Fastly Inc (FSLY) 2025 Q3 法說會逐字稿

Good afternoon. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly third-quarter 2025 earnings conference call. (Operator Instructions)

午安.我叫麗貝卡，今天我將擔任你們的會議接線生。在此，我謹代表 Fastly 公司歡迎各位參加 2025 年第三季財報電話會議。（操作說明）

Thank you. I would now like to turn the call over to Vern Essi, Investor Relations at Fastly. Please go ahead.

謝謝。現在我將把電話交給 Fastly 的投資者關係負責人 Vern Essi。請繼續。

Thank you, and welcome, everyone, to our third-quarter 2025 earnings conference call. We have Fastly's CEO, Kip Compton; and CFO, Rich Wong, with us today. 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. 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's website.

謝謝各位，歡迎參加我們2025年第三季財報電話會議。今天我們邀請了 Fastly 的執行長 Kip Compton 和財務長 Rich Wong。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，撥打 800-770-2030 並輸入會議 ID 號 7543239 即可收聽重播。今天發布的收益新聞稿、相關財務表格和投資者補充資料的副本（所有這些都包含在我們今天提交的 8-K 文件中）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，我們將發表前瞻性聲明，包括與我們業務的預期表現、未來財務表現、產品銷售、策略、長期成長和整體未來前景相關的聲明。這些聲明受到已知和未知風險、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 report filed on Form 10-Q filed with the SEC and our third-quarter 2025 earnings release and supplement for a discussion of the factors that could cause our results to differ. Please refer, in particular, to the section entitled Risk Factors. We encourage you to read these documents.

有關我們業務風險因素的更多信息，請參閱我們向美國證券交易委員會提交的文件，包括我們最近向美國證券交易委員會提交的 10-K 表格年度報告和 10-Q 表格季度報告，以及我們 2025 年第三季度收益發布和補充報告，其中討論了可能導致我們業績出現差異的因素。請特別參閱題為「風險因素」的部分。我們建議您閱讀這些文件。

Also note that the forward-looking statements on this call are based on information available to us as of today's date. We undertake no obligation to update any forward-looking statements, except as required by law.

另請注意，本次電話會議中的前瞻性陳述均基於截至今日我們所掌握的資訊。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

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 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，我們也將討論一些非GAAP財務指標。除非另有說明，我們今天討論的所有數字（收入除外）都將是經調整的非GAAP數據。與最直接可比較的 GAAP 財務指標的調整表已在投資者關係網站的獲利報告和補充文件中提供。這些非GAAP指標並非旨在取代我們的GAAP績效。

Before we begin our prepared comments, please note that we will be attending four conferences in the fourth quarter: the RBC 2025 TMT Conference on November 19 in New York, the Sixth Annual Needham Tech Week on November 20 in New York, UBS Global Technology and AI Conference in Scottsdale on December 3, and the Raymond James 2025 TMT and Consumer Conference in New York on December 8.

在我們開始發言之前，請注意，我們將在第四季度參加四場會議：11 月 19 日在紐約舉行的 RBC 2025 TMT 會議、11 月 20 日在紐約舉行的第六屆 Needham 科技週、12 月 3 日在斯科茨代爾舉行的瑞銀

Now, I'll turn the call over to Kip.

現在，我把電話交給基普。

Thanks, Vern. Hi, everyone, and thank you for joining us today. We had an outstanding third quarter, and I'm pleased to share our results. These results reflect our disciplined execution, exceeding the high end of our guidance on revenue and operating profit as well as achieving record free cash flow. This momentum drove record results across all three of our product lines.

謝謝你，Vern。大家好，感謝各位今天收看我們的節目。我們第三季業績非常出色，我很高興與大家分享我們的成果。這些業績反映了我們嚴謹的執行力，不僅超過了我們先前對收入和營業利潤的預期上限，還實現了創紀錄的自由現金流。這一勢頭推動我們所有三個產品線都取得了創紀錄的業績。

When I became CEO, I laid out a clear mandate to accelerate our growth and drive to profitability. This quarter marks the next step in Fastly's transformation, accelerating growth and innovation with operational rigor and discipline. As a result, we are raising our full-year guidance for revenue, profitability, and free cash flow. We believe our Q3 performance demonstrates that the strategic initiatives we put in place earlier this year are translating into results.

當我擔任執行長時，制定了明確的任務，即加速公司成長並實現盈利。本季標誌著 Fastly 轉型邁入下一個階段，透過嚴格的營運和紀律加速成長和創新。因此，我們提高了全年營收、獲利能力和自由現金流的預期。我們相信，第三季的業績表明，我們今年稍早制定的策略舉措正在轉化為實際成果。

Now turning to highlights from Q3. Our third-quarter revenue was $158.2 million above the top end of our guidance and a record high. Our gross margin of 62.8% also exceeded the top end of our guidance. This was an improvement of 380 basis points sequentially as we delivered healthy margin leverage on our revenue upside. We posted record operating income of $11.6 million, significantly above our $1 million guidance midpoint.

現在來看第三季的亮點。我們第三季的營收比預期上限高出 1.582 億美元，創歷史新高。我們的毛利率為 62.8%，也超過了我們預期的上限。與上一季相比，我們實現了 380 個基點的改善，這得益於我們利用收入成長實現了健康的利潤率槓桿效應。我們公佈了創紀錄的營業收入 1,160 萬美元，遠高於我們先前 100 萬美元的預期中位數。

Similar to Q2, we achieved strong operating leverage in the third quarter with OpEx up 10% year over year compared to 15% year-over-year revenue growth. This strong financial performance drove record quarterly free cash flow of $18 million.

與第二季類似，第三季我們實現了強勁的營運槓桿，營運支出較去年同期成長 10%，而營收年增 15%。強勁的財務表現推動季度自由現金流創下1800萬美元的歷史新高。

Our financial performance this quarter demonstrates strong rigor in our go-to-market motion, with revenue growth accelerating to 15% compared to 12% in the second quarter. Our platform expansion and cross-sell strategies were major contributors driving our security revenue growth to 30% year over year. These results reflect operating leverage in our business and our continued focus on spend discipline.

本季財務表現顯示我們在市場推廣方面採取了強有力的措施，營收成長加速至 15%，而第二季為 12%。我們的平台擴張和交叉銷售策略是推動我們安全收入年增 30% 的主要因素。這些績效反映了我們業務的經營槓桿效應以及我們對支出控制的持續關注。

Our cross-sell motion accelerated this quarter, highlighted by a major multiproduct win with a top 10 strategic account. This customer is now using products across all three of our product lines, positioning us for continued growth. We believe this win enabled by our expanding security portfolio highlights the tangible value our customers experience from consolidating onto the Fastly platform.

本季我們的交叉銷售業務加速發展，其中最引人注目的是與排名前十的策略客戶成功達成了一項重要的多產品銷售協議。這位客戶目前正在使用我們所有三個產品線的產品，這為我們持續成長奠定了基礎。我們相信，這次成功得益於我們不斷擴展的安全產品組合，凸顯了我們的客戶透過整合到 Fastly 平台所獲得的實際價值。

Our innovation engine is firing on all cylinders. Our teams are developing advanced security capabilities that address our customers' most pressing needs. In Q3, we introduced additional security and AI enhancements on the Fastly platform including API discovery, the first step in our comprehensive API resiliency strategy, helping customers continuously identify and protect their APIs as traffic flows through the Fastly platform.

