Fastly
shares are sharply lower after the internet infrastructure provider posted mixed results for the fourth quarter and slightly disappointing guidance for both the first quarter and all of 2024.
Expectations were clearly high. Fastly shares had rallied 32% for the year through the close of Wednesday’s regular trading session, leaving them up 70% over the past 12 months.
But in late trading, the shares were off 21% at $18.69.
For the quarter, Fastly reported revenue of $137.8 million, below the Street consensus call of $139.5 million. Revenue increased 15.5% from a year earlier and 8% sequentially, but fell a little short of the consensus call for $139.5 million among analysts tracked by
FactSet.
On an adjusted basis, the company posted a profit of a penny a share, compared with the Street’s consensus forecast for a loss of two cents.
Non-GAAP gross margin in the quarter improved to 59.2%, from 57% a year earlier.
For the full year, Fastly posted revenue of $506 million, up 17% from a year earlier, with an adjusted loss of 17 cents a share.
For the first quarter, Fastly sees revenue ranging from $131 million to $135 million, with a non-GAAP loss of between five cents and nine cents a share. The Street consensus had called for $135.5 million in revenue and a loss of three cents.
Fastly’s full-year guidance calls for revenue of between $580 million and $590 million, a range whose midpoint would represent an increase of 15.6%. The Street consensus call had been $586 million.
Fastly sees full-year net income ranging between break-even and a loss of six cents, while the Street had been expecting a loss of three cents a share.
Write to Eric J. Savitz at [email protected]
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