Fastly shares shed more than a quarter of their value in late trading Wednesday, after the internet infrastructure and security software provider issued an outlook that fell well shy of previous Wall Street estimates.
Fastly was down 30.2% in after-hours trading to $9.03. That would be a 52-week low it if holds in regular trading on Thursday.
“I am pleased with the first quarter operating performance, posting non-GAAP operating loss above our guidance and positive cash flow from operations,” Fastly CEO Todd Nightingale said in a statement. “But, we’re not satisfied with our revenue growth outlook.”
For the March quarter, the company posted revenue of $133.5 million, up 14% from a year ago, and slightly ahead of the Wall Street consensus as tracked by FactSet of $133.1 million. The company lost 5 cents a share in the quarter on an adjusted basis, about a penny narrower than Wall Street had expected. Under generally accepted accounting principles, the company lost 32 cents a share.
Investors were clearly worried about Fastly’s guidance, and the company’s press release and accompanying slide deck did little to illuminate the underlying issues.
For the quarter, the company sees revenue of between $130 million and $134 million. At the midpoint of the range, that is well below the consensus of $140.4 million, with a non-GAAP loss of 6 to 10 cents a share, wider than the Street consensus forecast for a loss of 2 cents a share.
For the full year, Fastly now projects revenue of between $555 million and $565 million, with an adjusted loss of 6 to 12 cents a share; the consensus estimate had called for $585 million and a loss of 3 cents.
Fastly’s previous guidance for the year had called for revenue of $580 million to $590 million with adjusted profits ranging from breakeven to a loss of 6 cents a share.