我們的創新引擎正火力全開。我們的團隊正在開發先進的安全功能，以滿足客戶最迫切的需求。第三季度，我們在 Fastly 平台上引入了額外的安全性和 AI 增強功能，包括 API 發現，這是我們全面的 API 彈性策略的第一步，可協助客戶在流量流經 Fastly 平台時持續識別和保護其 API。

We launched industry-first deception capabilities in our next-gen WAF. This feature is designed to actively mislead attackers and bots, disrupting their ability to adapt while giving our customers security teams the decisive upper hand. Additionally, we introduced AI integration with the Fastly MCP server, making it easier for our customers to better understand and manage their Fastly services using AI.

我們在新一代WAF中推出了業界首創的欺騙功能。此功能旨在主動誤導攻擊者和機器人，破壞它們的適應能力，同時為我們的客戶安全團隊提供決定性的優勢。此外，我們還引入了與 Fastly MCP 伺服器的 AI 集成，使我們的客戶更輕鬆地使用 AI 更好地了解和管理他們的 Fastly 服務。

Since being named our President of Go-To-Market last quarter, Scott Lovett and his team have continued to drive gains with our go-to-market transformation. This effort, based on our platform strategy, is catalyzing greater upsell and cross-sell as well as new customer acquisition. We believe our success in the third quarter illustrates why customers turned to Fastly: performance, flexibility, programmability, and industry-leading support.

自從上個季度被任命為市場推廣總裁以來，Scott Lovett 和他的團隊一直在推動我們市場推廣轉型取得持續成長。基於我們的平台策略，這項措施正在促進更大的追加銷售和交叉銷售，以及新客戶的取得。我們相信，第三季的成功證明了客戶選擇 Fastly 的原因：效能、靈活性、可程式性和業界領先的支援。

Let me share a few examples from the third quarter. A major retailer in the LatAm region wanted to streamline its operations with a single vendor. They chose the Fastly platform to unify their Edge security, delivery, and bot management. This strategic win demonstrates the turnkey nature of our platform, providing exceptional performance, security, and operational efficiency.

讓我分享一下第三季的一些例子。拉丁美洲地區的一家大型零售商希望透過單一供應商來簡化其營運流程。他們選擇 Fastly 平台來統一其邊緣安全、交付和機器人管理。此次策略性勝利證明了我們平台的交鑰匙特性，提供了卓越的效能、安全性和營運效率。

A leading APJ-based specialty retailer wanted to consolidate vendors and unify their Edge cloud strategy. They chose the Fastly platform for our superior performance and our in-time zone customer support to resolve critical security and delivery issues quickly.

一家總部位於亞太地區的領先專業零售商希望整合供應商並統一其邊緣雲端策略。他們選擇 Fastly 平台是因為我們卓越的效能和時區客戶支持，能夠快速解決關鍵的安全和交付問題。

An American streaming leader needed a solution that would integrate seamlessly with their existing workflows. They chose our WAF over our competitor's and consolidate their delivery, security, and image optimization needs with Fastly. By moving to the Fastly platform, they drove operational efficiencies, while enhancing their technology stack.

一家美國串流媒體巨頭需要一種能夠與其現有工作流程無縫整合的解決方案。他們選擇我們的 WAF 而不是競爭對手的產品，並將他們的交付、安全性和影像優化需求整合到 Fastly 中。透過遷移到 Fastly 平台，他們提高了營運效率，同時增強了他們的技術堆疊。

A prominent weekly news magazine needed to relaunch their app on a tight timeline. This was an example of our customer advocacy flywheel, three internal champions who loved Fastly at prior companies successfully advocated for its adoption at their new employer replacing a competitor with our delivery and security solutions. All of these wins are powered by our platform strategy.

一家知名周刊新聞雜誌需要在緊迫的時間內重新推出其應用程式。這是我們的客戶擁護飛輪效應的一個例子：三位在之前公司就非常喜歡 Fastly 的內部擁護者，成功地在新公司倡導採用 Fastly，用我們的交付和安全解決方案取代了競爭對手的產品。所有這些勝利都得益於我們的平台策略。

Our focus is squarely on execution and disciplined investment to drive growth. This is concentrated in our platform strategy and includes goals of continuing to expand our platform, especially through Edge security capabilities. increasing the value customers get from our entire platform by driving simplification and a superior developer experience through AI, sustaining and growing the strong go-to-market execution demonstrated this quarter.

我們專注於執行和嚴謹的投資，以推動成長。這主要體現在我們的平台策略中，包括繼續擴展我們的平台，特別是透過邊緣安全功能；透過人工智慧推動簡化和提供卓越的開發者體驗，從而提高客戶從我們整個平台獲得的價值；以及保持並加強本季度展現出的強勁市場執行力。

We are focused on new customer acquisition and significant cross-sell and upsell opportunities and continuing to invest in our international expansion, particularly in APJ, where we are seeing early results with new customer wins. We are excited about the significant opportunity ahead. We are confident in our team's ability to execute, and we're pleased to raise our financial targets.

我們專注於獲取新客戶，並抓住重要的交叉銷售和向上銷售機會，同時繼續投資於我們的國際擴張，尤其是在亞太地區，我們已經透過贏得新客戶看到了初步成果。我們對即將到來的重大機會感到興奮。我們對團隊的執行能力充滿信心，很高興能提高我們的財務目標。

Now, I want to introduce our new CFO, Rich Wong. We are incredibly excited to have Rich on the leadership team. He has hit the ground running, focusing on scaling the business and maintaining strong cost discipline. His leadership is already making a difference in the business, as you can see in our Q3 results. He will now walk you through our financial results and updated guidance in more detail.

現在，我想向大家介紹我們的新任財務官，Rich Wong。我們非常高興Rich能加入領導團隊。他上任後迅速進入工作狀態，專注於擴大業務規模並維持嚴格的成本控制。他的領導能力已經對公司業務產生了影響，正如您在我們第三季的業績中所看到的那樣。接下來，他將更詳細地向大家介紹我們的財務表現和最新指引。

Rich, over to you.

Rich，該你了。

Thank you, Kip, and thank you, everyone, for joining us today. I would like to start by saying that I'm very excited to be here and about the opportunity that lies ahead. I chose to join Fastly because I was excited by its leading technology and superior performance among Edge cloud platform companies. Customers love our technology, our products, and our best-in-class support. I truly believe that we are positioned at the right place, the Edge Cloud at the right time as we see workloads shift to the Edge to complement central cloud. I also saw an opportunity to unlock value for our customers and shareholders.

