Fastly, Inc. (FSLY) September 9, 2026 Conference Transcript

Bulani, I jointly head up our software equity research franchise here at Citi, and I'm very excited to kick off day two of Citi's TMT conference with Fastly. So on stage with me is CFO Rich Wong and also head of investor relations Vernessi. Thank you so much for being here.

Thank you for having us.

Excellent. Well, I'm looking forward to a very productive discussion. So maybe just to kind of get the conversation flowing and started, Rich, happy 13 months in the job. So, you know, a whirlwind year for you at the company. So I think a good place to start would be, you know, 13 months in review, right? The most important structural changes to the business that you've witnessed in the last 12 months and also the changes you've affected in the last 12, 13 months?

Well, thank you for remembering my 13 months. It has been a whirlwind. It's been a lot of fun. For those of you who don't know Fastly, I can just start with a real quick introduction on what Fastly is and what we do. We are an edge cloud provider. We, you know, break our revenues down into three main revenue lines where we do delivery services, which is really accelerating the internet. Really, you know, we have 166 points of presence around the world that helps cache and speed up data flow throughout the world. We also have a security business. Our security business is multi-product, and security really is making sure that as we deliver the traffic around the world, we secure it. We make it very safe for users. We have a web application firewall. We have a DDoS product. We also do bot management. So we have a number of security products that support that. And then we have an other business, which is kind of our growing kind of business. And that consists of a lot of observability and compute. And, you know, as the world transitions and the internet transitions, you know, this is becoming a bigger portion of our business. I joined 13 months ago because I believe that the internet infrastructure business is really changing rapidly. And I just think that Fastly is very well positioned. We are kind of a technical, you know, powerhouse here. We, you know, our products are faster, better, more programmable, and easier to use. I would say over the last 13 months since I've joined, we've really hit a reset on the business, a lot of transformation. We've accelerated revenue growth. So in our most recent quarter, we had 183 million of revenues growing that 23.3% year over year. All three lines of businesses are growing pretty fast. So we have our delivery business growing 17%. We have our security business growing 43%. And we have our other business growing 69% year on year. We've also done a really good job managing the business from a financial profile perspective. We hit record gross margins. So our gross margins are 65.8% in the most recent quarter. You know, we've had four quarters consecutively of profitability with the most recent quarter, about 15% operating margins. And then we've also had six consecutive quarters of free cash flow positivity. So we've really shifted the business from a, you know, growth rate perspective, we've shifted it from a gross margin perspective, and we've also hit profitability and free cash flow positive. So a lot of trajectory. I think, you know, you asked me, like, what kind of impact have I, you know, made on the business in those 13 months? I would say it's been a very fun job because you get to wear the CFO hat. And as a CFO, you get to get involved in all aspects of business. And so really getting involved with the sales organization, helping them think about how to structure deals, how to, you know, we have, you know, a lot of the biggest customers that you know, and you get involved in deal desk, deal pricing, deal strategy is a lot of fun. Working with our product engineering organizations, thinking about like product strategy and direction, that's a lot of fun. I think just building the robustness around how do we partner with the business and how do we enable the business to move faster, but at the same time and making sure that, like, the resources that we deploy have the right capital, you know, ROI.

You know, related to that, Rich, it seems that you, as though you have introduced some process changes that would necessarily have an impact in the way you guide, you set expectations. So, you know, anything to shed light on in terms of, you know, guidance framework and philosophy fee that you've evolved or tweaked? And then just as a related matter, alongside you, there have been additional changes in the executive suite. So how have those changes in the C-suite writ large impacted the way you collectively are managing the business towards some of these metrics and the acceleration you've been able to realize in both growth and profitability expansion?

