Fastly, Inc.

Technology
Computer Software: Prepackaged Software
www.fastly.com

Moat Score
Safety Score

Market Cap $1.49B
PE -10
Debt $344.50M
Cash $217.51M
EV $1.62B
FCF -$4.25M

Earnings

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Sales & Net Margins

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Earnings	-$148.56M
EBIT	-$147.56M
ROE	-15%
ROA	-10%
FCF	-$4.25M
Equity	$969.45M
Growth Stability	1
PE	-10.06
PB	1.54
P/FCF	-352.03
P/S	2.76
Price/Cash	0.15
Debt/Equity	0.36
Debt/FCF	-81.15
Net Margins	-31%
Gross Margins	55%
Op. Margins	-27%
Sales Growth YoY	7%
Sales Growth QoQ	4%
Sales CAGR	28%
Equity CAGR	27%
Earnings Growth YoY	-30%

Earnings Growth QoQ	-13%
Sales CAGR 5Y	22%
Equity CAGR 5Y	21%
Earnings CAGR 3Y	17%
Sales CAGR 3Y	17%
Equity CAGR 3Y	-0%
Market Cap	$1.49B
Revenue	$540.87M
Assets	$1.47B
Total Debt	$344.50M
Cash	$217.51M
Shares Outstanding	137.1M
EV	1.62B
Moat Score	3%
Safety Score	71%
Working Capital	338.85M
Current Ratio	3.97
Gross Profit	$296.65M
Shares Growth 3y	6%
Equity Growth QoQ	-1%
Equity Growth YoY	0%

Assets & ROA

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Stockholders Equity & ROE

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Fastly operates a content delivery network, which is necessary for entities to provide faster and more reliable online content. Fastly's strategy differs from traditional CDNs, which focused on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly has far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated about two thirds of its revenue in the United States in 2020.

SEC Filings

Direct access to Fastly, Inc. (FSLY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Fastly, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Fastly, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Fastly, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Fastly, Inc..

Years

Calculation mode

= -$42M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$4.2M	-$42M
DCF		-$3.9M	-$3.5M	-$3.2M	-$2.9M	-$2.6M	-$2.4M	-$2.2M	-$2M	-$1.8M	-$1.6M	-$16M
Value	-$42M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-31%	-21%	-26%	-33%	-63%	-44%	-26%	-31%
ROA	-	-	-14%	-9%	-10%	-10%	-9%	-10%
ROE	-	-	-20%	-9%	-22%	-20%	-14%	-15%

Bad Net Margins (-31.05%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-0.65	-0	-12.94	-7.86	-32.36	-81.15
Debt over Equity	-	-0.39	0.12	0	0.94	0.74	0.35	0.36
Growth Stability	-	-	-	-	-	-	-	1

Good Debt/FCF ratio (-81.15)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.36)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	38%	39%	45%	22%	22%	17%	22%
Earnings YoY growth	-	-5%	67%	86%	132%	-14%	-30%	-
Equity YoY growth	-	23%	-295%	312%	-5%	-6%	3%	21%
FCF YoY growth	-	-11%	36%	8%	48%	22%	-88%	-