https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht"> Stock is 30% DOWN https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> from its ALL TIME HIGH https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

BUT it grew 62% YoY and had a 137% DBNER https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤺" title="Person fencing" aria-label="Emoji: Person fencing"> It was at the centre of Beijing https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇨🇳" title="Flagge von China" aria-label="Emoji: Flagge von China"> Washington https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> tensions

https://abs.twimg.com/emoji/v2/... draggable="false" alt="⛔️" title="Nicht betreten" aria-label="Emoji: Nicht betreten"> It’s business is HARD to UNDERSTAND https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf"> But sounds like a TEN BAGGER https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">

Here is an EASY thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
$FSLY, a US https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> Cloud Computing Services provider, processes, serves and secures its customer’s apps very close to the end users https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden">

This happens through $FSLY Edge Platform https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚡️" title="Hochspannungszeichen" aria-label="Emoji: Hochspannungszeichen"> it provides a content delivery network, internet security, load balancing and video & streaming services
This is PURE TECHNICAL JARGON https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf"> Let’s break down what this means

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎛" title="Drehknöpfe" aria-label="Emoji: Drehknöpfe"> The internet was designed according to the End-to-End Principle

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager"> This means that the core network’s KEY PRIORITY is to move the information to the network end-points (hosts and clients) as much as possible
This is PURE TECHNICAL JARGON https://abs.twimg.com/emoji/v2/... draggable= Let’s break down what this meanshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🎛" title="Drehknöpfe" aria-label="Emoji: Drehknöpfe"> The internet was designed according to the End-to-End Principlehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager"> This means that the core network’s KEY PRIORITY is to move the information to the network end-points (hosts and clients) as much as possible" title="This is PURE TECHNICAL JARGON https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf"> Let’s break down what this meanshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🎛" title="Drehknöpfe" aria-label="Emoji: Drehknöpfe"> The internet was designed according to the End-to-End Principlehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager"> This means that the core network’s KEY PRIORITY is to move the information to the network end-points (hosts and clients) as much as possible" class="img-responsive" style="max-width:100%;"/>
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⛔️" title="Nicht betreten" aria-label="Emoji: Nicht betreten"> The downside of this E2E principle is that the core network is rather “dumb” - It just forwards data packets to end-points without optimisation

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> The upside is that it prevents Internet Service Providers (they supply the core network) from choosing what content to prioritise
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> E.g. AT&T cannot choose to prioritise content from Youtube over other websites, meaning that the internet stays a fair place for every one (Net Neutrality)
Ok, so here we have an network that just forward data packets as much as possible to the end-points of the network https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden">

How could we improve that without altering the functioning of the whole network and compromising Net Neutrality? https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚡️" title="Hochspannungszeichen" aria-label="Emoji: Hochspannungszeichen">

Hint https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> CDN https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
CDNs augment the network by intelligently distributing & storing data

A CDN is a geographically distributed https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌏" title="Asien-Australien auf dem Globus" aria-label="Emoji: Asien-Australien auf dem Globus"> network of proxy servers & their data centres https://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager">

By distributing the information geograph. relative to the end-users, a CDN provides high availability & perf. https://abs.twimg.com/emoji/v2/... draggable="false" alt="📡" title="Satellitenantenne" aria-label="Emoji: Satellitenantenne">
CDNs augment the network by intelligently distributing & storing dataA CDN is a geographically distributed https://abs.twimg.com/emoji/v2/... draggable= network of proxy servers & their data centres https://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager">By distributing the information geograph. relative to the end-users, a CDN provides high availability & perf. https://abs.twimg.com/emoji/v2/... draggable="false" alt="📡" title="Satellitenantenne" aria-label="Emoji: Satellitenantenne">" title="CDNs augment the network by intelligently distributing & storing dataA CDN is a geographically distributed https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌏" title="Asien-Australien auf dem Globus" aria-label="Emoji: Asien-Australien auf dem Globus"> network of proxy servers & their data centres https://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager">By distributing the information geograph. relative to the end-users, a CDN provides high availability & perf. https://abs.twimg.com/emoji/v2/... draggable="false" alt="📡" title="Satellitenantenne" aria-label="Emoji: Satellitenantenne">" class="img-responsive" style="max-width:100%;"/>
A CDN is able to increase a networks’ performance (speed, reliability and availability) thanks to web caching, server load balancing, request routing and content services

