Fastly, Inc. (NYSE: FSLY) experienced a significant sell-off in after-hours trading on Wednesday, with its stock plummeting 22.05% following the release of its fourth-quarter 2024 earnings results. The cloud computing services provider reported a wider-than-expected loss and provided a disappointing outlook, fueling concerns about its ability to achieve profitability and sustain growth amid intense competition.
For the fourth quarter, Fastly reported an adjusted loss of $0.03 per share, missing analysts' expectations of breakeven results. While revenue grew 2% year-over-year to $140.6 million, slightly exceeding estimates, the company's guidance for the upcoming periods fell short of market projections.
Fastly projected a first-quarter 2025 loss ranging from $0.05 to $0.09 per share, with revenue between $136 million and $140 million. For the full year 2025, the company forecasted a loss of $0.09 to $0.15 per share on revenue of $575 million to $585 million, missing analysts' earnings estimates and implying a slowdown in growth compared to the previous year.
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