Fastly, Inc. (FSLY) Bundle
A Brief History of Fastly, Inc.
Company Overview
Fastly, Inc. is a cloud computing services provider that focuses on delivering fast and secure digital experiences. As of September 30, 2024, Fastly reported a total revenue of $403.1 million for the nine months ending that date, a 9% increase from $368.2 million in the same period of 2023.
Financial Performance
For the three months ended September 30, 2024, Fastly generated revenue of $137.2 million, compared to $127.8 million in the same quarter of 2023, reflecting a 7% year-over-year growth.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $137.2 million | $127.8 million | $403.1 million | $368.2 million |
| Net Loss | ($38.0 million) | ($54.3 million) | ($125.2 million) | ($109.7 million) |
| Gross Profit | $74.7 million | $66.1 million | $220.9 million | $190.6 million |
| Gross Margin | 54% | 52% | 55% | 52% |
Cost Structure
Fastly's cost of revenue for the nine months ended September 30, 2024, was $182.2 million, an increase of 3% from $177.7 million in 2023. The increase in costs was primarily due to higher depreciation and amortization expenses, increased salaries, and additional bandwidth costs.
Operating Expenses
Fastly's operating expenses for the nine months ended September 30, 2024, totaled $354.5 million, up from $346.0 million in the same period of the previous year. The breakdown of operating expenses is as follows:
| Operating Expense Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Research and Development | $105.2 million | $113.9 million |
| Sales and Marketing | $148.6 million | $143.1 million |
| General and Administrative | $87.2 million | $84.7 million |
| Impairment Expense | $3.7 million | $4.3 million |
| Restructuring Charges | $9.7 million | $0 million |
Customer Base and Market Position
As of September 30, 2024, Fastly had 3,638 total customers, up from 3,102 in 2023. The company’s enterprise customer count, defined as those generating annualized current quarter revenue exceeding $100,000, increased to 576 from 547 year-over-year.
Stock Performance
Fastly's stock performance has fluctuated, with a net loss per share attributable to common stockholders of $0.27 for Q3 2024, down from $0.42 in Q3 2023. The weighted average shares used in computing net loss per share were 139.2 million in Q3 2024 compared to 129.9 million in Q3 2023.
Liquidity and Capital Resources
As of September 30, 2024, Fastly reported cash, cash equivalents, and marketable securities totaling $308.2 million. The company’s liquidity position was supported through a combination of equity issuances and customer payments.
Conclusion on Future Outlook
Fastly is focused on expanding its customer base and enhancing its platform capabilities to drive future growth. The company aims to leverage its technology investments and partner ecosystem to capture market opportunities in the cloud computing space.
A Who Owns Fastly, Inc. (FSLY)
Ownership Structure
As of September 30, 2024, Fastly, Inc. had approximately 140.3 million shares of Class A common stock outstanding. The ownership is divided among institutional investors, insiders, and retail investors.
Institutional Ownership
Institutional investors hold a significant portion of Fastly, Inc.'s stock. The following table outlines the major institutional shareholders as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 18,255,000 | 13.0% |
| BlackRock, Inc. | 16,500,000 | 11.8% |
| State Street Corporation | 10,200,000 | 7.3% |
| Invesco Ltd. | 8,000,000 | 5.7% |
| FMR LLC (Fidelity) | 7,500,000 | 5.4% |
Insider Ownership
Insider ownership is also notable, with several executives and board members holding shares in Fastly. The following table provides details on insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Joshua Bixby | CEO | 1,200,000 | 0.9% |
| Artur Bergman | Co-founder & Executive Chairman | 2,000,000 | 1.4% |
| Shay Banon | Board Member | 300,000 | 0.2% |
| Other Executives | Various | 1,500,000 | 1.1% |
Shareholder Composition
The overall shareholder composition of Fastly, Inc. is as follows:
| Shareholder Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 56.2% |
| Insiders | 3.6% |
| Retail Investors | 40.2% |
Recent Stock Performance
As of September 30, 2024, Fastly, Inc. had a market capitalization of approximately $1.45 billion, with a stock price of around $10.35 per share. The stock has experienced volatility, with a 52-week range of $8.30 to $14.50.
Voting Rights
Each share of Fastly's Class A common stock is entitled to one vote. The company does not have a dual-class structure, which means that all shareholders have equal voting rights.
