Fastly Shares Drop After Q1 Results, Weak Revenue Guidance
Portfolio Pulse from Erica Kollmann
Fastly, Inc. (NYSE:FSLY) reported Q1 sales of $133.52 million, slightly above estimates, but provided weak revenue guidance for Q2 and the full year 2024, leading to a 29.85% drop in shares after-hours. The company expects Q2 losses between 6 and 10 cents per share, with revenue between $130 million and $134 million, below the analyst estimate of $140.16 million. Full-year 2024 guidance also fell short of expectations, with projected losses between 6 and 12 cents per share and revenue between $555 million and $565 million, versus the $584.59 million estimate.
May 01, 2024 | 10:10 pm
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Fastly reported better-than-expected Q1 results but issued weak revenue guidance for Q2 and FY 2024, causing a significant after-hours stock price drop.
Fastly's after-hours stock price plummeted due to its disappointing revenue outlook for the second quarter and the full year 2024, which fell below analyst expectations. This negative outlook, especially when contrasted with the Q1 performance that exceeded estimates, suggests a bearish short-term sentiment among investors concerned about the company's future revenue growth.
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