Fastly Earnings: FSLY Stock Falls 11% Despite Beating Q2 Estimates

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Fastly (NYSE:FSLY) earnings for the cloud computing company’s second quarter of 2020 have FSLY stock falling hard after markets closed on Wednesday. That’s despite its adjusted earnings per share of 2 cents beating out Wall Street’s estimate for a loss of 1 cent per share. Its revenue of $74.66 million also comes in above analysts’ estimate of $71.4 million.

A magnifying glass zooms in on the Fastly (FSLY) website.

Source: Pavel Kapysh / Shutterstock.com

Here’s what else is worth mentioning from the most recent Fastly earnings report.

  • Adjusted per-share earnings are a positive switch compared to the company’s adjusted losses per share of 16 cents in Q2 2019.
  • Revenue for the quarter is sitting 62% higher than the $46.17 million reported in the same period of the year prior.
  • Operating loss of $14.44 million is 23.6% worse year-over-year from a loss of $11.68 million.
  • The Fastly earnings report also includes a net loss of $14.46 million.
  • That’s a 7.2% improvement over the company’s net loss of $15.59 million from the same time last year.

Joshua Bixby, CEO of Fastly, said this in the current earnings report.

“Q2 was another exceptionally strong quarter for Fastly in a world that continues to rapidly change. The structural and societal changes resulting from the global pandemic continues to significantly accelerate the need for organizations to prioritize their digital transformation.”

Fastly also includes guidance for 2020 in its earnings report. It’s expecting adjusted per-share losses of 6 cents to 1 cent on revenue of $290 million to $300 million. Wall Street is estimating adjusted per-share losses of 13 cents on revenue of $287.24 million for the year.

FSLY stock was down 10.8% after-hours Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/fastly-earnings-drop-fsly-stock-down/.

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