Fastly Stock Tanks After Mixed Q4 Results - Here's Why

Fastly, Inc. FSLY shares are moving lower after the company reported mixed fourth-quarter financial results Wednesday. Here's a look at the details.

The Details:

Fastly reported quarterly earnings of 1 cent per share, which beat the analyst consensus estimate of a 2 cent loss. It is an increase over losses of 8 cents per share from the same period last year.

The company reported quarterly sales of $137.78 million, missing the analyst consensus estimate of $139.46 million by 1.21% and representing a 15.47% increase over sales of $119.32 million year-over-year.

Fastly's total customer count was 3,243 in the fourth quarter, and 578 were enterprise customers.

"This quarter demonstrated the progress we've made in operational and financial rigor resulting in strong gross margins and non-GAAP net income," said Todd Nightingale, CEO of Fastly.

"Our go-to-market, packaging and channel efforts through 2023 delivered an inflection in our customer acquisition as we closed out the year," continued Nightingale. 

"This positions us well for 2024, driving our mission to make every user experience fast, safe, and engaging."

Outlook: Fastly sees first-quarter revenue of between $131 million and $135 million versus the analyst consensus of $135.46 million, and full-year revenue between $580 million and $590 million versus $586.23 million consensus.

Related News: Shopify Stock Bounces Back As Analysts React To Q4 Earnings

FSLY Price Action: According to Benzinga Pro, Fastly shares are trading down 20.2% after-hours at $18.81 at the time of publication.

Image: Mudassar Iqbal from Pixabay