Fastly (FSLY) - Get Report shares plunged on Thursday, falling more than 22%, after the cloud-software company lowered its second-quarter and full-year revenue forecasts and said its chief financial officer was stepping down.
At last check, shares of Fastly were down 22.56% at $44.90 after the company reported a non-GAAP per-share loss of 12 cents, a penny wider than the loss of 11 cents expected by analysts polled by FactSet.
On a GAAP basis, per-share earnings were 44 cents vs. 28 cents expected by analysts polled by FactSet.
Revenue was $85 million, up 34.9% year over year and slightly above analysts’ forecasts. But Fastly lowered its second-quarter revenue guidance to between $84 million and $87 million, below analysts’ forecasts of $91.7 million.
It also said it expects a net per-share loss of share between 16 cents and 19 cents, below consensus forecasts of a loss of 9 cents.
Piper Sandler analysts James Fish and Quinton Gabrielli wrote in a research note that Fastly’s lead metrics and organic growth deceleration, landscape, and valuation “leave us incrementally more concerned.” The held their neutral rating on the shares.
Raymond James analysts Robert Majek and Chase Donovan were a little more optimistic, writing that beyond the second quarter, prior-year comparisons will be easier for Fastly to achieve.
“Given the high bar to hit the full-year guidance, we remain on the sidelines until we get better visibility and confidence around the trajectory of network traffic growth and the H2 revenue build,” the analysts said. The duo held their market perform rating on the shares.
Fastly also announced on Wednesday that Chief Financial Officer Adriel Lares will be stepping down. Lares will continue in his role as financial chief until a successor is appointed.