue expansion outside of our top 10 customers, expanding our wallet share into the broader enterprise customer segment.

來自前 10 名客戶之外的客戶的收入年增 20%。我們對客戶獲取的持續關注導致我們的十大客戶之外的收入擴大，將我們的錢包份額擴大到更廣泛的企業客戶群。

Our trailing 12-month net retention rate was 105% down from 110% in the prior quarter and down from 114% in the year ago quarter. This decline is primarily due to the revenue declines in some of our largest customers and we anticipate this will continue to be a headwind to our LTM NRR through the remainder of 2024.

我們過去 12 個月的淨保留率為 105%，低於上一季的 110%，也低於去年同期的 114%。這一下降主要是由於我們一些最大客戶的收入下降，我們預計這將在 2024 年剩餘時間內繼續成為我們的 LTM NRR 的阻力。

At the end of the third quarter, our RPO was $235 million up 6% from $223 million in the second quarter of 2024 and down 5% from $248 million in the third quarter of 2023. This increase is primarily due to contract renewals with our larger customers and increasing adoption of our packaging products which are sold on a subscription or SaaS basis.

截至第三季末，我們的 RPO 為 2.35 億美元，比 2024 年第二季的 2.23 億美元成長 6%，比 2023 年第三季的 2.48 億美元下降 5%。這一增長主要是由於與我們的大客戶續簽了合同，以及越來越多地採用我們以訂閱或 SaaS 方式銷售的包裝產品。

This was offset by other larger customers working through the remaining obligations over their contract terms. As Todd mentioned, we had 576 enterprise customers at the end of Q3, a net decrease of 25 compared to an increase of 24 in the second quarter on a year-by-year basis. Enterprise customer count increased 5%.

這被其他較大客戶在合約條款內履行剩餘義務所抵銷。正如Todd所提到的，第三季末我們有576家企業客戶，與第二季年增24家相比，淨減少25家。企業客戶數量增加了 5%。

Enterprise customers accounted for 92% of total revenue on an annualized basis in Q3 compared to 91% in Q2. Enterprise customer average spend was 880,000 up 9% from 804,000 in the previous quarter and up 3% from 858,000 in Q3 of last year. I will now turn to the rest of our financial results for the third quarter.

以年化計算，企業客戶佔第三季總營收的 92%，而第二季為 91%。企業客戶平均支出為 88 萬人次，比上一季的 804,000 人次成長 9%，比去年第三季的 858,000 人次成長 3%。我現在將談談第三季的其餘財務表現。

Our gross margin was 57.7% compared to 58.5% in the second quarter of 2024 and up 180 basis points from 55.9% in Q3 2023. As we benefited from better utilization on our fixed costs, on higher than expected revenue offset to a lesser extent by increased bandwidth and transit costs on higher traffic.

我們的毛利率為 57.7%，較 2024 年第二季的 58.5% 上升，較 2023 年第三季的 55.9% 上升 180 個基點。由於我們受益於固定成本的更好利用，高於預期的收入在較小程度上被更高流量的頻寬和傳輸成本的增加所抵消。

Our incremental gross margin hit a record 79% on a trailing 12 month basis compared to 73% in the third quarter of 2023 reflecting continued efforts on reducing our cost of revenue in an otherwise challenging top line environment. Operating expenses were $79.6 million in the third quarter better than our. Expectations lower employee costs related to the recent restructuring and a reduction in hiring accounted for a majority of the upside.

我們過去 12 個月的增量毛利率達到創紀錄的 79%，而 2023 年第三季為 73%，這反映出我們在充滿挑戰的營收環境中持續努力降低收入成本。第三季的營運費用為 7,960 萬美元，比我們的好。與近期重組相關的員工成本下降和招募減少是上漲的主要原因。

This represents a 5% decrease in operating expenses compared to Q3 2023 and a decrease of 12% sequentially from the second quarter. This better than expected favorability in our operating expenses combined with better than expected gross profit resulted in an operating loss of $0.5 million in the third quarter, beating our operating loss guidance range of $12 million to $8 million.

這意味著與 2023 年第三季相比，營運費用減少了 5%，比第二季連續減少了 12%。我們的營運費用好於預期，加上好於預期的毛利，導致第三季營運虧損 50 萬美元，超出了我們 1,200 萬美元至 800 萬美元的營運虧損指引範圍。

In the third quarter, we reported a net income of $2.4 million or income of $0.02 per diluted share compared to a net loss of $8 million or a loss of $0.06 per basic and diluted share in Q3 2023.

第三季度，我們報告的淨利潤為 240 萬美元，或稀釋後每股收益 0.02 美元，而 2023 年第三季度的淨虧損為 800 萬美元，或每股基本和稀釋後每股虧損 0.06 美元。

Our adjusted EBIDA was positive in the third quarter coming in at $13.3 million compared to $0.7 million in Q3 2023. As Tod mentioned, I'm pleased to highlight that both net income and adjusted EBIDA set quarterly records for Fastly.

第三季調整後的 EBIDA 為正，為 1,330 萬美元，而 2023 年第三季為 70 萬美元。正如 Tod 所提到的，我很高興地強調，淨利潤和調整後的 EBIDA 都創下了 Fastly 的季度記錄。

Turning to our balance sheet, we ended the quarter with approximately $308 million in cash, cash equivalents, marketable securities and investments including those classified as long term.

轉向我們的資產負債表，本季末我們擁有約 3.08 億美元的現金、現金等價物、有價證券和投資，包括長期投資。

Our free cash flow for the quarter was negative $7.1 million and $11.4 million. Sequential improvement from negative $18.5 million in the second quarter. This improvement was primarily driven by an increase in our cash from operations to positive $5 million compared to negative $4.9 million in the second quarter.

本季我們的自由現金流分別為負 710 萬美元和 1,140 萬美元。較第二季的負 1,850 萬美元有所改善。這項改善主要是由於我們的營運現金從第二季的負 490 萬美元增加到正 500 萬美元。

Our cash capital expenditures were approximately 9% of revenue in the third quarter, coming in at the lower end of our guidance of %9 to 10% of revenue we shared on our Q2 call. As a reminder, our cash capital expenditures include capitalized internal use software.

第三季我們的現金資本支出約佔收入的 9%，處於我們在第二季電話會議上分享的收入指引的下限，即佔收入的 9% 至 10%。提醒一下，我們的現金資本支出包括資本化的內部使用軟體。

For 2024, we anticipate our cash CapEx will be approximately 9% to 10% of revenue. I will now discuss our outlook for the fourth quarter in full year 2024. I'd like to remind everyone again that the following statements are based on current expectations as of today and include forward-looking statements.

到 2024 年，我們預計現金資本支出將約為收入的 9% 至 10%。我現在將討論我們對 2024 年全年第四季的展望。我想再次提醒大家，以下陳述是基於截至今天的當前預期，並包含前瞻性陳述。

Actual results may differ materially, and we undertake no obligation to update these forward-looking statements in the future except as required by law. As Todd shared in his remark while we are seeing growth and new customer acquisition, which we believe will lead to further revenue expansion longer term.

實際結果可能存在重大差異，除非法律要求，否則我們不承擔將來更新這些前瞻性聲明的義務。正如托德在他的評論中所說，我們看到了成長和新客戶的獲取，我們相信這將導致長期收入的進一步擴大。

We are facing an unexpectedly challenging environment of revenue declines from some of our largest customers continuing throughout the course of 2024 adversely impacting our revenue growth. Our revenue guidance reflects these dynamics in our business and is based on the visibility we have today.

