Here are 1-3 brief analogies for Fastly (FSLY):

1. Fastly is like **Cloudflare** or **Akamai**, providing a global network that makes websites and applications faster and more secure by delivering content closer to users.
2. Fastly is like **Amazon Web Services (AWS)**, but instead of large data centers, it offers 'mini-cloud' computing services directly at the internet's edge, enabling incredibly fast and responsive applications globally.

• Content Delivery Network (CDN): A service that accelerates content delivery by caching and serving data from servers located closer to end-users.
• Edge Cloud Platform: A service enabling developers to run applications and execute logic at the network edge, bringing computation closer to users for improved performance and interactivity.
• Security Services (WAF, DDoS, Bot Protection): Services designed to protect web applications and networks from various threats, including Distributed Denial of Service (DDoS) attacks, malicious bots, and common web vulnerabilities (via Web Application Firewall).
• Streaming Delivery: A service optimized for the efficient and reliable global delivery of live and on-demand video and audio content.

• The New York Times (NYT)
• Shopify (SHOP)
• Pinterest (PINS)
• Vimeo (VMEO)
• Wayfair (W)
• Etsy (ETSY)
• Yelp (YELP)
• GitHub (part of Microsoft - MSFT)

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Kip Compton, Chief Executive Officer

Kip Compton was appointed CEO of Fastly in June 2025, having previously served as the company's Chief Product Officer since January 2024. He brings over 25 years of senior leadership experience in cloud, video, and networking technologies. Prior to joining Fastly, Compton held various leadership roles at Cisco, including Senior Vice President of Strategy & Business Development for Cisco Networking, and also worked at Comcast. He holds multiple patents in digital video, security, and networking.

Richard Wong, Chief Financial Officer

Richard Wong became Fastly's Chief Financial Officer effective August 11, 2025. He has nearly three decades of finance leadership experience, including serving as CFO for other technology companies such as Benchling (November 2020 to May 2024) and Houzz Inc. (May 2018 to November 2020). Wong also held senior finance positions at LinkedIn and Yahoo!, and his earlier career included roles at JP Morgan and Banc of America Securities.

Artur Bergman, Chief Technology Officer and Director

Artur Bergman is the Founder of Fastly, which was established in 2011. He also serves as the Chief Technology Officer and a Director on the board. Prior to founding Fastly, Bergman was the Chief Technical Officer at Wikia (now Fandom).

Marshall Erwin, Chief Information Security Officer

Marshall Erwin joined Fastly as Chief Information Security Officer (CISO) in June 2023. Before Fastly, he spent eight years at Mozilla, where he held roles as Chief Security Officer and Head of Privacy, leading significant Firefox security initiatives. Erwin's career began in the US intelligence community, where he worked as a Cybersecurity Analyst and Counterterrorism Analyst for the US Government. He also advised on cybersecurity and national security legislation in the Senate Homeland Security & Government Affairs Committee and held research fellow positions at Stanford University.

Scott R. Lovett, President, Go to Market

Scott R. Lovett serves as Fastly's President, Go to Market. He was previously the company's chief revenue officer.

Fastly (FSLY) faces several key business risks, primarily revolving around its path to sustained profitability, intense market competition, and customer concentration.

1. Operating Losses and Path to Profitability: Fastly has consistently reported operating losses and has accumulated a significant deficit of over $1 billion. While the company has shown improvements in free cash flow and expects to be free cash flow profitable on a full-year basis, achieving sustainable net income remains a challenge. High expenses related to research and development, sales, and marketing contribute to these losses, and analysts have revised earnings expectations downward.
2. Intense Competition and Slower Growth: The Content Delivery Network (CDN) and edge computing market is highly competitive, with established players like Akamai and Cloudflare, as well as hyperscalers such as Microsoft and Amazon. This intense competition could lead to competitors introducing more innovative solutions or engaging in aggressive pricing strategies. Fastly's projected revenue growth of less than 6% annually over the next four years is considerably slower than some competitors, like Cloudflare, which is expected to grow at least 23% each year over the next five years.
3. Customer Concentration and Churn: Fastly's business is susceptible to risks associated with its customer base, particularly its reliance on a limited number of large clients. In the third quarter of 2025, the top ten customers accounted for a substantial 32% of Fastly's total revenue. This concentration makes the company vulnerable to significant revenue loss if major clients reduce their spending or discontinue using Fastly's services. The company has also faced challenges with customer retention and declining net revenue retention rates.

Cloudflare's aggressive expansion into a comprehensive, integrated edge development platform poses an emerging threat. Cloudflare is rapidly expanding its product portfolio beyond traditional CDN and security to include serverless compute (Workers), object storage (R2), databases (D1), and a full suite of developer tools, all tightly integrated. This strategy aims to position Cloudflare as a one-stop-shop for a wide array of edge services, potentially reducing the need for customers to rely on specialized providers like Fastly for individual components. By offering a more holistic, bundled, and potentially more cost-effective solution for enterprises seeking to consolidate their edge infrastructure, Cloudflare's approach could disrupt Fastly's market share, particularly for customers prioritizing integrated platforms over best-of-breed specialized services.

Fastly, Inc. (FSLY) operates in several key addressable markets through its main products and services: Content Delivery Network (CDN), Security Services (including Web Application and API Protection - WAAP, and DDoS Protection), and Edge Cloud Platform/Edge Computing.