Great question. I would say that for me, you know, partnering with the business has been one of the most fun parts of the, you know, the job. Really, really like getting in there, working with the leaders. And that really helps a lot when you start doing guidance and expectations, right? The closer you are to the business and the closer you are to the deals, you have a better sense of what's happening in the business. And I think that the most important thing when you actually do guidance is actually like how strongly and, you know, how much do you feel that you're going to hit the numbers that you're going to say, you know, say you're going to hit. And I think that always starts with partnering with the business to really understand that. I would say that, you know, we are, you know, a consumption based business on the delivery services side. And so it's always hard to predict where consumption is going to be and where Internet trends are going to be. But you do a lot of modeling from multiple angles, right? you'll do tops down bottoms up you know we do a lot of customer by customer modeling and looking at specific deals and so like the more comfortable you are with that the better you can be with your guidance you know from a philosophy perspective i like to make sure that you know i feel confident with my forecast i give a number where you know like it's it's closest to the pin but there's some upside potential because you want to make sure that you have a number that you feel really good about um and so i think forecasting and i mean guidance always starts with like the best forecast possible um i would say that you know we've also built a very strong discipline around even opex management and headcount management i think that like partnering with the business you have to like really be in there and understand like what heads are coming in and how it translates into operating income um and yes we've had a number of management changes i actually have been part of the reason why i joined was because of the management changes um you know I joined 13 months ago. Kip was our new CEO. He was actually running chief product officer before that at Fastly. And I just felt like he and I were very aligned with the way we want to run the business and the way we think about things. We had Scott Levitt, who joined two and a half, three years ago now as our chief revenue officer. And now he's president go to market. And he's been amazing, like working with a really good sales leader who is very experienced, who knows you know, this space and also know security very well. That was a really good, you know, piece of it. We promoted internally our KIPPS replacement, who's our new chief product officer, Kelly Shortridge. And, you know, we also internally promoted our head of engineering with Hussain. So like we've had a number of management changes, you know, some are internal, some are external, but I just think that the rapport that we have and the way we work together, it's just been amazing.

I appreciate that. You know, maybe shifting a layer deeper into the business with respect to the revenue mix in the segments in which you operate, right? So network security, network services, security, and compute and observability, sort of the catch-all bucket where, you know, maybe I would characterize there's some moonshot activity in there with very high upside potential, and we can certainly get into that. But maybe you can give us just a quick refresher on the relative sizes of those pillars underneath the hood at Fastly. And the growth profile, you know, I think security 43%, that's been trending very well. But just to kind of set the ingredients on the table, and we can sort of unpack some of the drivers of each constituent piece.

Perfect. So 183 million of revenues in the most recent quarter, 73% of which came from network services. That's our delivery business. This is, you know, the delivery business is growing 17% year on year. And, you know, I think that, you know, here we are a market share taker. And so we should continue to grow faster than the market in this space. You know, I think that if you look at our products relative to our peers, we have a higher performance product and performance is measured by speed, security, you know, configurability, usability, developer, you know, friendliness. It's a very strong product relative to our peers, and it's growing fast. It's 17%, so faster than the market. Our security revenues are about 23% of revenues, and that's growing 43%. That business is actually doing extremely well. I think it's the past few quarters, it's been growing north of 40%. And the reason it's growing well is because we've expanded that product suite. We started with one security product two years ago with a web application firewall. And over the last two years, under Kip's regime as like chief product officer, we've really expanded the security product. And so we now have the full suite. And so we introduced kind of DDoS, bot management, API security, client-side protection. And with those introductions, we actually have the full suite of security products that enables to really win RFPs now. Like, you know, when we are going out there and we're selling both delivery services and security together, like customers are looking at us and saying, wow, these products are really good and you have the full suite to support us. And so that's been a really good business driver for us. And that should be continuing to grow also faster than the market. And so 43% year over year in the last quarter. And then others are catch all. I wouldn't necessarily say it's a moonshot. I would say it's a great business. I would say that, you know, that's primarily compute right now. So with the world of, you know, speeding up the internet and a lot of personalization and a lot of like even agentic AI and AI, like compute is becoming a bigger and bigger piece of it. And so the compute is the biggest portion of our other business. And I think that, you know, that's growing 69% year over year. That will continue to grow pretty fast as well. And we should definitely be growing faster than the market, given one, the size of this business itself, but two, kind of the internet trends that we're seeing, right? I think that we are seeing more and more customers deploying and using compute and trying to explore how to live in this new world of like AI. And so I think those three together are the core of our business. If you just take security and other, that's almost, we're almost at a $50 million run rate. And that's growing, you know, north of 50% for that business. And so pretty proud that we've grown kind of outside of the delivery business to So almost a $50 million kind of, I think it was $49.4 million for the last quarter.

Rich, I think you're foreshadowing something interesting in that three quarters of the business is still, you know, your core competence around delivery and delivery services and network delivery. But as you think about, you know, your near term and medium term range planning, are there high level contours on how you think about the mix of this business changing? And I think as a public service announcement, I know there's an analyst day coming up in a not too distant future. So I don't want you to give me the snake, but maybe a little bit of the sizzle to the extent you can sort of talk about, you know, how the mix of business, you know, could potentially evolve in the near and medium term.

