Fastly CEO Joshua Bixby on CNBC’s Mad Money.
Fastly’s shares fell as much as 19% in extended trading on Wednesday after the content delivery network provider reported lower-than-expected earnings after a failure and forecast larger-than-expected losses for the quarters ahead.
Here’s how the company performed compared to analysts’ expectations, according to Refinitiv:
- Merits: Adjusted loss of 15 cents per share vs. expected loss of 17 cents
- Revenue: $ 85.1 million versus $ 85.73 million expected
Revenue rose about 14% in the second quarter, but a June 8 outage that affected almost all Fastly customers resulted in a decrease in traffic and prompted Fastly to add credit to its customers. The downtime caused technical problems with Amazon’s live streaming service Twitch, The New York Times and Reddit, among others.
“We expect the outage to have a downstream impact on sales in the short to medium term as we work with our customers to bring their traffic to normal levels,” Fastly CEO Joshua Bixby wrote in a letter to shareholders. One of Fastly’s top 10 customers hasn’t returned its traffic to the company’s infrastructure, he wrote.
Additionally, certain organizations have delayed the deployment of Fastly.
“We assume that this traffic will come online in 2021, but later than originally forecast,” wrote Bixby.
In terms of guidance, Fastly now sees an adjusted loss of 21 to 18 cents per share for the third quarter on revenue of $ 82 to 85 million. Analysts polled by Refinitiv had expected a loss of 9 cents per share on sales of 98 million US dollars.
For the full year, Fastly claimed an adjusted loss of 65 to 57 cents per share on sales of $ 340 to 350 million. Analysts polled by Refinitiv expected a loss of 43 cents per share on sales of 382.8 million US dollars.
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