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as guidance comes in below expectations, Fastly shares surge

Fastly shares are down a lot in late trading today after the content delivery network operator had good fourth-quarter results but didn’t meet expectations for 2022.

In late trading, the price has dropped 26%, to $21.50.

For the quarter, Fastly (TSX: FSLY) made $97.7 million in revenue, which is up 13% from last year. This is more than the Wall Street consensus of $92.5 million. The company made a non-GAAP loss of 10 cents a share in the third quarter, which was less than the 16 cents the Street thought it would make. Accounting rules say that the company lost $57.5 million, or 49 cents a share.

During the whole year, Fastly made $354.3 million, which is up 22%. The company made a non-GAAP loss of 48 cents a share.

A non-GAAP loss for the March quarter is expected to be between 13 and 15 cents per share, compared with the Street’s expectations of $98 million and a loss of 13 cents.

In terms of the stock, it’s clear that the main problem is full-year forecasts. It expects revenue of $400 million to $410 million, with a growth rate of 14%. There will be a non-GAAP loss for the whole year of 50 to 60 cents a share. The street thought the company would lose $419 million and make a loss of 48 cents a share.

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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