Sure. So Investor Day is coming up in two weeks. It will be here in New York City. So hopefully, you know, we can have you guys join us in New York City. will be at the NASDAQ market site. June 22nd, by the way. June 22nd on Tuesday. September. September, yes. Say tune, oh my gosh. And I copied you.

I'm here to keep you in check.

So I would say that given the growth rate profile of the businesses, like security continues to always grow, you know, has been historically growing faster than our delivery business and our other business, especially compute, has been growing faster than security. I just think that naturally evolves the business quite a bit. I would say that compute is a very nascent business still. I think, you know, I think we were about $7 million in the last quarter. It's the fastest growing, but it's also the one that customers are most excited by. Just to like co-invent, you know, they're doing co-inventing with us, really trying to figure out how to use, you know, compute in this new world of AI. I think everyone's trying to figure it out and trying to figure out, like, what's the best use case to speed up the Internet, make it safer and more secure. And I just am very, you know, there's a lot of opportunity there to make that a much bigger business. And I just think that as the world continues to evolve, you know, I think that, you know, we're evolving with our customers on what they need. So the mix will gradually continue to shift away, you know, towards compute and security as a business. I think delivery will still continue to grow. We're still going to invest in that business. It's a very good business for us. And in our recent quarter, we grew 17% year on year. And so we'll continue to invest in all three. I think from a foreshadowing of Investor Day, I mean, I think that what's interesting with us is that we have really full product suites within each of these businesses, right? Delivery services, there's actually a product suite that supports what customers need. And security, I mentioned going from one product to five products, that whole security suite is a bigger suite now, right? And I think that the way we break out our revenues, it's very like assuming that we have three products. But technically, at Fastly, we have a lot more products that support our customers. And so, you know, we are thinking about like the way we talk about even multi-product and how, you know, we want to kind of share multi-product metrics going forward.

You know, on the topic of, you know, maybe there's an artificial delineation between these arenas under Fastly. But at the end of the day, that is what sort of lands with the investor community, right, to just sort of itemize the type of momentum you're seeing in those distinct businesses. So I can appreciate that, you know, to some extent, that's more of an artificial sort of exercise. However, I'm curious if there is a way we can internalize the relative gross margin and or operating margin profiles. I know some disclosure that you've most recently shared is just incremental gross profit, incremental operating income at the business level. So curious if you can just give us a rehash of some of that, because the momentum in the last 12 months has been pretty remarkable. And then as a related matter, you know, isn't the momentum and the upshot and security that's been the principal driver of this, you know, operating leverage that you're really squeezing out of the business?

Yeah. I mean, we do look at, you know, kind of flow through on gross margin and operating margin. I think our last 12-month gross margin flow through has been like 96%. I mean, so, you know, for every dollar that we have like generated, we've kind of flown through 96% back to gross profit. So you can see a lot of, like, operating leverage as we've kind of grown the business and expanded and done cross-sells into other areas. When you think about gross margin by business line, it gets a little bit harder and trickier because you really, like, Fastly has one network, right? We have one network that supports all the products. And so whether a customer is using delivery, whether a customer is buying security product, or even they're doing compute, they're using the same 166 points of presence that we have around the world. And because of that, and they're using different resources, right? So delivery may be using some bandwidth and some potential, like, you know, I.O. And then on security side, you know, you may be using some, you know, a different kind of part of the server. And then when you're using compute, you might be using CPU capacity. And so it's all the same servers, all the same network gear, and it's supporting all three businesses. And so as a result, we don't do gross margins by business. I would say that having all the businesses together is highly complementary. So like if you use a compute as an example, you know, our constraint was never kind of the CPU side on our business. It was more the I.O. side. And so when you launch a compute business, you're using kind of stranded resources that were not being utilized effectively, right? And so when now you start selling compute into the business, now you're using a different side of the servers that were not being used, but it's all free, right? because the servers were there the cpu capacity was there um and so what you're seeing is you're seeing our mix shift changing and you see security and compute a bigger portion of revenues a lot of that is like incrementally like higher margins just because like they were just stranded you know reserves that were not being utilized effectively um you know we're very much you know some of our peers actually have to support multiple networks um and so i think that for them it's a little bit different um where they may be able to break out the but you know for us we're 100 on the same network you know all the servers run all the businesses whether it's bot management or ddos

