Fastly Stock Plummets After Revenue Declines

Fastly’s shares are down 19% in extended trading after it reported a more-than-expected drop in revenue following its exit and expecting better-than-expected losses for the coming quarters.

The cloud computing service provider’s adjusted loss was 15 cents per share, compared to expectations for a loss of 17 cents, and revenue grew 14% to $85.1 million, but failed to reach expectations of $85.73 million due to the company’s June 8 shutdown affecting most of its customers, which was reflected in the low volume of Fastly’s business that was forced to offer credit to customers, as its outage led to technical problems with Amazon’s Twitch streaming service, The New York Times, Reddit and several other platforms.

With its guidance in mind, Fastly sees a third-quarter adjusted loss of 21-18 cents per share on revenue of $82-85 million, while analysts were expecting a loss of only about 9 cents and revenue of $98 million.

For the full year, Fastly expected an adjusted loss of 65-57 cents per share and gross revenue of $340-350 million, and from the analysts’ viewpoint, the loss is expected to be just 43 cents per share with optimistic revenue of $382.8 million.

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