Fastly, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Fastly, Inc. has filed its 2023 Form 10-K detailing its annual financial performance and business operations.</b>

AI Summary

Fastly, Inc. (FSLY) filed a Annual Report (10-K) with the SEC on February 22, 2024. Fastly, Inc. reported its 2023 fiscal year results on Form 10-K, filed on February 22, 2024. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 475 Brannan Street, Suite 300, San Francisco, CA 94107. Fastly, Inc. was formerly known as Skycache, Inc. (DE) until April 5, 2011. The filing is made under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking Fastly, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Fastly's financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. As a public document, this filing ensures transparency and allows stakeholders, including investors, analysts, and regulators, to review Fastly's financial statements, risk factors, and management's discussion and analysis.

Risk Assessment

Risk Level: medium — Fastly, Inc. shows moderate risk based on this filing. The company's financial performance and growth are subject to market competition and evolving technology, as indicated by the nature of its business in the pre-packaged software and services industry.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Fastly's performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Fiscal year end date)
• 2024-02-22 — Filing Date (Date the 10-K was filed)
• 415-525-3481 — Business Phone (Company contact phone number)

Key Players & Entities

• Fastly, Inc. (company) — Filer name
• Skycache, Inc.(DE) (company) — Former company name
• 475 Brannan Street, Suite 300, San Francisco, CA 94107 (company) — Business address
• 2023-12-31 (date) — Conformed period of report
• 2024-02-22 (date) — Filed as of date
• 1934 Act (regulator) — SEC Act

FAQ

Risk Factors

• Market Competition [high — market]: The company operates in a highly competitive market for edge computing and content delivery network services, facing pressure from established players and emerging technologies.
• Service Disruptions [medium — operational]: Any disruption to Fastly's network services could result in significant loss of revenue and damage to its reputation.
• Profitability Challenges [medium — financial]: The company has historically faced challenges in achieving consistent profitability due to significant investments in infrastructure and R&D.

Key Dates

• 2024-02-22: 10-K Filing — Annual report filing for fiscal year 2023.

Key Financial Figures

• $0.00002 — which registered Class A Common Stock, $0.00002 par value FSLY The New York Stock Excha
• $15.77 — gistrant, based on the closing price of $15.77 for a share of the Registrant's Class A
• $506.0 m — 1, 2023, 2022 and 2021, our revenue was $506.0 million, $432.7 million, and $354.3 milli
• $432.7 m — d 2021, our revenue was $506.0 million, $432.7 million, and $354.3 million, respectively
• $354.3 m — was $506.0 million, $432.7 million, and $354.3 million, respectively. We continue to inv
• $133.1 m — t in our business and had a net loss of $133.1 million, $190.8 million and $222.7 millio
• $190.8 million — s and had a net loss of $133.1 million, $190.8 million and $222.7 million for the fiscal years
• $222.7 million — s of $133.1 million, $190.8 million and $222.7 million for the fiscal years ended December 31,

Filing Documents

• fsly-20231231.htm (10-K) — 2437KB
• ex1014non-employeedirector.htm (EX-10.14) — 18KB
• secondamendmenttocreditagr.htm (EX-10.22) — 61KB
• fsly-123123x10kex211.htm (EX-21.1) — 8KB
• fsly-123123x10kex231.htm (EX-23.1) — 2KB
• fsly-123123x10kex311.htm (EX-31.1) — 11KB
• fsly-123123x10kex312.htm (EX-31.2) — 12KB
• fsly-123123x10kex321.htm (EX-32.1) — 6KB
• fsly-123123x10kex322.htm (EX-32.2) — 6KB
• ex971incentivecompensation.htm (EX-97.1) — 39KB
• fsly-20231231_g1.jpg (GRAPHIC) — 187KB
• fsly-20231231_g2.jpg (GRAPHIC) — 122KB
• fsly-20231231_g3.jpg (GRAPHIC) — 96KB
• fsly-20231231_g4.jpg (GRAPHIC) — 56KB
• 0001517413-24-000048.txt (&nbsp;) — 13794KB
• fsly-20231231.xsd (EX-101.SCH) — 79KB
• fsly-20231231_cal.xml (EX-101.CAL) — 124KB
• fsly-20231231_def.xml (EX-101.DEF) — 430KB
• fsly-20231231_lab.xml (EX-101.LAB) — 1025KB
• fsly-20231231_pre.xml (EX-101.PRE) — 764KB
• fsly-20231231_htm.xml (XML) — 1934KB

Business

Business 7 Item 1A.

Risk Factors

Risk Factors 23 Item 1B. Unresolved Staff Comments 62 Item 1C. C ybersecurity 62 Item 2.

Properties

Properties 63 Item 3.

Legal Proceedings

Legal Proceedings 63 Item 4. Mine Safety Disclosures 64 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 65 Item 6. Reserved 67 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 68 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 88 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 89 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 133 Item 9A.

Controls and Procedures

Controls and Procedures 133 Item 9B. Other Information 134 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 134 Part III Item 10. Directors, Executive Officers, and Corporate Governance 136 Item 11.

Executive Compensation

Executive Compensation 136 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 136 Item 13. Certain Relationships and Related Transactions and Director Independence 136 Item 14. Principal Accountant Fees and Services 136 Part IV Item 15. Exhibits, Financial Statement Schedules 137 Item 16. Form 10-K Summary 139

Signatures

Signatures 140 3 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "anticipate," "believe," "continue," "could," "design," "estimate," "expect," "intend," "may," "plan," "potentially," "predict," "project," "should," "will," "would," "target," or the negative of these terms or other similar expressions. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described in the section titled "Risk Factors" and elsewhere in this Annual Report on Form 10-K, regarding, amongst other things: defects, interruptions, outages, delays in performance, or similar problems with our platform; our ability to attract new enterprise customers and to have existing enterprise customers continue and increase their use of our platform; the potential loss or significant reduction in usage by one or more of our major customers; component delays, shortages, and price increases; our limited operating history and history of operating losses; the potential that security measures, or those of third parties upon which we rely, are compromised, or the security, confidentiality, integri

Business

Item 1. Business Overview Organizations around the world are more dependent on the quality of digital experiences they provide than ever before. At Fastly, we deliver an edge cloud platform capable of delivering fast, safe, and engaging digital experiences. By focusing holistically on the edge cloud from developer inspiration to end-user experience, we have the opportunity to differentiate with our global footprint, dynamic infrastructure, and security solution. Performance, security, and building the most engaging applications are paramount to driving mission success for Fastly's customers. The edge cloud is a category of Infrastructure as a Service ("IaaS") that enables developers to build, secure, and deliver digital experiences, at the edge of the Internet. This service represents the convergence of the Content Delivery Network ("CDN") with functionality that has been traditionally delivered by hardware-centric appliances such as Application Delivery Controllers ("ADC"), Web Application Firewalls ("WAF"), Bot Detection, Distributed Denial of Service ("DDoS"), and observability solutions. It also includes the emergence of a new, but growing, edge computing market which aims to move compute power and logic as close to the end user as possible. When milliseconds matter, processing at the edge is an ideal way to handle highly dynamic and time-sensitive data. This has led to its acceptance and adoption by organizations who monetize or grow their user base with every millisecond saved. Organizations that want to improve their user experience, whether it's faster loading websites or reduced shopping cart abandonment, can benefit from processing at the edge. The edge cloud complements data center, central cloud, and hybrid solutions. Organizations must keep up with complex and ever-evolving end-user requirements. We help them surpass their end users' expectations by powering fast, safe, and engaging digital experiences. We built a powerful edge cloud platform, desig

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View this 10-K filing on SEC EDGAR