it's still the same servers running and powering our delivery business um i i wanted to spend uh some time back on the you know the flagship business the bread and butter the network services um three quarters of the business um you know zooming out the internet is growing traffic is growing. Machine and AI and bot traffic as a proportion of the internet is growing. I think you have your own internal research that's also come out saying we've had a 6x increase in at least the traffic you're seeing flowing through your network. So, you know, back to the basics on the network security business, you just put up 17%. You had a very strong back half and first half of this year in that classic core side of the business. Can we walk through some puts and takes and assumptions because the two variables here are you know q traffic growth p pricing which i think you've been very transparent about so uh you know help us walk through how some of those or those two particular variables have um played out in the first half of the year and how you're thinking about them you know certainly for the back half of the year uh and then as a general matter i mean q is really up yeah yeah so i think just to talk about pricing is since it's a topic i think we get asked about a lot it has been a very relatively stable market for the last

say three to four quarters uh for us probably three to be precise and um if you go back and look at this industry um the content delivery network industry there were a couple of point players that unfortunately went out of business about two years ago. And they introduced what we would characterize as like an irrational pricing environment. So there were some rough moments that the whole industry went through. That's been totally absorbed into everyone's models that's still remaining for well over a year now. And so we've had this environment where pricing has been relatively stable. When we say stable, it's still declining sort of mid to high single digits year over here, but we also get commensurate gigabit traffic on top of that. So it goes through sort of a Moore's law dynamic where we're seeing more traffic as a result as the environment's growing, as Fatima pointed out. In terms of the queue side of it, the quantity, I think where we've been very successful, and Rich was alluding to this earlier, is we have many more opportunities and on-ramps with our largest customers in cross-selling and upselling different pieces of our overall platform, specifically in security. So we are seeing dynamics where we may close a new piece of security with an existing customer, and then when we go back to do a renewal, we're at the table, they will give us more traffic as a result of that longer term. So they'll commit to that. And so that's sort of feeding a lot of the growth that we're seeing. I think in the market overall, there has been a shift towards higher performance delivery for both static websites as well as where we do very well in live entertainment and streaming type media. And we've continued to be probably a share gainer across most of those markets. And certainly if there's any large live sporting event, there's a good chance that Fastly's behind the scenes powering that.

And Vern, just to double click on that, you know, thinking about the composition or call it the complexion of that traffic, how do you expect that? I mean, based on the data that you're seeing in your network, how is the complexion of that traffic changing between live events, between corporate traffic, between, you know, episodic events, which I suppose would be more live events centric, and AI traffic and bot traffic and machine generated traffic?

The machine generated traffic, without question, is where we're seeing probably the most growth. I mean, again, it's still very early innings, and it's still very small, but it relates to our our platform itself that's having an outsized impact we have a product called content guard that we rolled out which is specifically designed to help in a great example this is a publisher where they have agents and bots coming in and scraping content off of their website being delivered through a frontier llm to an end user and that publisher does not get compensated for that so they now have full control to see who's accessing their content they can set up licensing arrangements around that and actually set up a monetization stream around it. So it's been a very successful product. We have a lot of excitement around that one. And we recently rolled that out in the last 12 months. But we're seeing more use cases around those types of applications in the security realm. And don't want to take any sizzle from Investor Day, but stay tuned. There are some interesting things there. And then also on the delivery side, yes, the requests are definitely going up machine to machine wise. And we do see that in some of the programs that we're involved in. I mean, if you look at where we're positioned, this could range from us being sort of a middle orchestration layer for inference and agentic AI and communicating with the frontier LLMs. And I think where we're at is a very unique position because we are one of the few cloud neutral systems that are out there or architectures that are out there. Whereas a lot of these other ones that are sort of quasi peers of ours, I won't name names, but they're building massive GPU farms and things like that. They're actually building more closer to centralized clusters around these activities. And so if you're someone that wants to put in a multi-cloud strategy around that, and you want to have the flexibility over time, you'll wind up probably engaging with an architecture similar to ours. So that's sort of the positioning. So we think there's a lot of growth there. Potentially, admittedly, we're not seeing it like today in terms of its proportion of the overall traffic, but it is picking up a lot behind the scenes. As you said, 6x for that traffic level.

Werner Rich, so what I'm gathering from you is actually counterintuitively, even though your traffic levels are going parabolic on the network, from a monetization standpoint, from a P&L geography standpoint, you're actually seeing that sooner in the security business, right? So if current trends persist in the way they are, we should, as investors, see that manifestation within your security business. Is that a fair distillation?

