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This may explain (some of) TikTok's reduced usage: TikTok changed their data compression algorithm resulting in a better compression ratio (compressed data/uncompressed data), which resulted in a reduced bitrate, which implies less (usage) fees to FSLY, as reported by Robert Majek, analyst at Raymond James, who covers FSLY.

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... Raymond James analyst Robert Majek repeated his Outperform rating on the stock. Majek theorizes that the issue might involve TikTok switching to a higher level of data compression that could have reduced their bitrate consumption “and could provide some reassurance for investors.” He adds that he “[hasn’t] lost any confidence in Fastly’s level of performance and product differentiation that should drive sustainable share gains and growth over time.”


The (my?) takeaway: if TikTok can reduce their usage fees by improving their compression implementation, other customers likely did it, or will do it. This is where the usage model is at a disadvantage to the subscription model. So FSLY's growth story moves (further) away from Content Delivery and more toward Edge Computing, which we all knew but maybe didn't think Content Deliver revenue would wane so quickly, knowing FSLY's Edge Computing play will take some time.

As such, I think my outlook on FSLY is changing. Not a complete sell like some others, but some reduction and no new money going into FSLY until the earnings call, at the very earliest.
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