Thank you for standing by. At this time, I would like to welcome everyone to today's Fastly Second Quarter 2024 Earnings Conference Call. After the speakers' remarks, there will be a question-and-answer session. I would now like to turn the call over to Vernon Essi, Investor Relations at Fastly. Vernon, please go ahead.

Welcome, everyone, to our second quarter 2024 earnings conference call. We have Fastly's CEO, Todd Nightingale; and CFO, Ron Kisling, with us today. The webcast of this call can be accessed through our website, fastly.com and will be archived for 1 year. Also, a replay will be available by dialing 800-770-2030 and referencing conference ID number 754-3239 shortly after the conclusion of today's call. A copy of today's earnings press release, related financial tables and investor supplement, all of which are furnished in our 8-K filing today, can be found in the Investor Relations portion of Fastly's website. During this call, we will make forward-looking statements, including statements related to the expected performance of our business, future financial results, product sales, strategy, long-term growth, and overall future prospects. These statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected or implied during the call. For further information regarding risk factors for our business, please refer to our filings with the SEC, including our most recent annual report filed on Form 10-K and quarterly reports filed on Form 10-Q filed with the SEC and our second quarter 2024 earnings release and supplement for a discussion of the factors that could cause our results to differ. We encourage you to read these documents. Also note that forward-looking statements on this call are based on information available to us as of today's date. We undertake no obligation to update any forward-looking statements, except as required by law. Also during this call, we will discuss certain non-GAAP financial measures. Unless otherwise noted, all numbers we discuss today other than revenue will be on an adjusted non-GAAP basis. Reconciliations to the most directly comparable GAAP financial measures are provided in the earnings release and supplement on our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Before we begin our prepared comments, please note that during the third quarter, we will be attending the Piper Sandler Growth Frontier’s Conference in Nashville on September 10. Now, I'll turn the call over to Todd.

