Fastly stock slumps following wider-than-expected loss, announcement of CEO search

Shares of Fastly Inc. fell in the out-of-hours listing on Wednesday after the software company’s release in the cloud of a larger-than-expected loss for the quarter and an announcement that the company was looking for a new CEO to in its next phase of growth.

Quickly FSLY,
+ 0.96%
shares fell more than 6% after hours, after a 1% increase to close the regular session at $ 16.86. Fastly’s shares are higher than the $ 16 price set on the company’s initial public offering in 2019, but far from the heights that followed its public debut. Over the last 12 months, shares have fallen by 72%.

The company reported a loss of $ 64.3 million in the first quarter, or 54 cents per share, compared to a loss of $ 50.7 million, or 44 cents per share, in the year-end period. past. After adjusting for share compensation and other costs, the company recorded a loss of 15 cents per share, compared to a loss of 9 cents per share a year ago.

The company said revenue rose to a record $ 102.4 million from $ 84.9 million last year.

On average, analysts expected a tight loss of 14 cents per share on sales of $ 99 million.

“We are pleased to begin 2022 with strong revenue growth that exceeded the target and a record quarter for Fastly as we surpassed the $ 100 million mark for the first time,” said CEO Joshua Bixby. who is expected to step down once he is appointed successor. Fastly said he is looking for a new CEO “to lead the company in its next phase of growth.”

For the second quarter, the company expects a tight loss of 18 cents to 15 cents per share in revenue from $ 99 million to $ 102 million, while analysts expect a loss of 15 cents per share and revenue of 99.5 millions of dollars.

It quickly maintained its year-to-date earnings forecast for an adjusted loss of 50 cents to 60 cents, but raised the forecast revenue range to $ 405 million to $ 415 million. Analysts expect a loss of 56 cents per share with revenue of $ 407.3 million.

Shares plummeted last quarter after the company forecast slower-than-expected growth. Rapid stocks have been in the habit of falling sharply after gains. Shares fell after quarterly gains for five consecutive quarters, with four of those falling in double-digit percentages, until the company broke that streak in November with its quarterly report and shares rose 2% on the next day.

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