謝謝Kip，也謝謝各位今天能來參加。首先我想說，我非常高興來到這裡，也對未來的機會充滿期待。我選擇加入 Fastly，是因為它擁有領先的技術和在邊緣雲端平台公司中卓越的效能，這令我非常興奮。客戶喜愛我們的技術、產品和一流的支援服務。我堅信我們正處於正確的位置，在正確的時間推出了邊緣雲，因為我們看到工作負載正在向邊緣轉移，以補充中央雲。我還看到了為我們的客戶和股東創造價值的機會。

Since coming on board, I have seen many opportunities in finance where we can influence better outcomes with our customers as well as our financial performance with our investors. For example, as we move into year-end 2025 and looking ahead to 2026, we are implementing a rigorous budgeting process across the company, and we are building more discipline around the ROI of our spend with a focus towards growth and scale. I've added staff to the finance functions to support this effort, and I've also brought in a new Chief Accounting Officer.

自從加入公司以來，我看到了金融領域有很多機會，我們可以藉此改善客戶體驗，並提升投資人對我們財務表現的滿意度。例如，隨著我們進入 2025 年末並展望 2026 年，我們正在全公司範圍內實施嚴格的預算流程，並圍繞支出的投資回報率建立更嚴格的紀律，重點關注增長和規模。為了支持這項工作，我增加了財務部門的人員，並且還聘請了一位新的首席會計官。

Before I dive into our Q3 results, I would like to say I am very proud of our financial performance this quarter. Having achieved our third consecutive quarter of accelerating revenues. We've also achieved near record gross margins, record profitability, and record free cash flow. We continue to launch product enhancements that our customers love. I'm excited to be here and partner with Kip and the team to help Fastly scale to the next level.

在深入探討第三季業績之前，我想說，我對本季的財務表現感到非常自豪。我們已連續三個季度實現營收加速成長。我們也實現了接近歷史最高水準的毛利率、歷史最高獲利能力和歷史最高自由現金流。我們不斷推出深受顧客喜愛的產品改良功能。我很高興來到這裡，與 Kip 和團隊合作，幫助 Fastly 發展到下一個階段。

Now, on to our Q3 results. I'd like to remind you that unless otherwise stated, all financial results in my discussion are non-GAAP based. Revenue for the third quarter increased 15% year over year to $158.2 million, coming in and above the high end of our guidance range of $149 million to $153 million.

接下來，我們來看看第三季業績。我想提醒各位，除非另有說明，我討論中的所有財務結果均基於非GAAP準則。第三季營收年增 15% 至 1.582 億美元，達到並超過了我們先前預測的 1.49 億美元至 1.53 億美元區間的上限。

This revenue asset was driven by three key factors: first, successful cross-sell motion where we signed a big multiproduct win with one of our top 10 strategic customers and made inroads on security sales with other customers; second, competitive share gains through a new customer acquisition; and finally, greater upsells with existing network services customers. Together, these three factors provided a strong tailwind in the quarter and led to an outstanding top-line performance.

這項收入資產主要由三個關鍵因素驅動：首先，成功的交叉銷售策略，我們與十大戰略客戶之一簽署了一份大型多產品合同，並在與其他客戶的安全銷售方面取得了進展；其次，通過獲取新客戶獲得了競爭性市場份額；最後，向現有網絡服務客戶實現了更高的追加銷售額。這三個因素共同為本季提供了強勁的順風，並帶來了出色的營收表現。

Network Services revenue of $118.8 million grew 11% year over year. We saw healthy traffic levels in the third quarter due to stronger market conditions and the success of the upsell motion. Security revenue of $34 million grew 30% year over year, comprising a record 21% of our total revenue. This was due to the expansion of the security portfolio over this past year, coupled with the success of our cross-sell motion. Our other products revenue of $5.4 million grew 51% year over year, driven primarily by sales of our compute products.

網路服務收入為 1.188 億美元，年增 11%。由於市場環境走強和追加銷售策略的成功，第三季流量水準維持健康成長。安保收入達 3,400 萬美元，年增 30%，佔總收入的 21%，創歷史新高。這主要歸功於過去一年安全產品組合的擴展，以及交叉銷售策略的成功。其他產品收入為 540 萬美元，年增 51%，主要得益於計算產品的銷售。

In the third quarter, our top 10 customers represented 32% of revenue. We continue to see strength in our broader customer base with revenue from customers outside our top 10 growing 17% year over year and 5% sequentially. Also, no single customer accounted for more than 10% of revenue in the third quarter. Affiliated customers got our business units of a single company generated the aggregate of 10% of the company's revenue for the quarter. Our trailing 12-month net retention rate was 106%, up from 104% in the prior quarter and up from 105% in the year ago quarter.

第三季度，我們前十大客戶貢獻了 32% 的收入。我們更廣泛的客戶群持續保持強勁勢頭，前 10 名以外的客戶收入較去年同期成長 17%，較上季成長 5%。此外，第三季沒有任何一位客戶的營收佔比超過 10%。關聯客戶為我們同一家公司的各個業務部門創造了該公司本季總收入的 10%。過去 12 個月的淨留存率為 106%，高於上一季的 104%，也高於去年同期的 105%。

The quarter-over-quarter and year-over-year increases were primarily due to revenue increases from a few of our largest customers in prior quarters. Our last 12 months net retention rate closely follows our overall revenue growth rate trend.

季度環比和年度同比增長主要歸功於前幾季度我們幾家最大客戶的收入成長。過去 12 個月的淨客戶留存率與我們的整體營收成長率趨勢密切相關。

We exited the third quarter with RPO of $268 million, growing 16% year over year. During the third quarter of 2025, we discovered an error in how we historically calculated RPO around our treatment of termination for convenience rights. As a result, we recast our historical RPO found in the investor supplement. We want to emphasize that this change will not impact our continued focus on increasing the number of customers with revenue commitments were also driving them towards higher commitment levels.

第三季末，我們的 RPO 為 2.68 億美元，年增 16%。2025 年第三季度，我們發現，在處理因方便而終止的權利時，我們過去計算 RPO 的方式有錯誤。因此，我們重新調整了投資者補充資料中的歷史 RPO。我們想強調的是，這項變革不會影響我們繼續專注於增加有收入承諾的客戶數量，我們也在努力促使他們達到更高的承諾水準。

I will now turn to the rest of our financial results for the third quarter. Our gross margin was 62.8% in the third quarter, coming in 330 basis points above our guidance midpoint at 59.5% and up 410 basis points from 58.6% in Q3 2024. We experienced $1.6 million in a nonrecurring cost of revenue tailwind, primarily due to accrual reversals. Accounting for this our gross margin would have performed at approximately 62%, well above our guidance expectations.

接下來，我將介紹我們第三季的其他財務表現。第三季我們的毛利率為 62.8%，比我們先前預期的 59.5% 的中位數高出 330 個基點，比 2024 年第三季的 58.6% 高出 410 個基點。我們獲得了 160 萬美元的非經常性收入成本利好，這主要是由於應計項目衝回造成的。考慮到這一點，我們的毛利率將達到約 62%，遠高於我們的預期。

During the quarter, we experienced gross margin leverage on our revenue upside and saw pricing declines moderate to the favorable end of our typical high-teens year-over-year declines. Operating expenses were $87.7 million in the third quarter, coming in slightly better than expected due to lower discretionary spend and a more rigorous cost management process. We are continuing our focus on our operating expenses and driving greater leverage in our operating results as we scale the business.

