Fastly Shares Tumble After Q4 Report, Weak Forward Guidance

Fastly, Inc. FSLY reported its fourth-quarter financial results after Wednesday's closing bell. Here's a look at the details from the report. 

The Details: The San Francisco-based company reported quarterly losses of 3 cents per share. That’s down from earnings of 1 cent in the prior year’s quarter. Quarterly revenue came in at $140.58 million, beating the $138.27 million analyst consensus estimate.

• Network services revenue was $427.7 million, representing 6% year-over-year growth.
• Security revenue was $103 million, representing 11% year-over-year growth.
• Other revenue was $12.9 million, representing 61% year-over-year growth. 
• Enterprise customer count was 596 in the fourth quarter, up 20 from the third quarter of 2024.
• Fastly’s top ten customers accounted for 32% of revenue in the fourth quarter compared to 40% in the fourth quarter of 2023.

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"We are pleased to report record fourth quarter revenue, exceeding the high-end of our guidance range," said Todd Nightingale, CEO of Fastly.

"Our platform strategy is delivering an accelerated innovation velocity and faster time to value for anyone building web experiences," continued Nightingale. “We enter 2025 with a strengthened balance sheet, a motivated go-to-market team, and intense focus on efficient customer acquisition and long-term revenue growth."

Outlook: Fastly expects first-quarter losses of between 9 cents and 5 cents per share, versus the loss of 1 cent estimate, and revenue in a range of $136 million to $140 million, versus the $137.05 million estimate.

FSLY Price Action: According to data from Benzinga Pro, Fastly shares are down 18.57% after hours at $8.20 Wednesday.  

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