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💾" title="Diskette" aria-label="Emoji: Diskette"> Web caches store popular content on servers https://abs.twimg.com/emoji/v2/... draggable="false" alt="💽" title="Minidisc" aria-label="Emoji: Minidisc"> that have the greatest demand for the content requested
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔋" title="Batterie" aria-label="Emoji: Batterie">Server load balancing shares the network traffic https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛣" title="Autobahn" aria-label="Emoji: Autobahn"> across different severs or web caches

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧭" title="Compass" aria-label="Emoji: Compass"> Request routing directs clients requests https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑‍💻" title="Technologist" aria-label="Emoji: Technologist"> to the content source best able to serve the request

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📑" title="Lesezeichen" aria-label="Emoji: Lesezeichen"> Content Services Protocols provide a standard for accessing different servers
So, Content Delivery Networks store information in a smart and optimised way closer to the end user - Improving performance https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤔" title="Denkendes Gesicht" aria-label="Emoji: Denkendes Gesicht"> Is there anything else they could do? Well, one of the main cyber threats are DDoS https://abs.twimg.com/emoji/v2/... draggable="false" alt="☠️" title="Totenkopf" aria-label="Emoji: Totenkopf"> Distributed Denial of Service attack
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💀" title="Schädel" aria-label="Emoji: Schädel"> This happens when a server is simply flooded with requests https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌊" title="Wasserwelle" aria-label="Emoji: Wasserwelle"> anyone with basic coding skills could orchestrate one

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht"> Other common cyber threats https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤖" title="Robotergesicht" aria-label="Emoji: Robotergesicht"> Malicious bots are tasked to scrape web pages, create fake accounts, spread malware…
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎭" title="Darstellende Künste" aria-label="Emoji: Darstellende Künste"> Man-In-The-Middle attacks happen on a network that was compromised (E.g. Wi-Fi at airports are sometimes hacked by a malicious third party) and on which two parties exchange private information
How is that linked to CDN’s?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> DDoS attacks can be filtered and stopped by the CDN - in the worst case, the proxy server dies off https://abs.twimg.com/emoji/v2/... draggable="false" alt="☠️" title="Totenkopf" aria-label="Emoji: Totenkopf"> while the origin server stays intact

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Suspected bot activity https://abs.twimg.com/emoji/v2/... draggable="false" alt="🕵️" title="Detective" aria-label="Emoji: Detective"> can be identified and stopped with CDNs
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Data sent over networks can be encrypted https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔑" title="Schlüssel" aria-label="Emoji: Schlüssel"> using Transport Layer Security on a CDN - mitigating the risk of unsecured connections
By know you should see the performance and security benefits of CDNs https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden"> Some key questions remain https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> What is $FSLY offering?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> What is the size of the market?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> What is $FSLY moat?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> What is $FSLY offering?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏎" title="Rennauto" aria-label="Emoji: Rennauto"> CDN and load balancing solutions optimised for speed of delivery with a query speed in the USA of 33ms (versus 43ms for $NET)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📺" title="Fernsehen" aria-label="Emoji: Fernsehen"> Solutions specially made for image and video delivery and streaming
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔑" title="Schlüssel" aria-label="Emoji: Schlüssel"> Cloud security solutions for mitigating DDoS, malicious bots and a web application firewall (WAF)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> What is the size of the market?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📊" title="Balkendiagramm" aria-label="Emoji: Balkendiagramm"> CDN market stood at $ 12B in 2019 and is expected to reach $ 50B in 2024 - CAGR of 27% https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Growth is driven by the increase in mobile #data consumption, rise of #video entertainment live #streaming #ecommerce online #media #telemedecine
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> What is $FSLY moat?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏎" title="Rennauto" aria-label="Emoji: Rennauto"> First of all, $FSLY is fast - really fast. It is able to provide a query speed of 33ms in the USA (AWS Cloudfront 33ms, Google Cloud CDN 31.5ms)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein"> $FSLY offers an uptime of 97% (AWS Cloudfront 96%, Google Cloud CDN 93%)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛠" title="Hammer und Schraubenschlüssel" aria-label="Emoji: Hammer und Schraubenschlüssel"> Despite being a bit more complex than $NET, $FSLY solutions are hugely configurable and offers numerous low levels controls
$FSLY is operating in a market growing at 27% https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> over the next 5 years and is positioning itself as a leader for image and video delivery and streaminghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden">

