Company: FSLY
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001517413-25-000063
Chunk: 135

Company: Fastly, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 135
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$137,980 $152,190 $(14,210)(9)%Sales and marketing198,610 191,773 6,837 4 %General and administrative113,399 116,077 (2,678)(2)%Impairment expense4,144 4,316 (172)(4)%Restructuring charges9,720 — 9,720 100 %Total operating expenses$463,853 $464,356 $(503)— %Percentage of revenue:Research and development25 %30 %(5)%Sales and marketing36 %38 %(2)%General and administrative21 %23 %(2)%Impairment expense1 %1 %— %Restructuring charges2 %— %2 %

Research and development

Research and development expenses were $138.0 million for the year ended December 31, 2024 compared to $152.2 million for the year ended December 31, 2023, a decrease of $14.2 million, or 9%. This decrease was primarily due to a decrease of $12.2 million in stock-based compensation expense, a $6.0 million increase in capitalized software costs, a $2.8 million decrease in executive transition costs, as well as a $0.5 million decrease in colocation costs. This decrease was partially offset by an increase of $5.8 million of personnel-related costs, such as salaries and benefits as well as a $1.5 million increase in software costs.

Sales and marketing

Sales and marketing expenses were $198.6 million for the year ended December 31, 2024 compared to $191.8 million for the year ended December 31, 2023, an increase of $6.8 million, or 4%. This increase was primarily due to a $14.4 million increase in personnel related costs, such as salaries, sales commissions and benefits. The increase was also due to a $1.7 million increase in third party commissions as well as a $1.4 million increase in professional fees. The increase was partially offset by a $4.6 million decrease in stock-based compensation expenses, a $4.4 million decrease in marketing expenses, a $0.8 million decrease in amortization expense as well as a $0.6 million decrease in travel and entertainment expenses.

General and administrative

General and administrative costs were $113.4 million for the year ended