#1fastly Investor Presentation August 2020#2Who Is fastly? Fastly provides developers with a secure and programmable edge cloud platform#3Revenue fastly. Momentum-at-a-Glance At IPO (May 2019) $145M/38% YoY For the year ended December 31, 2018 Today $246M / 45% YoY LTM as of June 30, 2020 $75M / 62% YoY Q2 2020 as of June 30, 2020 Average Revenue Across All Enterprise Customers* $530K+ For the year ended December 31, 2018 $716K+ LTM as of June 30, 2020 Dollar Based Net Expansion Rate* ** 132% As of December 31, 2018 Enterprise Revenue as a % of total revenue 84% As of December 31, 2018 137% As of June 30, 2020 88% As of June 30, 2020 Annual Revenue Retention Rate*** fastly. ©2020 Confidential 98.9% As of December 31, 2018 99.3% As of December 31, 2019 * Enterprise customers are defined as customers with LTM revenue in excess of $100,000 over the previous 12-month period. Fastly had 304 Enterprise customers (at 6/30/20) which generated 88% of our trailing twelve-month total revenue. ** We calculate Dollar Based Net Expansion Rate by dividing the revenue for a given period from customers who remained customers as of the last day of the given period (the "current period") by the revenue from the same customers for the same period measured one year prior (the "base period"). The revenue included in the current period excludes revenue from (i) customers that churned after the end of the base period and (ii) new customers that entered into a customer agreement after the end of the base period. ***We separately monitor customer retention and churn on an annual basis by measuring our annual revenue retention rate, which we calculate by multiplying the final full month of revenue from a customer that terminated its contract with us (a "Churned Customer") by the number of months remaining in the same calendar year ("Annual Revenue Churn"). The quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year is then subtracted from 100% to determine our annual revenue retention rate 3#4The Modern Internet Has New Requirements Digital Transformation Pre COVID, 56% of companies describe their digital transformation as underway* Applications Built, Not Bought 75% of applications will be built, not bought** Software Era Empowering Developers New Architecture 75% of data will be created and processed at the network edge by 2022** Operational Efficiency 90% of companies will be multicloud by 2021** The post COVID-19 internet is different, and we believe Fastly is built for it fastly. ©2020 Confidential * SOURCE: Forrester: The Sorry State of Digital Transformation in 2018 (April, 2018) ** SOURCE: IDC FutureScape: Worldwide Cloud 2018 Predictions (October, 2017) 4#5Digital Innovators Choose Fastly * Microsoft * The New York Times vimeo 6. New Relic Google * $ shopify *** slack GitHub Pinterest → reddit ◄ wealthfront *wayfair affirm) Etsy stripe wepay *Partners fastly. ©2020 Confidential Khan Academy We believe COVID will accelerate digital innovation Firebase conSENSYS TED wikia 5#6Edge Cloud Legacy Evolution of Web Architecture: Edge Cloud Extends Developer Control Developer Control Network IT Control CDN Edge POP London Users London Servers Servers Load WAF Bot DDOS Balancing Appliance Appliance Appliance Appliance Edge Router Edge POP New York New York Edge Cloud London End-to-End Developer Control Caching Live Edge Router DDOS Edge Compute Load Streaming Bot WAF Balancing London Edge Cloud New York Caching Live Edge Router DDOS Streaming Bot WAF Load Balancing Edge Compute New York fastly. ©2020 Confidential Developer Control IT Control 6#7Fastly: Innovators Platform Global Network 100 Tbp/s 55 Markets New Market Existing Market fastly. ©2020 Confidential We operate at global scale#8WEARNESS OPPORTUNITIES fastly Competitive Differentiators Programmable Edge Software-defined Modern Network Safety in Depth Customer Empowerment Philosophy Empowering developers with a secure and programmable edge cloud platform#9Why We Win Existing Offerings NETWORKS Why Customers Choose Fastly Visibility, Agility and Control Cost Efficiency Modern, Developer-Friendly Architecture Reliable Technical Customer Support Better Performance Legacy