Shares of Fastly, Inc. (FSLY) surged 5.51% in pre-market trading on November 7, 2024, after the cloud computing services provider reported better-than-expected financial results for the third quarter of 2024. The company's strong performance and upbeat guidance fueled investor optimism, with analysts also turning increasingly bullish on Fastly's growth prospects.
For the third quarter, Fastly's revenue grew 7% year-over-year to $137.2 million, exceeding the high end of its guidance range. The company reported an operating loss of $520,000, significantly better than its guidance range, and achieved a net profit of $2.4 million, marking a record for the company. Fastly also delivered a record adjusted EBITDA of $13.3 million, driven by higher revenue, improved gross margins, and cost-cutting benefits from its recent restructuring efforts.
Notably, Fastly's revenue outside its top 10 customers grew a robust 20% year-over-year, indicating progress in diversifying its revenue sources and strengthening its business. The company's enterprise customer count increased by 5% year-over-year, and it added 343 new customers during the quarter, reflecting a 10% growth rate.
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