本季度，我們的營收成長帶動了毛利率的提升，同時價格下跌幅度也收窄至年比跌幅接近10%的有利水準。第三季營運支出為 8,770 萬美元，略好於預期，這得益於可自由支配支出減少和更嚴格的成本管理流程。我們將繼續專注於控制營運費用，並在擴大業務規模的同時，努力提高營運績效的槓桿作用。

We had an operating income of $11.6 million in the third quarter coming in better than the $1 million midpoint of our operating guidance range of $1 million loss to $3 million profit. In the third quarter, we reported a net profit of $11.1 million or $0.07 per diluted share compared to a net profit of $3.8 million or $0.03 per diluted share in Q3 2024. Our adjusted EBITDA was $25.7 million in the third quarter compared to $14.6 million in the third quarter of 2024.

第三季我們的營業收入為 1,160 萬美元，高於我們先前公佈的營業指引範圍（虧損 100 萬美元至獲利 300 萬美元）的中點 100 萬美元。第三季度，我們將淨利潤 1,110 萬美元，即每股攤薄收益 0.07 美元，而 2024 年第三季淨利為 380 萬美元，即每股攤薄收益 0.03 美元。我們第三季的調整後 EBITDA 為 2,570 萬美元，而 2024 年第三季為 1,460 萬美元。

Turning to the balance sheet. We ended the quarter with approximately $343 million in cash, cash equivalents, marketable securities and investments, including those classified as a long term, a sequential increase of $22 million over Q2 of 2025. As a reminder, our March 2026 0% coupon convertible notes balance of $188 million became current in the first quarter and continues to be reflected in our current liabilities. We have adequate liquidity to cover our working capital operating requirements and to pay the March 2026 convertible notes when they come due.

接下來看一下資產負債表。本季末，我們持有約 3.43 億美元的現金、現金等價物、有價證券和投資，其中包括被歸類為長期投資的資產，比 2025 年第二季增加了 2,200 萬美元。再次提醒，我們 2026 年 3 月到期的 0% 息可轉換票據餘額 1.88 億美元已於第一季到期，並繼續反映在我們的流動負債中。我們擁有充足的流動資金，足以滿足我們的營運資金營運需求，並可在 2026 年 3 月可轉換票據到期時予以償還。

Our cash flow from operations was positive $28.9 million in the third quarter compared to positive $5 million in Q3 2024. Our free cash flow for the third quarter was $18.1 million, representing a $25.2 million increase from negative $7.1 million in the Q3 2024 quarter. Our cash capital expenditures were approximately 9% of revenue in the third quarter. As a reminder, our cash capital expenditures included capitalized internal use software.

第三季度，我們的經營活動現金流為正2,890萬美元，而2024年第三季為正500萬美元。第三季我們的自由現金流為 1,810 萬美元，比 2024 年第三季的負 710 萬美元增加了 2,520 萬美元。第三季度，我們的現金資本支出約佔收入的9%。再次提醒，我們的現金資本支出包括資本化的內部使用軟體。

I will now discuss our outlook for the fourth quarter and full year 2025. I'd like to remind everyone again that the following statements are based on current expectations as of today, and include forward-looking statements. Actual results may differ materially, and we undertake no obligation to update these forward-looking statements in the future, except as required by law.

接下來我將討論我們對2025年第四季和全年的展望。我想再次提醒大家，以下陳述均基於截至今日的當前預期，其中包括前瞻性陳述。實際結果可能與預期有重大差異，除法律要求外，我們不承擔未來更新這些前瞻性聲明的義務。

Our revenue model is primarily based on customer consumption, which can lead to variability in our quarterly results. Our revenue guidance reflects these dynamics in our business and is based on the visibility that we have today.

我們的收入模式主要基於客戶消費，這可能會導致我們季度業績出現波動。我們的營收預期反映了我們業務的這些動態，並且是基於我們目前所掌握的資訊。

In September 2025, the Trump administration issued an executive order establishing a framework that lets TikTok continue operating in the US if it completes a qualified divestiture to a new US majority-owned joint venture. The administration also paused enforcement of the disaster of Yamaha until January 23, 2026, while the transaction of National Securities safeguards are finalized.

2025 年 9 月，川普政府發布了一項行政命令，建立了一個框架，允許 TikTok 在美國完成合格的資產剝離，出售給一家新的美國控股合資企業，從而繼續在美國運營。政府也暫停執行雅馬哈災難賠償金，直至 2026 年 1 月 23 日，同時完成國家證券保障措施的交易。

For perspective, the United States traffic of ByteDance, the parent company of TikTok, represented less than 2% of our revenue in the third quarter. We perceived the losses of business due to these actions as less likely than in prior periods. And for our Q4 guidance, we will once again incorporate all sources of ByteDance revenue into our forward guidance.

從這個角度來看，TikTok 母公司位元組跳動在美國的流量在第三季占我們營收的不到 2%。我們認為，由於這些措施造成的業務損失的可能性比以往時期要小。對於第四季業績指引，我們將再次把所有位元組跳動的收入來源納入我們的前瞻性指引中。

As Kip discussed, we saw revenue strength from successful cross-sell and upsell motions and share gains due to competitive takeouts and anticipate this momentum to continue in the fourth quarter. As such, we expect revenue in the range of $159 million to $163 million in the fourth quarter, representing 15% annual growth at the midpoint. We anticipate our margin leverage on higher revenue levels to continue to favorably impact gross margins. We anticipate our gross margins for the fourth quarter will be 61.5% plus or minus 50 basis points. For comparison purposes, we call that we experienced $1.6 million of favorable cost of revenue tailwinds in the third quarter.

正如 Kip 所討論的，我們看到了交叉銷售和向上銷售的成功帶來的收入增長，以及由於競爭對手的收購而獲得的市場份額增長，並預計這種勢頭將在第四季度繼續下去。因此，我們預計第四季度營收將在 1.59 億美元至 1.63 億美元之間，以中間值計算，年增長率為 15%。我們預計，隨著收入水準的提高，利潤率的提升將繼續對毛利率產生正面影響。我們預計第四季的毛利率為 61.5%，上下浮動 50 個基點。為了方便比較，我們稱第三季我們獲得了 160 萬美元的有利成本收入成長。

Guidance for our fourth quarter operating results reflects the impact of a sequential increase in revenue and expected sequential decrease in gross margin and an expected modest sequential increase in operating expenses. As a result, for the fourth quarter, we expect a non-GAAP operating profit of $8 million to $12 million. We expect a non-GAAP net earnings per diluted share of $0.04 to $0.08. Note that for the fourth quarter, fully diluted share count for positive EPS will be approximately 168 million shares.

我們對第四季度經營業績的預期反映了收入環比增長、毛利率環比下降以及營運費用環比小幅增長的影響。因此，我們預計第四季非GAAP營業利潤為800萬美元至1200萬美元。我們預計第四季非GAAP攤薄後每股淨收益為0.04美元至0.08美元。請注意，第四季實現正每股收益所需的完全攤薄股份數約為1.68億股。

For calendar year 2025, we are raising our revenue guidance to a range of $610 million to $614 million, reflecting annual growth of 13% at the midpoint. We anticipate our 2025 gross margins will be between 60% and 61%. We are increasing our non-GAAP operating profit expectations to a range of $9 million to $13 million reflecting an operating margin of 2% at the midpoint and highlighting our profitability compared to 2024's operating loss margin of 4%.

