That’s been really a big push there. And from a vertical point of view, there’s a very strong focus from high tech companies who are – they kind of be the most sophisticated. They tend to get be able to get a lot out of it very quickly, especially with pretty mature documentation and developer enablement from Fastly and part thanks to the acquisition. And I think that’s what brings folks to the Fastly program. It’s really an organic developer first motion. I plan on tracking this business largely in customer acquisition through next year, as it’s still truly an incubation, but I think we’re going to start to see it hit the – in some material way, hit the revenue line and I hope it tail end of ‘24 and ’25, but we’ll see.
Tim Horan: Great. And can we just give us some kind of revenue breakdown now if possible, like on media delivery, your application delivery or you know any other color would be would be great?
Ron Kisling: Yeah. We haven’t provided that breakdown between media and other delivery across the verticals in our revenue breakdown. Sorry about that.
Tim Horan: Thanks.
Operator: We will take our next question from Rudy Kessinger with D.A. Davidson. Your line is open.
Rudy Kessinger: Hey, great. Thanks for taking my questions, guys. I guess, just with those smaller CDM players exiting the business in the quarter, did you pick up any material business from this smaller players that exit?
Ron Kisling: We do pick up, we’ve seen a few already move over and we’ve got a quite a few additionally already in the pipeline. Those folks have contracts. And so what really, I think, I think the real pattern here is that as their contracts come due, they tend to stick their head up and, and make a new vendor selection. That’s a really good news for us. We thought with Digital Turbine those guys pretty sophisticated group, they were able to move quickly. I’m hoping that we’re going to see more of that really in Q4 and Q1 on the new customer acquisition front.
Rudy Kessinger: Got it. And then, just general traffic growth trends across the board. Anything to call any material changes as just how general traffic – traffic growth trending.
Todd Nightingale : The traffic trend is pretty had been sort of interesting. There have been a lot of interesting events. We are starting to see the seasonal sporting event trends. We even saw some peaks from content drops, some of the streaming platforms. I think it’s fairly close to what we were expecting with the addition of some of the international – some addition, some additional volume on the international front.
Ron Kisling: Yeah. And we’re guiding to the normal potential update we start to see as we exit Q3. We are continuing to see this year.
Rudy Kessinger: Got it. Great. Thanks for taking my questions and congrats on the numbers.
Todd Nightingale : Thanks.
Ron Kisling: Thank you.
Operator: We will take our next question from Fatima Boolani with Citi. Your line is open.
Fatima Boolani: Hi, good afternoon. Thank you for taking my questions. Ron, maybe these are for you. First thing, over the course of this year, you all have been very intentional about managing your install base and start pruning the less economical or lower LTV type customers in your base. And that’s been pretty obvious. I’m curious if you can comment on if you’re sort of through the halfway point or towards the end of that process such that we can start seeing some more robust growth in that metric? And then just a quick follow-up on some of the contract negotiations, that you are foreshadowing for next year?
Ron Kisling: Sorry. Just to clarify, when you say, pruning customers in the LTV type of, what do you mean?
Fatima Boolani: Just in terms of, managing the install base for higher quality customers, just wanted to get a sense of, how far down the path are you that your current install base is, high value high, penetration opportunity, versus, some of the customers that you might have particular ways with over the course of the year? I just wanted to get a sense of where you are in that process and is that mostly sort of done – are you done pruning?
Ron Kisling: Got it. But – I’d just clarify that. We haven’t pruned any customers intentionally and largely the way that our business runs and the way our infrastructure is built and is able to organically serve customers, I think it’s pretty hard. I mean it’s very rare that we would find a customer that would be not a great fit. When we occasionally had a – I need to prune a customer. The only times I can think of that happening are on terms of use and community guidelines. The infrastructure at Fastly allows for us to have very efficient delivery, especially very efficient delivery of incremental traffic. And so we don’t – we haven’t done any pruning. I absolutely don’t intend to. I do believe we have an opportunity to increase the margin by changing the traffic, a signature of our total customer base.
But the only way that we’re – the only thing we’re pursuing to do that is, focusing on differentiating the verticals that we serve. So, that the traffic flow will be more balanced across type of day, as well as the type of traffic load and working hard to drive our customer acquisition motion into regions where we’ve got, where we have good infrastructure to be able to serve. And so, as far as improving the traffic mix on the platform, we certainly do that. We certainly have shifted our focus, but it’s all of that focuses on the customer acquisition side. Not on the on the pruning side.
Fatima Boolani: Understood, I appreciate that. And Ron, I appreciate you are in the planning phases of 2024 right now. But some of the contract negotiations that you’re again foreshadowing for 2024 that you’re going to be addressing. Can you give us a little bit of a flavor as to help bake these body of contracts is going to be, any high level thoughts on if these contracts may be concentrated with some of your largest customers? And any seasonality commentary at high level you can share with us, that would be really great as we think about the next year.
Ron Kisling: Yeah, I mean, I think you’re starting with the seasonality. I think, what we’re certainly seeing this year is fairly consistent seasonal patterns, as we work through Q3, we started see an increase in traffic. We expect us to continue to see that accelerate in Q4, I think it’s reflected in our guidance. I think as you look to 2024 from seasonality, I think, again, we expect that the typical seasonal patterns to continue. Q1 typically is flat to down a few percentage points. We would expect that to continue into 2024. I think as you look to kind of your customer acquisition, I think again, there’s really two motions that we have that are driving that. There’s the expansion and the cross-selling opportunity in our largest customers.