Yeah, I think, like, the nearest term impact because of AI would probably be security and some compute. I would say that, you know, when we think about, like, AI and the way it's impacting our businesses, specifically even delivery, you know, when we talk about traffic, you typically think about traffic as measured by gigabits delivered. AI traffic is, you know, very small bits of data, right? And so it's not like streaming where you're doing high definition, you know, bandwidth transmission. And then I think that, you know, it's when we talk about like growing 6x on a traffic basis, that's from a request perspective, which is very, very tiny bits, but the number of pings that happens on the internet is quite high. And so when you think about our products and the way we price, our security and our compute products are priced based on a request per second basis, whereas a lot of our delivery business is still on a per gig basis. And so when you add up all those little bits from machine traffic, it's not still the same as a transmission. And so I think delivery will take time to kind of change over time. But I think right now, based on the way things are priced.

On the pricing side of the equation for the delivery business, I know I'm sort of jumping back and forth, but I think it's an important point to hash out. You talked about just more rational behavior in the marketplace, right? I'm wondering how much of that pricing rationality is maybe transcending into pricing power because you have had some of your peers actually raise pricing, right? Right. And so has that been an advantageous opportunity for you to command more market share from a unit perspective? Or is the strategy that, hey, the market can bear a higher price. So there is an opportunity for you to realize better price on the average delivery contracts versus the historical cadence of general degradation in that market. it. Any thoughts there?

Yeah, I mean, I would say that, you know, from a pricing perspective, you know, our competitors and us, we're very rational players now, we're going to like, talk about the value that we create for our customers. You know, those anchor biter, you know, a lot of those little, you know, ones have gone out of business. And so that pricing rationality is not there anymore. I do think that, you know, edge cloud is growing in significance with like security and compute. And because of that, we're adding more value. And so a lot of conversations go into value and and like how do we you know support our customers and how do we price our products you know across the board and so we actually less and less think about like pricing on a delivery services side it's more a like hey what is your problem that you're trying to solve and what are the product suites that we can bring to the table to do that and yes i think that you know given the environment we're in today i think you know there's definitely more of a partnership approach to pricing as opposed to like a hey you know we are going to like you know, be the lowest cost provider. Like it's much more about that partnership and the value creation, which I think is a much better position to be in. I think customers are more and more wanting to partner with us. They're wanting to make commitments. You see that in our RPO growth and you're seeing that in our CRPO growth where RPO grew 38% year over year. Our current RPO is growing 44% year over year. And so I just think that partnership overall is definitely there. I can't speak specifically about like what our competitors are doing with price increases. I I think they announced it, whether that's actually happening or not. That's for them to discuss. But the approach that we've taken at Fastly is much more about the partnership with our customers, the problems they're trying to solve, and how do we price our product's portfolio and the suite for them.

Rich, just staying on the pricing topic, but maybe taking a different angle to it, you've been able to deliver a lot of value and value-based selling to your install base, right? in talking about, okay, let's not, you know, apportion a conversation around delivery services. It's not apportion a conversation on security. So generally speaking, has the incremental momentum and security come, you know, from better and more assiduously farming the installed base, right? And then relatedly, you do have about a third of your revenue coming from your top 10 customers, right? So, you know, a little bit of a double-edged sword in that, okay, there is concentration here, but these are very meaty, important customers. So how do you balance some of that, you know, ongoing wallet capture penetration opportunity with the fact that, hey, you maybe do need to continue to diversify the rest of the business so, you know, it's not as weighty of a performance from the top 10. So how do you kind of juggle those very, you know, it's a tenuous dynamic. How do you juggle that?

So I would say that our product suite comes from both sides, right? Like, you know, with the fuller security suite, we're able to do very effective cross-selling with existing customers, but we also can land with new customers just with their security A lot of times they come in having a security problem, and we can actually, it could be a, you know, inroad in terms of how we sell to customers. And so I would say having that fuller product breadth allows us to kind of really do both, cross-sell existing customers plus land new logos. I would say that, you know, when we think about, like, the products and the suite we have, I mean, I think that, you know, it's our top 10 customers are adopting the multi-product. And so you'll see the strength of that business. I think our top 10 kind of, you know, it was 37% of, you know, revenues in the most recent quarter. Like, does that concern me? I would say these are actually very good customers with really good margin profile, as you can see with like the 65.8% gross margin, record gross margins, even with that higher concentration. What makes me feel really good about these customers is it's not the growth isn't coming just from delivery services where they can just shift and move businesses. Like if you look three years ago, five years ago, like that's risky, right? Because when you're only selling one, you know, delivery services product. But the reality is these customers are now buying security. they're buying our suite, you know, they're doing compute, that makes them a lot stickier. And so we actually have internal studies that have shown that when customers buy multiple products, like they just become much more sticky. So am I concerned about the 37%? Not really, because they're really good customer contracts. They're much stickier than they have been historically. I do think that, you know, when you look at the outside of the top 10, you know, outside of the top 10 is still growing double digits on a year-over-year basis. I think the most recent was 12% year-over-year growth. We need to do a better job with that. I acknowledge that. But I do think that, like, you know, we are not going to, you know, the best way to really diversify is to really grow that non-top 10. And even, you know, outside of that, I think we have 624 large customers. So just continue to grow that, you know, that portion of the business as well. But I wouldn't do it at the sake of cutting back the support that we give to the top 10. Our top 10 is a very good set of customers.