Here are the addressable market sizes for Fastly's main products and services:

• Content Delivery Network (CDN): The global Content Delivery Network (CDN) market is projected to be worth between USD 30.51 billion and USD 32.70 billion in 2025. It is expected to reach approximately USD 132.32 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 23.3% during the forecast period. North America is a dominant region in this market, holding a share of 44.95% in 2024. Other sources estimate the global CDN market to be USD 14.08 billion in 2025, reaching USD 60 billion by 2035 with a CAGR of 15.6%. Another report indicates a global market size of USD 32.70 billion in 2025, forecasted to hit around USD 144.91 billion by 2034.

• Security Services (Web Application and API Protection - WAAP & DDoS Protection):
  • Cloud Web Application and API Protection (WAAP): The global Cloud Web Application and API Protection (WAAP) market is forecasted to increase to USD 6.81 billion in 2025 and is projected to surpass USD 20.38 billion by 2033, expanding at a CAGR of 14.5% from 2025 to 2033. Another estimate places the market at approximately USD 10 billion in 2025, with a projection to reach about USD 25 billion by 2033, exhibiting a CAGR of 15%. North America has emerged as the most dominant region in the global cloud WAAP market.
  • DDoS Protection & Mitigation Security: The global DDoS Protection & Mitigation Security market is projected to grow from USD 5.80 billion in 2025 to USD 10.39 billion by 2030, at a CAGR of 12.3%.
• Edge Cloud Platform / Edge Computing: The global Edge Computing Platforms market is valued at USD 14.6 billion in 2025 and is expected to reach USD 37.7 billion by 2033, growing at a CAGR of 21.10%. Another source estimates the global edge computing market size at USD 168.40 billion in 2025, with a projection to reach USD 248.96 billion by 2030. North America remains a leader in the edge computing market. Some reports indicate the global edge computing market size reached USD 18.3 billion in 2024 and is expected to reach USD 114.4 billion by 2033.

Fastly (FSLY) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion of Security Product Offerings: Fastly's security portfolio, including its web application firewall (WAF), API protection, and new security enhancements, is a significant growth driver. The company has seen substantial adoption and accelerated revenue growth in its security segment (e.g., 30% year-over-year in Q3 2025), driven by both new customer wins and deeper cross-selling to existing accounts. Fastly expects enhancements to its security offerings, such as API resiliency and deception capabilities, to further drive adoption and revenue growth, attracting customers looking to consolidate vendors.
2. Cross-selling to Existing Customers: Fastly is focusing on a "platform expansion and cross-sell strategy," which has been a major contributor to its revenue growth. The company has highlighted significant multi-product wins with strategic accounts, where customers are consolidating various services (delivery, security, and compute) onto the Fastly platform. This cross-sell motion is accelerating and is expected to continue positioning Fastly for sustained growth by increasing net revenue retention rates and expanding the usage of its diverse product lines within its current customer base.
3. International Expansion: Fastly is actively pursuing an international growth push, including elevating new sales leadership to accelerate its footprint overseas, particularly in Asia Pacific and Europe. Management has noted that investments in sales leadership and coverage in these regions are beginning to yield results, indicating that expanding its customer base beyond the United States will be a key driver for future revenue.
4. New Customer Acquisition: Fastly has shown a renewed ability to sign new enterprise customers, which was a challenge in prior periods. The company gained a notable number of net-new enterprise customers and experienced overall total customer growth in recent quarters. Continued focus on go-to-market initiatives and competitive takeout strategies are contributing to new customer acquisition and share gains.
5. Advancements in Edge Computing and AI Capabilities: Fastly's growth strategy is heavily reliant on expanding its offerings in edge computing and observability. The company is investing in platform enhancements in security and compute, including the introduction of new products designed to improve customer cost-efficiency and performance. Specifically, Fastly is positioning itself as a key infrastructure provider for AI development with upcoming AI proxy support for major AI models, which presents significant cross-selling opportunities for enterprises facing complex security challenges.

Share Repurchases

• Fastly repurchased approximately $236.4 million aggregate principal amount of its 0% Convertible Senior Notes due 2026 for an estimated cash repurchase price of $195.0 million in May 2023.
• In May 2022, Fastly repurchased approximately $235.0 million aggregate principal amount of its 0% Convertible Senior Notes due 2026 for an approximate cash repurchase price of $176.2 million.
• The repurchased notes from both transactions were subsequently canceled.

Share Issuance

• Fastly's outstanding Class A shares increased from 129.2 million as of July 28, 2023, to 149.4 million as of October 31, 2025.
• As of March 31, 2024, 136.5 million shares of common stock were issued and outstanding.
• The company utilizes various equity incentive plans, including the 2019 Equity Incentive Plan, for issuing stock awards to employees, directors, and consultants.

Capital Expenditures

• Cash capital expenditures were approximately 9% of revenue in Q1 2024, and for the full year 2024, they were anticipated to be in the range of 6% to 8% of revenue.
• In Q2 2025, cash capital expenditures were approximately 12% of revenue, with full-year 2025 projections for cash CapEx to be between 9% and 10% of revenue, and a medium to long-term target of 6% to 8% of revenue.
• These capital expenditures, which include capitalized internal-use software, are primarily focused on expanding Fastly's edge cloud platform capabilities and investing in infrastructure to meet growing demand for edge computing solutions.