我們面臨著一個意想不到的充滿挑戰的環境，一些最大客戶的收入下降將持續到 2024 年，這對我們的收入成長產生了不利影響。我們的收入指引反映了我們業務的這些動態，並且基於我們今天的可見性。

We expect somewhat flat to modest sequential growth in Q4 revenues compared to Q3 due to lower revenue with some of our largest customers. For the fourth quarter, we expect revenue in the range of $136 million to $140 million representing flattish annual growth.

由於我們一些最大客戶的收入下降，我們預計第四季度營收將與第三季相比持平或適度成長。我們預計第四季的營收將在 1.36 億美元至 1.4 億美元之間，年增率將持平。

Note, we do not expect to experience any onetime revenue true ups in the fourth quarter compared to the one-time $2.8 million and $3.3 million revenue amounts we recorded in the fourth quarter of 2023 and 2022 respectively.

請注意，與我們在 2023 年第四季和 2022 年分別記錄的一次性收入 280 萬美元和 330 萬美元相比，我們預計第四季度的一次性收入不會出現任何真正的增長。

We continue to be very disciplined in our network investment and cost of revenues which contributed to our third quarter gross margins being approximately 70 basis points better than we initially expected. For the fourth quarter, we anticipate our gross margin will decrease approximately 150 basis points relative to the third quarter plus or minus 50 basis points.

我們繼續嚴格控制網路投資和收入成本，這使得我們第三季的毛利率比我們最初的預期高出約 70 個基點。對於第四季度，我們預期毛利率將比第三季下降約150個基點正負50個基點。

This sequential decline in gross margin is primarily due to increased bandwidth and colocation deployment costs associated with increased traffic in international regions.

毛利率的連續下降主要是由於國際地區流量增加導致頻寬和託管部署成本增加。

We anticipate our fourth quarter operating expenses will be flat to modestly up from third quarter level. Guidance for our fourth quarter operating results reflect the impact of the sequential decrease in gross margins and the beneficial impact of lower operating expenses.

我們預計第四季度的營運支出將與第三季水準持平或略有上升。我們第四季度經營業績的指導反映了毛利率連續下降的影響以及營運費用降低的有益影響。

As a result for the fourth quarter, we expect a non-GAAP operating loss of $5 million to $1 million and a non-GAAP net loss of $0.02 per share to a non-GAAP net income of $0.02 per share. For calendar year 2024, we expect revenue in the range of $539 million to $543 million reflecting annual growth of 7% at the midpoint.

因此，我們預計第四季度非 GAAP 營運虧損為 500 萬至 100 萬美元，非 GAAP 淨虧損為每股 0.02 美元，非 GAAP 淨利潤為每股 0.02 美元。對於 2024 日曆年，我們預計營收在 5.39 億美元至 5.43 億美元之間，年增長率中點為 7%。

We expect to continue to see gross margin improvement in 2024 compared to 2023 as we leverage costs on the incremental yet lower revenue growth. We anticipate our 2024 gross margins will improve by approximately 70 basis points, plus or minus 50 basis points relative to 2023.

與 2023 年相比，我們預計 2024 年毛利率將繼續改善，因為我們利用成本來實現增量但較低的收入成長。我們預計 2024 年毛利率將比 2023 年提高約 70 個基點，上下浮動 50 個基點。

As a result, we expect our non-GAAP operating loss to be in the range of $28 million to $24 million reflecting an operating margin of negative 4.8% at the midpoint. An improvement of approximately 29% in dollar terms over 2023's operating loss margin of 7.2%.

因此，我們預計我們的非 GAAP 營運虧損將在 2,800 萬美元至 2,400 萬美元之間，反映出中點營運利潤率為負 4.8%。以美元計算，較 2023 年 7.2% 的營運虧損率改善約 29%。

We expect our non-GAAP net loss per share to improve to $0.12 to $0.08 reflecting the improvement in our operating loss expectations and we expect free cash flow to be in the range of negative $40 million to $30 million in 2024 compared to negative $59 million in 2023.

我們預計我們的非GAAP 每股淨虧損將改善至0.12 美元至0.08 美元，反映出我們經營虧損預期的改善，我們預計2024 年自由現金流將在負4000 萬美元至3000 萬美元之間，而2024年為負5900 萬美元。

Before we open the line for questions, we'd like to thank you for your interest and your support in Fastly. Operator?

在我們開始提問之前，我們要感謝您對 Fastly 的興趣和支持。操作員？

(Operator Instructions)

（操作員說明）

James Fish, Piper Sandler.

詹姆斯·菲什，派珀·桑德勒。

Hey guys, congrats on getting the business here to net income profitability in the quarter overall. Look, I think everybody's wondering here about the competitive environment with one of your competitors going bankrupt and Todd, you and I talked about that at our conference.

嘿夥計們，恭喜您的業務在本季度實現了淨利潤。聽著，我想每個人都想知道你的競爭對手之一破產的競爭環境，托德，你和我在我們的會議上談到了這一點。

But you know, what are you guys seeing in terms of that opportunity in particular, especially given though that entity had very large customers, even some overlapping customers. What programs are you putting in place to try to gain further wallet share with that bankruptcy?

但你知道，你們特別在這個機會方面看到了什麼，特別是考慮到該實體擁有非常大的客戶，甚至是一些重疊的客戶。您正在實施哪些計劃來嘗試在破產後獲得更多的錢包份額？

Yeah, I think it's making the market like a super interesting place right now and there's definitely potential upside here. We've seen some accounts that have in fact shifted traffic towards fly and that, that's largely the overlapping accounts where the transition is straightforward.

是的，我認為這使得市場現在變得非常有趣，而且這裡肯定有潛在的上漲空間。我們已經看到一些帳戶實際上已經將流量轉向了飛行，而且這很大程度上是重疊的帳戶，過渡很簡單。

But largely, I think of this as a significant opportunity in 2025, I think that's where we're going to see big shifts in that area in particular. Maybe just at a slightly wider lens.

但在很大程度上，我認為這是 2025 年的一個重大機遇，我認為我們將在該領域看到重大轉變。也許只是在稍微更寬的鏡頭下。

I think it, it also underscores the importance of the platform strategy here of building a very complete offering with strength, not just in network services, but security and compute and observability is well and that's where we're seeing a lot of the momentum, in our business and I think it's going to help us transition these customers over to a more complete offer. So for us, we've seen a little bit of that so far, but I think the majority of the upside opportunity for us is probably in '25.

我認為，它也強調了平台策略的重要性，即建立一個非常完整的、具有實力的產品，不僅在網路服務方面，而且在安全性、運算和可觀察性方面也很好，這就是我們看到的很大的動力，在我們的業務中，我認為這將有助於我們將這些客戶轉變為更完整的產品。所以對我們來說，到目前為止我們已經看到了一些這樣的情況，但我認為我們大部分的上行機會可能是在 25 年。

Got it. And then maybe on the packaging side and security piece specifically, what's the penetration or attach rate of security to customers generally at this point and specifically as well within your web delivery customers where that may be a little bit easier to cross sell. What's the low hanging fruit that Scott has here? Thank you, guys.

知道了。然後，也許在包裝方面和安全性方面，具體而言，安全對客戶的滲透率或附加率通常是多少，特別是在您的網路交付客戶中，交叉銷售可能更容易一些。斯科特在這裡有什麼容易達成的成果？謝謝你們，夥計們。

Yeah, it's super top of mind. We don't disclose that a particular number here, but I would tell you, I think our cross-sell penetration is still very low. I think there's a lot of opportunity and that's exactly why we focus the security innovation and I'm sure you see, there's certainly a surge here with two big releases in the last two quarters.

