Why Fastly Shares Are Falling In Thursday's Pre-Market Session

Fastly Inc FSLY shares are trading lower by 31.42% at $19.81 in Thursday's pre-market session after the company reported fourth-quarter earnings results and issued first-quarter and FY22 guidance.

Fastly reported quarterly losses of 10 cents per share which beat the analyst consensus estimate of a loss of 16 cents per share. The company also reported quarterly sales of $97.72 million which beat the analyst consensus estimate of $92.48 million by 6%. This is an 18% increase over sales of $82.65 million the same period last year.

Fastly is guiding for sales of $92-$100 million for first-quarter 2022, versus the analyst consensus estimate of $98 million. Fastly is also guiding for FY22 sales of $400-$410 million, versus the analyst consensus estimate of $419 million.

Fastly is guiding for a first-quarter adjusted EPS of a loss of 13-15 cents per share, versus the analyst consensus estimate of a loss of 13 cents per share. Fastly is also guiding for FY22 adjusted EPS of a loss of 50-60 cents per share, versus the analyst consensus estimate of a loss of 48 cents per share.

"We finished 2021 on a strong note with fourth quarter revenue of $97.7 million, exceeding the midpoint of our guidance range by 7% and demonstrating momentum after facing setbacks earlier in the year," said Joshua Bixby, CEO of Fastly.

"Our foundational technology, differentiated by the scale and efficiency of our network, continues to attract and empower enterprise developers in their moments of inspiration. We continue to uniquely unlock programmable ways for our customers to build modern digital experiences for billions of people every day on our technology," continued Bixby. "Coupled with a strong roadmap of new products, including our recent launch of Fastly's Next-Gen WAF, the industry's first and only unified WAF, we are excited about our opportunities in 2022 as we expand our network and capture the future growth potential of our edge cloud network."

Fastly has a 52-week high of $105.50 and a 52-week low of $23.50.