Welcome to our dedicated page for Fastly news (Ticker: FSLY), a resource for investors and traders seeking the latest updates and insights on Fastly stock.
Overview of Fastly's Business
Fastly, Inc. (NYSE: FSLY) is a cutting-edge technology company that specializes in providing edge cloud computing and content delivery network (CDN) services. Founded in 2011, Fastly empowers some of the world's most prominent digital businesses to deliver fast, secure, and scalable online experiences. By leveraging its innovative edge cloud platform, Fastly enables organizations to accelerate the pace of technical innovation, mitigate evolving cybersecurity threats, and scale their operations to meet dynamic customer demands.
Core Offerings and Business Model
At its core, Fastly operates a next-generation CDN that goes beyond traditional content delivery services. Unlike conventional CDNs, which rely on a vast number of geographically dispersed servers to cache static content, Fastly focuses on fewer, strategically located servers housed in network-dense data centers. This approach optimizes performance by reducing latency and enhancing connectivity. Fastly's platform is designed to support edge computing, enabling customers to execute real-time computations and serve dynamic content directly at the network edge.
Fastly's business model primarily revolves around a subscription-based revenue structure, where customers pay for access to its platform and additional usage-based services. Its offerings are tailored to meet the needs of large, sophisticated enterprises, including e-commerce platforms, media companies, and SaaS providers. By providing programmability and real-time control, Fastly enables businesses to deliver personalized and interactive user experiences at scale.
Industry Context and Competitive Landscape
Fastly operates within the broader cloud computing and CDN industry, a market driven by the increasing demand for high-performance digital infrastructure. The proliferation of video streaming, e-commerce, and real-time applications has heightened the need for solutions that ensure low latency, high availability, and robust security. Key competitors in this space include Akamai Technologies, Cloudflare, and Amazon Web Services (AWS). However, Fastly differentiates itself through its emphasis on edge computing and its ability to serve dynamic content more effectively than traditional CDNs.
This strategic focus positions Fastly as a preferred partner for enterprises that require advanced programmability and scalability, particularly in industries where real-time data processing and low latency are critical. Its ability to deliver these capabilities has made it a trusted provider for high-profile clients such as Airbnb, Pinterest, and The New York Times.
Challenges and Opportunities
While Fastly's innovative approach offers significant competitive advantages, it also faces notable challenges. The company's reliance on fewer, high-capacity data centers requires substantial investment in infrastructure and technology. Additionally, the competitive nature of the CDN industry means that Fastly must continually innovate to stay ahead of larger, more established players. However, the growing adoption of edge computing and the increasing complexity of digital content delivery present substantial growth opportunities for Fastly to expand its market share and enhance its platform capabilities.
Conclusion
Fastly's unique approach to content delivery and edge computing has redefined how enterprises deliver digital experiences. By focusing on programmability, scalability, and security, Fastly has carved out a distinct niche in the competitive CDN market. Its strategic positioning, innovative technology, and commitment to enabling technical innovation make it a key player in the evolving landscape of cloud computing and digital infrastructure.
Fastly (NYSE: FSLY), a global edge cloud platform leader, has announced its upcoming participation in the Morgan Stanley Technology, Media & Telecom Conference. The company's CFO, Ron Kisling, will engage in a fireside chat at the event, scheduled for March 4, 2025, at 4:50 p.m. PT in San Francisco.
Interested parties can access a webcast of the presentation through Fastly's Investor Relations website at investors.fastly.com.
Fastly (NYSE: FSLY) reported Q4 2024 financial results with record revenue of $140.6 million, representing 2% year-over-year growth. The company's full-year 2024 revenue reached $543.7 million, up 7% from 2023.
Q4 breakdown shows Network services revenue at $110.1 million (flat YoY), Security revenue at $26.9 million (+4% YoY), and Other revenue at $3.6 million (+63% YoY). The company reported a GAAP net loss of $32.9 million in Q4, with non-GAAP net loss of $3.8 million.
Key metrics include 596 enterprise customers in Q4, a Last 12-month net retention rate of 102%, and RPO of $244 million. The company refinanced debt, raising $150 million in convertible notes. For 2025, Fastly guides revenue between $575-585 million with non-GAAP operating loss between $15-9 million.
Fastly (NYSE: FSLY) and Enterprise Strategy Group released a study highlighting significant cybersecurity challenges in web application and API security. The research, based on 383 cybersecurity and IT professionals in North America, reveals organizations expect a 39% increase in web applications within two years, from 145 to 201 per organization.
