And we continue to be really successful at that, particularly when we see vendor consolidation and there is multiple vendors. We – because of our performance gained share and are able to cross-sell additional products into those customers. And then, our new customer acquisition engine with a lot of the work we’re doing across packages as well as the channel, we really expect that to sort of drive acceleration and new customers in 2024. So I think you’re going to see most of those motions driving the performance of 2024. Most expansion motion, which we’ve consistently done well, and the new activity is really driving acceleration of new customer.
Operator: We’ll take our next question from Tom Blakey with KeyBanc Capital Markets. Your line is open.
Tom Blakey : Hey guys. Thanks for being here. I just – perfect setup there Ron, in terms of the channel you discussed some highlights in your press release this morning or this afternoon. Any color Todd, you want to provide for us to can talk, check the sustainability here? What are the biggest changes that you’ve implemented in terms of this dynamic growth here? You’re seeing of late. I have a follow through.
Ron Kisling: Yeah, I think, look, it is still early. So I hope to have hundreds of partners driving business for Fastly and more importantly, delivering services that allow our customers to move more quickly to adopt Fastly technology more rapidly. I’d say from a trend point of view, I just think it’s an underserved space. There’s a lot of systems integrators with high software specialty. They’re working very closely with teams that are building out digital experiences and they haven’t had the ability to partner closely with a edge cloud provider, especially a performance leader in CDN. And so, we’ve had good receptions to this new partner program. We will be looking and reviewing it for next year to see ways to make it better.
But so far, for me the trends are what I want to see. This is moving in the right direction, but I would say for sure, partner acquisition and dealer velocity are trending in the right direction. But for sure, we are planning to ramp them hard in 2024.
Tom Blakey : Does that include just quick follow-up before I ask for other questions? Does that include like enterprise caliber customers? And what are the – why is this kind of growth unique to Fastly? And what are the incentives. I am sorry. Just a lot of growth here and a big opportunity and typically CDN doesn’t benefit from the channel.
Ron Kisling: Yeah. And I really think that our effect of just the way the first few entered into this product space have operated. I think, looking at the market now, there’s so much software spend that’s already going through the cloud market place. There is systems integration, know how to operate that and operationalize deals big and small through those systems and direct to vendors. And we offer both options. For me, there’s one other twist, which is the ability that flexibility in that channel program matters. These – our channel partners can operate in the traditional channel sales motion, but also in an agency model. That flexibility matters. And the way that we’ve operationalize that I think is important. We’re also engaging with partners who are really on the technology consulting side for the first time.
And those engagements although it’s early days, I think have a lot of potential upside, as well. And those are like technology consultants largely. But, I guess, my point of view, and I think this will play out in the next 12 months is that this is just an underserved part of the market. And by focusing here, we have an opportunity to gain the attention of the channel.
Tom Blakey : Very, very helpful. And then, Ron on that 50% channel revenue growth, is all the requisite questions there, over what period of time, what percentage of revenue here? Even if it’s a range where you kind of expect that to head in the coming year or two? That’d be helpful. Thanks guys.
Ron Kisling: This is about the channel growth?
Tom Blakey : Well, you talk about revenue channel growth. Just what period of time is that and…
Ron Kisling: It’s program to-date year-over-year.
Tom Blakey : Okay, where are we in terms of a percentage of revenue where do you expect that to go? Todd kind of spoke positively there as that obviously going to increase just to give us something like level as – helps yet.
Todd Nightingale: So I think what I said, we haven’t given the specific percentage of revenue, but we do expect it to continue to grow as a percentage of revenue. I think in terms of really gaining traction and being a contributor, we see that really gaining traction in 2024 a lot of the work, sign ups and deals happen this year. We expect to see that grow – as a contributor grow overall revenue in 2024.
Tom Blakey : Great. Thank you.
Operator: And we’ll take our final questions from Madeline Brooks with Bank of America. Your line is open.
Madeline Brooks: Thank you. Thanks so much for taking the question. Just a quick one for me here. It looks like from an edge compute standpoint, got a lot of positive signals with the packaging motion. So just want to marry that quickly to the budget comments and the landscape you guys are seeing with the slight weakness. And just want to know and apologies, if this has been asked I mean there’s a few calls, but why do you think of paying Fastly now versus other companies earlier? And can you call out any specific areas of impacted more versus less? Thanks so much.
Ron Kisling: Sure. On the compute side, I feel like the momentum is really good for us right now. I feel like, you do me a critical amount of features and functionality before developers can really reach different outcomes that they care about, learning their services at higher cost, dramatically improving performance and user experience, being able to build sustainable solutions and pull the appropriate workloads from their core into an edge serverless environment that will have the kind of performance and kind of user experience improvement that they want. And I think we’re getting – we are starting to hit our stride, which is great. I think we have opportunity here on the product side, as well. And not to – but I think we can simplify our offering and make it even easier for our customers to onboard and understand all the components there.
So, I’m not trying to that, we’ve arrived. We’re going to be on this journey for quite a while. Your second question was around the belt tightening comment in the opening, is that correct.
Madeline Brooks: Yes, it’s correct.
Ron Kisling: Yeah, I guess, we may have briefly mentioned it already. I think, what we’re seeing as our customers’ budgets feel a little pinch to them. That certainly drives vendor consolidation that tends to be good thing for us as the performance leader we tend to fair well in those engagements. We do, see a little bit of slowness in the deals as vendor changes when customers are leaving some of our competitors that come into Fastly changes in contracts are just getting more scrutiny, requiring more sign-ups and that can delay some deals. So we’ve seen a few deals that have taken a little longer to close than we’d like. But we’ll see. I think I mentioned this earlier, like, I think we might have a more of a complete perspective of that next quarter. Yeah.
