Fastly, the internet infrastructure provider, saw its shares plummet after reporting mixed results for the fourth quarter and offering slightly underwhelming guidance for both the first quarter and the entirety of 2024. This unexpected downturn comes after an impressive year for Fastly, with shares surging 32% and boasting a 70% increase over the past 12 months.
As of late trading, the shares have dropped by 21% to $18.69.
During the quarter, Fastly reported revenue of $137.8 million, falling just short of the Street consensus expectation of $139.5 million. While revenue showcased a 15.5% increase from the previous year and an 8% sequential growth, it did not meet the analysts’ projected $139.5 million as tracked by FactSet. On an adjusted basis, the company recorded a profit of one cent per share, compared to the anticipated loss of two cents according to Street consensus forecast.
Fastly exhibited an improvement in non-GAAP gross margin for the quarter, rising to 59.2% from 57% compared to the prior year.
For the full year, Fastly achieved revenue of $506 million, marking a 17% increase from the previous year. Conversely, the adjusted loss amounted to 17 cents per share.
Looking ahead to the first quarter, Fastly anticipates revenue in the range of $131 million to $135 million, accompanied by a non-GAAP loss between five and nine cents per share. Analysts had projected $135.5 million in revenue with a loss of three cents.
Fastly’s full-year guidance sets a revenue target of $580 million to $590 million, with the midpoint representing a growth rate of approximately 15.6%. The Street consensus had previously estimated revenue at $586 million.
Regarding full-year net income, Fastly expects it to range between break-even and a loss of six cents per share. Analysts, on the other hand, had anticipated a loss of three cents per share.