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Fastly: Innovators Platform

GAAP 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
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