Just to complete a love triangle

So Shopify is a customer-partner of Fastly who may be going through a break up with TikTok, we don’t know for sure, but (queue day-time-drama chord) Shopify is now partnering with TikTok (ooooohhhhh, the drama!): https://finance.yahoo.com/news/tiktok-shopify-announce-partn… …Ok…No drama really…Just good news. I still couldn’t hold back a chuckle seeing these names appear together after all the news around TikTok in a completely different context. I thought I’d attempt to share the humor I saw.

Shopify has added yet another social media / marketplace channel to its portfolio of first-class integrations: Facebook, Instagram, Pinterest, Walmart, and now TikTok (who I didn’t know had a channel for sales). BUT… this time it sounds like they are partnering in a much deeper way. Shopify is helping TikTok develop shopping features in TikTok.

“The agreement will make it easier for Shopify sellers to reach the social platform’s audience of younger consumers, while laying groundwork for [TikTok] to integrate commerce features into its app. Immediately merchants will be able to install a new TikTok app so they can run their social video campaigns or TikTok for Business advertisements directly in their Shopify dashboards.”

Since I didn’t know TikTok had this going on I looked up TikTok for Business (https://www.tiktok.com/business/en/)
"TikTok For Business is where you can unleash your brand’s creative side. A fully immersive no judgement world where there’s an audience for every voice.

No matter how big or small your business, no matter what you’re making or selling, we believe your brand deserves to be discovered here."

It isn’t clear to me if TikTok has any “shoppability” right now at all. They may only have ads. It would be interesting to know how much Shopify is building.

I like that Shopify expanded its sales channel offerings yet again but I love that TikTok is turning to Shopify to help it become a better marketplace. I think it shows how much respect Shopify garners in every aspect of their technology, culture and business.

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I’m very interested in Fastly’s earnings call tomorrow. There’s a very real chance that IF TikTok is no longer a customer, it could have been partially caused by Fastly “firing” them as a customer.

Why would they do this?

Management may have seen the writing on the wall long-term, decided it wasn’t worth the uncertainty, and knew that over a period of a couple quarters, they could back fill the lost TikTok revenue with revenue from other customers (or new customers).

Fastly is one of (if not THE) choice for eCommerce companies as a CDN.

They could quite possibly ramp up revenue from Amazon, Etsy, Shopify, Pinterest, Stripe, etc and now benefit a bit from more Shopify stores/sales from the TikTok partnership.

This is all speculation, but I’ve seen nothing from management that makes me question their ability or honesty.

Very impressed by this wonderful business and will look to evaluate after earnings.

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My post really had nothing to do with Fastly, beyond poking some fun in the general direction at the start.

There’s a very real chance that IF TikTok is no longer a customer, it could have been partially caused by Fastly “firing” them as a customer.

Why would they “fire” any customer?
They didn’t like processing data for the most downloaded app because it took too much of their capacity?
They didn’t pay on time?
Their margins are too low because they gave them a sweetheart deal?

As a shareholder I would not want the management team to fire a customer and miss earnings unless there was a damn good reason and it would provide a serious long term benefit to shareholders.

I don’t believe uncertainty of revenue warrants getting rid of it. That’s the nature of their usage based model.

If you are suggesting FLSY is capacity constrained and has to drop one customer to meet the needs of other high profile customers or they are not able to build out to scale their revenues then I think we have a much bigger problem here.

The suggestion that they fired them does not make any sense to me.

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No. If they “fired them” it’s got to do with the trade war. Fastly and TikTok have been made pawns in a bigger game, and they both want off that board.

I could see where TikTok is looking to get off NA infrastructure dependencies, too. Especially for non-U.S. users. To keep their whole global app going they cannot afford to have their infrastructure partners be subject to the whims of politicians. Especially if operations in country Z are subject to interference by a politician in country Y, just because TikTok is a company originally based in country X.

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Agree that’s a good reason for TikTok to fire FSLY but the post suggested that FSLY fired TikTok which does not make sense to me.

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It gets Fastly out from under this situation, too. I mean, if this situation goes one for several more years, that’d be a long time to go with this hanging over your growth story. It’d be several years of ‘uncertainty’ and the markets hate uncertainty.

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Man you guys sucked me back in to Fastly…

“I could see where TikTok is looking to get off NA infrastructure dependencies, too.”

One of the major advantages to edge networks/computing is data sovereignty. The data stays in the country where it is used. It makes no sense to me that Fastly would make a network-wide decision to stop handling TikTok’s traffic.

But hey… that TikTok-Shopify partnership is pretty neat, eh? =p (Wow, I’m picking up Canadian-speak up here!)

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