Fastly stock is on track for its worst day in two yearsFastly Inc (NYSE:FSLY) stock is headed for its largest percentage drop since February 2022, down 29.2% to trade at $16.67 at last glance, after the cloud company's disappointing first-quarter forecast and fourth-quarter revenue miss. Craig-Hallum downgraded FSLY to "hold" from "buy," after the earnings event, though no fewer than three other analysts chimed in with small price-target hikes. Considering the 12-month consensus price target of $21.78 is no ...

Financial Data and Key Metrics - Revenue for 2023 was $506 million, representing 17% YoY growth, exceeding the original guidance range of $495 million to $505 million [7] - Q4 2023 revenue was $137.8 million, up 15% YoY and 8% QoQ, at the lower end of the guidance range due to weaker international traffic [7] - Operating loss for 2023 was $37 million, less than half of the $76 million loss in 2022, and better than the original guidance of $53 million to $47 million [12] - Q4 2023 operating loss was $2.3 million, better than the guidance range of $10 million to $6 million [12] - Gross margin for 2023 was 56.9%, up 330 basis points from 2022, with Q4 gross margin at 59.2%, a 220 basis point increase YoY [19] - Net income in Q4 2023 was $1.7 million, marking the first positive net income since Q2 2020 [20] Business Line Data and Key Metrics - Signal Sciences products contributed 13% of Q4 revenue, a 25% YoY increase [28] - The company added 31 new enterprise customers in Q4, with 19 being net new to Fastly [8] - Average enterprise customer spend was $880,000, up 7% YoY [15] - The company introduced a bot mitigation solution in limited availability, with positive early feedback [13][121] Market Data and Key Metrics - International revenue accounted for 27% of total revenue in 2023, up from 26% in 2022 [62] - Weaker international traffic in Q4 resulted in lower revenue growth but higher gross margins [33] - The company saw strong growth in live streaming and gaming activity, offsetting weaker international traffic [7] Company Strategy and Industry Competition - Fastly is focusing on unifying its platform, simplifying customer onboarding, and improving cross-selling opportunities [16] - The company is expanding its security offerings to meet growing demand, with 76% of businesses planning to increase cybersecurity budgets in 2024 [11] - Fastly was named a leader in the Forrester Wave Edge Development Platform's Q4 2023 report, with high scores in vision, innovation, and pricing flexibility [11] - The company is leveraging its edge platform to deliver fast, safe, and engaging digital experiences, positioning itself as a key player in the edge cloud market [24] Management Commentary on Operating Environment and Future Outlook - Management expects 2024 revenue to grow 16% YoY, with gross margins improving by approximately 200 basis points and exiting the year at 60% or better [46] - The company anticipates Q1 2024 revenue to be in the range of $131 million to $135 million, with a seasonal decline in gross margins [44] - Management highlighted the importance of new customer acquisition and product innovation in driving future growth [67] - The company is focused on improving operational efficiency and leveraging revenue growth to improve cash flow in 2024 [20] Other Important Information - Fastly will discontinue disclosing quarterly NRR and DBNER metrics starting in Q1 2024, and will instead provide revenue breakdowns by product area (core, growth, and emerging) [26][27] - The company repurchased $367.3 million in principal amount of convertible notes in 2023, reducing its convertible debt balance by more than 50% [39] - Free cash flow improved by $113 million YoY to negative $59 million in 2023, driven by increased cash from operations and reduced equipment payments [41] Q&A Session Summary Question: Backlog Performance and Package Momentum - The sequential decline in RPO was due to the burn-down of multi-year commitments with large customers, with package momentum expected to help stabilize RPO in the future [51][52] Question: Succession Planning for Chief Revenue Officer - The departure of the Chief Revenue Officer late in Q4 did not impact the quarter, and the company is actively seeking a replacement [55] Question: International Traffic Weakness - Weaker international traffic in Q4 was due to a slowdown in one high-cost country, which shifted traffic to other regions, impacting revenue but improving gross margins [62][97] Question: Net Retention and DBNER Trends - New enterprise customers are expected to contribute to improved net retention rates over time, as customers typically ramp up their spend in the first 2.5 to 3 years [77] Question: Gross Margin Improvement and 60% Target - The company has a clear plan to achieve 60% gross margins by the end of 2024, driven by network efficiency, cost control, and improved peering relationships [100] Question: Signal Sciences Growth and Bot Management Feedback - Signal Sciences growth slowed slightly in Q4, but the company remains confident in its security offerings, with positive early feedback on the new bot management product [115][121] Question: Revenue Acceleration and International Assumptions - The company expects revenue growth to accelerate throughout 2024, with international traffic assumptions based on baseline projections and potential tailwinds from new customers or traffic surges [106]