Rich, I know you disclose net retention rate at the company level. I'm wondering if there is a meaningful distinction or delta between the net retention rates of your top 10 customers versus the rest of the base. Even, you know, any directional contouring would be helpful here. just so you know most of us can appreciate that the top 10 are indeed all in on the fastly platform and there is uh you know a lot of um attractive LTV kind of latent in there anything you can sort of uh you know any color you can give us around that yeah i'll give you two data points on that one is that so our nrr is 117 in the most recent quarter i think that's like a three or four year high for the company.

And so we're definitely very proud of that like NRR kind of, you know, increase. I would say that, you know, given that top 10 is now 37%, you can kind of imply that like NRR for the top 10 is actually higher than the 117%. And so we feel really good about that, because it just means they're just embracing and adopting more products at a bigger scale, right? And I think it's a really kind of good data point to have. I think the other data point is that if you look outside the top 10 or even outside the top 50, it's still very healthy NR, right? And we're not like at an NR where it's like dropping, you know, to like 105 or even 100%. So I think that like our NR, even among the different cohorts, are very strong and very good. And I feel really good about where we're at.

So we talked a ton about network services. We talked a ton about security. In the other bucket, again, a lot of option value in that bucket. A lot of your peers and, you know, the industry at large, we are going through a generational capital expenditure cycle, right? So what behooves you to invest or not invest in, you know, scaling out your, you know, CapEx and infrastructure footprint? You've been more judicious. But what's holding you back? Maybe what do folks in the investor community not to understand about your network topology, your architecture that precludes you from having to take, you know, similarly aggressive steps as some of your direct peers, some of your orthogonal peers who are, you know, again, undertaking a generational CapEx investment. Because ultimately you're paying the price on, you know, component price inflation, which I think you've managed around. So just generally commentary on, you know, are you, do you want to get into the race? Is it too late? Does it matter? What are your thoughts there, and then why?

Yeah, so our most recent earnings quarter, we talked about 10% to 12% of revenues invested back in CapEx. It actually is an increase. I think it's almost like a 40% to 45% year-over-year increase on CapEx spend. So we are making the right investments we need to do. I think when we think about it, the beauty, and we have a much more network-efficient architecture. We're running one network, supporting all of our products. That enables us to have a lower percentage, you know, in CapEx as a percentage of revenues, which is very helpful. So when you compare us versus our peers, even at our size and scale, we're making the investments we need to support the revenues that we expect. And we're doing that in a much more efficient way. I would say that, like, orthogonally, the peers are doing a lot of GPUs, which, like, you know, when we look at it, it doesn't make sense for us to put GPUs in. Like, we can service our compute business with existing CPU. And so I just think that, like, for us, you know, we're going to be continuing to invest in CPUs and our business. And, you know, when we see the opportunity for GPUs, we may consider it. But for now, like, I just think that, you know, we can be much more efficient the way we are.

Last question for you. If you had your magic wand to wave away any one glaring investor misunderstanding or misconception, what would that be?

And I know you'll have analyst data. to expound on it but so i'll i can give my one wish i i just think that you know this this this business on being on the edge cloud is much broader than just a cdn business i just think that there's a lot of misconceptions around this being a cdn you know commodity business like there's a lot of intelligence in the edge now right and this intelligence is making the product suite that we have much more important around security bot management ddos it's not about just pushing bits of traffic across the internet and speeding it up. It's actually a lot more secure, dynamic, more e-commerce traffic is happening, more hospitality, like just there's so much happening on the internet today. And I just think that people still have this mindset on like commodity CDN business. And that's not what we do.

I appreciate that. I look forward to getting some more details in a few weeks.

All right.

Thank you very much.

You guys all can join us. Thank you.