是的，這是超級重要的。我們在這裡不透露具體數字，但我想告訴你，我認為我們的交叉銷售滲透率仍然很低。我認為存在著許多機會，這正是我們關注安全創新的原因，我相信您已經看到，過去兩個季度的兩個重大版本肯定會激增。

We focused that not just on security efficacy but an ease of deployment and true simplicity in the platforms that customers who are existing content delivery customers can on board best in class DDoS or bot mitigation or our WAF even with, with a click of a button. And we're really targeting the product and platform innovation area here to drive this cross sell where I believe we are far too little penetration on the cross-sell opportunity.

我們不僅專注於安全功效，還專注於平台的部署簡便性和真正的簡單性，現有內容交付客戶只需單擊一個按鈕，就可以使用一流的 DDoS 或機器人緩解或我們的 WAF。我們真正的目標是產品和平台創新領域，以推動交叉銷售，我認為我們在交叉銷售機會上的滲透率太低。

Frank Louthan, Raymond James.

弗蘭克·勞森，雷蒙德·詹姆斯。

Great. Thank you. So it seems like the bump in the business here was a little bit more one time in nature, you're a little cautious that it was. Can you give us an idea of what was kind of driving that media business in the quarter and in any thoughts about what possibly could be replicable?

偉大的。謝謝。因此，看起來這裡的業務成長本質上是一次多一點，你對此有點謹慎。您能否告訴我們本季媒體業務的推動力是什麼，以及哪些內容可以複製的想法？

And then on the efforts you've made on the restructuring, can you walk us through, where you've seen success there early on? Are you tracking to the same overall cost savings, or you found some new, is it going to be a little bit higher, or we just capture that a little sooner than we thought. Thanks.

關於您在重組方面所做的努力，您能否向我們介紹您早期在哪些方面取得了成功？您是否追求相同的總體成本節省，或者您發現了一些新的成本節約，是否會更高一點，或者我們只是比我們想像的要早一點捕捉到這一點。謝謝。

Sure. We saw some better than projected revenue in those top accounts. And I think you're right to say, we're being very careful not to project too much from those results into the out quarters. And I think that's important, we know there's volatility there and we want to be really sure that we are projecting the correct, that we're giving you the correct revenue projection moving forward.

當然。我們在這些頂級客戶中看到了一些比預期更好的收入。我認為你說得對，我們非常小心，不要將這些結果過度投射到外部季度。我認為這很重要，我們知道那裡有波動，我們希望真正確定我們的預測是正確的，我們為您提供正確的未來收入預測。

But I think the like the part of the growth rate and the, and the revenue results in Q3, that's really important is that we saw 20% year over year growth outside of the top 10. We're seeing momentum starting to build in this transition towards approaching the larger market, acquiring customers outside of media and driving a more diversified, more reliable business and therefore more projectable and reliable growth rate moving forward on that diversified business.

但我認為，就像第三季的成長率和收入結果一樣，真正重要的是，我們在前 10 名之外看到了 20% 的年成長。我們看到，在向更大的市場、獲取媒體以外的客戶以及推動更多元化、更可靠的業務轉型的過程中，勢頭開始增強，從而推動多元化業務的增長率變得更加可預測和可靠。

And there's no doubt that this transition has a lot to do with that, focus on diversification and focus on long term reliable growth. As far as the cost savings. Largely, we've been pushing cost control and operational efficiency and rigor for a long time and we've had pretty consistent results in making improvements there.

毫無疑問，這種轉變與此有很大關係，注重多元化並專注於長期可靠的成長。就節省成本而言。在很大程度上，我們長期以來一直在推動成本控制、營運效率和嚴謹性，並且在改進方面取得了相當一致的結果。

But our restructuring, we were able to do a little bit earlier a little bit faster and more efficiently than we believed than we believe possible. And that drove a big chunk of the beat on the OpEx side to our projection. Ron, anything to add?

但我們的重組，我們能夠比想像的更早、更快、更有效率地進行。這推動了營運支出方面的很大一部分成長，符合我們的預測。羅恩，有什麼要補充的嗎？

No, I think that's a good on the traffic. And again, we saw some favorability in the spending, just based on the execution of the restructuring. That you basically is going to drive about a $14 million savings versus our original plan in 2024.

不，我認為這對交通有好處。僅基於重組的執行，我們再次看到了支出方面的一些有利因素。與我們最初的 2024 年計劃相比，您基本上將節省約 1400 萬美元。

Right. And when, you mentioned getting business outside of media, can you characterize what are some of those workloads. And what does that data look like that you're getting is it more software based? You know what and then what is it are these new opportunities that you think have a long growth rate or is it just where you just happen to be buy some business?

正確的。當您提到在媒體之外開展業務時，您能否描述其中的一些工作負載。您獲得的數據是什麼樣的？您知道什麼，然後您認為這些新機會具有長期增長率，或者只是您碰巧購買了一些業務？

Yeah, for sure. I think number one, it's a lot of new logo acquisition and that drives very, very healthy growth rate in the couple of years as there's a more accelerated land and expand motion or I should say expand motion in the first 24 months on the platform. It's definitely business that is more diversified across the portfolio than the media business.

是的，當然。我認為第一，這是大量新徽標的獲取，這在幾年內推動了非常非常健康的增長率，因為土地和擴張運動更加加速，或者我應該說平台上前 24 個月內的擴張運動。這絕對是比媒體業務更加多元化的業務。

Outside of media, there's much more spend in security compute observability across the board and we're starting to see those results outside of media, which I think is really healthy for the business. It will help us drive margins, it'll help us balance workloads across our infrastructure.

在媒體之外，在安全計算可觀察性方面的支出要多得多，我們開始在媒體之外看到這些結果，我認為這對業務來說非常健康。它將幫助我們提高利潤，幫助我們平衡基礎設施中的工作負載。

And a multi portfolio customer is stickier, they enjoy platform leverage that makes their teams, and their developers are more loyal to the platform and more powerful within their own organization. So we are really excited about that.

多產品組合客戶更具黏性，他們享受平台槓桿作用，這使得他們的團隊和開發人員對平台更加忠誠，並且在自己的組織內更加強大。所以我們對此感到非常興奮。

Sanjit Singh, Morgan Stanley.

桑吉特辛格，摩根士丹利。

Yeah, thank you for taking the question and nice to see getting back to a nice beat in cadence. I guess what my overarching question Todd is, is there like a mix between top 10 and non-top 10 that would, you know, essentially signal growth returning to the business?

是的，謝謝你提出這個問題，很高興看到節奏又回到了良好的節奏。我想托德最重要的問題是，前 10 名和非前 10 名之間是否存在某種混合，這本質上標誌著業務的成長回歸？

It sounds like the top 10 doesn't seem to be getting worse, but and I look at your Q4 guide, we're looking for about flat year over year growth. So probably more sort of your growth headwinds on the come.

聽起來前十名似乎並沒有變得更糟，但是我看了你們的第四季度指南，我們正在尋找同比持平的增長。因此，您的成長可能會遇到更多阻力。

And so is it like sort of getting that mix down to 25%, 20% because it looks like your non-top 10 customers are growing healthily in the double digits. So any thoughts there on like where those kind of two lines cross where that sort of spits out a reasonable growth?

這就像將這一比例降低到 25%、20%，因為看起來您的非前 10 名客戶正在以兩位數的速度健康成長。那麼，對於兩條線在哪裡交叉、在哪裡產生合理的成長，有什麼想法嗎？

Yeah, I think it's a good question something we think about a lot. I believe that the growth rate at the overall is going to be more and more dominated by this longer tail of customers. And that's why, I'm tracking so carefully the non-media growth rate and in the public disclosures, the non-top 10 growth rate.

