Fastly's stock tanks 20% on mixed quarter for cloud-computing company

By Claudia Assis

Fastly shows adjusted profit, but revenue falls short

Fastly Inc.'s stock dropped more than 20% in the extended session Wednesday after the cloud-computing company showed Wall Street a mixed fourth quarter, with revenue coming in below expectations.

Fastly (FSLY) lost $23.4 million, or 18 cents a share, in the quarter, compared with a loss of $46.7 million, or 38 cents a share, in the fourth quarter of 2022.

Adjusted for one-time items, the company earned a penny a share. That came ahead of expectations of a loss of 3 cents a share, according to analysts polled by FactSet.

Revenue rose to $137.8 million, from $119.3 million a year ago, but was short of the $139.8 million that analysts expected.

Fastly guided for first-quarter revenue between $131 million and $135 million, and 2024 revenue between $580 million and $590 million. FactSet consensus calls for first-quarter revenue of $135.5 million, and 2024 revenue of $586 million.

The company also guided for a first-quarter per-share adjusted loss of 9 cents to 5 cents, while the analysts surveyed by FactSet expect a quarterly adjusted loss of 4 cents a share.

The yearly guidance of a loss of 6 cents a share to a breakeven 12 months compares with FactSet expectations of a per-share adjusted loss of 4 cents a share.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

02-14-24 2044ET

Copyright (c) 2024 Dow Jones & Company, Inc.