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> We generated a net loss of $30.9 million for the year ended December 31, 2018, and as of December 31, 2018, we had an accumulated deficit of $146.2 million.

by mxstbr 7y ago

> We generated a net loss of $30.9 million for the year ended December 31, 2018, and as of December 31, 2018, we had an accumulated deficit of $146.2 million. Wow, I did not think an "enterprise-y" company like Fastly could be burning that much cash on growth!

pault 7y ago
It says something about the industry when "only" a $30.9M annual burn rate sounds small.
- whttheuuu 7y ago
  It is quite small though compared to potential profits.
- wongarsu 7y ago
  The $30M is 20% their annual revenue, or 18% of their current assets. That doesn't seem out of line for a growing business, and is something you can do without Venture Capital.
formercoder 7y ago
It’s important to note that this is on an earnings basis. Looking at their cash flows presents a slightly better view of operations, with an outflow of 16M, though some would argue their stock based comp of 4M should be included. But it also shows a huge capex expense of almost 20M. This is clearly not just a software business and must be considered like a business that requires real PP&E.
ArtWomb 7y ago
It's also interesting that the $30M figure is approx their R&D spend! Underscores the importance of offsetting those startup costs with policies that promote public-private partnerships and other subsidies for innovation ;)
- hn_throwaway_99 7y ago
  Why? Fastly will make a couple people very rich, and they seem to be doing fine without subsidies. Why should public funds go toward concentrating wealth even further?
  - ArtWomb 7y ago
    Well, tech transfer can be a slow process. Primarily because of legal formalities around indemnification, liability, etc. You also have the common scenario where many competitors are working in the same problem domains. Only to find after years of effort that they have independently arrived at eerily similar solutions!
    - edmundsauto 7y ago
      Can you explain to me how the last sentence speaks to the need for subsidies?

by mxstbr 7y ago

pault 7y ago

It says something about the industry when "only" a $30.9M annual burn rate sounds small.

whttheuuu 7y ago
It is quite small though compared to potential profits.
wongarsu 7y ago
The $30M is 20% their annual revenue, or 18% of their current assets. That doesn't seem out of line for a growing business, and is something you can do without Venture Capital.

formercoder 7y ago

It’s important to note that this is on an earnings basis. Looking at their cash flows presents a slightly better view of operations, with an outflow of 16M, though some would argue their stock based comp of 4M should be included. But it also shows a huge capex expense of almost 20M. This is clearly not just a software business and must be considered like a business that requires real PP&E.

ArtWomb 7y ago

It's also interesting that the $30M figure is approx their R&D spend! Underscores the importance of offsetting those startup costs with policies that promote public-private partnerships and other subsidies for innovation ;)

hn_throwaway_99 7y ago
Why? Fastly will make a couple people very rich, and they seem to be doing fine without subsidies. Why should public funds go toward concentrating wealth even further?
- ArtWomb 7y ago
  Well, tech transfer can be a slow process. Primarily because of legal formalities around indemnification, liability, etc. You also have the common scenario where many competitors are working in the same problem domains. Only to find after years of effort that they have independently arrived at eerily similar solutions!
  - edmundsauto 7y ago
    Can you explain to me how the last sentence speaks to the need for subsidies?