Fastly CEO Joshua Bixby on CNBC’s “Mad Money.”
Source: CNBC
Shares of Fastly fell as much as 19% in extended trading on Wednesday after the content-delivery network provider announced lower revenue than expected following an outage and called for deeper losses than analysts had predicted for the coming quarters.
Here’s how the company did:
- Earnings: Loss of 15 cents per share, adjusted, vs. loss of 17 cents as expected by analysts, according to Refinitiv.
- Revenue: $85.1 million, vs. $85.73 million as expected by analysts, according to Refinitiv.
Revenue rose about 14% in the second quarter, but an outage on June 8 that affected almost all of Fastly’s customers caused a decrease in traffic volume and resulted in Fastly giving customers credits. The downtime caused technical issues for Amazon’s Twitch live-streaming service, the New York Times and Reddit, among others.
“We expect to see a downstream impact on revenue from the outage in the near-to medium-term as we work with our customers to bring back their traffic to normal levels,” Fastly CEO Joshua Bixby wrote in a letter to shareholders. One of Fastly’s top 10 customers has not returned its traffic to the company’s infrastructure, he wrote.
In addition, certain organizations have delayed deployments on Fastly.
“We believe that this traffic will come onto the network in 2021, but later than we had originally forecasted,” Bixby wrote.
With respect to guidance, Fastly now sees a third-quarter adjusted loss of 21 cents to 18 cents per share on $82 million to $85 million in revenue. Analysts surveyed by Refinitiv had expected a loss of 9 cents per share on $98.0 million in revenue.
For the full year, Fastly called for an adjusted loss of 65 cents to 57 cents per share on revenue of $340 million to $350 million. Analysts polled by Refinitiv were looking for a loss of 43 cents per share on $382.8 million in revenue.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
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