對於 2025 年日曆年，我們將營收預期上調至 6.1 億美元至 6.14 億美元，其中點年增長率為 13%。我們預計 2025 年的毛利率將在 60% 到 61% 之間。我們將非GAAP營業利潤預期上調至900萬美元至1,300萬美元，其中點營業利潤率為2%，凸顯了我們相對於2024年4%營業虧損率的獲利能力。

We expect our non-GAAP net earnings per diluted share to be in the range of $0.03 to $0.07, and we expect free cash flow to be in the range of $25 million to $35 million compared to negative $36 million in 2024, an improvement of $66 million year over year at the midpoint. And finally, we expect our cash CapEx to be in the range of 10% to 11% of revenue for the full year.

我們預計非GAAP每股攤薄淨收益將在0.03美元至0.07美元之間，預計自由現金流將在2500萬美元至3500萬美元之間，而2024年為負3600萬美元，按中間值計算，同比增長6600萬美元。最後，我們預計全年現金資本支出將佔收入的 10% 至 11%。

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

在開放提問環節之前，我們想感謝您對 Fastly 的關注和支持。操作員？

(Operator Instructions) James Fish, Piper Sandler.

（操作說明）詹姆斯·菲什，派珀·桑德勒。

Hey, guys. Nice quarter, and thanks for the questions here. Look, I understand security cross-sell did well and NRR was up 2 points sequentially on a trailing 12-month basis, but I'm backing into that the implied period is a little bit lower. And so security really accelerated. It kind of raises the question as to what's going on with the delivery business expansion. So can you just walk us through the dynamics there as to why -- what's going on with delivery expansion versus kind of what you reported here for overall?

嘿，夥計們。不錯的季度，感謝大家提出的問題。我知道證券交叉銷售表現良好，過去 12 個月的淨收益率環比增長了 2 個百分點，但我認為隱含週期會略低一些。因此，安保工作真正加速發展。這不禁讓人好奇，外送業務的擴張究竟是怎麼回事。那麼，您能否為我們詳細解釋其中的動態，說明為什麼－配送擴張的情況與您先前通報的整體情況有何不同？

Yeah, Jim. This is Rich. Thank you for the question. I would say that from a net revenue retention perspective, we look at it in aggregate, across all three business lines. I would guide you, if you're looking at Network Services, just look at the year-over-year growth rate with Network Services. For the quarter, we've delivered about 11% year-over-year growth on the Network Services side, and that was our third quarter of accelerating Network Services revenue.

是的，吉姆。這是Rich。謝謝你的提問。從淨收入留存率的角度來看，我們應該從整體上，綜合考慮所有三個業務線。如果您正在關注網路服務，我的建議是，只需查看網路服務的年增長率即可。本季度，我們的網路服務業務年增約 11%，這也是我們網路服務收入連續第三個季度加速成長。

Fair enough. And then competitively, obviously, you guys, over the last few quarters have had a bit of a tailwind on Edgio, but there's discussions around Quill now. I guess how much of an opportunity with them seemingly winding down here, could that be given some customers were trying to use them a bit for somewhat of a DIY approach.

很公平。然後，從競技角度來看，很明顯，在過去的幾個季度裡，你們的艾吉歐（Edgio）取得了一些優勢，但現在關於奎爾（Quill）的討論也很多。我猜想，隨著它們似乎在這裡逐漸消失，這可能帶來了多大的機會？考慮到一些客戶曾試圖以某種 DIY 的方式來使用它們。

Yeah. Jim, we've not been running into Quill very often. I think any opportunity with Quill would obviously be significantly smaller than the Edgio tailwinds that you referenced. But of course, we see an opportunity and we expect there may be some benefit.

是的。吉姆，我們最近很少見到奎爾。我認為，Quill 帶來的任何機會顯然都會比你提到的 Edgio 的順風小得多。當然，我們看到了機會，也期待從中獲得一些好處。

Frank Louthan, Raymond James.

弗蘭克·盧森，雷蒙德·詹姆斯。

Great, thank you. Just wanted to see if there is anything onetime or anything in the quarter that we should know about? Or is this sort of a good jumping off point going into Q4?

太好了，謝謝。只是想看看有沒有什麼一次性的或本季需要我們注意的事情？或者說，這可以算是進入第四季的一個很好的起點？

And then can you update us on the seasonal trends you're seeing in the delivery business in Q4. How are they trending so far this fall, maybe relative to last year? Thanks.

那麼，您能否向我們介紹一下您在第四季度觀察到的外送業務的季節性趨勢？今年秋季至今，它們的趨勢如何？與去年相比如何？謝謝。

Yeah, I'll take your first question around any one-time items on the quarter. I think the quarter just had a confluence of a number of activities. I would say at first, we just had a very good cross-sell quarter where I think Kip mentioned in his script, we had a top 10 customer by all three products. And so that was number one.

好的，我先回答你關於本季任何一次性事項的第一個問題。我認為本季只是多種因素交會的結果。我想說，一開始，我們的交叉銷售業績非常好，正如 Kip 在他的演講稿中提到的，我們擁有了三個產品銷量均排名前十的客戶。所以，這就是第一點。

I think the second one was that in that quarter, we also had very strong bookings linearity. And so in that quarter, we had almost half of our bookings in the quarter book in the first month, which is not typical for us. And so that booking linearity really helped the Q3 results.

我認為第二個原因是，在那一季度，我們的預訂量也呈現非常強勁的線性成長。因此，在該季度，我們近一半的訂單都是在第一個月預訂的，這對我們來說並不常見。因此，預訂量的線性成長確實對第三季的業績有所幫助。

I think when we look at Q4 guidance, we are being prudent based on what we see today. And I think that we feel really good about the guide. I think the traffic, to the second part of your question, around where are we seeing traffic. We do see pretty good traffic for Q3. We're seeing it continue in Q4, which is why we felt really good about raising the guidance from where consensus is by about $6.8 million.

我認為，根據我們目前所看到的情況，我們在展望第四季度業績時採取了謹慎的態度。我覺得我們對這位導遊非常滿意。我認為，關於你問題的第二部分，也就是我們看到交通擁擠的區域，關鍵在於交通狀況。第三季的流量狀況相當不錯。我們看到這一趨勢在第四季度得以延續，因此我們非常有信心將業績預期在普遍預期的基礎上上調約 680 萬美元。

Yeah. And specifically to your question about seasonality in the Network Services business, right now, we're not seeing anything out of the ordinary on that front.

是的。至於您提出的關於網路服務業務季節性的問題，目前我們在這方面沒有看到任何異常情況。

Jonathan Ho, William Blair.

喬納森·何，威廉·布萊爾。

Hi, good afternoon. Congratulations on the strong quarter. I just wanted to maybe start out with your security portfolio. Where are you seeing the most strength in terms of your new offerings and sort of demand generation on that side?

