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Fastly (FSLY) Acquires Web Apps Developer Platform Glitch

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Fastly Inc. (FSLY - Free Report) recently announced the acquisition of Glitch, a web coding platform that allows novice and experienced coders to quickly build and deploy small web apps. It is a full-stack platform that officially supports JavaScript but allows coding in CSS, HTML, and other languages as well.

As part of the deal, Fastly will integrate Glitch with its network, which will give Glitch users access to Fastly's web application firewall, image optimization, and fast start times.

Glitch will continue to operate within Fastly, with the latter planning to grow the team and enable Glitch apps to tap into its edge-computing services.

The acquisition follows a partnership between the companies earlier this year, which brought Glitch to Compute@Edge, one of Fastly's core products. Compute@Edge is a distributed application platform for running apps in edge environments on Fastly hardware.

Fastly also hopes to bring Glitch's community into its development process by gathering feedback shared by Glitch’s 1.8 million monthly users.

Fastly, Inc. Price and Consensus

Strong Acquisitions and Partnerships to Aid Customer Growth

Fastly is a provider of infrastructure software that powers cloud computing, image optimization, security, edge computer technology and broadband streaming solutions. They are considered part of a cloud niche called Content Delivery Networks or CDNs.

The acquisition of Signal Sciences to further bolster security offerings holds promise at a time when data protection has become increasingly critical. The company is increasingly focusing on integrating the application security capabilities from Signal Sciences into a unified new product offering called Secure@ Edge.

In the first quarter of 2022, Fastly launched the first Signal Sciences and a edge compute integrated product called Next Gen WAF (powered by Signal Sciences). These are expected to aid enterprise customer growth in the near term.

In the first quarter of 2022, revenues increased 21% year over year to $102.4 million, driven by the continued adoption of its modern edge platform and products as well as a $4.6 million increase in revenues related to products acquired from the acquisition of Signal Sciences.

Fastly’s focus on large enterprise customers like Datadog (DDOG - Free Report) also makes it immune to recessionary threats faced by sectors like retail and travel & tourism as well as small and medium businesses. As of Mar 31, 2022, the company had 457 enterprise customers, which generated 89% of total revenues for the trailing 12 months ended Mar 31, 2022.

Datadog uses the company’s API to pull in real-time stats and analytics for display in their dashboard.

Moreover, this Zacks Rank #3 (Hold) company’s focus on attracting customers outside of the United States and expanding its international footprint is expected to drive top-line growth. As of Mar 31, 2022, Fastly’s edge network spans 54 markets and 33 countries that are outside of the United States. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Moreover, the company’s exclusive Private Network Interconnects (PNIs) and peering arrangements with key cloud providers, such as Alphabet’s (GOOGL - Free Report) Google Cloud Platform, Microsoft (MSFT - Free Report) Azure, Amazon Web Services and others, to eliminate or minimize egress fees, enhance security, and improve overall performance remains a key catalyst.

Tight integration with Google Cloud Platform allows the company’s real-time logs to be streamed to any Google Cloud Platform big data service, including Google Cloud Storage, BigQuery, and Bigtable. Likewise, integration with Microsoft Azure allows real-time logs to be streamed to both Azure Blob Storage and Kusto.