CDNs Akamai Level (3) Limelight COMMUNICATIONS Centralized Clouds aws Azure Google Cloud Instant Scaling Cloud Agnostic Reusable Modules at the Edge INCAPSULA S StackPath™ Small Business Focused CDNs IMPERVA CLOUDFLARE fastly. ©2020 Confidential Better Performance Enterprise Grade Features and Programmability Reliable Technical Customer Support Good Neighborhood and Clean Activity Better Performance 6#10Enterprise Customers Are Driving Growth 227 170 # of Enterprise Customers* 288 304 262 CY 2017 CY 2018 CY 2019 Q2 2019 Q2 2020 % of Revenue Average Spend Per 82% $507K Enterprise Customer 84% $536K 87% $607K 86% 88% $557K $716K We are continuously increasing our enterprise customer base, as well as spend by these large customers fastly. ©2020 Confidential * Enterprise customers are defined as customers with LTM revenue in excess of $100,000 over the previous 12-month period 10#11Expanding Customer Usage Illustrative Customer Revenue Expansion Land* Adopt** Leading Online Payments Company Land Expand*** Adopt Year 1 Year 2 Year 3 Expand ■ Year 1 ■Year 2 Year 3 INITIAL DEPLOYMENT Implemented Fastly for origin offload, cloud optimization and as a redundant solution to their incumbent provider DIGITAL TRANSFORMATION Moving application logic to the edge to enable DevOps and digitally transform their workflows with Fastly's real-time control and insights EDGE COMPUTE & SECURITY Opportunity to build applications at edge to improve digital experiences for their customers and desire integrated security We boost customer usage and spend over time by offering increasingly valuable products and services fastly. ©2020 Confidential * Land = Weighted average of 2014-2018 revenue cohorts' 1st year revenue ** Adopt = Weighted average 1st year growth of 2014-2017 revenue cohorts *** Expand Weighted average 2nd year growth of 2014-2016 revenue cohorts 11#12Strong Customer Loyalty and Retention Metrics Dollar-Based Net Expansion Rate* Annual Revenue Retention Rate** 138% 136% 132% 132% CY 2018 CY 2019 Q2 2019 Q2 2020 99.3% 98.9% CY 2018 CY 2019 fastly. ©2020 Confidential * We calculate Dollar Based Net Expansion Rate by dividing the revenue for a given period from customers who remained customers as of the last day of the given period (the "current period") by the revenue from the same customers for the same period measured one year prior (the "base period"). The revenue included in the current period excludes revenue from (i) customers that churned after the end of the base period and (ii) new customers that entered into a customer agreement after the end of the base period. **We separately monitor customer retention and churn on an annual basis by measuring our annual revenue retention rate, which we calculate by multiplying the final full month of revenue from a customer that terminated its contract with us (a "Churned Customer") by the number of months remaining in the same calendar year ("Annual Revenue Churn"). The quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year is then subtracted from 100% to determine our annual revenue retention rate 12#13How We Grow Land & Expand Continue vertical penetration into enterprises that increasingly build their own software Platform Expansion Continue innovation with focus on solutions and modules for verticals Create next-gen developer tools: . Compute@Edge fastly. ©2020 Confidential • Security Leverage Partners Expand distribution footprint and technology ecosystem Google HEROKU International and Vertical Expansion Grow revenue outside of the US and penetrate new verticals 5 Microsoft Magento aws WWORDPRESS 13#14Financial Overview#15Financial Highlights مهم B Ө Disciplined Path to Profitability Strong Expanding Significant Topline Growth Gross Margin Operating Leverage fastly. ©2020 Confidential 15#16Positioned to Capture a Large and Growing Market $35.4B $17.9B App Services and Security at the Edge ✓ Edge Computing¹ ✓ WAF, Bot Detection, and DDoS Prevention 345 ✓ Application Delivery and Control6 $17.5B CDN & Streaming ■CDN & Streaming 2022 ■App Services and Security at the Edge SOURCES: fastly. ©2020 Confidential 1. MarketsandMarkets: Edge Computing Market Global Forecast