- General
- May 19, 2020
- 4 minutes read
Fastly Proposes New Share Sale
Fastly co-founder and Executive Chairperson Artur Bergman. Photo credit: Quinn Norton on Flickr, under Creative Commons license Fastly, a San…
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| Fastly co-founder and Executive Chairperson Artur Bergman.
Photo credit: Quinn Norton on Flickr, under Creative Commons license
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Fastly, a San Francisco-based cloud computing company that went public just last year, has filed to offer 6 million more of its shares on the public markets. Fastly expects to net about $227 million from the offering and intends to use the generated cash for general corporate purposes and possible acquisitions and strategic investments. The company is offering 6 million shares to banking underwriters plus a temporary option to purchase 900,000 additional shares. If Fastly’s underwriters exercise the option, the company expects to net about $261 million in total from the share sale.
Investment banks Morgan Stanley, Credit Suisse, Citigroup, and BofA Securities are acting as joint book-running managers for Fastly’s proposed offering.
Since going public, Fastly has regularly posted strong revenue growth, but with losses. In its most recent quarter, Fastly posted $63 million in revenue, up about 40% year-over-year, but with losses of $12 million. Fastly reported having $22.5 million in cash and cash equivalents as of the end of the first quarter of this year. With regular losses albeit relatively smaller ones, it seems that Fastly has a few options save for raising more cash to sustain its operations.
