Fastly, Inc. (NYSE:FSLY) Q4 2023 Earnings Call Transcript

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Rishi Jaluria: Wonderful. That’s a new way to pronounce my name. This is Rishi Jaluria from RBC. Thanks so much for taking my question. Maybe I want to start with just looking a little bit closer at Signal Sciences, we saw a little bit of a slowdown after a few quarters of acceleration. I know there’s obviously comps and scale and everything like that. But just any color on what drove that? And how we should be thinking about that growth going forward? And then I’ve got a quick follow-up.

Todd Nightingale: Yes, it’s a great question. We see a little bit of a — we always see a little bit of a surge in delivery in Q4. And so the security growth can tend to slow down a little bit. But I’ll check into it, but it hasn’t been a huge shift there. The [indiscernible] seems to be running pretty smoothly. There could be that we have a little bit of a backup on folks who are waiting for that unified experience coming out this quarter, which will be exciting, but we’ve been pretty confident in that security side of the business this quarter.

Rishi Jaluria: Okay. Got it. That’s helpful. And then maybe just sticking with security. As you have the new bot management product out there, what sort of early feedback have you gotten from select customers that are actively using it in production today? Thanks.

Todd Nightingale: Yes. We’ve had some really solid feedback. In fact, we had a couple of customers actually make purchases in Q4 even though it was just an early availability. That was a nice confidence. I think it showed a maturity in our beta motion. I’ll tell you the biggest piece of feedback that I’ve heard is just a very broad interest in this technology, and that’s been great and a ton of interest in expanded feature sets. We are starting to look at privatizing some private access tokens as part of that solution as well because we’ve gotten just so much interest in that side of the house. I think there’s a ton of revenue opportunity here for our security portfolio on the box side, and we’re going to be pushing that. I think it’s easy to imagine that the only people who would be super motivated around bot management might be like big, incredibly — retailers that do big product drops, but it’s not — it’s a pretty broad, broadly applicable product with a bunch of use cases, some as simple as customers who don’t want their competitors scraping their data off the website — off their websites.

And that’s super interesting, and it’s something we’re going to be pushing hard at and continuing to invest in. I think even as we go GI [ph] this quarter, we’re going to continue to add functionality here for probably for years to come. There’s a ton of interest and a ton of innovation here.

Rishi Jaluria: Wonderful. Thank you so much.

Todd Nightingale: Welcome.

Operator: That concludes our question-and-answer session. I will now turn the call back to Chief Executive Officer, Todd Nightingale, for closing remarks.

Todd Nightingale: Thanks, everyone, for joining us on Valentine’s Day. I want to thank our employees, customers, partners and investors. We remain focused on execution, bringing lasting growth to our business and delivering value to our shareholders. Let me close by saying, I believe digital experiences will drive the mission and define the success of almost every organization everywhere. And Fastly will have a significant impact on the way digital experiences are built and delivered around the world. Our customers have a real passion for Fastly solutions, and our employees have a real enthusiasm for Fastly’s mission. To make the Internet in a better place where all experiences are fast, safe and engaging. Thank you so much.

Operator: This concludes today’s conference call. Thank you for your participation, and you may now disconnect.

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