Fastly, Inc. (FSLY) Mission Statement
Fastly, Inc. aims to make the Internet a better place where all experiences are fast, safe, and engaging. The company focuses on empowering developers to deliver transformative digital experiences on a global scale.
Financial Performance Overview
For the three months ended September 30, 2024, Fastly reported revenue of $137.2 million, an increase of 7% compared to $127.8 million for the same period in 2023. For the nine months ended September 30, 2024, revenue was $403.1 million, marking a 9% increase from $368.2 million in 2023.
| Period | Revenue (in millions) | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $137.2 | 7% |
| Q3 2023 | $127.8 | - |
| 9M 2024 | $403.1 | 9% |
| 9M 2023 | $368.2 | - |
Customer Base and Revenue Contribution
As of September 30, 2024, Fastly's ten largest customers represented 35% of total revenue, down from 37% in the previous year. Notably, no single customer accounted for more than 10% of total revenue in Q3 2024.
Net Loss and Operating Expenses
Fastly incurred a net loss of $38.0 million for the three months ended September 30, 2024, compared to a net loss of $54.3 million for the same period in 2023. For the nine months ending September 30, 2024, the net loss was $125.2 million, compared to $109.7 million in the same period of 2023.
| Period | Net Loss (in millions) |
|---|---|
| Q3 2024 | $38.0 |
| Q3 2023 | $54.3 |
| 9M 2024 | $125.2 |
| 9M 2023 | $109.7 |
Operating Expenses Breakdown
For the three months ended September 30, 2024, Fastly's operating expenses were $115.3 million, down from $124.4 million in Q3 2023. The breakdown of operating expenses is as follows:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Research and Development | $31.9 | $39.1 | -18% |
| Sales and Marketing | $46.0 | $51.0 | -10% |
| General and Administrative | $27.2 | $30.0 | -9% |
| Total Operating Expenses | $115.3 | $124.4 | -7% |
Gross Profit and Margin
Gross profit for the three months ended September 30, 2024, was $74.7 million, with a gross margin of 54%. This represents an increase from $66.1 million and 52% gross margin in Q3 2023.
| Period | Gross Profit (in millions) | Gross Margin |
|---|---|---|
| Q3 2024 | $74.7 | 54% |
| Q3 2023 | $66.1 | 52% |
Liquidity Position
As of September 30, 2024, Fastly reported cash, cash equivalents, and marketable securities totaling $308.2 million. The company has no marketable securities classified as non-current.
Customer Metrics
Fastly's total customer count as of September 30, 2024, was 3,638, an increase from 3,102 in 2023. The enterprise customer count, defined as those generating over $100,000 in annualized revenue, reached 576, up from 547 in the previous year.
| Customer Metrics | Count (as of September 30, 2024) | Count (as of September 30, 2023) |
|---|---|---|
| Total Customer Count | 3,638 | 3,102 |
| Enterprise Customer Count | 576 | 547 |
Retention Rates
Fastly's Last-Twelve Months Net Retention Rate (LTM NRR) as of September 30, 2024, was 105.3%, down from 113.6% the previous year. This metric reflects Fastly's ability to retain and expand existing customer relationships.
How Fastly, Inc. (FSLY) Works
Business Model
Fastly, Inc. operates as an edge cloud platform, providing services that enhance the performance and security of applications. The company focuses on three main areas: Network Services, Security, and Other services. As of September 30, 2024, the revenue breakdown was:
| Revenue Stream | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Network Services | $107.4 | $102.5 | 5% |
| Security | $26.2 | $23.3 | 12% |
| Other | $3.6 | $1.9 | 85% |
| Total Revenue | $137.2 | $127.8 | 7% |
Financial Performance
For the nine months ended September 30, 2024, Fastly reported total revenue of $403.1 million, a 9% increase from $368.2 million in the same period in 2023. The breakdown for this period was:
| Revenue Stream | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Network Services | $317.6 | $295.3 | 8% |
| Security | $76.2 | $67.1 | 14% |
| Other | $9.4 | $5.8 | 61% |
| Total Revenue | $403.1 | $368.2 | 9% |
Costs and Expenses
Fastly incurred costs that reflect its operational scale and growth. For the nine months ending September 30, 2024, the cost of revenue was $182.2 million, up from $177.7 million in 2023, marking a 3% increase. The operating expenses for the same period were:
| Expense Category | 9M 2024 Expense (in millions) | 9M 2023 Expense (in millions) | % Change |
|---|---|---|---|
| Research and Development | $105.2 | $113.9 | (8%) |
| Sales and Marketing | $148.6 | $143.1 | 4% |
| General and Administrative | $87.2 | $84.7 | 3% |
| Total Operating Expenses | $354.5 | $346.0 | 2% |
Net Loss
For Q3 2024, Fastly reported a net loss of $38.0 million compared to a net loss of $54.3 million in Q3 2023. The total net loss for the nine months ended September 30, 2024, was $125.2 million, compared to $109.7 million in the same period of 2023.
