Fastly's Collapse: Lessons in Broken Unit Economics and SaaS Valuation Destruction

Fastly has collapsed from the 7th highest revenue multiple in 2020 to near-zero investor favor, driven by broken unit economics, sub-60% gross margins, 2% revenue growth, negative FCF, declining NRR (102% and falling), and a toxic culture. The article uses Fastly as a cautionary tale about why high growth multiples fail when underlying SaaS fundamentals deteriorate, and argues that gross margins act as a ceiling on profitability that cannot be overcome.