Fastly (NYSE:FSLY) stock beat the market on Monday, closing the session up 5.2%. The tech specialist, which helps enterprises serve digital content to their customers, provided details on its strong third-quarter results.
In its quarterly filing with the SEC, Fastly on Monday gave investors more context around the solid earnings metrics it revealed last week.
The report detailed accelerating demand for its content platform services, especially in the U.S. market. Fastly also explained how its newest customers are renewing contracts at annual billing levels roughly 118% higher than in the previous year.
That's good news because it implies strong customer satisfaction and a growing portfolio of cloud services. Fastly is having no trouble retaining customers, despite platform outages earlier in the year.
CEO Joshua Bixby and his team are predicting that sales will land as high as $350 million this year, which would equate to growth of around 19%. Bottom-line losses are on tap, but that's no surprise since the growing company continues to invest in building out its platform.
Among the key metrics to watch will be the edge computing specialist's customer count, especially among clients with larger contract sizes. If the company can keep building a bigger sales footprint while improving the platform, then investor returns should be impressive from here.
That's why it's encouraging that Fastly's growth rate is accelerating today, implying that it might be solving its slower growth challenges of the past few quarters as it lays the groundwork for rising margins ahead.