Company: FSLY
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001517413-25-000111
Chunk: 438

Company: Fastly, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 438
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%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, 2024, a decrease of $0.8 million, or 2%. The decrease is primarily due to a $1.4 million decrease in stock-based compensation expenses and a $1.4 million decrease in personnel-related costs. The decrease was partially offset by a $1.9 million decrease in capitalized software development costs.

Sales and marketing

Sales and marketing expenses were $49.3 million for the three months ended March 31, 2025 compared to $49.6 million for the three months ended March 31, 2024, a decrease of $0.3 million, or 1%. The decrease is primarily due to $1.2 million decrease in stock-based compensation expenses as well as a $1.2 million decrease in salary expenses partially offset by a $1.2 million increase in commission expenses and a $0.9 million increase in travel and entertainment expenses.

General and administrative

General and administrative costs were $28.2 million for