Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| It's been incredibly successful so far |
| So I'd say we feel very good about those, given the fundamentals that we saw in '23 from those results that are important to achieve those |
| We're seeing platform convergence, and we're seeing the fact that point solutions can't compete, but a holistic platform can, and we feel really well positioned for that |
| It's a better user experience for the customer, and it's a more efficient use of our resources, and we're seeing that across the board |
| Certainly, our internal goals are to do much better than that and to come in well within the range that we shared at Investor Day, closer to 17% to 21%, and a lot closer to that 20% |
| And that's a very efficient expand motion, it's a very efficient cost of sales, it's a very efficient way of increasing revenue and increasing stickiness for the customer |
| The acceleration in new customer acquisition gives us confidence in the medium-term growth rates over that three-year period of seeing an acceleration over that period to achieve those goals |
| And bringing the gross margins all the way back to north of 59%, like striking distance to 60%, I think really gives us the ability to fuel growth in '24 and beyond |
| Seeing the operating margin improvement across the board again, restructuring the whole company in order to really drive a result that allows us to use our cash, to use our spend, to focus on growth again, and to get the company really refocused on customer acquisition and growth |
| We even posted a positive EPS, which is really great to see |
| I think those trends are very strong and intact |
| We've gotten phenomenal participation in the betas and limited availability, tons of positive customer sentiment around that |
| And we're excited about that opportunity |
| E-commerce players who know that content -- that product recommendation and shopping cart calculation, et cetera, being extremely, extremely -- performance and feeling to the customer like instant, just yields a better financial outcome for them, better basket conversion, better ROI |
| Gross margins expanded by 250 basis points in 2023 |
| We're excited |
| We saw really remarkable results in that |
| We feel pretty good about that transition |
| And you see us getting into that 60% gross margin in 2024 and further expansion beyond that as we see growth from our higher-margin segments of our product, security and Compute@Edge continue to see the benefits of scale that peering and our contracts and aligning our hardware investments along with our traffic expectations within that 6% to 8% of revenue, which is kind of the go-forward alignment on CapEx |
| We've done -- had an enormous influx and intellectual property around edge security and our offering is really -- we feel incredibly good about that right now |
| And as we see that trend, we feel pretty good about that |
| It's better for end customers who want repeatable, simple onboarding, predictable billing |
| We've had great retention up and down the org and to do it in a more cost-effective way, and we're seeing the results of that |
| We see that in the results, and we have the potential to continue to do that to yield better efficiency and more revenue through the exact same hardware we already have deployed |
| We had a good '23, I think we can accelerate growth in '24 there, which I'm excited about |
| And I think that gave us the ability to build an employee experience that's been very successful |
| So, we're super excited about that |
| I would have loved to keep Brett around, but that's an amazing opportunity for him |
| It is better for us because that predictable billing drives RPO |
| In 2024, the guidance suggests another 200 basis points of improvement |
| Statement |
|---|
| The stock reaction has been quite severe |
| Again, I'm just a little worried that some of those signals, some of that positive transformation was lost in the revenue top-line number |
| Revenue result was a little lighter than we wanted to be |
| I think as we talked about in Q4, we kind of came in below the midpoint of our guidance |
| It was relatively small miss, but still below the midpoint, it's not a good feeling |
| I do worry a little bit that some of the company transformation that's happened over the last year was a little bit lost in the shuffle |
| And so, I think I worry a little bit that some of that got lost in the shuffle of $1.5 million revenue miss |
| Todd Nightingale Just to add one thing there, and this is an important issue for us, not just in how we post the numbers, but how we operate internally |
| And we have been deficient in our bot mitigation offers until recently |
| We're going to see -- and our outlook for 2024, we're going to bring down our operating losses by more than half again, at the midpoint, 2%, 3%, coming off of 8% in 2023 |
| You just reported your Q4 results, which were generally solid, but a little light on revenues and the outlook was a little bit light |
| It's been almost down 40% |
| The gross margin correction that we saw and that the team has worked so hard to realize was really significant |
| We saw some variability in international |
| And so, as we look forward to guidance and taking that into account, we assume that a very low level of traffic |
| In the market, we've seen point players like StackPath or Lumen falling out of the space because being just a player in just one of these spaces is really insufficient |
| In some of the markets where we have small presence, we see greater variability |
| We wouldn't see the peaks in that, with a very conservative view given that into our guidance |
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