to 2024 (August 2019) 2. MarketsandMarkets: Content Delivery Network Market Global Forecast to 2024 (May 2019) 3. MarketsandMarkets: Web Application Firewall Market Global Forecast to 2022 (September 2017) 4. MarketsandMarkets: Botnet Detection Market Global Forecast to 2023 (April 2018) 5. IDC: Worldwide DDOS Prevention Products and Services Forecast, 2020-2023 (February 2020) 6. IDC: Worldwide Application Delivery Controller Forecast, 20190-2023 (December 2019) ✓ Web Performance Optimization² ✓ Media Delivery² 16#17Strong Revenue Growth 45% CAGR $58.9 $49.8 $45.6 $46.2 $40.8 $36.8 $34.4 $32.5 $30.0 $26.2 $24.4 $24.3 $62.9 $74.7 38% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 fastly. ©2020 Confidential $104.9 Growth Note: U.S. Dollars (in millions) 39% Growth $200.5 $144.6 CY 2017 CY 2018 CY 2019 17#18Multiple Levers Drive Gross Margin Expansion Non-GAAP Gross Margin* 61.7% Inherent Network Efficiency Drives Margin Increase Customers 56.6% 55.6% 54.9% 53.8% CY 2017 CY 2018 CY 2019 Q2 19 Q2 20 Lower Costs & Higher Quality Levers include: Future state should see bandwidth as largest contributor to Cost of Revenue People / Colocation expected to grow at slower rate than bandwidth / D&A as we reach global coverage Increased peering drives reduction in transit costs fastly. ©2020 Confidential * including D&A and SBC, please see appendix for reconciliation of Non-GAAP to GAAP metrics More Security Insight More Connectivity More Data/POPS We operate our business to optimize reach and scale Volume 18#19One Network with Many Use Cases: Increase Efficiency + Scale Verticals Offload Sensitivity eCommerce High Tech FinTech Digital Publishing High (APIS /Site Traffic) Live Linear High Live Events fastly. ©2020 Confidential Fastly Software Hardware Utilization Bandwidth Requirements Programmable APIS Requests Negligible Security Instant Purge Time to first view Quality Bandwidth Intensive Logging 19#20Fastly's Software Drives Capex Efficiency Capital Expenditures* as % of revenue 13% CY 2017 Free Cash Flow** Margin CY 2017 (37%) 14% 10% CY 2018 CY 2019 CY 2018 CY 2019 (25%) (25%) Single network reduces hardware requirements and increases flexibility Increased computing capacity / efficiency per dollar spent Network utilization rates We endeavor to improve efficiencies in DPO and DSO fastly. ©2020 Confidential * Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software, as reflected in our statements of cash flows ** Free cash flow margin is equal to Cash Flow used in operations less Capital Expenditures divided by Revenue, please see appendix for reconciliation of Non-GAAP to GAAP metrics 20 20#21Substantial Operating Leverage as We Scale Sales & Marketing as a % of Revenue* 39% 35% 37% 35% 33% CY 2017 CY 2018 CY 2019 Q2 19 Q2 20 Research & Development as a % of Revenue* 28% 24% 23% 24% 22% CY 2017 CY 2018 CY 2019 Q2 19 Q2 20 General & Administrative as a % of Revenue* 17% 16% 21% 24% 19% CY 2017 CY 2018 CY 2019 Q2 19 fastly. ©2020 Confidential * Including D&A and SBC expenses, reflecting GAAP reporting Q2 20 Recent leverage in S&M driven by capital optimization for go-to-market Increasing demand generation and account-based marketing Leverage in R&D from meaningful investment in the platform and validation of product market fit Applications built by leveraging a single network architecture Increased operational scale and development of internal processes in G&A, as we went public 21#22Thank you! hank You fastly#23Appendix#24Legal Disclosure Important Notice This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including our business strategy and plans and our objectives for future operations, as well as our financial performance and our long-term target operating model, are forward-looking statements. The words "anticipate," believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. For a complete discussion of factors that could materially affect our financial results and operations, please refer to the reports we file from time to time with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and our subsequent quarterly reports on Form 10-Q. Copies of reports we file with the SEC are posted on our website and are available from Fastly without charge. In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes certain non-GAAP financial measures. