Fastly’s first quarter was marked by positive momentum, driven by gains with enterprise customers and notable progress in product diversification. Management credited strong new customer acquisition in strategic verticals such as travel, financial services, and retail, as well as cross-sell momentum in its security and compute portfolio. CEO Todd Nightingale highlighted the impact of Fastly’s revamped go-to-market strategy and increased packaging simplicity, with over half of customers now using more than one product line. Nightingale explained, “Our platform strategy continues to yield results as now almost half of our customers leverage two or more Fastly product lines, generating three quarters of our revenue.”

Is now the time to buy FSLY? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Fastly’s Q1 Earnings Call

• Param Singh (Oppenheimer) asked about the drivers of network demand and security adoption; CEO Todd Nightingale indicated that strategic vertical traction and cross-sell initiatives are expanding, but security penetration remains early, especially for DDoS and bot mitigation products.
• Jonathan Ho (William Blair) inquired about compute product growth and macro conservatism; Nightingale explained that compute traction was driven by dynamic user experiences in travel and technology, while guidance remains cautious amid macro uncertainties despite steady demand patterns.
• Sanjit Singh (Morgan Stanley) sought clarity on the surge in remaining performance obligations (RPO); Nightingale cited strategic renewals, sales incentives for larger commitments, and packaging solutions as key contributors, with CFO Ron Kisling highlighting improved senior-level customer engagement.
• Rishi Jaluria (RBC) asked about potential risks tied to TikTok and pricing trends; Nightingale described ongoing global partnership optimism with TikTok and noted that pricing declines have moderated, providing tailwinds for future results.
• Rudy Kessinger (D.A. Davidson) pressed on slow security revenue growth and the permanence of share gains in the top 10 customers; Nightingale acknowledged early-stage adoption for bot and DDoS, targeting mid-teens growth, and said recent share gains appear durable, driven by improved customer engagement.

Catalysts in Upcoming Quarters

In the next few quarters, the StockStory team will be monitoring (1) sustained momentum in security and compute product adoption, (2) further progress in revenue diversification outside the top 10 customers, and (3) continued improvements in pricing stability and gross margin. The company’s ability to convert pipeline visibility into realized revenue and to execute on high-touch sales strategies will also serve as important indicators of operational progress.

Fastly currently trades at $7.35, up from $6.01 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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