是的，我認為這是一個我們經常思考的好問題。我相信整體成長率將越來越多地由客戶的長尾主導。這就是為什麼我如此仔細地追蹤非媒體成長率和公開揭露的非前 10 名成長率。

And as that concentration reduces, then we're going to index more and more on it. I think getting to 30% is going to be a pretty significant moment in time for us and I think that really will be a healthy place to be. But to be honest I think it's only upside in diversification.

隨著這種集中度的降低，我們將越來越多地對其進行索引。我認為達到 30% 對我們來說將是一個非常重要的時刻，我認為這確實是一個健康的地方。但說實話，我認為這只是多元化的好處。

We've seen so much success in diversifying our business and we're going to keep at this, not just in diversifying our revenue across the customer base, but increasingly in 2025 you're going to see us pushing really hard on the security side of our portfolio as well.

我們在業務多元化方面取得了巨大成功，我們將繼續堅持這一點，不僅是在客戶群中實現收入多元化，而且到 2025 年，您將看到我們在安全方面加大力度我們的投資組合也是如此。

And maybe you can just follow up there on the security side. So more updates to next generation WAF, more updates to the bot management capabilities.

也許你可以在安全方面跟進。因此，對下一代 WAF 進行更多更新，對機器人管理功能進行更多更新。

Where are we in sort of driving that stronger sort of security sales motion? I'm sort of interplays with the momentum you're seeing with partners, but what is sort of your outlook for security growth? You know, over the next couple of quarters?

我們在哪裡推動更強勁的證券銷售行動？我對您與合作夥伴看到的勢頭有某種相互作用，但您對安全成長的前景有何看法？你知道，在接下來的幾個季度嗎？

Yeah, it's certainly top of mind, not just for myself, but for Scott, our new CRO comes from a security background. And as we look to the restructuring that we just did and really the path forward, especially as we start 2025 we are deeply focused on sort of pairing this R&D investment with real go to market focus and security and so.

是的，這當然是首要考慮的事情，不僅對我自己來說，對 Scott 來說也是如此，我們的新 CRO 來自安全背景。當我們展望剛剛進行的重組和真正的前進道路時，特別是在 2025 年開始時，我們非常注重將研發投資與真正的市場關注和安全性等結合起來。

I really, I believe 2025 security is going to be a very, very top of mind area, not just in the R&D side, not just in the product launch side, but across the board.

我真的相信 2025 年安全將成為一個非常非常重要的領域，不僅在研發方面，不僅在產品發布方面，而是全面的。

I think there's a ton of upside here we've got and it was mentioned in the first question. We have a lot of unpacked potential in the cross sell, I'm seeing really good momentum in our security sales motion when it comes to new logo acquisition.

我認為我們有很多好處，第一個問題就提到了這一點。我們在交叉銷售方面有很多未開發的潛力，當涉及到新徽標的獲取時，我看到我們的安全銷售動向非常良好。

And we have with, especially with the recent product development, we have a really amazing opportunity to use security more and more as a way to onboard new customers to the platform for the first time and start to actually land and expand those customers into delivery and network services.

我們擁有，特別是最近的產品開發，我們有一個非常驚人的機會，可以越來越多地使用安全性作為首次將新客戶引入該平台的方式，並開始實際登陸並將這些客戶擴展到交付和服務領域。

Will Power, Blair.

意志力，布萊爾。

Okay, great, thanks. Todd maybe just come back to the media side just to clarify a bit for me. I mean, it looked like in Q3, your top 10 customers were actually pretty stable with Q2, which at the surface seemed encouraging. I'm sure there are probably some, maybe some cross currents within that.

好的，太好了，謝謝。托德也許只是回到媒體這邊來為我澄清一下。我的意思是，看起來在第三季度，您的前 10 位客戶實際上與第二季度相當穩定，這從表面上看似乎令人鼓舞。我確信其中可能存在一些交叉流。

And yet it sounds like you're still spending some headwinds seasonally in Q4 and maybe there's some conservatism in there, but still some questions, I guess I'm just -- but it also sounded like you kind of think you got the worst behind you.

然而，聽起來你在第四季度仍然遇到了一些季節性的逆風，也許其中存在一些保守主義，但仍然有一些問題，我想我只是 - 但聽起來你也認為你已經落後了最糟糕的情況你。

So I'm just trying to understand what underpins the confidence around the visibility that the worst is behind you given some of these headwinds in Q4, maybe you can just help triangulate that for me

因此，鑑於第四季度的一些不利因素，我只是想了解是什麼支撐著人們對最糟糕的情況已經過去的信心，也許你可以幫助我進行三角測量

Yeah, I mean, I think we have now a strategy that is certainly more and more dependent on the business outside of media and we've seen this big shift from 40% all the way down to now 33%. In just a few quarters, that's certainly helping us build a better projection, have more confidence in the growth rate and in the fullness of time, help us build a better and more higher and more reliable the growth rate for the company.

是的，我的意思是，我認為我們現在的策略肯定越來越依賴媒體以外的業務，我們已經看到了從 40% 一路下降到現在 33% 的巨大轉變。在短短幾個季度內，這肯定會幫助我們建立更好的預測，對成長率更有信心，並且在時間充裕的情況下，幫助我們為公司建立更好、更高、更可靠的成長率。

As far as the media business goes, we did see our higher touch customer engagement model that we put in place when we started to see these headwinds a few quarters ago. We, have seen really two, I think significant benefits here.

就媒體業務而言，我們確實看到了我們在幾個季度前開始看到這些不利因素時所採用的更高接觸度的客戶參與模式。我認為我們確實看到了兩個顯著的好處。

One is we've been able to serve these customers better by demonstrating better performance than the rest of the market more reliability, better ease of doing business, which is so important. And with that better customer engagement, better executive engagement, I think we have better projection for that business.

一是我們能夠透過展示比市場其他產品更好的性能、更高的可靠性、更好的開展業務便利性來更好地服務這些客戶，這一點非常重要。透過更好的客戶參與度、更好的高階主管參與度，我認為我們對該業務有更好的預測。

But that business has changed a little bit. We're hoping that things like the Agio situation will help fuel that business, that part of our business back to growth. And we think we're never been in a better position, but we don't have visibility to a big return to growth in Q4. And that's what's baked into our projection.

但這項業務發生了一些變化。我們希望像 Agio 的情況這樣的事情將有助於推動該業務，即我們業務的這一部分恢復成長。我們認為我們從未處於更好的位置，但我們看不到第四季度的大幅恢復成長。這就是我們的預測中所考慮的內容。

That being said, this higher touch customer success motion has also given us, I think a much better projection of that business a better way to predict it and measure it and get telemetry from across the system, the business, the internet, etcetera on what's happening here.

話雖這麼說，這種更高接觸度的客戶成功動議也為我們提供了更好的業務預測，一種更好的方法來預測和衡量它，並從整個系統、業務、互聯網等獲取有關業務的遙測數據。

And so this sort of better engagement and hopefully a faster return to growth for our media business, but also a better projection and better building of our revenue model moving forward.

因此，這種更好的參與，希望我們的媒體業務能夠更快地恢復成長，同時也能更好地預測並更好地建立我們未來的收入模式。

Okay. And then, and maybe just, I guess one other follow on, I mean, you touched on this a bit but nice to see that actually even improved growth, I guess in your customers outside the top 10.

