Fastly Earnings (FSLY) Q2 2021

Shares of Fastly fell as much as 19% in extended trading on Wednesday after the content delivery network provider reported lower-than-expected revenue following an outage and forecast deeper-than-expected losses for the next few quarters.

Here’s how the company did it, compared to analyst expectations, according to Refinitiv:

  • Profits: Loss of 15 cents per share, adjusted, versus loss of 17 cents expected
  • Income: $ 85.1 million versus $ 85.73 million expected

Revenue increased about 14% in the second quarter, but an outage on June 8 that affected nearly all of Fastly’s customers caused a decrease in traffic volume and resulted in Fastly granting loans to customers. The downtime caused glitches for Amazon’s Twitch live streaming service, The New York Times, and Reddit, among others.

“We expect to see a downward impact on revenue from the outage in the short to medium term as we work with our customers to return their traffic to normal levels,” Fastly CEO Joshua Bixby wrote in a letter to shareholders. One of Fastly’s top 10 customers has not returned its traffic to the company’s infrastructure, he wrote.

Additionally, some organizations have delayed Fastly deployments.

“We believe this traffic will hit the network in 2021, but later than we originally anticipated,” Bixby wrote.

Regarding guidance, Fastly now sees a third-quarter adjusted loss of 21 cents to 18 cents a share on $ 82 million to $ 85 million in revenue. Analysts surveyed by Refinitiv expected a loss of 9 cents a share on $ 98 million in revenue.

For the full year, Fastly claimed an adjusted loss of 65 cents to 57 cents per share on revenue of $ 340 million to $ 350 million. Analysts polled by Refinitiv expected a loss of 43 cents a share on $ 382.8 million in revenue.

CLOCK: Fastly CEO Says Company Continues ‘To Feel Optimistic’ After Losing Business To TikTok

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