Overview
- Fastly stock sank by roughly a third in early trading after a steep drop after hours, even though the company topped Wall Street forecasts.
- Quarterly results showed $173.02 million in revenue versus $170.26 million expected and adjusted earnings of 13 cents per share versus 8 cents expected.
- Management raised its outlook, guiding next quarter revenue to $170 million to $176 million with adjusted EPS of 5 to 8 cents and full-year revenue to $710 million to $725 million with EPS of 27 to 33 cents.
- Security products led growth with revenue up 47% year over year, while Network Services rose 11% and Other revenue increased 67%, which the CEO said came from both bigger customer usage and new wins.
- Shares had jumped 17.72% before the report as traders bet on a strong print, and the company has been leaning into higher-margin security and AI work such as an anti-piracy project with Spain’s LaLiga.