好的。然後，也許只是，我想另一個人會跟進，我的意思是，你稍微提到了這一點，但很高興看到實際上甚至改善了增長，我想在前 10 名之外的客戶中。

Any common variables to call out there, either particular verticals you're doing well in or particular use cases you know, that are helping, you know, drive the success there, both in terms of revenue and in terms of new customer ads, which the enterprise number is down, the overall ads look good.

任何需要指出的常見變量，無論是您在其中做得很好的特定垂直領域還是您知道的特定用例，都有助於推動那裡的成功，無論是在收入方面還是在新客戶廣告方面，這企業數量下降了，整體廣告效果還不錯。

Yeah, I think the biggest trend I've seen, I mean, this is a little anecdotal but the biggest trend I've seen is certainly that new customers are coming fast out, especially outside of media, looking for a complete edge solution, network services and delivery, security, observability and edge compute.

是的，我認為我所看到的最大趨勢，我的意思是，這有點軼事，但我所看到的最大趨勢肯定是新客戶正在快速湧現，特別是在媒體之外，尋找完整的邊緣解決方案，網路服務和交付、安全性、可觀察性和邊緣運算。

And as we filled out the last couple of pieces in our security portfolio, we're starting to see, I think a lot more serious engagement on those new logos and finding more success in bringing them on board. So to me, the big trend I've seen here is, finishing up security portfolio has helped us build a more complete portfolio and these new customers, that's what they're looking for. They're looking for a complete edge solution.

當我們填寫安全產品組合中的最後幾部分時，我們開始看到，我認為人們對這些新徽標進行了更認真的參與，並在將它們納入其中方面取得了更大的成功。所以對我來說，我在這裡看到的大趨勢是，完成安全產品組合幫助我們建立了更完整的產品組合，而這些新客戶正是他們所尋找的。他們正在尋找完整的邊緣解決方案。

Timothy Horan, Oppenheimer.

提摩西霍蘭，奧本海默。

Sorry guys, I think you said large customers are working through their obligations. I mean, do you have much visibility when those obligations are over? You know, where you're at on relative pricing basis and you know will those customers or time line on that and maybe what's the visibility? I know you've been answering this a bit on retaining the customers.

抱歉，夥計們，我想你說過大客戶正在履行他們的義務。我的意思是，當這些義務結束後，你有很多可見性嗎？你知道，你在相對定價的基礎上處於什麼位置，你知道那些客戶或時間表，也許可見性是什麼？我知道您一直在回答這個問題，以保留客戶。

And I guess related to this, the whole CDN space has been under, a lot, a lot of pressure. Is it volumes are coming in lower than expected or are there are the hyper scalers, gaining share or other new entrants, like, where's the kind of why is the revenue been so disappointing for the whole industry?

我想與此相關的是，整個 CDN 空間一直承受著非常非常大的壓力。是銷售低於預期，還是有超大規模企業正在擴大份額，或是其他新進者，例如，為什麼整個產業的收入如此令人失望？

And, you know, I guess with your large customers, I know you've been talking about it but just a little bit more color on those obligations they have.

而且，你知道，我想對於你的大客戶，我知道你一直在談論它，但只是對他們所承擔的義務有更多的色彩。

Yeah, in terms of the obligations, we have really good visibility to when the contracts come up for renewal and particularly with our largest customers with our increased engagement at senior levels, we have much better visibility into what their.

是的，就義務而言，我們非常清楚合約何時需要續約，特別是對於我們最大的客戶，隨著我們在高層的參與增加，我們對他們的合約有了更好的了解。

You know, pricing expectations are, what drives their decisions around here. What I would say is we've sort of shared in the past is that, we don't have a concentration of renewals in any particular quarter. They generally are kind of spread out across the year.

你知道，定價預期是驅動他們做出決定的因素。我想說的是，我們過去的共同點是，我們沒有集中在任何特定季度進行續約。它們通常分佈在全年。

So we have renewals in each of those quarters, that results in a little less of sort of a single impact from when we see those contracts renew, at new pricing. But I think we have, much better visibility in terms of, what those adjustments might be a contract date. We certainly have been visibility to win those contracts come up for renewal.

因此，我們在每個季度都會進行續約，當我們看到這些合約以新定價續約時，單一影響會稍微小一些。但我認為我們對於這些調整可能是合約日期有更好的了解。我們當然已經贏得了那些需要續約的合約。

Yeah, just looking at it through the lens of the whole market. I think we are seeing we are seeing a little bit of a change here. There's been consolidation, so there's fewer players in the space and even fewer if you look at it from really full service edge platform players.

是的，從整個市場的角度來看。我認為我們看到這裡發生了一些變化。由於整合的出現，該領域的參與者越來越少，如果你從真正的全方位服務邊緣平台參與者的角度來看，則更少。

And I think that has the opportunity to make the pricing environment healthier in '25 than we saw in '24. And I guess a little optimistic that's exactly what we're going to see.

我認為這有機會使 25 年的定價環境比 24 年更健康。我想有點樂觀，這正是我們將要看到的。

That's great. And then just one question on the AI accelerator, can you talk about how much you improve latency on your platform and reduce costs or any color around that and what you've experienced so far?

那太棒了。然後是關於人工智慧加速器的一個問題，您能談談您在平台上改善了多少延遲並降低了成本或與之相關的任何顏色以及您到目前為止所經歷的事情嗎？

Yeah, AI accelerator basically brings the power of the Fastly platform to LLM style solutions. And I think there's a video of me doing this demo, but the reality there is. Using a public LLM cloud, the latency on a relatively trivial question can be five or six seconds or more. And that doesn't always feel like the most human experience.

是的，AI 加速器基本上將 Fastly 平台的強大功能帶入了 LLM 風格的解決方案。我想有一個我做這個演示的視頻，但現實是存在的。使用公共 LLM 雲，一個相對簡單的問題的延遲可能是五到六秒或更長。這並不總是感覺像是最人性化的體驗。

The there's no reason that every single one of those requests has to go all the way back to a central cloud and we can provide fast speed of response here and bring those request times well below a second. While at the same time, lowering the total cost of the solution to the development teams building that type of LLM based use case.

沒有理由這些請求中的每一個都必須一路返回到中央雲，我們可以在這裡提供快速回應，並使這些請求時間遠低於一秒鐘。同時，降低了開發團隊建立此類基於 LLM 用例的解決方案的總成本。

And the most common one is like a support chat bot use case with very, very easy developer onboarding a single line of code, customers can leverage the power of our semantic match the power of the fast cash and at the same time, lower their total cost living solution. It's awesome, I've gotten great response from customers in the data and I'm really excited to launch the general availability this quarter.

最常見的是，就像一個支援聊天機器人用例，開發人員非常非常容易地使用一行程式碼，客戶可以利用我們語義的力量來匹配快速現金的力量，同時降低他們的總金額成本生活解決方案。太棒了，我在數據中得到了客戶的熱烈響應，我很高興能在本季度推出全面可用性。

Jeff Van Rhee, Craig-Hallum.

傑夫·範·李，克雷格·哈勒姆。

Great. Thanks for taking the question. Got several maybe on the enterprise customer account. Just a little clarification, I know the non-top 10 was up 20% year over year. So generally other than the top 10, very good quarter. The overall sequential drop.

偉大的。感謝您提出問題。企業客戶帳戶上可能有幾個。稍微澄清一下，我知道非前 10 名的銷量比去年同期成長了 20%。所以總的來說，除了前 10 名之外，都是非常好的季度。整體環比下降。

Can you talk about the pattern of that drop? I would have expected given the strength of the non-top 10 that you wouldn't have that many fall below your 100,000 threshold in the quarter. Any other color there you can share.

