Fastly data requests, pricing down in September vs. August, says Raymond James

Raymond James analyst Frank Louthan lowered the firm’s Q3 estimate for Fastly below the low end of guidance after the firm’s proprietary tracking tool indicated that September traffic did not rebound as much as expected. The firm, which made no change to the Strong Buy rating, says the tracker indicates Fastly saw an average of ~58.870T data requests hitting the network per day in September vs. ~61.267T/day in August and ~54.350T/day in September 2022, while implied Q3 pricing is also down 7% sequentially, adding to the view that the delivery is slightly lower. Raymond James remains positive on the long-term prospects, sales turnaround, and EBITDA ramp and free cash flow breakeven in 2024 as drivers of value.