Thanks, Vern. Hi, everyone, and thank you so much for joining us. Today, I will cover our results and the dynamics facing our business and then discuss our recent technology developments, go-to-market initiatives, and the path forward. I will then hand the call over to Ron to discuss our second quarter financial results and our guidance in detail. We reported revenue of $132.4 million for the second quarter, coming in above the midpoint of our guidance. Our operating loss of $12.6 million was also favorable to the guidance midpoint, thanks to strong gross margins and good cost control across the business. While I'm pleased with these results and execution in the second quarter, unfortunately, it does not offset the challenges we currently face with a small set of our largest customers. The industry has been challenged by our largest delivery customers as traffic projections have softened and focus has shifted to profitability. This has put increased pressure on vendors such as Fastly as our projected growth in those accounts has declined. We've taken initiatives to mitigate this impact. However, these customers constitute a material portion of Fastly's revenue, and we're seeing those effects in our projections for the rest of the year. Our Top 10 customers, which are a fair proxy for these large delivery customers, have dropped from 38% of revenue in the first quarter to 34% in the second quarter. Despite this drop in our Top 10 customer revenue, we still managed to grow our top line revenue 8% year-over-year. This was due to a 13% year-over-year growth in the rest of our customer base, a result of the actions we initiated a year ago in transforming Fastly's business. Specifically, it underscores the changes in our go-to-market strategy as we continue to drive customer acquisition and expand customer wallet share with our platform solution driving cross-sell and upsell. We've taken steps to bifurcate our business strategy to accommodate these large customers with more bespoke efforts that cater to their multi-vendor strategy. While we've been busy adjusting our sales and customer success teams to this dynamic, we haven't lost focus on driving customer acquisition and growth in the other two-thirds of our business to effectively outgrow this concentration risk over time. The success in this transformation will continue to drive top line revenue growth and become the foundation of our business. This is truly a moment of transition for Fastly. We must mitigate our legacy dependence on large multi-vendor customers, primarily in the media vertical. By developing our channel and demand-gen motions and by expanding our portfolio, we are reaching new verticals and building a more diverse customer base. This will drive more stability and higher growth for Fastly in the years to come. On that note, our customer acquisition efforts showed strong improvement in the second quarter with our enterprise customer count at 601 compared to 577 in the first quarter, an increase of 4% sequentially and on a year-over-year basis, we grew our enterprise customer count by 50%. Continued innovation is key to durable success in customer acquisition and wallet share growth. Fastly's platform is a software-driven edge network that offers best-in-class delivery, network services, security, compute, and observability. We continue to focus on investing in leading technology and innovation that not only solidifies our platform but also extends its features for the future of web application development. The functionality we offer allows our customers to bring their applications to life around the world, and we believe that our unified platform approach will significantly enhance our customer retention and create efficiencies for Fastly in supporting our customer success. Last quarter, we extended our security offering with the general release of our BOP mitigation solution. We're excited to share that we have seen a strong response from customers, and its initial ramp has exceeded our expectations. As we shared last year, cross-sell will be a large part of our success in security. Now that we have built mitigation in addition to WAF and DDoS prevention, we have a complete security portfolio that will increase cross-sell and revenue growth from existing accounts. One example is a luxury retailer that was already a fast delivery and next-gen lab customer. This retailer chose to replace an existing stand-alone BOP solution with our technology, truly demonstrating the power of the Fastly platform. Edge compute is the next cornerstone of Fastly's platform, and we are seeing momentum in next-generation applications coming to that platform from existing customers. We've previously discussed how New Relic runs its observability workloads on our compute infrastructure and there are other customer use cases as well. One great example of this is Yoda, a SaaS platform designed to optimize enterprise online retail websites. Recently, our partnership expanded to include edge compute technology that is complementary to their core service. This gave Yoda engineers access to the Fastly API as well as the fastest cash management and data capture capabilities. After moving to Fastly, Yoda saw a noticeable improvement in performance as brands experienced higher conversions and more engaged shoppers. In June, we launched the beta version of our AI accelerator, an AI proxy capable of delivering performance and cost savings to application builders leveraging large language models. Fastly's AI accelerator leverages the power of edge computing to deliver unparalleled performance worldwide. And importantly, developers can onboard this technology with a single line of code, allowing rapid adoption and a simple, cost-effective developer experience. We announced the AI accelerator at our developer event in New York and demoed it at our customer event accelerate in London. The interest and response here have been great. Beta testers have seen a dramatic speed improvement in cache results and we plan to make this technology generally available in 2024. This is a key milestone for Fastly, our first truly AI product. And the activity here has been amazing. We are incredibly excited about the AI roadmap ahead. Turning to go-to-market, I'm delighted to share that we've brought on Scott Lovett as our new Chief Revenue Officer. Scott is an accomplished technology executive with decades of experience in cybersecurity and network services. His expertise is in all aspects of the go-to-market motion, driving multiproduct line solutions and platform strategies, and delivering reliable growth in evolving markets. He's capable of both operating a global enterprise sales team at scale and driving the transformation and evolution we'll need over the next few years on our path to $1 billion in revenue. Scott joins us from Imperva, a cybersecurity company where he was the Chief Revenue Officer, focusing on new customer acquisition and customer growth. Prior to Imperva, he led successful go-to-market teams at Akamai and Cisco. Scott is the ideal candidate for this role and I'm thrilled to have him on board. We continue to build upon the strong packaging foundation we launched last year. We recently launched our new self-service model with mix-and-match packages and evolved our free tier offerings. This marks the first time our recent product-led growth work is reaching the market, and you can expect more to come in future quarters. We also saw a material ramp in our initial observability package, which hit its stride in the second quarter. As a result, our packaging motion is accelerating. In the second quarter, our customer packaging purchases approximately doubled the first quarter's purchases. Our channel partners continue to have strategic importance in our go-to-market efforts. In the second quarter, our deal registrations grew 33% compared to the first quarter, and our 2024 year-to-date revenue contribution from the channel has more than doubled compared to the second quarter of 2023. We anticipate more opportunities to leverage our channel and use it to help us drive top line growth. Now let me conclude with a discussion of our outlook and the path forward. The large customer headwinds we've seen continue to impact our business. Unfortunately, our revenue outlook proved more dynamic as the quarter progressed than we expected. And as I discussed previously, this is a moment of transition, and we take this very seriously. We must continue to acquire new customers and grow accounts outside our large media cohort. This will diversify and strengthen our business, and this is exactly the path that we're on. Our third quarter guidance of 3% year-over-year growth and modified 2024 guidance of 6% year-over-year growth are materially below our budgeted plans. We have to take appropriate action to align our costs with this level of revenue while also positioning ourselves to invest in future growth. Over the past year, we've controlled expenses effectively through efficiencies in our infrastructure, measured headcount management, and trimming overhead. Now we are intensely focused on growing our business through customer acquisition, portfolio expansion, and innovation at the edge that drives lasting differentiation for application and web development teams. In order to achieve this next level of focus and growth, we will be restructuring the company. This will include a reduction in discretionary spend and a review of our workforce staffing levels. While this is an extremely difficult decision, we believe this step is critical to secure our position in maintaining a path toward operating profit and positive free cash flow. Furthermore, this additional financial rigor enables Fastly to continue to invest in top line growth and to maintain our differentiation and competitiveness in 2025 and beyond. And now to discuss the financial details of the quarter and guidance, I will turn the call over to Ron.

