Fastly (NYSE:FSLY) is in the news Thursday after updating its guidance for the third quarter of 2020 dropped FSLY stock.
A Fastly news release reveals that the company now expects Q3 revenue to range from $70 to $71 million. That’s a drop from the company’s previous revenue guidance of $73.5 to $75.5 million for the quarter.
Unfortunately for FSLY stock, the new revenue guidance also doesn’t match up to Wall Street’s estimates. Analysts’ are looking for the company to report revenue of $73.57 during the third quarter of the year.
To go along with this new Q3 guidance, the company is also withdrawing its previous guidance. That includes the company’s outlook for the full year of 2020 that it released in its earnings report for the second quarter of the year.
The Fastly news release notes that the company will release its earnings report for the third quarter of 2020 after markets close on Oct. 28. At that time, the company will also provide guidance for the fourth quarter and full year of 2020.
Joshua Bixby, CEO of Fastly, said the following about the news.
“The current global environment has in some ways fueled our business, but has also created areas of uncertainty. While our preliminary third quarter results reflect the challenges of a usage-based model, we believe the fundamentals of Fastly’s business remain strong, as does demand for our platform.”
FSLY stock was down 27.6% as of Thursday morning but is up 315.5% year-to-date.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.