Fastly Inc (NYSE: FSLY) is down more than 30% in the stock market on Thursday after the cloud company reported market-beating results for its fiscal Q4 but gave dovish guidance for full-year revenue.
Important points in the Q4 report
Fastly lost $57.5 million in the fourth quarter.On an adjusted basis, it lost 10 cents per share versus the year-ago figure of 9 cents per share.At $97.7 million, revenue came in 18% higher than the same quarter last year.FactSet consensus was for 16 cents of adjusted per-share loss on $92.5 million in revenue.Low churn resulted in annual recurring revenue of 99.2%, as per the earnings press release.
Fastly expects a slowdown in 2022
Fastly expects revenue growth to lose pace in 2022. The cloud computing services provider forecasts roughly 14.3% increase in revenue this year versus 21.8% it posted for fiscal 2021. Its full-year guidance for per-share loss (adjusted) and revenue was also below experts’ forecast, but CEO Joshua Bixby said:
Our foundational technology continues to attract enterprise developers. We continue to unlock programmable ways for our customers to build modern digital experiences for billions of people every day on our technology. Coupled with a strong roadmap of new products, we’re excited about our opportunities in 2022 as we expand our network and capture the future growth potential of our edge cloud network.
The downbeat guidance had analysts at BofA Securities, Morgan Stanley, and Piper Sandler slash their price targets on the stock this morning. FSLY is now exchanging hands at $19.50 versus its IPO price of $16 a share in 2019.