你能談談那個下降的模式嗎？考慮到非前 10 名的實力，我預計本季不會有那麼多人跌破 10 萬的門檻。任何其他顏色都可以分享。

Yeah, I'll tell you, I shared that concern. So I did dig into those numbers quite a bit. It did not. What I was trying to be very, sensitive to is if we saw any sort of increase in customer churn, which I did not see or even customers on their way to churn. But we do have a lot of customers that will swing above or below the number.

是的，我告訴你，我也有同樣的擔憂。所以我確實深入研究了這些數字。但事實並非如此。我想要非常敏感的是，我們是否看到客戶流失有任何形式的增加，而我沒有看到這種情況，甚至客戶正在流失。但我們確實有很多客戶的價格會高於或低於這個數字。

When you look at in the disclosures, when you look at the average dollars spent by enterprise customers and the total amount spent by all of the non-top 10 customers, I think it tells the same story. We saw some folks strip below that, that 25,000 per quarter threshold and that's what showed up in the numbers.

當你查看披露的資訊時，當你查看企業客戶的平均支出以及所有非前 10 名客戶的支出總額時，我認為它講述了同樣的故事。我們看到有些人低於每季 25,000 人的門檻，這就是數字中所顯示的內容。

It's not a result that I love to be honest, and we're going to be pushing very, very hard to make sure that we're driving growth in every single account, including those mid sized commercial slash enterprise accounts to make sure that number is really reliably growing every quarter.

說實話，這不是我喜歡的結果，我們將非常非常努力地推動每個帳戶的成長，包括那些中型商業斜線企業帳戶，以確保這個數字每個季度都確實可靠地成長。

That's helpful. And then I just run on the financials. I think the guide for FCF last quarter was minus 10% to 20%. And I think if I heard it right, you said minus 30% to 40% here. So pretty much the message across the board was stability and sort of in line with what you thought coming into the quarter but that one ticked lower, just talk about what happened there.

這很有幫助。然後我就只專注在財務。我認為上季 FCF 的指引值為負 10% 至 20%。我想如果我沒聽錯的話，你在這裡說的是負 30% 到 40%。因此，幾乎所有的資訊都是穩定的，有點符合你對本季的預期，但那個數字有所下降，只談談那裡發生的事情。

Yeah, I think. In the quarter, we did see a little better cash flow from operations. We did also, as we know, our CapEx was around 9% in the quarter. And so a lot of those puts it takes.

是的，我想。在本季度，我們確實看到營運現金流有所改善。我們也知道，本季我們的資本支出約為 9%。所以很多這樣的說法都需要。

The other thing that we did have relative to free cash flow impact was, the impact of sort of restructuring in the quarter of which, when we prior to the restructuring didn't have that in our calculations, but we'll save more than that by the time we wrap up the year with the $14 million of the OpEx savings.

我們確實對自由現金流影響的另一件事是，本季度某種重組的影響，在重組之前我們的計算中沒有考慮到這一點，但我們會節省更多當我們結束這一年時，運營支出節省了1400 萬美元。

Okay. And maybe just last for me, then the conclusion to not count on a seasonal uptick here in Q4. Can you just talk about anecdotally or quantitatively just how you came to that conclusion? Just curious what evidence built you to assume that other than I know, you guys just want to keep the expectations down on conservatism, but any color there would be great.

好的。也許對我來說最後一個結論就是不要指望第四季會出現季節性上升。您能從軼事或定量角度談談您是如何得出這個結論的嗎？只是好奇有什麼證據讓你認為除了我所知之外，你們只是想降低對保守主義的期望，但任何顏色都會很棒。

Yeah, I mean, I think a couple of things, I think as we go into Q4, we did see, some increased strength in our largest customers across gaming and live sports. I think we go into Q4, you know, some of those largest customers, we're going to see somewhat lower revenue.

是的，我的意思是，我認為有幾件事，我認為當我們進入第四季度時，我們確實看到，我們最大的客戶在遊戲和體育直播方面的實力有所增強。我認為進入第四季度，你知道，一些最大的客戶的收入將會下降。

We also see an absence of some of the true ups that we saw in the last couple of years that, you know, contributed to that seasonal uptick in the fourth quarter. And so when we bring those two together, on top of the higher revenue we saw in Q3, we ended up with relatively flattish Q3 to Q4 revenue outlook.

我們也看到，過去幾年我們看到的一些真正的上漲已經消失，而這些上漲導致了第四季的季節性上漲。因此，當我們將這兩者放在一起時，除了我們在第三季度看到的較高收入之外，我們最終得到了相對平穩的第三季度至第四季度收入前景。

And note that those true-ups impact not only revenue but also gross margin, Jeff.

請注意，這些調整不僅影響收入，也影響毛利率，傑夫。

Rishi Jaluria, RBC Capital Markets.

Rishi Jaluria，加拿大皇家銀行資本市場。

Hi, this is Chris on for Richie Jaluria. Thanks for taking my question. I was wondering if you could give us an update on the efforts to diversify revenue within the top 10 customer cohort, but from the standpoint of mix shift and selling more security and other services into those customers. So that way you aren't as reliant on the delivery business. Thanks.

大家好，我是里奇·賈魯裡亞 (Richie Jaluria) 的克里斯。感謝您提出我的問題。我想知道您是否可以向我們介紹一下在前 10 名客戶群中實現收入多元化的最新情況，但從混合轉變以及向這些客戶銷售更多安全和其他服務的角度來看。這樣你就不會那麼依賴送貨業務。謝謝。

It's top of mind and as we look at how we are approaching those top 10 customers in a new way, we have everything on the table. The portfolio expansion, it's certainly a big one,

這是我們首要考慮的問題，當我們研究如何以新的方式接近這 10 名客戶時，我們已經把一切都擺在桌面上了。投資組合的擴張，這肯定是一個很大的擴張，

But we do know that their spend is primarily going to be in delivery by the very nature of their business that doesn't mean that the stickiness can't come from bespoke compute offering. And we saw pretty good results there across the business on the compute side.

但我們確實知道，由於其業務的本質，他們的支出主要用於交付，但這並不意味著黏性不能來自自訂的運算產品。我們在整個業務的計算方面看到了相當好的結果。

And certainly on the security side, we are seeing a lot of security event activity in the media space. And so I think there is more opportunity for us to gain that stickiness from security even if the bulk of our revenue continues to come from media.

當然，在安全性方面，我們在媒體領域看到了大量的安全事件活動。因此，我認為即使我們的大部分收入仍然來自媒體，我們也有更多機會從安全性中獲得黏性。

But I tell you, I think we are still at the beginning of that journey largely. Like I don't think we've reached every, we haven't reached our full capacity and diversify the portfolio there. And again, in '25 security is going to be a huge part of our focus, and I think that will include the media accounts for sure.

但我告訴你，我認為我們很大程度上仍處於這趟旅程的開始。就像我認為我們還沒有達到每一個目標一樣，我們還沒有達到我們的全部能力並實現投資組合的多元化。再說一次，在 25 年，安全將成為我們關注的重要部分，我認為這肯定包括媒體帳戶。

Got it. Thank you. Just one other one. How should we think about the mix of security revenue increasing and what is embedded into Q4 guidance?

知道了。謝謝。只是另一件。我們應該如何考慮安全收入的成長以及第四季指引中包含的內容？

As far as the security mix went in Q3, I think we could do a lot better than that. To be honest, I wasn't super pleased with that result. And of course, the effects of these product launches that came in this quarter and during Q3 and in Q2, we haven't seen that start to show up in the revenue yet.

