Company: FSLY
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001517413-25-000299
Chunk: 313

Company: Fastly, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 313
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451,406 $403,097 Contract BalancesThe timing of revenue recognition may differ from the timing of invoicing to customers. The Company has an unconditional right to consideration when it invoices its customers and records a receivable. The Company records a contract asset, or unbilled receivable, when revenue is recognized prior to invoicing. The Company records a contract liability, or deferred revenue, when a contract is billed in advance of revenue being recognized.Deferred revenue pertains to amounts billed to customers for which revenue has not been recognized, which primarily consists of the unearned portions of billings for the Company’s security subscription services and the unearned portion of committed edge cloud platform usage. Amounts that have been invoiced for annual subscriptions, but not collected, are 

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recorded in accounts receivable and in unearned revenue or in revenue depending on whether services have been delivered to the customer. The Company’s payment terms and conditions vary by contract type, and generally range from 30 to 90 days. The following table presents the Company’s contract assets and contract liabilities as of September 30, 2025 and as of December 31, 2024:As of September 30, 2025As of December 31, 2024(in thousands)Contract assets$833 $1,072 Contract liabilities$39,994 $29,585 The following table presents revenue recognized during the three and nine months ended September 30, 2025 and 2024 from amounts included in the contract liability at the beginning of the period:Three months ended September 30,Nine months ended September 30,2025202420252024(in thousands)Revenue recognized in the period from amounts included in contract liability at the beginning of the period$16,249 $14,748 $25,741 $30,149 Remaining Performance Obligations (“RPO”)Revenue allocated to remaining performance obligations represents deferred revenue and amounts that were and will be invoiced and recognized as revenue in future periods for non-cancelable subscription arrangements and usage commitments. The Company’s RPO excludes performance obligations from on-demand arrangements when there are no minimum purchase commitments associated with these arrangements.As of September 30, 2025, the aggregate amount of the transaction price in our contracts allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $268.0 million. This amount includes future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which