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes: Fastly uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP net loss, non- GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures. We urge you to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures set forth in the Appendix, and not to rely on any single financial measure to evaluate our business. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. Please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Key Business Metrics" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which is incorporated by reference into the prospectus contained in the registration statement for the Company's definitions of Dollar-Based Net Expansion Rate ("DBNER") and enterprise customers. Please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Key Business Metrics" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which is incorporated by reference into the prospectus contained in the registration statement for the Company's definition of annual revenue retention rate. fastly. ©2020 Confidential 24#25GAAP to Non-GAAP Reconciliation ($MM) FY2017 FY2018 FY2019 Q1'2019 Q2'2019 Q3'2019 Q4'2019 Q1'2020 Q2'2020 Gross Profit GAAP gross Profit 56.2 79.1 112.1 25.8 25.4 27.5 33.4 35.7 45.0 Stock-based compensation 0.2 0.3 1.4 0.1 0.3 0.4 0.5 0.6 1.1 Non-GAAP gross profit $56.4 $79.3 $113.6 $26.0 $25.7 $27.9 $33.9 $36.3 $46.1 Non-GAAP gross margin 54% 55% 57% 57% 56% 56% 58% 58% 62% Research and development GAAP research and development 29.0 34.6 46.5 10.2 11.2 12.1 13.0 14.3 16.7 Stock-based compensation (1.0) (1.3) (2.9) (0.4) (0.7) (1.0) (0.8) (1.7) (4.1) Non-GAAP research and development $27.9 $33.3 $43.6 $9.7 $10.5 $11.2 $12.1 $12.6 $12.6 Sales and marketing GAAP sales and marketing 40.8 50.1 71.1 15.0 16.9 17.6 21.6 19.2 24.7 Stock-based compensation (0.5) (1.0) (3.5) (0.4) (0.6) (0.9) (1.6) (1.5) (7.1) Non-GAAP sales and marketing $40.3 $49.1 $67.6 $14.7 $16.3 $16.6 $20.0 $17.7 $17.6 General and administrative GAAP general and administrative 17.5 23.5 41.1 8.7 8.9 10.6 12.9 14.2 18.1 Stock-based compensation (1.1) (1.5) (4.3) (0.5) (0.6) (1.5) (1.7) (2.6) (4.1) Non-GAAP general and administrative $16.4 $22.0 $36.8 $8.2 $8.3 $9.1 $11.2 $11.6 $14.0 Operating loss GAAP operating loss (31.0) (29.1) (46.5) (8.1) (11.7) (12.8) (14.0) (12.0) (14.4) Stock-based compensation 2.8 4.1 12.1 1.5 2.2 3.8 4.6 6.3 16.3 Non-GAAP operating loss ($28.2) ($25.1) ($34.4) ($6.6) ($9.4) ($8.9) ($9.4) ($5.6) $1.8 Net loss GAAP net loss (32.5) (30.9) (51.6) (9.7) (15.6) (12.2) (14.1) (12.0) (14.5) Stock-based compensation 2.8 4.1 12.1 1.5 2.2 3.8 4.6 6.3 16.3 Interest expense-acceleration of deferred debt costs due to early 1.8 1.8 repayment Other expense-mark-to-market 0.5 0.7 2.4 0.7 1.7 warrant liability Non-GAAP net loss ($29.1) ($26.1) ($35.2) ($7.6) ($9.9) ($8.3) ($9.5) ($5.7) $1.8 fastly. ©2020 Confidential 25 25#26($MM) GAAP to Non-GAAP Reconciliation (Cont'd) FY2017 FY2018 FY2019 Q1'2019 Q2'2019 Q3'2019 Q4'2019 Q1'2020 Q2'2020 GAAP net loss ($32.5) ($30.9) ($51.6) ($9.7) ($15.6) ($12.2) ($14.1) ($12.0) ($14.5) Stock-based compensation 2.8 4.1 12.1 1.5 2.2 3.8 4.6 6.3 16.3 Depreciation and amortization 9.6 13.4 16.6 3.7 3.9 4.1 4.9 4.7 4.7 Interest income (0.4) (0.9) (3.3) (0.4) (0.9) (1.2) (0.9) (0.7) (0.4) Interest expense 1.1 1.8 5.2 1.2 3.0 0.6 0.4 0.3 0.4 Other (income) expense, net 0.5 0.7 2.6 0.8 1.7 (0.1) 0.2 (0.4) 0.1 Income taxes 0.2 0.2 0.5 0.1 0.1 0.0 0.3 0.8 (0.0) Adjusted EBITDA ($18.6) ($11.7) ($17.9) ($2.9) ($5.6) ($4.9) ($4.6) ($0.9) $6.572 FY2017 FY2018 FY2019 Q1'2019 Q2'2019 Q3'2019 Q4'2019 Q1'2020 Q2'2020 Cash flow used in operations (25.9) (17.0) (31.3) (10.1) (5.6) (12.6) (3.1) (7.2) (8.8) Capital Expenditures (1) (13.2) (19.7) (19.5) (4.8) (4.4) (4.4) (5.8) (11.7) (3.1) Free Cash Flow ($39.1) ($36.6) ($50.8) ($14.9) ($10.0) ($17.0) ($8.9) ($18.8) ($11.9) (1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software, as reflected in our statements of cash flows fastly. ©2020 Confidential 26