What happened
Shares of edge computing specialist Fastly (NYSE: FSLY) surged on Thursday. As of noon ET today, shares were up about 20%.
The stock's gain comes after the tech company reported better-than-expected fourth-quarter results. Not only did Fastly's quarterly revenue and loss per share come in better than expected, but guidance also was ahead of analysts' consensus forecast.
So what
Fastly's fourth-quarter revenue increased 22% year over year, growing to more than $119 million. That exceeded the high end of management's guidance range and surpassed analysts' average estimate for revenue of about $115 million.
The company's loss narrowed year over year on both an adjusted and unadjusted basis. Adjusted earnings per share came in at a loss of $0.08, beating the consensus forecast for a loss per share of $0.13. The company's unadjusted loss per share was $0.38, narrower than a loss of $0.49 in the year-ago quarter.
Fastly said it added 33 customers during the quarter, with 11 of those being enterprise customers. Management also said that the average enterprise customer spent $782,000 during the quarter.
Now what
Management provided upbeat first-quarter and full-year guidance. The outlook for first-quarter revenue between $114 million and $117 million implies year-over-year growth of 13% at the midpoint of that range. The midpoint of Fastly's guidance for full-year revenue, between $495 million and $505 million, implies growth of almost 16%.
In the company's fourth-quarter earnings release, CEO Todd Nightingale said: "I've been incredibly impressed with the speed of innovation at Fastly and the focus our teams have demonstrated as we move to a higher velocity go-to-market motion. Our customers are passionate about our ability to elevate digital experiences at scale, and we look forward to continued momentum in 2023."
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Fastly. The Motley Fool has a disclosure policy.
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