Thank you, Todd, and thanks, everyone, for joining us today. I'll discuss our financial results and business metrics before turning to our forward guidance. Note that unless otherwise stated, all financial results in my discussion are non-GAAP based. Revenue for the second quarter increased 8% year-over-year to $132.4 million, coming in slightly ahead of the midpoint of our guidance of $130 million to $134 million. Network Services revenue grew 6% year-over-year to $104.2 million and security revenue grew 13% year-over-year to $25.4 million. In the second quarter, we continued to see sequential declines in revenue from some of our largest customers that partially offset growth in revenue from other areas, particularly social media, development platforms, and gaming. The sequential declines in revenue from our largest customers were driven by further impacts from the reversal in the consolidation of network services vendors last year that we discussed in Q1 and also a continuation of lower follow-on traffic than we have historically seen following typical customer rerate. As a result, network services revenue per gigabit declined more year-over-year than the historical trend line we typically experience. We anticipate this dynamic will continue throughout Q3 and then begin to moderate in the fourth quarter. Our Top 10 customers comprised 34% of our total revenues in the second quarter of 2024 compared to 38% in Q1 2024, reflecting the impact of the revenue declines from some of our largest customers. No customer accounted for more than 10% of revenue in the second quarter. As Todd discussed, customers outside of our Top 10 grew revenue 13% year-over-year. As we continue to transform our business towards a bifurcated customer strategy, we will continue to focus our customer acquisition strategy and direct more development and go-to-market investment towards the broader market opportunity outside our Top 10 customers. Our trailing 12-month net retention rate was 110%, down from 114% in the prior quarter and down from 116% in the year-ago quarter. The decline is primarily due to the revenue declines in some of our largest customers. We anticipate this will continue to be a headwind to our LTM NRR and revenue growth throughout the remainder of 2024. At the end of the second quarter, our RPO was $223 million, down 2% from $227 million in the first quarter of 2024 and down 3% from $231 million in the second quarter of 2023. This decline is primarily due to our largest customers working through the remaining obligations over their contract terms, partially offset by customers increasing the option of our packaging products, which are sold on a subscription or SaaS basis and add to our committed RPO. We had 601 enterprise customers at the end of Q2, a net increase of 24 compared to a decrease of 1 in the first quarter. This represented a 4% sequential increase in enterprise customer growth quarter-over-quarter. We had 3,295 customers at the end of Q2, a net increase of 5% from the prior quarter. Enterprise customers accounted for 91% of total revenue on an annualized basis in Q2, consistent with Q1. Enterprise customer average spend was $804,000, down 5% from $846,000 in the prior quarter and down 2% from $818,000 in Q2 of last year. I will now turn to the rest of our financial results for the second quarter. Our gross margin was 58.5% compared to 58.8% in the first quarter of 2024 and up 190 basis points from 56.6% in Q2 2023, as we continue to benefit from cost control efforts in bandwidth transit cost and related services costs which were offset by higher maintenance and support costs. Operating expenses were $90.1 million in the second quarter, slightly better than our expectations. We saw higher commissions and event-related costs for RSA and our Accelerate customer events impacting sales and marketing. This was offset by lower R&D expenses, driven in part by an increase in capitalized internal use software related expenses. This was a 17% increase compared to Q2 2023 and up 2% sequentially from the first quarter. We recorded a $3.4 million sales and use tax benefit that favorably impacted our G&A expense in the second quarter of 2023. Adjusting for this benefit in 2023, operating expenses increased 12% year-over-year. This modest favorability in our operating expenses, combined with better-than-expected gross profit resulted in an operating loss of $12.7 million in the second quarter, coming in at the lower end of our operating loss guidance range of $16 million to $12 million. In the second quarter, we reported a net loss of $9.3 million or a $0.07 loss per basic and diluted share compared to a net loss of $4.6 million or a $0.04 loss per basic and diluted share in Q2 2023. The one-time $3.4 million sales and use tax benefit in Q2 2023 and its impact on year-over-year profit comparisons should be noted. Our adjusted EBITDA was positive in the second quarter, coming in at $0.8 million compared to $5.2 million in Q2 2023. Turning to the balance sheet. We ended the quarter with approximately $312 million in cash, cash