您好，下午好。恭喜公司本季業績出色。我只是想先從你的證券投資組合著手。您認為貴公司在新產品開發和需求創造上最大的優勢在哪裡？

Great question. It's actually fairly broad-based. As you know, we've launched a number of products over the last 12 months or so, and we've been enhancing those products as follow-on releases. So I'm referring to things like bots, the AI bots management, the DDoS capabilities. And we've all seen those received very well and in many cases, implemented together in combination for customers. And so our award-winning leading next-gen WAF continues to do well, but the new products are helping us with growth there.

問得好。實際上，它的基礎相當廣泛。如您所知，在過去的 12 個月左右的時間裡，我們推出了一系列產品，並且我們一直在後續版本中對這些產品進行改進。我指的是諸如機器人、人工智慧機器人管理、DDoS攻擊能力之類的東西。我們都看到這些方案都受到了很好的反響，而且在許多情況下，這些方案都被組合起來為客戶實施。因此，我們屢獲殊榮的領先下一代 WAF 產品繼續表現良好，而新產品也幫助我們實現了該領域的成長。

Got it. And in terms of that large competitor displacement, I was wondering if you could give us a little bit more color in terms of why specifically did they choose you? What is it about maybe the product portfolio that drove these supporters to sort of standardize on Fastly? And what does that opportunity look like going forward? Thank you.

知道了。至於取代大型競爭對手這件事，我想知道您能否更詳細地說明一下，他們具體為什麼選擇您？或許是產品組合的哪些方面促使這些支持者們最終選擇了 Fastly？那麼，未來這一機遇又將如何發展呢？謝謝。

Well, I think you're referring to the example I shared about folks who had worked with Fastly at a prior employer and rallied for the adoption of it at their new company. And I think the -- we have a lot of customers who've used our product and see the -- really, I think, the performance and the support are two things that I hear a lot in those stories, in general. And I think that was a notable win, but it's an actually surprisingly common occurrence for us to see that we were winning an account due champions who had used our product at prior employers.

我想你指的是我之前分享的那個例子，那些在前一家公司使用過 Fastly 的人，積極推動新公司採用 Fastly。而且我認為——我們有很多客戶使用過我們的產品，他們也看到了——真的，我認為，總的來說，性能和支援是我在這些故事中經常聽到的兩件事。我認為這是一個值得注意的勝利，但實際上，我們贏得那些曾在以前的雇主那裡使用過我們產品的客戶的青睞，這種情況其實很常見。

Fatima Boolani, Citi.

Fatima Boolani，花旗銀行。

Hey. This is Joel on for Fatima. Thanks for taking our question. So just thinking of international as a key area of investment, Kip, I think you mentioned some positive traction in APJ specifically, could you get into detail on some of the returns that you're seeing internationally?

嘿。這裡是喬爾，為您報道法蒂瑪。感謝您回答我們的問題。基普，既然你把國際市場視為一個重要的投資領域，我想你特別提到了亞太地區的一些積極進展，你能詳細介紹一下你在國際市場看到的收益嗎？

And then also comment on what sales capacity looks like, how much more heavy lifting is there to do? Just what you're seeing so far? And what's down the road for international in the near term? That's all, thank you.

然後還要評論一下銷售能力現狀，還有多少艱鉅的任務需要完成？目前看到的只有這些嗎？那麼，國際市場近期發展趨勢如何？就這些，謝謝。

Sure, no, I appreciate the question, and I'll I make the point because I don't think your question reflects this. But in the past, there's been some concern about the impact on, for example, CapEx in our international expansion strategy. And I think as your question framed it very well, our international expansion strategy is around sales coverage and going after opportunities that are based in those areas.

當然，不，我很感謝你的提問，我之所以要指出這一點，是因為我認為你的問題並沒有反映出這一點。但過去，人們曾擔心這會對我們的國際擴張策略中的資本支出產生影響。我認為正如你的問題所提出的，我們的國際擴張策略是圍繞著銷售覆蓋範圍和抓住這些地區的商機而展開的。

Obviously, we already operate the global network that delivers traffic just about everywhere in the world already. And so it really is, as you rightly framed it, a sales and opportunity-driven strategy. The genesis of it is we're under indexed against the opportunities outside the United States. It's not an unusual situation for a company based in the United States, and we're seeing those markets, particularly in Asia Pacific grow very quickly. And so we've been -- Scott Lovett, our President of Go-To-Market, has been making investments on his team.

顯然，我們已經經營一個全球網絡，可以將流量輸送到世界各地。所以，正如您所正確指出的那樣，這確實是一項以銷售和機會為導向的策略。其根源在於，與美國以外的機會相比，我們處於劣勢。對於一家總部位於美國的公司來說，這種情況並不罕見，我們看到這些市場，特別是亞太市場，正在快速成長。因此，我們的市場推廣總裁斯科特·洛維特一直在對他的團隊進行投資。

I think we mentioned in our last quarterly call that we hired a new leader for the overall APJ region, he had previously just been part of a single international region that also covered Europe with the leader in Europe. And this move has allowed us to increase our focus in Europe because that leader now can focus, frankly, on a smaller number of time zones.

我想我們在上一次季度電話會議上提到過，我們聘請了一位新的亞太及日本地區負責人，他之前只負責一個國際區域，該區域也包括歐洲，歐洲的負責人也負責該區域。這項舉措使我們能夠更加專注於歐洲市場，因為該領導人現在可以專注於數量較少的時區。

And obviously, having a new leader overall for Asia Pacific has been an incredible benefit for the team, and they're already seeing her leadership. I mentioned, I think, in my examples in the prepared comments of wins of several from the APJ region. And so as we're increasing our sales coverage there, and we certainly plan to continue that through the rest of this year and into next year. We're just getting exposed to more opportunities and able to position our platform the benefit of more of those customers.

顯然，亞太區迎來一位新的領導者對團隊來說是一個巨大的好處，他們已經看到了她的領導能力。我想我在準備好的評論中提到過，APJ 地區幾位選手的勝利。因此，我們正在擴大在那裡的銷售覆蓋範圍，並且我們當然計劃在今年剩餘時間和明年繼續這樣做。我們正在接觸到更多機會，並能夠將我們的平台定位為更多客戶的優勢所在。

In terms of results, I mentioned we're seeing early results now, and I think those are reflected in my comments. We think this is something that could be more significant as we get into next year. So it should not be -- it's not an immediate benefit, but given the nature of it as a sales coverage and go-to-market type of investment, the returns should come relatively quickly.

就結果而言，我提到我們現在看到了初步結果，我認為我的評論也反映了這一點。我們認為，到了明年，這件事可能會變得更加重要。所以不應該如此——雖然它不會立即帶來好處，但考慮到它是一種銷售覆蓋和市場推廣類型的投資，回報應該會相對迅速地到來。

Rudy Kessinger, D.A. Davidson.

