Fastly’s 90% Collapse Shows Why Low Margins Kill Cloud SaaS
Fastly fell from a 36.5x revenue multiple to the bottom of its peer set because its gross margins stayed under 60%, revenue growth stalled at 2% YoY, and free cash flow turned negative. Those unit‑economics flaws also triggered a net‑retention death spiral, showing that high‑growth cloud firms can’t survive on slim margins alone.