Fastly, Inc. (FSLY) Bundle
Understanding Fastly, Inc. (FSLY) Revenue Streams
Revenue Analysis
For the fiscal year 2023, the company reported total revenue of $117.7 million, representing a -9.2% year-over-year decline from the previous year.
| Revenue Segment | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Edge Cloud Services | $105.4 million | 89.5% |
| Compute Services | $12.3 million | 10.5% |
Key revenue insights include:
- Full-year 2023 total revenue: $117.7 million
- Revenue growth rate: -9.2% year-over-year
- Fourth quarter 2023 revenue: $32.3 million
Geographic revenue breakdown for 2023:
| Region | Revenue Contribution |
|---|---|
| United States | 68.3% |
| International Markets | 31.7% |
Enterprise customer revenue metrics showed that customers spending over $100,000 annually represented 75% of total revenue in 2023.
A Deep Dive into Fastly, Inc. (FSLY) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals critical insights into its profitability landscape.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 61.4% | 55.2% |
| Operating Profit Margin | -24.7% | -38.5% |
| Net Profit Margin | -26.3% | -42.1% |
Key profitability observations include:
- Gross profit improved from $285.3 million in 2022 to $330.6 million in 2023
- Operating expenses decreased to $435.2 million in 2023
- Revenue generated: $538.4 million in 2023
| Efficiency Metric | 2023 Performance |
|---|---|
| Operating Cash Flow | $17.6 million |
| Research & Development Expenses | $180.5 million |
Debt vs. Equity: How Fastly, Inc. (FSLY) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount ($) |
|---|---|
| Total Long-Term Debt | $305.1 million |
| Short-Term Debt | $42.3 million |
| Total Debt | $347.4 million |
Capital Structure Metrics
- Debt-to-Equity Ratio: 1.85
- Current Credit Rating: B+
- Interest Coverage Ratio: 3.2
Debt Financing Details
| Debt Instrument | Amount | Maturity |
|---|---|---|
| Convertible Senior Notes | $287.5 million | 2026 |
| Revolving Credit Facility | $100 million | 2025 |
Equity Funding Breakdown
- Total Equity: $187.6 million
- Common Stock Outstanding: 97.4 million shares
- Market Capitalization: $1.2 billion
Assessing Fastly, Inc. (FSLY) Liquidity
Liquidity and Solvency Analysis
Liquidity assessment reveals critical financial metrics for investor understanding:
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.52 | 1.37 |
| Quick Ratio | 1.41 | 1.29 |
| Working Capital | $156.7 million | $142.3 million |
Cash flow statement analysis highlights:
- Operating Cash Flow: $24.5 million
- Investing Cash Flow: -$37.2 million
- Financing Cash Flow: $12.7 million
Key liquidity indicators:
- Cash and Cash Equivalents: $223.6 million
- Short-Term Investments: $186.4 million
- Total Liquid Assets: $410 million
| Debt Metrics | 2023 Value |
|---|---|
| Total Debt | $287.5 million |
| Debt-to-Equity Ratio | 0.89 |
| Interest Coverage Ratio | 2.41 |
Is Fastly, Inc. (FSLY) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of Q4 2023, the financial valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.45 |
| Price-to-Book (P/B) Ratio | 3.87 |
| Enterprise Value/EBITDA | -23.61 |
| Current Stock Price | $12.34 |
Stock Price Trends
Twelve-month price performance analysis:
- 52-week low: $8.97
- 52-week high: $21.56
- Price volatility: 48.3%
Analyst Recommendations
| Recommendation | Percentage |
|---|---|
| Buy | 37% |
| Hold | 45% |
| Sell | 18% |
Dividend Metrics
Current dividend yield: 0%
Valuation Indicators
- Market Capitalization: $1.89 billion
- Price/Sales Ratio: 4.67
- Forward Price/Earnings: -22.13
Key Risks Facing Fastly, Inc. (FSLY)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and market position.
Key Competitive and Market Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Cloud Infrastructure Competition | Intense market rivalry | High |
| Technology Obsolescence | Rapid technological changes | Medium |
| Customer Concentration | Dependence on limited client base | High |
Financial Risk Indicators
- Revenue volatility of 37.2% in last fiscal year
- Gross margin fluctuations around 55.3%
- Operating expenses representing 89.6% of total revenue
Operational Risk Assessment
Primary operational risks include:
- Cybersecurity vulnerabilities
- Infrastructure scalability challenges
- Talent acquisition and retention
Regulatory and Compliance Risks
| Regulatory Domain | Potential Compliance Challenge |
|---|---|
| Data Privacy Regulations | GDPR and CCPA compliance requirements |
| International Expansion | Cross-border legal and tax complexities |
Market Condition Risks
External market factors presenting significant risks include:
- Global economic uncertainty
- Potential recession impacts
- Shifts in cloud computing spending patterns
Future Growth Prospects for Fastly, Inc. (FSLY)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market metrics:
- Edge Computing Market Expansion: Projected market size of $61.6 billion by 2028
- Global Content Delivery Network (CDN) Market: Expected to reach $30.2 billion by 2025
- Cloud Security Market: Anticipated growth to $45.5 billion by 2026
| Growth Metric | 2023 Value | 2024 Projection |
|---|---|---|
| Annual Revenue Growth | $117.4 million | $135-145 million |
| Customer Acquisition Rate | 2,100 new customers | 2,500-2,800 new customers |
| Enterprise Customer Expansion | 550 enterprise clients | 650-700 enterprise clients |
Strategic initiatives include:
- Expanding global infrastructure with 14 new data center locations
- Investing $22.5 million in research and development
- Developing advanced edge computing solutions
Competitive advantages encompass:
- Proprietary edge computing technology
- Low-latency network infrastructure covering 71 global points of presence
- Average response time improvement of 45% compared to competitors
| Investment Area | 2023 Allocation | 2024 Planned Investment |
|---|---|---|
| R&D Spending | $18.3 million | $22.5 million |
| Infrastructure Expansion | $12.7 million | $16.9 million |
| Security Technology | $8.5 million | $11.2 million |
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