Key findings show that 57% of organizations experienced web/API attacks exploiting lesser-known vulnerabilities in the past 24 months. Despite 92% implementing web application firewalls (WAFs), 67% use multiple vendors, creating complexity. API usage is projected to grow significantly, with organizations expecting API implementation to increase from 32% to 80% in two years.
The study also revealed that 45% of DDoS attacks were diversionary tactics in larger coordinated assaults, with 70% of these diversions succeeding. Additionally, 59% of IT professionals believe cyber attackers have an advantage in leveraging AI for attacks.
Fastly (NYSE: FSLY), a global edge cloud platform provider, has scheduled its fourth quarter 2024 financial results announcement for Wednesday, February 12, 2025, after market close. The company will host an investor conference call at 1:30 p.m. PT / 4:30 p.m. ET on the same day to discuss the results.
Investors and interested parties can access the live webcast through the company's investor relations website. For those joining by phone, dial-in numbers are provided for both US/Canada (888-330-2022) and International (646-960-0690) participants, using Conference ID 7543239. A telephone replay will be available from 5:00 p.m. PT on February 12 through February 19, 2025.
Fastly (NYSE: FSLY) announced the general availability of Fastly AI Accelerator, a semantic caching solution designed to enhance performance and reduce costs for Large Language Model (LLM) generative AI applications. The solution delivers 9x faster response times and now supports both OpenAI ChatGPT and Microsoft Azure AI Foundry.
The implementation requires developers to simply update their application to a new API endpoint, typically changing just one line of code. The solution leverages Fastly Edge Cloud Platform to cache responses for repeated queries, eliminating the need to make individual calls to AI providers.
Fastly (NYSE: FSLY) announced the issuance of $150.0 million in 7.75% convertible senior notes due 2028. The company will use these proceeds to repurchase approximately $157.9 million of its existing 0.00% Convertible Senior Notes due 2026. The new notes will mature on June 1, 2028, with interest payable semi-annually at 7.75%. The initial conversion rate is 50.6586 shares per $1,000 principal amount, equivalent to a conversion price of $19.74 per share. After the transactions, expected to settle around December 5, 2024, the outstanding amount of existing notes will be $188.6 million.
Fastly's Global Security Research Report reveals concerning trends in cybersecurity recovery times. In 2024, businesses are taking an average of 7.3 months to recover from cyber incidents, 25% longer than the expected 5.9 months. Companies reducing cybersecurity spending faced 70% more incidents and longer recovery times of 10.9 months. While 87% of businesses plan to increase security investments, 50% still feel unprepared for future attacks. The report also highlights that 40% of businesses are concerned about their security stack's reliability, with 29% considering vendor changes. Organizations are shifting towards a platform engineering approach, with these teams now being held responsible for 8% of cybersecurity incidents.
Fastly (NYSE: FSLY) has been named a Leader in the IDC MarketScape: Worldwide Edge Delivery Services 2024 Vendor Assessment for the second time. The company's strengths include its well-rounded portfolio, fast performance, and WASM implementation. The global edge computing market is projected to reach $228 billion in 2024, a 14% increase from 2023, with expected growth to $378 billion by 2028. Fastly's global network has expanded to over 375 Tbps of connected capacity. The company was recognized for its support of high-level languages, VCL control, collaborative environment, and focus on observability.
Fastly (NYSE: FSLY) announced its Q3 2024 financial results, reporting a GAAP loss of $38.0 million but achieving a record non-GAAP income of $2.4 million and an adjusted EBITDA of $13.3 million. Total revenue grew by 7% YoY to $137.2 million, driven by a 20% increase in revenue outside the top ten customers. GAAP gross margin improved to 54.5%, while non-GAAP gross margin rose to 57.7%. Despite a GAAP net loss per share of $0.27, non-GAAP net income per share was $0.02. The company saw a decline in enterprise customer count but an increase in total customer count. Fastly's top ten customers accounted for 33% of revenue, down from 40% a year ago. The company also provided Q4 and full-year 2024 guidance, expecting revenue between $136.0 million and $140.0 million for Q4 and between $539.0 million and $543.0 million for the full year.
Fastly (NYSE: FSLY), a global edge cloud platforms leader, has announced its participation in two upcoming investor conferences. At the 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference in New York City on November 19th at 10:40 a.m. ET, CFO Ron Kisling and VP Investor Relations Vernon Essi, Jr. will participate in a fireside chat. Additionally, CEO Todd Nightingale and CFO Ron Kisling will present at the UBS Global Technology and AI Conference in Scottsdale, AZ on December 4th at 10:15 a.m. ET. Both presentations will be accessible via webcasts on Fastly's Investor Relations website.
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