> 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!
> The company in February projected an operating loss of $43.2 million this fiscal year on sales of $47.4 million and an operating loss of $44.7 million in fiscal 2023 on sales of $63.5 million.
"We have incurred net losses each year since our inception and we may not be able to achieve or maintain profitability in the future. We incurred net losses of $682.8 million, $688.3 million and $911.3 million in 2016, 2017 and 2018, respectively."
"We have incurred net losses in all periods since our inception, and we may not achieve or maintain profitability in the future. We experienced net losses of $91.3 million, $135.5 million, $140.1 million for fiscal 2017, fiscal 2018, and fiscal 2019, respectively. As of January 31, 2019, we had an accumulated deficit of $519.1 million."
Wow, I knew that they had great revenues and growth but this nugget is now becoming a common theme for all tech companies going IPO these days.
TLDR;
"We have incurred operating losses each year since our inception in 2012, including net losses of $(71.1) million, $(47.9) million, and $(195.6) million for fiscal 2017, 2018, and 2019, respectively, and expect to continue to incur net losses for the foreseeable future..."
> Their cash or cash equivalents is $1,821.8 million. Net loss was $77.5 for the quarter. Without any changes, they could keep this up for about 6 years.
That's incorrect. They didn't burn $77m in cash in the quarter, GAAP net loss is not equal to them losing cash from operations. The calculation doesn't lead out to six years accordingly. They're no longer burning cash (as they previously were):
"Net cash flow from operating activities was $40.6 million, compared to negative $8.8 million for the fourth quarter of 2020. Free cash flow was $8.6 million, or 4% of total revenue, compared to negative $23.5 million, or 19% of total revenue, in the fourth quarter of 2020."
That could still slip back occasionally into the red, of course. More likely it's going to be two steps forward and one step back, culminating soon in predictably cash flow positive operations.
"We have experienced rapid growth. Our revenue grew from $380.8 million to $541.8 million for the years ended December 31, 2018 and 2019, respectively, representing year-over-year growth of 42%, and from $252.8 million to $351.3 million for the six months ended June 30, 2019 and 2020, respectively, representing period-over-period growth of 39%. We generated net losses for the years ended December 31, 2018 and 2019, and six months ended June 30, 2019 and 2020, of $131.6 million, $163.2 million, $67.1 million and $54.1 million, respectively, which included $20.9 million, $44.5 million, $14.8 million and $21.7 million, respectively, of stock-based compensation expense. We reduced our net cash used in operating activities from $81.1 million to $67.9 million for the years ended December 31, 2018 and 2019, respectively, and from $19.8 million to $15.4 million for the six months ended June 30, 2019 and 2020, respectively."
"Our growth has been highly capital efficient. We have been able to achieve this massive growth and scale by having net cumulative cash flow from operations of $16 million from January 1, 2017 to September 30, 2020, aided by our positive cash float, where we receive an upfront payment from a user, and remit payment to a merchant a number of weeks later. In 2019, we generated a net loss of $129 million and Adjusted EBITDA of $(127) million, compared to a net loss of $208 million and Adjusted EBITDA of $(211) million in 2018, and a net loss of $207 million and Adjusted EBITDA of $(135) million in 2017. For the nine months ended September 30, 2020, we generated a net loss of $176 million and Adjusted EBITDA of $(99) million, compared to a net loss of $5 million and Adjusted EBITDA of $(11) million for the nine months ended September 30, 2019."
> They already generate a profit, their operation costs are reasonable, etc.
They don't turn a profit, and their operating costs are growing sharply. From the S-1:
> As we continue to invest in our business, we have incurred net losses of $17.3 million, $10.7 million, and $87.2 million for 2016, 2017, and 2018, respectively.
"Our revenue was $105.2 million, $220.5 million, and $400.6 million in fiscal years 2017, 2018, and 2019, respectively, representing annual growth of 110% and 82%, respectively.
Our growth is global with international revenue representing 34%, 34%, and 36% of total revenue in fiscal years 2017, 2018, and 2019, respectively.
We continue to invest in growing our business to capitalize on our market opportunity. As a result, we incurred net losses of $146.9 million, $140.1 million, and $138.9 million in fiscal years 2017, 2018, and 2019, respectively.
Our net losses have been decreasing as a percentage of revenue over time as revenue growth has outpaced the growth in operating expenses."
"For the year ended December 31, 2018, we generated revenue of $755.9 million, as compared to $472.9 million for the same period in 2017, representing year-over-year growth of 60%. For the year ended December 31, 2018, we generated a net loss of $63.0 million and Adjusted EBITDA of $(39.0) million, as compared to a net loss of $130.0 million and Adjusted EBITDA of $(93.0) million, respectively, in the same period in 2017"
> The company’s dire finances — it made a loss of $221mn in 2021 before the acquisition
GAH. You'd expect the FT to be better than this - they actually made $579mn but had to pay an $800mn lawsuit settlement (caused by people playing fast and loose with the FTC consent decree - something the current management seems to be doing too!)
(Now admittedly $579mn isn't that much for $5bn revenue but it's distinctly positive and more importantly, was moving in the right direction compared to the previous years.)
> On the one hand, losses are mounting, up from $4.3 billion in 2018 and $4.6 billion in 2019, but revenue is also seeing strong growth, up from $5.8 billion in 2018 and $8.9 billion in 2019.
Wow, I did not think an "enterprise-y" company like Fastly could be burning that much cash on growth!
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