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Fastly’s FSLY shares have surged 68.8% in the past month, outperforming the broader Zacks Computer & Technology sector’s 5.8% return and the Zacks Internet - Software industry’s 7.9% growth.
FSLY’s shares have also beat industry peers like Reddit RDDT, Blend Labs BLND and Gitlab GTLB.
During the same period, shares of Reddit and Blend Labs have gained 23.1% and 1.4%, respectively, while GitLab stock has lost 2.9%.
FSLY’s robust stock price performance has been driven by its impressive third-quarter 2024 results. Revenues grew 7% year over year to $137.2 million, beating guidance. Network Services revenues rose 5% to $107.4 million, security revenues increased 12% to $26.2 million and emerging products, led by compute, surged 85% to $3.6 million.
Fastly, Inc. Price and Consensus
Fastly, Inc. price-consensus-chart | Fastly, Inc. Quote
Product Innovation and Development Aid FSLY’s Prospects
Fastly upgraded its Next-Gen WAF by making it faster to activate, improving detection capabilities and adding detailed data insights, like country and IP information, for better security management.
FSLY enhanced its Bot Management system with new analysis tools, giving customers better visibility and control over their bot management costs. The update also allows customers to personalize bot challenges by adding logos, improving both security and user experience.
Fastly integrated its Support Portal to the single sign-on experience, allowing customers to easily navigate between the Fastly Control Panel, Next-Gen WAF Console and Support Portal with a seamless login process, improving efficiency and user convenience.
Fastly has launched its adaptive DDoS protection, which automatically shields against Layer 7 and other application-level DDoS attacks. The solution can be easily activated with just a click, ensuring quick and hassle-free implementation for customers.
Expanding Customer and Partner Base Drives FSLY’s Growth
In the third quarter, Fastly's packaging efforts saw strong growth, with the number of packages sold more than doubling compared with last year. The new logo packages tripled, making up 43% of all packages sold, up from 16% last year, highlighting strong momentum in packaging efforts.
New deal registrations grew 33% year over year in the third quarter, while year-to-date bookings increased 46% from the same period last year, highlighting strong sales momentum.
Cineverse selected Fastly's Media Video Delivery solution to enhance its digital cinema and streaming capabilities. Additionally, Connected Television Group chose Fastly's CDN and Support services to strengthen its video distribution solutions. These deals showcase Fastly's growing presence in the media and entertainment sector.
Fastly's enterprise customer count grew 5% year over year in the third quarter of 2024, reaching 576 compared with 547 last year. However, a sequential decline of 25% raises potential concerns about sustaining growth in its enterprise customer base.