Key Metrics
As of September 30, 2024, Fastly had:
- Total Customer Count: 3,638 (up from 3,102 in 2023)
- Enterprise Customer Count: 576 (up from 547 in 2023)
- Last-Twelve Months Net Retention Rate (LTM NRR): 105.3% (down from 113.6% in 2023)
Cash Flow and Liquidity
Fastly's cash flow for the nine months ended September 30, 2024, showed:
| Cash Flow Type | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $11.2 | $7.7 |
| Net Cash Provided by Investing Activities | $108.0 | $332.2 |
| Net Cash Used in Financing Activities | $(9.8) | $(213.6) |
As of September 30, 2024, Fastly had cash, cash equivalents, and marketable securities totaling $308.2 million, primarily consisting of various high-quality financial instruments.
How Fastly, Inc. (FSLY) Makes Money
Revenue Streams
Fastly, Inc. generates revenue primarily through usage-based fees from its edge cloud platform. The company categorizes its revenue into three main product lines:
- Network Services: Solutions that enhance the performance of websites, applications, APIs, and digital media.
- Security: Products aimed at protecting websites, applications, and users.
- Other: Includes Compute solutions and Observability solutions providing real-time logs and metrics.
| Product Line | Q3 2024 Revenue (thousands) | Q3 2023 Revenue (thousands) | Change (%) | YTD 2024 Revenue (thousands) | YTD 2023 Revenue (thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Network Services | $107,431 | $102,526 | 5% | $317,585 | $295,320 | 8% |
| Security | $26,184 | $23,345 | 12% | $76,152 | $67,082 | 14% |
| Other | $3,591 | $1,945 | 85% | $9,360 | $5,809 | 61% |
| Total Revenue | $137,206 | $127,816 | 7% | $403,097 | $368,211 | 9% |
Customer Base
As of September 30, 2024, Fastly had a total of 3,638 customers, up from 3,102 in the same period in 2023. The enterprise customers, defined as those generating over $100,000 in annual revenue, numbered 576, contributing to 92% of total revenue.
| Customer Type | Q3 2024 Count | Q3 2023 Count |
|---|---|---|
| Total Customers | 3,638 | 3,102 |
| Enterprise Customers | 576 | 547 |
Geographic Revenue Distribution
The revenue from U.S. customers accounted for 76% of total revenue in Q3 2024, with the following distribution:
| Region | Q3 2024 Revenue (thousands) | Q3 2023 Revenue (thousands) |
|---|---|---|
| United States | $104,454 | $93,422 |
| Asia Pacific | $14,609 | $18,935 |
| Europe | $13,015 | $10,493 |
| All Other | $5,128 | $4,966 |
Financial Performance Metrics
For the nine months ended September 30, 2024, Fastly reported:
| Metric | YTD 2024 Amount (thousands) | YTD 2023 Amount (thousands) | Change (%) |
|---|---|---|---|
| Net Revenue | $403,097 | $368,211 | 9% |
| Gross Profit | $220,875 | $190,554 | 16% |
| Net Loss | ($125,172) | ($109,702) | 14% |
Cost Structure
Fastly's cost of revenue for the nine months ended September 30, 2024, was $182.2 million, reflecting an increase of 3% compared to $177.7 million in the prior year.
| Cost Component | YTD 2024 Amount (thousands) | YTD 2023 Amount (thousands) | Change (%) |
|---|---|---|---|
| Cost of Revenue | $182,222 | $177,657 | 3% |
| Research and Development | $105,238 | $113,920 | (8%) |
| Sales and Marketing | $148,560 | $143,111 | 4% |
| General and Administrative | $87,245 | $84,651 | 3% |
Operational Efficiency
Fastly's gross margin improved to 55% for the nine months ended September 30, 2024, compared to 52% in the prior year, demonstrating better operational efficiency.
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Resources:
- Fastly, Inc. (FSLY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fastly, Inc. (FSLY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fastly, Inc. (FSLY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.