Company: FSLY
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001517413-25-000111
Chunk: 338

Company: Fastly, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 338
---
 revenue$67,676 $60,286 12 %

Cost of revenue was $67.7 million for the three months ended March 31, 2025 compared to $60.3 million for the three months ended March 31, 2024, an increase of $7.4 million, or 12%. The increase was primarily due to a $6.0 million increase in bandwidth costs, a $1.9 million increase in depreciation and amortization expense as a result of increased investments in our platform, as well as a $1.0 million increase in software costs. The increase was partially offset by a $1.1 million decrease in personnel-related cost as well as a $0.8 million decrease in stock-based compensation expense.

Gross Profit and Gross MarginThree months ended March 31,20252024% Change(in thousands)Gross profit$76,798 $73,234 5 %Gross margin53 %55 %(2)%

Gross profit was $76.8 million for the three months ended March 31, 2025 compared to $73.2 million for the three months ended March 31, 2024, an increase of $3.6 million, or 5%. Gross margin was 53% for the three months ended March 31, 2025 compared to 55% for the three months ended March 31, 2024, a decrease of 2%. The decrease in gross margin was driven by increases in bandwidth costs, an increase in depreciation and amortization expense, as well as increased software costs as part of our continued investment in infrastructure and capacity to build out our platform to support future customer traffic.

Operating Expenses

Three months ended March 31,20252024% Change(in thousands)Research and development$37,429 $38,248 (2)%Sales and marketing49,313 49,607 (1)%General and administrative28,235 31,639 (11)%Total operating expenses$114,977 $119,494 (4)%Percentage of revenue:Research and development26 %29 %(3)%Sales and marketing34 %37 %(3)%General and administrative20 %24 %(4)%

40

Research and development

Research and development expenses were $37.4 million for the three months ended March 31, 2025 compared to $38.2 million for the three months ended March 31