Fastly Inc.’s stock dropped nearly 20% in the extended session Wednesday after the cloud-computing company showed Wall Street a mixed fourth quarter, with revenue coming in below expectations. Fastly FSLY lost $23.4 million, or 18 cents a share, in the quarter, compared with a loss of $46.7 million, or 38 cents a share, in the fourth quarter of 2022. Adjusted... Master your money. Subscribe to MarketWatch. Get this article and all of MarketWatch. Access from any device. Anywhere. Anytime. Subs ...

Analysts on Wall Street project that Fastly (FSLY) will announce quarterly loss of $0.02 per share in its forthcoming report, representing an increase of 75% year over year. Revenues are projected to reach $139.25 million, increasing 16.7% from the same quarter last year.The consensus EPS estimate for the quarter has undergone a downward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates durin ...

SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NYSE: FSLY), one of the world’s fastest global edge cloud platforms, today announced that management will be participating in fireside chats at the following investor conferences: Raymond James 45th Annual Institutional Investors Conference in Orlando, FL on March 4th at 11:35 a.m. ET Presenters: Ron Kisling, Chief Financial Officer and Vernon Essi, Jr., VP Investor Relations Morgan Stanley Technology, Media & Telecom Conference in San Francisco, CA on Mar ...

Fastly (FSLY) closed at $21.60 in the latest trading session, marking a -0.51% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.23%. Elsewhere, the Dow gained 0.37%, while the tech-heavy Nasdaq added 0.07%.The cloud software developer's shares have seen an increase of 18.25% over the last month, surpassing the Computer and Technology sector's gain of 11.06% and the S&P 500's gain of 5.3%.Market participants will be closely following the financial results of Fastly in ...

The most recent trading session ended with Fastly (FSLY) standing at $21.22, reflecting a +0.14% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.Coming into today, shares of the cloud software developer had gained 19.05% in the past month. In that same time, the Computer and Technology sector gained 6.36%, while the S&P 500 gained 3.36%.The investment community ...

MF3d Fastly (NYSE:FSLY) is one of the world’s fastest CDN companies, delivering fast content, applications, and APIs to customers around the globe. The company had a nice run last year, increasing more than 100% over the last 12 months, as it benefited from the AI related market momentum. Despite this performance, Fastly is still 85% below its all-time high of $136, which it hit in October 2020. Since then, the stock has lagged behind the S&P 500 by a large margin (see below). FSLY vs S&P 500 price perf ...

Fastly (FSLY) ended the recent trading session at $20.62, demonstrating a +1.48% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.43%.Shares of the cloud software developer have appreciated by 9.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.The investment community will be closely mo ...

Shares of Fastly (FSLY 8.32%) rose 8.3% on Monday, after an analyst at Citigroup (C 2.56%) upgraded shares of the leading cloud-computing services stock.This analyst is more optimistic for Fastly's futureIn a note to clients Monday, Citi analyst Fatima Boolani upgraded its rating on Fastly to neutral from sell and significantly raised the firm's per-share price target on the stock to $20 from $11. Fastly closed the day at $20.32 per share. To justify her relative bullishness, Boolani pointed to Fastly's imp ...