魯迪·凱辛格，D.A.戴維森。

Hey. Great. Thanks for taking my questions, guys. On the security revenue in the quarter, $34 million, I don't -- it doesn't sound like there's anything onetime, but could you quantify maybe that large cross-sell or across other deals like upfront rev rec that maybe doesn't repeat in Q4. I'm just trying to get a sense of that $34 million in new baseline. Should we expect that to grow sequentially in Q4 and into next year, or if there's any kind of upfront rev rec that won't repeat in Q4?

嘿。偉大的。謝謝各位回答我的問題。關於本季的安防收入，3400萬美元，我不太清楚——聽起來好像沒有什麼一次性收入，但你能量化一下，比如大型交叉銷售或其他交易，例如預收收入，這些收入可能不會在第四季度重複出現嗎？我只是想了解這 3400 萬美元的新基準線意味著什麼。我們是否應該預期第四季及明年會持續成長，或者是否存在某種預售收入無法在第四季重現的情況？

Yeah. Thanks. I think I -- we mentioned earlier, there was bookings linearity early in the quarter. And I think this one was a bookings linearity where we did see the benefit of security that end up benefiting all three months. I do think that there is still opportunity here as we continue to push for cross-sell across the sales organization that this $34 million and a 30% year-over-year growth rate, we will continue to make sure that we focus on this and sustain those numbers. But this is -- that one benefit from that one quarter and that big deal really helped the big sequential jump that you see.

是的。謝謝。我認為——我們之前提到過，本季初預訂量呈線性增長。我認為這是預訂量的線性增長，我們確實看到了安全措施帶來的好處，最終使這三個月都受益。我認為這裡仍然存在機會，因為我們將繼續推動整個銷售組織的交叉銷售，實現 3400 萬美元的銷售額和 30% 的同比增長率，我們將繼續確保專注於此並保持這些數字。但正是那一個季度帶來的收益和那筆大交易，才真正促成了你看到的環比大幅增長。

Yeah. And we really saw a significant increase in our security revenue run rate early in the quarter as we had a number of opportunities, certainly led by the large one that Rich mentioned, ramped very quickly and very early in the quarter. And so while there's no one-time rev rec or anything like that, I would just guide that we probably got a full quarter of benefit from that increase.

是的。本季度初，我們的安全收入運行率確實出現了顯著增長，因為我們有很多機會，尤其是 Rich 提到的那個大項目，在本季度初就迅速發展起來。因此，雖然沒有一次性的收入補償或其他類似的東西，但我可以肯定地說，我們可能從那次成長中獲得了整整一個季​​度的收益。

Obviously, that business, we expect it to continue in this quarter and beyond. But it's not one of those situations where we got a partial quarter benefit and then enjoy another leg of growth on that particular piece of business with a full quarter benefit in the following quarter.

顯然，我們預計這項業務將在本季及以後繼續保持。但這並非那種我們先獲得部分季度收益，然後在下一個季度從該特定業務中獲得另一波增長並最終獲得完整季度收益的情況。

Okay. Just to double quick on that, then I actually do have a separate kind of follow-up. So that -- I mean, the revenue you got from that, those deals you secured in Q3. That's fully ratable revenue that will repeat again in Q4 for a full quarter?

好的。簡單來說，我還有另一個後續問題。所以——我的意思是，你從中獲得的收入，你在第三季達成的那些交易。這是完全可計入收入的款項，將在第四季再次出現，並持續整個季度？

Correct.

正確的。

Yeah. It's just aligned with the rest of our, if you will, recurring revenue, it doesn't constitute like onetime service and implementation or other things like that. So we expect that revenue to continue.

是的。它與我們其他的經常性收入保持一致，它不屬於一次性服務和實施或其他類似的東西。因此，我們預計這一收入水準將持續維持。

Okay. Got it. Very helpful. If I look at the, obviously, very stable growth, 17% in the non-top 10 customers. If we look at the top 10, quarter over quarter, they accounted for close to half the revenue growth. It sounds like a lot of that is probably from that top 10 customer that expanded into security. Could you just talk about maybe the rest of the top 10 and the trends that you saw quarter over quarter on the delivery side and what you're expecting from that cohort in Q4 into next year?

好的。知道了。很有幫助。如果我看一下非常穩定的成長，非前 10 名客戶的成長率為 17%。如果我們觀察排名前 10 的公司，按季度環比來看，它們貢獻了近一半的收入成長。聽起來其中很多可能都來自那家拓展到安全領域的十大客戶。您能否談談排名前十的其他公司，以及您在交付方面觀察到的季度環比趨勢，並對該群體在第四季度以及明年的表現有何預期？

Sure. I mean, I think I would say we've not seen anything notable or out of the ordinary with that cohort outside of the significant security cross-sell that we mentioned. We expect that business, I mentioned earlier, seasonality so far looks normal for that business.

當然。我的意思是，除了我們提到的重大安全交叉銷售之外，我認為我們沒有看到該群體出現任何值得注意或不尋常的情況。如我之前提到的，我們預計該業務的季節性目前看來正常。

I guess, one comment would be that we were excited with the ability to cross-sell in that top 10 segment, especially our security portfolio and we're looking and believe there may be additional upside there over time. So I think the ability to apply our platform strategy even with our largest customers is something we're very excited about.

我想說的是，我們很高興能夠在前十名細分市場中進行交叉銷售，尤其是我們的證券產品組合，而且我們相信隨著時間的推移，那裡可能還有進一步的成長空間。因此，我們能夠將我們的平台策略應用於我們最大的客戶，這一點讓我們感到非常興奮。

Jeff Van Rhee, Craig-Hallum.

Jeff Van Rhee，Craig-Hallum。

Hey. This is Daniel Hibshman on for Jeff Van Rhee. Kip, Rich, congrats on the quarter. Just one for me. Going back to the seasonality questions that have been already asked and sort of expecting some regular seasonality this quarter. When I look at historically, of course, Q4 is the seasonally strongest quarter, you see often upper single-digit, even double-digit sequential uplift in Q4. This quarter, midpoint of the guide kind of points to 2% sequential. So actually the small sequential increase from Q3 to Q4 that we've seen so far this year.

嘿。這裡是丹尼爾·希布什曼，他代替傑夫·範·裡發言。Kip，Rich，恭喜你們本季取得佳績。我只留一個。回到先前已經提出的季節性問題，預計本季會出現一些正常的季節性波動。從歷史數據來看，第四季通常是季節性最強勁的季度，第四季經常會出現個位數甚至兩位數的環比成長。本季度，該指引的中點大致指向較上季成長 2%。所以實際上，我們今年到目前為止看到的是從第三季到第四季的小幅較上季成長。

Now, typically, we see a big uplift there. Just anything to call out in terms of that in terms of just conservatism? Are you expecting a different pattern going into Q4? On a sequential basis, how you're thinking about that?

現在，通常情況下，我們會看到那裡出現大幅增長。就保守主義而言，有什麼需要指出的地方嗎？你預計第四季的模式會有所不同嗎？從順序來看，你是怎麼考慮這個問題的？

Good question, Daniel, and thanks for the question. I think when we look at the Q4 guidance, I mean, we do typically see usually a slower Q3 and a bigger Q4. I think this quarter, just we had a confluence of events where Q3 was a bit higher. So if you look at sequential growth in Network Services for the quarter, we were about $4 million up, and so I think for us, we saw some special pickups in both Network Services. And we've also obviously benefited from the security from the security. So we think that based on what we see today on traffic patterns, in Q3 and Q4, we do think the sequential guide, we think, is pretty reasonable.

