Fastly

Fastly posted record revenue of 190 million dollars, up 20% from a year ago. Security, the sticky part of the business, jumped 32% to nearly 45 million dollars, and newer computing tools grew 37%. Management now expects up to 748 million dollars for the full year, and Comcast just picked Fastly's software to run inside its nationwide network.

Adjusted operating profit jumped to 31 million dollars from 12 million a year ago, and Fastly kept a record 25 million dollars in free cash flow. Gross margin matched its all time high of 65.8%. Management also raised its full year profit outlook to as much as 111 million dollars, up from 96 million just three months ago.

Fastly's ten largest customers now bring in 39% of revenue, up from 32% a year ago. That reliance keeps climbing instead of easing. If one giant customer trims spending or moves to a rival, a big chunk of the growth story could vanish in a single quarter.

Under standard accounting rules, Fastly still lost 11.3 million dollars this quarter, because the rosier profit figures leave out stock paid to employees. Losses are shrinking fast, down from 29.5 million a year ago. But growth cooled to 20% from 23% last quarter, so Fastly needs that momentum to hold to reach a true bottom line profit.