equivalents, marketable securities, and investments, including those classified as long-term. Our free cash flow for the second quarter was negative $18.5 million, a $16.4 million sequential decrease from negative $2.2 million in the first quarter. This decrease was primarily driven by a decrease in our cash from operations to negative $4.9 million compared to $11.1 million in the first quarter as first quarter cash from operations benefited from year-end 2023 receivables that were collected in the first quarter. Our cash capital expenditures were approximately 10% of revenue in the second quarter, coming in above the high end of our guidance of 6% to 8% of revenue we shared in our Q1 call. For 2024, we anticipate our cash CapEx will increase to 9% to 10%. However, we continue to expect our medium- to long-term cash CapEx to fall closer to our previous 6% to 8% of revenue expectations. I will now discuss our outlook for the third quarter and full year 2024. I'd like to remind everyone again that the following statements are based on current expectations as of today and include forward-looking statements. Actual results may differ materially and we undertake no obligation to update these forward-looking statements in the future, except as required by law. As Todd shared in his remarks, while we are seeing growth in new customer acquisition which we believe will lead to further revenue expansion longer term, we are facing a challenging environment of revenue decline from some of our largest customers continuing throughout the course of 2024 which is adversely impacting our revenue growth. Our revenue guidance reflects these dynamics in our business and is based on the visibility that we have today. We expect somewhat flat to modest sequential growth in Q3 revenues compared to Q2 due to lower revenue at some of our largest customers. For the third quarter, we expect revenue in the range of $130 million to $134 million, representing 2% to 5% annual growth. We continue to be very disciplined in our network investment and cost of revenues, which contributed to our second quarter gross margin being approximately 100 basis points better than we initially expected. For the third quarter, we anticipate our gross margins will decrease approximately 150 basis points relative to the second quarter, plus or minus 50 basis points. As Todd mentioned, we will be taking measures to align our cost structure to the challenging demand environment. This will enable Fastly to focus our investment on go-to-market and product innovation to capitalize on our new customer acquisition momentum while achieving our operating profit and cash flow goals. These measures include a review of discretionary spending, contract renewals, new hire requisitions, and overall staffing. As a result, we expect to generate approximately $14 million in operating expense reductions throughout the second half of 2024. These savings will be spread across R&D, sales and marketing, and G&A. We expect that roughly one-third of the savings will impact the third quarter, with the remainder impacting the fourth quarter. As a result, we anticipate recording a one-time GAAP restructuring charge in the mid-single-digit millions in the third quarter, excluding the impact of stock compensation. Our third quarter operating results will reflect the impact of the decrease in gross margin and the beneficial impact of the operating expense reductions I just mentioned. As a result, for the third quarter, we expect our non-GAAP operating loss to decrease to $12 million to $8 million and a non-GAAP net loss of $0.08 to $0.03 per share. For calendar year 2024, we expect revenue in the range of $530 million to $540 million, reflecting annual growth of 6% at the midpoint. This reflects continued weakness with some of our largest customers, offset by growth outside of our largest existing customers and newer enterprise customers. We expect to continue to see gross margin improvement in 2024 compared to 2023 as we leverage cost on incremental yet lower revenue growth. Our incremental gross margin remains north of 75% on a trailing basis, and as a result, we anticipate our 2024 gross margins will improve by approximately 100 basis points, plus or minus 100 basis points relative to 2023. As a result, we expect our non-GAAP operating loss to be in the range of $33 million to $27 million, reflecting an operating margin of negative 5.6% at the midpoint, an improvement of 23% over 2023's operating loss margin of 7.2%. We expect our non-GAAP net loss per share to improve to $0.16 to $0.11, reflecting the improvement in our operating loss expectations. We expect free cash flow to be in the range of negative $20 million to negative $10 million in 2024 compared to negative $59 million in 2023. As we look to 2025, we believe this cost realignment will enable us to focus investment in go-to-market and product development to continue to drive new customer acquisition and revenue growth while improving shareholder returns. This brings into focus the goal of achieving operating income and free cash flow breakeven in 2025.

