Photo Credit: geralt / 21968 images/ Pixabay
 

The global Content Delivery Networks (CDN) market is estimated to grow 16% annually to reach $35.37 billion by 2027 from $14.56 billion in 2021. Fastly (NYSE: FSLY) is a leading player in the market that continues to consolidate within the market.
 

Fastly’s Financials

Fastly recently announced its second-quarter results. Revenues grew 21% to $102.5 million, ahead of the market’s estimates by 0.65%. Adjusted loss per share was $0.23 versus the market’s forecast of a loss of $0.16 per share and the previous year’s $0.15 per share.

Among key metrics, the trailing 12-month net retention rate increased to 117% compared to 115% a quarter ago. The dollar-Based Net Expansion Rate increased to 120% from 118% last quarter. Fastly ended the quarter with a total customer count of 2,894, of which 471 were enterprise customers. Average enterprise customer spending grew 1% sequentially to $730K in the second quarter.

Fastly forecast its third-quarter revenues to be $102-$105 million with a loss per share of $0.18-$0.15, versus the market’s estimate of $100.83 million on a loss of $0.14 per share. It expects to end the year with revenues of $415-$425 million and a loss of $0.68-$0.63 per share, versus the market’s estimates of revenues of $413.01 million and a loss of $0.56 per share.
 

Fastly’s Glitch Acquisition

Fastly continued its inorganic growth in the quarter with the acquisition of Glitch, a developer platform with over 1.8 million developers. Glitch helps developers innovate, create, and share full-stack web apps without having to run the infrastructure or manage tools themselves. The high demand for apps requires that developers are able to accelerate the process of design and deployment of their code. Glitch grants developers access to an easy-to-use development environment, remixable code, and a vibrant community of collaborative developers. Fastly plans to integrate it with its own serverless technologies like WebAssembly-based edge platform to further remove barriers to innovation while natively providing security and performance.

Earlier this year Fastly had already entered into another partnership with Glitch through a “yes code” environment that allowed developers to create and build full-stack web apps, to extend their web-based development environment. The goal of the integration was to make Compute@Edge more accessible through Glitch’s easy-to-use interface. The acquisition will strengthen this integration by allowing Glitch’s community of 1.8 million developers to deploy code they’ve written on Glitch’s platform to Fastly’s serverless compute environment. Terms of the acquisition were not disclosed.

Glitch, formerly known as Fog Creek, was founded in 2000 as an incubator of projects that would be spun out into larger organizations. Trello and Stack Overflow trace their origins back to it. The company is estimated to have raised $30 million in funding and renamed itself Glitch. Its additional funding and financial details are not known.

Additionally, Fastly continues to launch newer offerings. It recently launched Security Labs, a new program that empowers customers to continuously innovate by being the first to test new detection and security features directly with the Security Product team. The service is expected to strengthen Fastly’s feedback loop to improve its tools. It also introduced the new Object Store offering global, durable storage for computing functions at the edge allowing developers to store, control, or cache their data to reduce origin dependency and unlock new use cases.

Fastly’s stock is trading at $7.81 with a market capitalization of $949.5 million. It hit a 52-week high of $58.62 in October last year and a 52-week low of $7.50 earlier this week.

More By This Author:

Cloud Stocks: Samsara Showcases Use Cases To Prove Resilience To Market Conditions
Cloud Stocks: Zoom Fails To Impress Post The Pandemic
Cloud Stocks: Upstart Expands Its AI Product Reach