Fastly drops 27% after release of Q1-21 results - Price roller coaster
Fastly released its Q1-21 performance on Thursday, after which the stock price dropped a whopping 27%. The company generated revenues of $84.9 million (35% YoY) vs. $85.1 million market consensus. Net loss per share was $0.12 vs. an expected $0.11.
These are not big misses but make the company one of the few high-growth cloud players that underperformed market expectations.
However, the company also lowered its guidance for Q2: Fastly forecasts revenues of $84 - $87 million and a net loss of $0.16 - $0.19 per share, compared to the market consensus of $92 million in revenue and a net loss of $0.08 per share, thereby disappointing investors.
Lastly, Adriel Lares will step down as CFO of the company after 5 years.
[Shareholder letter](https://investors.fastly.com/files/doc_financials/2021/q1/1Q21-Shareholder-Letter.pdf)
The company is now trading at a PPS of $42, compared to its high of $119 only 3 months ago, representing a TEV / NTM revenue multiple of 11.9x.
https://preview.redd.it/o0icgq474ox61.png?width=1312&format=png&auto=webp&s=4ef3707685f45a263efeb7c74cbf6f82ec9c810b
https://www.reddit.com/r/StockMarket/comments/n6ulyc/fastly_drops_27_after_release_of_q121_results/