And our first question today comes from Jonathan Ho with William Blair.

I wanted to start out with a little bit more detail on what happened regarding these large customers. And maybe what caught you off guard with these declines? Are they continuing or should we expect stabilization at these levels?

Yes. We mentioned there is definitely softness in the traffic of those large accounts, primarily media accounts. There's a push to profitability from within those teams, and we're seeing that. We've really transformed our customer success motion for these large multi-vendor customers. We're focusing on delivering the differentiation and service they are looking for in a very bespoke way. We've consumed some headwinds here in terms of the revenue projection for the back half, which you see in our outlook. But yes, we believe we've stabilized those accounts at this point.

Got it. And then just in terms of the guidance, can you maybe help us understand how you sort of came up with these parameters with the revised guidance, how derisked do you feel at this point? And are there any other large contract renewals that are coming up in the back half of the year? I think investors really want to understand the downside potential here or whether it's just been completely taken out.

Sure. The adjustments we made to our guidance were largely not due to renewals but due to softness in the traffic projections in the back half, and obviously, the push to profitability from those accounts. We're taking a much more high-touch, bespoke approach in these accounts, and that's given us more confidence in our projections now. This change in the customer engagement motion and the internal analytics that we're using to make those projections are pretty significant and fundamental to how we're operating and that's giving us a lot more insight into the dynamics in the Top 10, and we believe we've got a pretty good view here for the back half of the year.

The only thing I would add is with our overall process, Todd mentioned, we've revised our engagement model. We've added regular senior engagement with these largest customers. We believe that's given us a lot better visibility into the dynamics of these customers than we had at the beginning of the year. We now have a much more reliable outlook regarding those customers where patterns changed significantly earlier this year.

Our next question comes from the line of Fatima Boolani with Citi.

I wanted to ask you about the restructuring efforts that are going to be underway and, of course, in the back half of this year. Specifically, if the aspirations are for driving new customer acquisition, why would sales and marketing be kind of lumped into that? What kind of give confidence that you're not potentially hollowing out your sales capacity that could prove detrimental to those growth aspirations? And then I have a follow-up.

Yes, absolutely. We're restructuring and very specifically not a sort of peanut butter approach across the organization. We're restructuring to allow ourselves to invest in the go-to-market and the most efficient parts of our go-to-market to help us drive customer acquisition and wallet share growth in key accounts, as well as technology innovation that will help us drive revenue growth and sales efficiency in the long run.

Got it. And then just a follow-up on Ron's commentary regarding CapEx. You mentioned an increase to 9% to 10%, but given that you just came out of a pretty meaningful network rebuild, why does that envelope still remain high, particularly in the context of some of your large media delivery customers ratcheting back their traffic levels? So why wouldn't that alleviate some of the CapEx pressures?

Yes. There are many dynamics at play. One of the things we have seen this year is a positive thing—increasing global traffic. Some of this CapEx is needed to support regions with expanding traffic levels, which ultimately plays out well long term, as we're able to drive lower costs in bandwidth and other expenses. The geographic traffic mix supports why we believe the medium to long term cash CapEx is still appropriate.

And our next question comes from the line of Frank Louthan with Raymond James.

Has Scott changed sales metrics? If not, when will that be completed? Where do you think quarter-end headcount is now? Where does that need to be to reach your goals?

Scott has only been here for a couple of months, but he's had an amazing impact already. He has a focus on both customer acquisition and driving revenue growth through cross-sell. He's been very careful about optimizing that.

Okay. Can you clarify what percentage of your sales come from the channel today?

We don't disclose the percentage from the channel. We've experienced good success growing that channel and will continue to invest there. However, it's not a disclosed number. That said, I believe future success in this transformation will involve optimizing those channel investments, especially in leveraging that channel for deal registration and customer acquisition.

And our next question comes from the line of Sanjit Singh with Morgan Stanley.

I have a higher-level question regarding Fastly's growth and profitability curve. With overall top line growth coming down to the low single digits and the company still being unprofitable, is there a risk you start to see weakness on your non-media business? How are you thinking about pushing further on profitability while top line growth seems uncertain for the next few quarters?