It offers a solution that is more configurable https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛠" title="Hammer und Schraubenschlüssel" aria-label="Emoji: Hammer und Schraubenschlüssel"> while offering astonishing speed https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏎" title="Rennauto" aria-label="Emoji: Rennauto"> and excellent uptime https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein">

Financials https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💸" title="Geld mit Flügeln" aria-label="Emoji: Geld mit Flügeln"> Revenue grew 62% YoY and reached $ 75m with a DBNER of 137% (up from 133% in prev Q.)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔑" title="Schlüssel" aria-label="Emoji: Schlüssel"> Net Retention Rate at 138% up from 130% in prev Q.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚙️" title="Zahnrad" aria-label="Emoji: Zahnrad"> GMs of 60% up from 55% in prev Y.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Current assets of $ 525m vs. Current Liab. of $ 38m
$FSLY financials do not offer too much cause for concern

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> Operating expenses represent 80% of revenues (stable YoY) - Causing short term losses

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> 62% growth and outstanding Net Retention Rate - Creating a compelling long term story

Let’s look into $FSLY last acquisitionhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
$FSLY bought Signal Sciences for $ 200m in cash and $ 575m in stock on Aug 27

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden"> This completes $FSLY Secure@Edge offering with improved API Protection, Rate Limiting, Bot Mitigation, ATO Protection
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤺" title="Person fencing" aria-label="Emoji: Person fencing"> Maintaining $FSLY cyber security offering while acquiring a $ 28mm business with 85% GMs and 42 new $ 100k/year+ customers
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten"> The Bottom Line https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> $FSLY is positioned in a FAST growing market - 27% over the next 5 YEARS https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein"> $FSLY is growing at 62% YoY - meaning it is stealing market share from its competitors (Akamai’s CDN business is growing at 13%)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> $FSLY speed, reliability, solutions for image, video and streaming are unique and its huge configurability gives it an edge
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛡" title="Schild" aria-label="Emoji: Schild"> With the acquisition of Signal Sciences, $FSLY is consolidating its security offering

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">Its no a coincidence that $PINS #SHOP #TWTR #ETSY rely on $FSLY

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> We enter $FSLY with a full stake (100% of full potential position)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht"> $MELI is on our watchlist https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> Coming WEDNESDAY https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen"> Following the TikTok feud, we are gathering pieces on the political risks of tech stocks - Hint us! https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Please note that this is not a recommendation to buy - You are responsible for conducting your own research https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen">
Hope you liked this thread!

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> For more content, follow us on Twitter

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Want to get UNDER HYPED companies delivered straight to your inbox? Subscribe now! https://getbenchmark.substack.com"> https://getbenchmark.substack.com 
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.

Sources

✑ Investor presentation

✑ Company website

✑ CDNComparison

✑ CDNPlanet
✑ MarketsAndMarkets

✑ MordoIntelligence

✑ GlobalDots

✑ Devopedia
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