Fastly Targets Up to $1.3B Revenue by 2029 as AI Traffic Surges

Fastly is targeting $1.1 billion to $1.3 billion in revenue by 2029, alongside 67%–71% gross margins, 20%–22% operating margins and 12%–15% free-cash-flow margins. The company is shifting toward a unified edge-cloud platform, with 72% of customers using at least two product suites and security emerging as a major entry point; its security business grew 43% year over year in the latest quarter. AI traffic is accelerating the edge opportunity: Fastly says AI traffic is growing 6.5 times faster than human traffic, while model distribution, Model Context Protocol traffic and code-generation activity have surged on its platform.

Fastly outlined a strategy centered on expanding its unified edge cloud platform, increasing multi-product adoption, broadening its geographic reach and targeting revenue of $1.1 billion to $1.3 billion by 2029 at its Investor Day. Chief Executive Officer Kip Compton said the company sees a $22 billion total addressable market for products it already offers and described the edge as a complementary layer to hyperscale cloud infrastructure. Fastly’s distributed network is designed for applications requiring lower latency, high throughput, security and resiliency, he said.

Compton said Fastly processes more than 5 trillion requests on an average day and reported a 97% average customer satisfaction score. He also highlighted recent operating momentum, including three consecutive quarters of at least 20% year-over-year growth, five straight quarters of improving net revenue retention and six consecutive quarters of positive free cash flow.

The company emphasized that it is shifting from selling discrete products toward selling platform-based solutions across delivery, security, compute and observability. Fastly operates a single global network with 166 points of presence, a design Compton said allows resources to be shared across different workloads and product suites. Fastly said 72% of customers now use at least two product suites, while 30% use four or more. The four-or-more metric has increased from 7% two years ago and 14% one year ago, according to management. Chief Product Officer Kelly Shortridge said security has become an important entry point to the broader platform. Half of Fastly’s new business deals over the past four quarters included security products, she said. The company’s security business grew 43% year over year in the latest reported quarter, while Bot Management and DDoS Protection each posted triple-digit growth, according to Shortridge.

Fastly recently introduced AI Runtime Control, AI Firewall and API Enforcement as part of its Fastly for AI offerings. Shortridge said the products are intended to help enterprises govern AI-related activity across cloud, private infrastructure and multiple AI models. She described Fastly’s architecture as cloud-neutral and model-neutral, allowing customers to use the platform without being tied to a single infrastructure or AI vendor. Management also discussed opportunities for edge compute. Compton said Fastly is not seeking to replicate centralized cloud-computing services offered by hyperscalers, but instead aims to support workloads that benefit specifically from being deployed close to end users. The company expects to broaden its compute portfolio over time, similar to its earlier expansion of security products. AI Traffic and Edge Opportunity Founder and Chief Technology Officer Artur Bergman said AI and ...