I think it’s an important question. We see this as a transition moment. You can see the change in our customer concentration happening rapidly, and we're building a foundation around Top 10 large media CDN accounts. This will drive growth in Edge platforms that include delivery, security, compute, observability, AI, etc. We are adjusting our spend to maintain bottom line discipline while transforming the company and driving growth for 2025.

Understood. With the new Chief Revenue Officer onboard, how do you see the go-to-market strategy execution in the first year of his tenure in terms of the magnitude of change expected in the organization?

The restructuring is accelerating that in many ways. A big part of the restructuring Scott is planning for next year has been catalyzed to drive urgency.

And our next question comes from James Fish with Piper Sandler.

This is Quinton on for Jim Fish. For Ron, as we think about the guide change here, it sounded like delivery expectations for these largest customers had been dropped to minimum commitments. Was this not the case? And is the updated guide embedding minimum commitments?

When looking at our largest customers, not all of them have a commit, and many have commitment levels below expected traffic levels. Think of these customers on a utility basis with variable traffic. Historically, we had reliable modeling, but patterns changed significantly earlier this year, impacting our outlook.

Got it. That's helpful. From your Top 10 customers, has the revenue pressure been from delivery rather than security? Have you seen any impact from reduced traffic on security revenue?

Those Top 10 accounts are very delivery heavy—primarily in media. Thus, the revenue pressure concentrates on the delivery side. We see momentum building outside those Top 10 accounts, especially outside these large multi-vendor primarily media accounts.

And our next question comes from Frank Louthan with Raymond James.

Can you break down how much of the revenue reduction was from share loss at media customers versus reduced spend expectations?

We don't break down those numbers. It varies where both share loss and reduced spending are occurring. We expect to see repricing, not just in large accounts but across the board. Still, overall traffic has not increased as much as we historically anticipated.

If I were to look at the revision to the guide, outside of media, how did your outlook change on non-media revenue?

We don't disclose media and non-media specifics, but we feel strong momentum outside the Top 10 accounts and media. This will drive a diversified and healthier revenue base for Fastly long term.

And our next question comes from the line of Madeline Brooks with Bank of America.

If I look at the implied guide for Q4, that would suggest roughly a 1% decline in revenues. How do you relate that to the 13% growth trajectory you saw outside of Top 10 from the past couple of months? Could you help bridge the gap as to why that implied negative 1% guide is correct?

We expect to see some continued decline but not at the same rate. However, with the growth outside of the Top 10 accounts being healthy, we believe it will balance out with some continued improvement.

The growth from new customer acquisition will lead to diversification of revenues. I truly believe that ongoing momentum and technology will offer a more predictable growth base.

And our next question comes from the line of Rudy Kessinger with D.A. Davidson.

Your Top 10 accounted for about $45 million in revenue in Q2. What’s the floor? How much potential downside could there be if customers just stopped traffic immediately?

There's a mix among our Top 10 customers. Some have commitments, while others do not. Certain customers are showing positive momentum, and we have not been removed from any accounts. The dynamics are varied.

To add, we’re working to improve that balance and secure larger commitments that will help us stabilize overall traffic projection across these accounts.

The Security segment has slowed to 13% year-over-year growth, which is the lowest on record. What’s your anticipated growth in security for the second half?

We don’t disclose projections by product line. However, we're focused on bringing back security growth rates into the high 20s if not higher.

And our next question comes from Tom Blakey with KeyBanc Capital Markets.

Can you help us understand what’s baked into 2025 regarding these large media customers? What is the current pricing dynamic across your non-media customers?

We see pricing pressure in large media accounts as they focus on profitability. Outside those accounts, the pricing model is successful, benefiting several aspects of our technology and overall growth.

The gross margin decline is relatively small, noting some higher pricing adjustments occurring. We expect pricing pressures to lessen, and the concentration of large media customers to decrease, driving favorable gross margins moving forward.

Thank you for your questions. That concludes our Q&A session today. I will now turn the call back over to Todd Nightingale for closing remarks.

Thanks. This time marks a moment of transition for Fastly, and I want to thank the team for their commitment and continued focus on our customers and Fastly's growth. Restructuring the company is a necessary step, but this decision was not taken lightly as we care deeply for all of our employees and teams. Thank you for your interest and support in Fastly.

Thanks, Todd. Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.