丹尼爾，問得好，謝謝你的提問。我認為，當我們審視第四季業績指引時，通常會看到第三季成長放緩，而第四季成長加快。我認為本季度，各種因素疊加在一起，導致第三季度業績略高一些。因此，如果你看本季網路服務的環比成長，我們成長了約 400 萬美元，所以我認為對我們來說，我們在網路服務方面看到了一些特別的成長。顯然，我們也從這種安全措施中受益匪淺。因此，根據我們目前看到的第三季和第四季的交通模式，我們認為，按順序制定的指導方針是相當合理的。

Okay. That's helpful. And then just on the gross margins, I mean, I called out the one time I think you said ex that one time, a 62% underlying non-GAAP gross margins is the strongest, I think we've seen in several years. Just anything else you can call out in terms of from a hardware network perspective, walking us through what's changing there that -- obviously, you mentioned scale, but the company has been scaling for a long time. So something different there driving those higher? Just kind of talk us through the underlying dynamics.

好的。那很有幫助。然後就毛利率而言，我的意思是，我之前提到過，我想你上次也提到過，62% 的非 GAAP 毛利率是近年來最強的。從硬體網路角度來看，還有什麼其他方面需要指出的嗎？請帶我們了解這方面正在發生哪些變化——顯然，您提到了規模，但該公司已經擴展規模很長時間了。所以，是什麼不同的因素在推動這些價格上漲？請您簡單解說背後的運作機制。

Yeah. Q3 was a really good quarter for us. If you exclude that $1.6 million tailwind we mentioned on the earnings script, the gross margins would have been 61.8%. For the quarter specifically, I think we attribute it to two main reasons. One is the scale that we talked about as a platform, especially when you see the sequential kind of rise in Q3.

是的。第三季對我們來說是一個非常好的季度。如果排除我們在獲利報告中提到的 160 萬美元的利多因素，毛利率將達到 61.8%。就本季而言，我認為主要有兩個原因。一是我們之前討論過的平台規模，尤其是在第三季看到連續成長的情況下。

But I think second is that engineering -- our traffic -- our engineering team have made a lot of investments around truck engineering, making the network much more efficient. And I think that we're seeing some of the benefits from that. I think when you look at the Q4 guide, we're guiding to kind of roughly flat versus Q3, continuing that advantage that we built in with the traffic engineering that we've been doing.

但我認為第二點是工程——我們的交通——我們的工程團隊在卡車工程方面進行了大量投資，使網路效率更高。我認為我們已經看到了其中的一些好處。我認為，從第四季的業績指引來看，我們預期業績將與第三季大致持平，繼續保持我們透過交通工程所建立的優勢。

(Operator Instructions) Tomer Zilberman, Bank of America.

（操作員說明）托默·齊爾伯曼，美國銀行。

Hey, guys. Maybe to continue on the line of questioning around security. I know you've called out before potential for some volatility in that segment as you're building out your go-to-market muscle. So if I ex out that one-time deal that you spoke about, what do you -- are you seeing stabilization of that volatility? Or do you think we can still expect to see some different trends as you're building out these new product motions and go-to-market?

嘿，夥計們。或許可以繼續圍繞安全問題展開提問。我知道你之前曾指出，隨著你不斷增強市場拓展能力，該領域可能會出現一些波動。所以，如果我退出你提到的那筆一次性交易，你認為──你認為這種波動性會趨於穩定嗎？或者您認為隨著您不斷推動這些新產品策略和市場推廣，我們是否還會看到一些不同的趨勢？

Great question. What I can share is that in our internal analysis when we excluded that one large deal, we still had accelerating growth in security. So it's certainly, we're very excited and proud of that one deal, but that wasn't the only thing driving good growth this quarter in security.

問得好。我可以透露的是，在我們內部的分析中，即使排除那筆大交易，我們的安防業務仍然實現了加速成長。所以，我們當然對這筆交易感到非常興奮和自豪，但這並不是本季安全領域良好成長的唯一驅動因素。

Got it. And maybe as a follow-up, pivoting a little bit away. If we look at the net retention rate, we've seen some improvement over the last couple of quarters versus kind of the declines we saw last year. Where do we think that net retention rate goes forward as we look out maybe the next two, three years, can we return to that kind of peak of 120% you had a couple of years ago? Or do you think it stabilizes at this kind of 106% rate?

知道了。或許可以作為後續討論，稍微轉換話題。如果我們看一下淨留存率，就會發現過去幾季相比去年的下滑趨勢有所改善。展望未來兩三年，我們認為淨留存率會如何發展？我們能否恢復到幾年前120%的高峰？還是你認為它會穩定在106%這樣的成長率？

Yeah. I think that we're very happy and proud of the NRR we achieved this quarter. I think it really goes to show the investments that Scott and his team have made around cross-sells and upsells and they're really beginning to pay off. We do think that there is room going forward on this metric. We do think it's going to increase next quarter.

是的。我認為我們對本季取得的淨收益率感到非常高興和自豪。我認為這充分說明了 Scott 和他的團隊在交叉銷售和向上銷售方面所做的投資，而這些投資真的開始獲得回報了。我們認為，在這個指標上還有進步空間。我們認為下個季度還會成長。

I just want to remind you that like when we think about this metric, it is a last 12-month metric, and we are beginning to lap some of the headwinds we saw in 2024. And so for Q4, we do think this metric has room to improve. We don't give guidance on this. And so I can't say the 120% or where it will be, but I do think that from where we are today, Q4 should be up.

我只想提醒大家，當我們考慮這個指標時，它是一個過去 12 個月的指標，而我們正在開始克服 2024 年遇到的一些不利因素。因此，我們認為第四季的這項指標仍有提升空間。我們對此不提供指導。因此，我無法預測 120% 的成長幅度，也無法確定具體數字，但我認為，就目前的情況來看，第四季應該會有所成長。

(Operator Instructions) And at this time, there are no further questions. I would now turn the call back over to Kip Compton for closing remarks.

（操作說明）目前沒有其他問題了。現在我將把電話交還給基普·康普頓，請他作總結發言。

Thanks, Rebecca. We believe this quarter demonstrated tangible progress in our ongoing transformation. We are committed to building the world's most powerful and flexible Edge platform. We're placing -- we are pleased with the strong momentum we saw this quarter and are focused on building sustainable, profitable growth.

謝謝你，麗貝卡。我們認為本季在持續轉型方面取得了實際進展。我們致力於打造世界上最強大、最靈活的邊緣平台。我們對本季強勁的成長動能感到滿意，並致力於實現可持續的獲利成長。

I want to thank our Fastly employees for all of their contributions, our customers for their trust and partnership, and our investors for their continued support. Thank you.

我要感謝 Fastly 全體員工的貢獻，感謝客戶的信任與合作，並感謝投資人的持續支持。謝謝。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。您現在可以斷開連線了。