A couple of snippets from the earnings call could shed some light about this quarter and the future.
“And so we like the long-term trend of the business, but it does make it tough in the short run when you’re trying to decide what should the guidance be. Just to bring it home with an example, we don’t know for – is the NFL going to have a full schedule? There’s a lot of unknowns and we’ve always said, for example, when it comes to live events that any one individual event, even one as big as a Super Bowl, isn’t that material from a revenue perspective. But when you string them all together, all over the world every day, it is a material part of our business. And right now, that was zero in Q2.”
If content isn’t being generated, revenue does not come.
And the second:
"…[C]an you elaborate on the interest you’re seeing around EdgeFunctions, what sort of use cases or applications or customers’ beta testing right now?
Bob Lento – Chief Executive Officer
We have not gone for general availability. So GA will happen closer to the end of August, I believe but, for sure, within the quarter. And typically, what people are doing with EdgeFunctions are cases like watermarking, ad insertion, things where you can spin them up, you need it for literally milliseconds to seconds. And then the function sort of goes away as opposed to us serving up an application that may live for hours or days or longer.
And so we’re seeing some very interesting use cases where when you try to do those functions in the cloud, the latency gets in the way of effectiveness. And so while edge serverless compute is sort of a horizontal offering, the use case is that we are focused on are very much video-centric, and we’re seeing our customers find value in a lot of different ways for video delivery, including things as simple as A/B testing, and it’s complex as ad insertion, watermarking, and other things like that."
Rolling this out will be an interesting experience for content providers. I’m curious how they will monetize it. This is a use case for similar capability in FSLY.