v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue by geography is based on the billing address of the customer. Aside from the United States, no other single country accounted for more than 10% of revenue for both the three and six months ended June 30, 2025 and 2024. The following table presents the Company’s net revenue by geographic region:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
United States$112,770 $97,968 $221,541 $196,466 
Asia Pacific16,086 17,322 31,634 36,421 
Europe15,220 12,103 30,156 23,349 
All other4,633 4,978 9,852 9,655 
Total revenue$148,709 $132,371 $293,183 $265,891 
The majority of the Company’s revenue is derived from enterprise customers, which are defined as customers with annualized current quarter revenue in excess of $100,000. This is calculated by taking the sum of revenue for each customer within the quarter and multiplying it by four. The following table presents the Company's net revenue for enterprise and non-enterprise customers:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
Enterprise customers$139,258 $120,731 $273,949 $242,791 
Non-enterprise customers9,451 11,640 19,234 23,100 
Total revenue$148,709 $132,371 $293,183 $265,891 
The Company reports its revenue by three product lines: Network Services, Security, and Other. Network Services include solutions designed to improve performance of websites, apps, application programming interfaces (“APIs”), and digital media. Security includes products designed to protect websites, apps, APIs, and users. Other includes Compute solutions that allow developers to build and deploy modern web applications on Fastly's edge cloud platform and Observability solutions that provide real-time logs, data, and metrics streamed from Fastly's edge platform for actionable insights. The following table presents the Company’s revenue by product line:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
Network Services
$114,877 $104,158 $228,106 $210,154 
Security29,267 25,368 55,702 49,968 
Other4,565 2,845 9,375 5,769 
Total revenue
$148,709 $132,371 $293,183 $265,891 
Contract balances
The timing of revenue recognition may differ from the timing of invoicing to customers. The Company has an unconditional right to consideration when it invoices its customers and records a receivable. The Company records a contract asset, or unbilled receivable, when revenue is recognized prior to invoicing. The Company records a contract liability, or deferred revenue, when a contract is billed in advance of revenue being recognized.
Deferred revenue pertains to amounts billed to customers for which revenue has not been recognized, which primarily consists of the unearned portions of billings for the Company’s security subscription services and the unearned portion of edge cloud platform usage. Amounts that have been invoiced for annual subscriptions, but not collected, are recorded in accounts receivable and in unearned revenue or in revenue depending on whether services have been delivered to the customer. The Company’s payment terms and conditions vary by contract type, and generally range from 30 to 90 days.
The following table presents the Company’s contract assets and contract liabilities as of June 30, 2025 and as of December 31, 2024:
As of June 30, 2025As of December 31, 2024
(in thousands)
Contract assets
$2,042 $1,072 
Contract liabilities$41,546 $29,585 
The following table presents revenue recognized during the three and six months ended June 30, 2025 and 2024 from amounts included in the contract liability at the beginning of the period:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
Revenue recognized in the period from amounts included in contract liability at the beginning of the period$13,473 $14,254 $20,696 $23,652 
Remaining performance obligations
As of June 30, 2025, the aggregate amount of the transaction price in our contracts allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $315.1 million. This amount includes future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. The Company has elected to not provide certain information about its remaining performance obligations for service contracts with an original contract duration of one year or less. As of June 30, 2025, the Company expects to recognize approximately 72% of its remaining performance obligations over the next 12 months. The Company’s typical contractual term with its customers is one year, although terms may vary by contract.
Costs to obtain a contract
As of June 30, 2025 and December 31, 2024, the Company's costs to obtain contracts were as follows:
As of June 30, 2025As of December 31, 2024
(in thousands)
Deferred contract costs, net$47,932 $52,583 
During the three months ended June 30, 2025 and 2024, the Company recognized $4.8 million and $4.5 million of amortization related to deferred contract costs, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized $9.7 million and $9.1 million of amortization related to deferred contract costs, respectively. These costs are recorded within sales and marketing expenses on the accompanying condensed consolidated statements of operations.