就第三季的安全組合而言，我認為我們可以做得更好。說實話，我對這個結果不是很滿意。當然，本季、第三季和第二季推出的這些產品的影響，我們還沒有看到它開始體現在收入中。

And certainly we haven't seen the full effect of our new sales leadership here. I think we can do significantly better than that and it will be a big, big focus for the company in 2025.

當然，我們還沒有看到新的銷售領導層的全部效果。我認為我們可以做得更好，這將成為公司 2025 年的一大重點。

Yeah. The only thing I'd add, I think as well. I think that to Todd's point, I think you'll really see the bigger impact as we get into 2025 with recent releases and the efforts that Scott is putting into the go to market efforts.

是的。我想也是我唯一要補充的。我認為，就 Todd 的觀點而言，隨著我們進入 2025 年，您會真正看到最近發布的版本以及 Scott 為進入市場所做的努力所帶來的更大影響。

Madeline Brooks, Bank of America.

馬德琳布魯克斯，美國銀行。

Hi. Yes, this is Kevin on for Madeline Brooks of Bank of America. I have two questions for you, but I'll start with the first one. My first question is, what's the strength in 3Q expected or unexpected? Especially with the recovery you noted in the few large customers. And then can you talk about the sustainability of these trends with any one off such as the Olympics that contributed to this outperformance?

你好。是的，我是美國銀行馬德琳布魯克斯的凱文。我有兩個問題要問你，但我將從第一個問題開始。我的第一個問題是，第三季的強勢是預期的還是意外的？特別是您注意到少數大客戶的復甦。然後，您能否談談這些趨勢的可持續性以及奧運等促成這一優異表現的因素？

Yeah, I think you know, we did see better than expected results, in the third quarter as we worked through the quarter. I think where we saw strength was, we did see some strength from live sporting events, including global events where they hand up medallions, but we also saw strength in gaming.

是的，我想你知道，在我們整個季度的工作過程中，我們在第三季確實看到了好於預期的結果。我認為我們看到的優勢在於，我們確實從現場體育賽事中看到了一些優勢，包括他們頒發獎牌的全球賽事，但我們也看到了遊戲領域的優勢。

You know, a lot of that's to the release timings and so we saw better strength there than we anticipated going into the border. And then as Todd mentioned earlier, share gains outside of the top 10, that growth was we expected to see an acceleration, we mentioned that on the Q2 call, but that acceleration was a little stronger than we had anticipated going into the quarter.

你知道，這很大程度上與發佈時間有關，因此我們看到那裡的實力比我們預期的進入邊境的實力要強。然後，正如托德之前提到的，前 10 名之外的股票增長，我們預計增長會加速，我們在第二季度電話會議上提到過，但這種加速比我們預期的本季度要強一些。

And we posted 13% year of year growth outside the top 10 in Q2 and shifting that to 20% in Q3. Again, this transformation and real focus on diversification of our revenue. I think we're starting to see results there and that's going to lead to more long-term sustainable growth of companies.

我們在第二季的前 10 名之外實現了 13% 的年增長率，並在第三季將其提高到 20%。再次強調，這種轉變和真正關注的是我們收入的多元化。我認為我們已經開始看到成果，這將帶來公司更長期的永續成長。

Perfect. Thank you. And then just looking at you guys are breaking out your network service security and other revenue, which is basically compute. I don't know you talked about this the last few questions, but could you maybe talk about and possibly quantify what we will see with this mix of revenue shift over time?

完美的。謝謝。然後看看你們正在突破網路服務安全和其他收入，基本上就是計算。我不知道你在最後幾個問題中談到了這一點，但你能否談談並可能量化我們隨著時間的推移收入變化的組合會看到什麼？

We see network services has gone from 81% to now 78%. Will we start to see more of that deceleration there with an increase in security or how should we be thinking about this a year from now or going into 2025?

我們看到網路服務已經從 81% 上升到現在的 78%。隨著安全性的提高，我們會開始看到更多的減速，或者我們應該如何考慮一年後或進入 2025 年？

Yeah, look, I believe I don't want any of our business growth to decelerate. I want every product line to accelerate for sure. But I think the pattern of, further diversification of the revenue across the product lines is exactly what you're going to see.

是的，你看，我相信我不希望我們的任何業務成長放緩。我希望每個產品線都能加速發展。但我認為，跨產品線收入進一步多元化的模式正是您將看到的。

And, I certainly believe in the fullness of time. We'll see that network services revenue come what come well below 70% and even lower than two-thirds. But that is certainly possible in this market. And I think as the time goes on, we're going to see more and more diversification and perhaps more and more product lines as well.

而且，我當然相信時機成熟。我們將看到網路服務收入遠低於 70%，甚至低於三分之二。但這在這個市場上肯定是可能的。我認為隨著時間的推移，我們將看到越來越多樣化，也許也會看到越來越多的產品線。

Rudy Kessinger, D.A. Davidson.

魯迪·凱辛格，D.A.戴維森。

Hey guys, thanks for taking my questions. Ron, I'm curious in Q4, if you could maybe just on the revenue guide, maybe break out a bit between the top 10 and non-top 10. I know last quarter, like you said, you expected the non-top 10 to accelerate, it looks like the accelerated a bit more.

嘿夥計們，謝謝你回答我的問題。羅恩，我很好奇第四季度，你是否可以只在收入指南上，在前 10 名和非前 10 名之間有所突破。我知道上個季度，正如您所說，您預計非前十名會加速，看起來加速更多。

I guess the prior commentary suggested in my head, top 10 customer revenue decline. So about 30% in Q4. Is that still the expectation or is it a bit lower, a bit higher just based on what you saw in Q3?

我想之前的評論在我腦海中暗示了十大客戶收入下降。第四季約為 30%。這仍然是預期嗎？

Yeah, I mean, without specifically quantifying, I think, we do expect to see some additional headwinds with certain of our largest customers going into Q4. It's reflected in our guidance you know, that likely will bring down that concentration a little bit below what we saw in the third quarter. And I think what we will see is, you know, continued strong growth relative to maybe what we've seen in Q2 and Q3 continue into the fourth quarter.

是的，我的意思是，在沒有具體量化的情況下，我認為我們確實預計我們的某些最大客戶進入第四季度會遇到一些額外的阻力。這反映在我們的指導中，你知道，這可能會使集中度略低於我們在第三季度看到的水平。我認為我們將看到的是，你知道，相對於我們在第二季和第三季看到的情況，持續強勁的成長將持續到第四季。

Okay. And at this point in time, I guess, do you feel like Q4 is, the likely last contraction in the top 10 revenue or maybe potentially some more in the first half of next year.

好的。我想，此時此刻，您是否覺得第四季可能是前 10 名收入的最後一次收縮，或者可能會在明年上半年出現更多收縮。

And then on gross margins, even if I adjust for the 90 days basis point benefit that you had in Q4 last year, still you're guiding to about 200 basis points of the decline or compression in your gross margins in Q4 this year. Could you just maybe unpack that a bit, what's driving it? And just how should we think about gross margins, you know, into 2025?

然後在毛利率方面，即使我對去年第四季的 90 天基點收益進行調整，今年第四季的毛利率仍然會下降或壓縮約 200 個基點。您能否稍微解釋一下，是什麼推動了它？那我們該如何考慮 2025 年的毛利率呢？

Yeah, I think in your first question, we do believe we've moved past kind of the worst of some of the impacts from our largest customers. We certainly have dramatically improved our visibility to their behavior. But there's still going to be some headwinds going into Q4, but I think we're nearing the end of those, those headwinds and declines we've seen amongst the subset of our largest customers.

