Fastly outlined ambitious financial targets and a strategic pivot toward its unified edge-cloud platform during an Investor Day event. The company projects revenue between $1.1 billion and $1.3 billion by 2029, alongside gross margins of 67% to 71%, operating margins of 20% to 22%, and free cash flow margins of 12% to 15%. These targets represent a compound annual growth rate of 14% to 21% from 2026.
The company is experiencing substantial momentum in multi-product adoption and security-driven growth. Approximately 72% of customers now use at least two product suites, while 30% use four or more, up from 7% two years prior. Security has emerged as a significant entry point to the broader platform, with the security business growing 43% year over year in the latest quarter. Bot Management and DDoS Protection each posted triple-digit growth. Management highlighted three consecutive quarters of at least 20% year-over-year revenue growth, five straight quarters of improving net revenue retention, and six consecutive quarters of positive free cash flow.
Artificial intelligence activity represents a major driver of expansion opportunity. The company reported that AI traffic is growing 6.5 times faster than human traffic. Fastly has documented a sevenfold increase in AI model distribution across its platform over the past month, 11 times growth in Model Context Protocol traffic year-to-date, and 34 times growth in code-generation activity recently. The company processes more than 5 trillion requests on an average day and maintains a 97% average customer satisfaction score.
Fastly operates a single global network with 166 points of presence and recently introduced AI Runtime Control, AI Firewall, and API Enforcement products. The company intends to expand geographically with additional points of presence in India, the Middle East, Thailand, Southeast Asia, and Latin America. Sales efforts are focused on customers and industries where performance is mission-critical, including streaming, e-commerce, financial services, and gaming. Beginning in 2027, the company will change its revenue reporting to a single revenue figure accompanied by multi-product adoption metrics, with the current and revised formats reported for two earnings releases to aid investor transition.
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