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Fastly targets $1.3B revenue by 2029 as AI drives edge growth
At an Investor Day, Fastly outlined a 2029 goal of 67% to 71% gross margins and said its security business grew 43% year over year in the latest quarter.
Fastly said at its Investor Day that it is targeting $1.1 billion to $1.3 billion in revenue by 2029, alongside 67% to 71% gross margins, 20% to 22% operating margins, and 12% to 15% free cash flow margins, as AI usage accelerates demand for edge infrastructure.
The company is shifting toward a unified edge-cloud platform, with management saying 72% of customers use at least two product suites, and 30% use four or more. Fastly also highlighted that security is emerging as a key entry point, with its security business growing 43% year over year in the latest quarter.
Fastly linked AI traffic growth to its platform opportunity, saying AI traffic is growing 6.5 times faster than human traffic, including increases tied to model distribution, Model Context Protocol traffic, and code-generation activity. The company described its distributed network as built for low-latency, high-throughput applications that need security and resiliency.
Fastly also pointed to operating momentum, including three straight quarters of at least 20% year-over-year growth, five consecutive quarters of improving net revenue retention, and six straight quarters of positive free cash flow. Management said it processes more than 5 trillion requests on an average day and reported a 97% average customer satisfaction score.