是的，我認為在你的第一個問題中，我們確實相信我們已經擺脫了來自我們最大客戶的一些最嚴重的影響。我們確實大大提高了對他們行為的可見性。但進入第四季度仍然會遇到一些阻力，但我認為我們已經接近這些阻力的結束，我們在我們最大的客戶中看到了這些阻力和下降。

I think we've got a good strategy to keep a very strong position which we have with those customers. And you'll continue to see healthy growth outside of these largest customers. On you know growth margin, I think to your point, the other dynamic on top of, some of those onetime benefits is really the investment that we're seeing to drive increased bandwidth and colo deployments really associated with increased international traffic. Is one of the headwinds.

我認為我們有一個很好的策略來維持我們在這些客戶中的強勢地位。您將繼續看到這些最大客戶之外的健康成長。就您所知的成長率而言，我認為就您的觀點而言，除此之外的其他動態，其中一些一次性收益實際上是我們看到的投資，這些投資推動了頻寬的增加和與國際流量增加真正相關的託管部署。是逆風之一。

And then we're seeing, you know, increased international traffic, which today typically has lower growth margins because our volumes are lower there. Although as we continue to grow that there's an opportunity for us to bring those international growth margins more in line with what we see in our major markets.

然後我們看到，你知道，國際流量增加，但今天通常成長率較低，因為我們在那裡的流量較低。儘管隨著我們的不斷發展，我們有機會使這些國際成長利潤與我們在主要市場的情況更加一致。

Fatima Boolani, Citi.

法蒂瑪·布拉尼，花旗銀行。

Good afternoon. Thank you for taking my questions. Todd, can you speak to the composition of the top 10 customers today versus a year ago? I can appreciate that you've been very, very hard at work to diversify away from this group.

午安.感謝您回答我的問題。Todd，您能談談今天與一年前的前 10 位客戶的組成嗎？我很欣賞你們為擺脫這個群體而付出的巨大努力。

And have done a good job kind of growing outside of that, but just curious if you can give us some color on what the composition of that top 10 today is versus a year ago. I'm going to have a follow up as well, please.

除此之外，我們在成長方面也做得很好，但只是好奇你能否給我們一些關於今天前十名與一年前相比的構成情況。我也打算跟進一下，拜託。

Sure. It tends to be very media heavy. That doesn't just mean streaming video, but it could mean folks in the gaming space in the bulk download space of one kind or another. And you know, some of those organizations have a digital business as well attached that might look more like traditional web business. Of course, it's all from the same account.

當然。它往往非常重介質。這不僅僅意味著串流媒體視頻，還可能意味著遊戲領域的人們在某種類型的批量下載空間中。您知道，其中一些組織還擁有數位業務，這可能看起來更像傳統的網路業務。當然，這一切都來自同一個帳戶。

Got it. Well, you're kind of alluding to this and you've kind of discussed a number of factors around ongoing headwinds, but the magnitude of some of the headwinds maybe shrinking as we progress through into fourth quarter and maybe the start of next year.

知道了。嗯，你有點提到了這一點，並且你已經討論了圍繞持續不利因素的許多因素，但隨著我們進入第四季度甚至明年初，一些不利因素的程度可能會縮小。

But when I specifically think about the net retention rate compression. When and where should we see this, troughing out as it relates to what type of visibility you have in the business? If you can give us some kind of clues or some help or some guardrails on when we should, trough out on the retention recompression trends? Thank you.

但當我特別考慮淨保留率壓縮時。我們應該在何時何地看到這一點，因為它關係到您在業務中擁有何種類型的可見度？如果您能給我們一些線索或幫助或一些護欄，告訴我們何時應該，了解保留再壓縮趨勢？謝謝。

Yeah, it's a good question. I think, as we move into next year and as I said, I think a lot of the headwinds from the largest customers are behind us. Given that the, NRR is done on the LTM basis, you know, that's going to mute or slow kind of the growth out of where we see LTM and NRR.

是的，這是一個好問題。我認為，隨著我們進入明年，正如我所說，我認為來自最大客戶的許多阻力已經過去。鑑於 NRR 是在 LTM 基礎上完成的，您知道，這將抑製或減緩我們看到的 LTM 和 NRR 的增長。

So I would expect that we would see, you know, some expansion as you move into sort of middle of the year and second half. As you see some of the headwinds that we saw in 2024 drop off of the LTM calculation.

因此，我預計，隨著進入年中和下半年，我們會看到一些擴張。正如您所看到的，我們在 2024 年看到的一些不利因素對 LTM 計算的影響有所下降。

Jonathan Ho, William Blair.

喬納森·何，威廉·布萊爾。

Hi, this is Garrett Burkam for Jonathan Ho and thanks for taking my question. I'd like to go back to the security business and just to get some additional color on, where you're maybe seeing some more success. And then on the flip side where you think things potentially slow just in terms of type of customer or any specific products? Thanks.

大家好，我是 Jonathan Ho 的 Garrett Burkam，感謝您提出我的問題。我想回到安全業務，只是為了獲得一些額外的色彩，在那裡你可能會看到更多的成功。另一方面，您認為僅就客戶類型或任何特定產品而言，事情可能會放緩？謝謝。

Yeah, I think, there's been a lot of success, especially around the last part of our security portfolio where I really believe we have a technology advantage across the board. The efficacy of that product is really a cut above and it leads our users to be able to run it in full blocking mode and get really the full value. Not just the alerting and the platform, we've seen a lot of loyalty there.

是的，我認為我們已經取得了許多成功，特別是在我們安全產品組合的最後一部分，我真的相信我們擁有全面的技術優勢。該產品的功效確實更高，它使我們的用戶能夠在完全阻止模式下運行它並真正獲得全部價值。不僅僅是警報和平台，我們還看到了很多忠誠度。

And over the last year or so, we really moved all of that technology to be fully enabled on the faculty platform so that the power of our edge and infrastructure is now deployed there along with DDoS and bot, a very complete solution.

在過去一年左右的時間裡，我們確實將所有這些技術完全轉移到了教師平台上，以便我們的邊緣和基礎設施的力量現在與 DDoS 和機器人一起部署在那裡，這是一個非常完整的解決方案。

So I think that unification of the platform it is driving a lot of our confidence here. And then the way I see customers engaging with that WAF technology and now the add on of bot and adaptive to technology do prevention. I feel really good. I think it has the biggest upside outside of media especially in place in groups like e-commerce, hospitality, travel, logistics, et cetera, fintech.

所以我認為平台的統一極大地增強了我們的信心。然後我看到客戶使用 WAF 技術的方式，現在添加了機器人和自適應技術來進行預防。我感覺真的很好。我認為它在媒體之外具有最大的優勢，尤其是在電子商務、酒店、旅遊、物流等金融科技領域。

And it has a real potential for us is this untapped penetration to our existing delivery customers. And so I think there's just a ton of upside in security. That's why it's going to be such an important focus for us in '25.

它對我們來說真正的潛力在於對我們現有的送貨客戶的未開發的滲透。所以我認為安全性有很多好處。這就是為什麼它將成為我們 25 年如此重要的焦點。

Thank you.

謝謝。

Okay, I will now hand the call back over to CEO, Todd Nightingale.

好的，我現在將電話交回給執行長 Todd Nightingale。

Thanks so much. I want to thank our employees, customers, partners, and our investors. We remain focused on execution and bringing long lasting growth to our business and delivering value to all of our shareholders. Thank you so much for your time and your attention today.

非常感謝。我要感謝我們的員工、客戶、合作夥伴和投資者。我們仍然專注於執行力，為我們的業務帶來持久成長，並為所有股東創造價值。非常感謝您今天的時間和關注。

This concludes today's call. Thank you for joining, you may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入，您現在可以斷開線路了。