Fastly helps businesses of every stripe deliver digital content through fast, secure, and highly personalized network links.
The company is a CDN and is expanding its infrastructures faster than ever thanks to the dramatic influx of traffic and revenues in 2020.
𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮 𝗖𝗗𝗡 – 𝗖𝗼𝗻𝘁𝗲𝗻𝘁 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗻𝗲𝘁𝘄𝗼𝗿𝗸?
A content delivery network works to accelerate almost any website by caching its files in servers around the world.
Whether your visitors come from Europe, North America, Asia or anywhere else, content is automatically served from the nearest location for the fastest possible speeds.
𝗪𝗵𝘆 𝗱𝗶𝗱 𝗶𝘁 𝗴𝗿𝗼𝘄 𝘀𝗼 𝗺𝘂𝗰𝗵 𝗱𝘂𝗿𝗶𝗻𝗴 𝟮𝟬𝟮𝟬?
The entire media industry was moving online in late 2019, this only accelerated when COVID-19 arrived with the rush for digitalization.
𝗕𝘂𝘁 𝘄𝗵𝘆 𝘄𝗮𝘀 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲 𝘀𝗼 𝘃𝗼𝗹𝗮𝘁𝗶𝗹𝗲?
Investors were trying to weight up the uncertain prospects for Fastly’s largest customer, Bytedance (TikTok), responsible for 12% of revenue 2020H1.
Recalling 2020, Trump’s administration raised a lot of issues for the Chinese giant to change its operations, heavily affecting TikTok’s traffic, lowering traffic, and Fastly take.
This forced ByteDance to remove the majority of the US and non-US traffic from the platform, by the end of 2020Q3,
Since Fastly’s business model operates as an infrastructure-as-a-service (IaaS), there are no fixed-price software subscriptions, predicting its revenue is synonymous with predicting worldwide internet traffic.
From where I’m standing, an impossible task, although, we can all safely agree that it keeps increasing, and in the long run, the company will capitalize on this.
𝗗𝗼𝗲𝘀 𝗙𝗮𝘀𝘁𝗹𝘆 𝗻𝗲𝗲𝗱 𝗧𝗶𝗸𝗧𝗼𝗸 𝘁𝗼 𝗿𝗲𝗮𝗰𝗵 𝗻𝗲𝘄 𝗔𝗧𝗛?
From where I’m standing, TikTok is just another client.
We can all agree that 12% revenue, makes it a very important client, nonetheless, in the mid/long run, it’s just another one, and it will not dictate the companies future.
What we can also understand from this client, is that the platform worked.
𝗗𝗶𝗱 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝘀𝗮𝘆… 𝗖𝗶𝘀𝗰𝗼?
Cisco is attempting to build a bigger position in the software and edge-cloud computing industries, and there are rumors about a potential buyout of Fastly, although no official statement has been released yet.
The company recently purchased Slido and IMImobile, to strengthen WebEx, its online video platform, bringing the fight directly to Zoom and Microsoft Teams as the video conferencing tendency keeps growing and is here to stay.
𝗪𝗵𝘆 𝗵𝗼𝗹𝗱𝗶𝗻𝗴 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗹𝗼𝗻𝗴 𝗵𝗮𝘂𝗹?
The company has built a better approach to speeding up the internet based on carefully placed data centers, solid-state hardware, and cutting-edge security.
And perhaps more importantly, it is built with developers first in mind, who in turn favor the platform, leading to more wins.
𝗪𝗵𝘆 𝗮𝗿𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿𝘀 𝗮𝗻𝗱 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗰𝗵𝗼𝗼𝘀𝗶𝗻𝗴 𝗙𝗮𝘀𝘁𝗹𝘆?
✅ delivers very fast speeds
TikTok had a massive surge in clients and traffic with its fast popularity growth, and Fastly clearly proved to work like a charm
✅ hugely configurable
✅ infrastructure-as-a-service business model, pay what you use
That formula has quickly won Fastly market share from rival CDNs at a time when the overall demand for fast internet traffic continues to increase exponentially
𝗗𝗼𝗲𝘀 𝗶𝘁 𝗵𝗮𝘃𝗲 𝗺𝗼𝗿𝗲 𝗿𝗼𝗼𝗺 𝘁𝗼 𝗴𝗿𝗼𝘄?
Fastly has brought in revenue of $267.1M over the past 12 months out of a total addressable market of $35 billion.
Under $10B, I say $FSLY (Fastly Inc) is a buy.