Fastly stock is trading sharply lower after the content-delivery network and edge security-software provider posted disappointing guidance for the June quarter.
Fastly (ticker: FSLY) stock in late trading has tumbled 17%, to $48.
For the March quarter, Fastly posted revenue of $85 million, about in line with the Wall Street analyst consensus forecast of $85.1 million, and up 35% from a year ago. On a non-GAAP basis, Fastly lost 12 cents a share, a penny wider than the Street consensus estimate for a loss of 11 cents. Under generally accepted accounting principles, the company lost $51 million, or 44 cents a share.
For the June quarter, Fastly projects revenue of $84 million to $87 million, falling short of the Wall Street analyst consensus forecast at $91 million, with a non-GAAP loss of 16 cents to 19 cents a share, which compares with the Street consensus estimate for a loss of 9 cents.
For the full year, Fastly now sees revenue ranging from $380 million to $390 million, up from a previous forecast that ranged from $375 million to $385 million, while maintaining a previous forecast for a non-GAAP per-share loss of 35 cents to 44 cents. The Street has been anticipating revenue of $381.5 million and a loss of 39 cents a share.
Fastly also announced that Chief Financial Officer Andriel Lares will step down after five years in the role. The company said he will stay on to assist with a transition. The company said it has begun an external search for a replacement. The company did not provide any explanation for the departure.
“The demand for Fastly’s platform remains strong as companies stay focused on their digital transformation and are beginning to realize the tremendous potential at the edge,” the company said in a letter to shareholders. “This quarter we saw usage expansion and new business wins across multiple verticals and regions including gaming, high technology, education, e-commerce, and financial services.”