Fastly (NYSE:FSLY) saw its stock gain more than 17.5% in early Thursday trade after the company narrowed its adjusted loss-per-share forecast for the year.
The company now sees a FY net loss per share between 23 cents and 19 cents on revenue of $505-509 million. Analysts were looking for a loss per share of 23 cents on revenue of $506.5 million.
“I am pleased with the team’s progress and we’re proud of the operating performance this quarter, posting record revenue and positive adjusted EBITDA,” said Todd Nightingale, CEO of Fastly.
For the fourth quarter, FSLY said it sees a loss per share between 5 cents and 1 cents. This compares to the consensus for a loss per share of 4 cents.
Revenue is seen in the range between $137 million and $141 million, somewhere in line with the expectations of $140 million.
When it comes to Q3 results, Fastly reported a loss per share of 6 cents for the third quarter, which was $0.02 better than the analyst estimate.
Moreover, the company's revenue for the quarter amounted to $127.8 million, topping the consensus estimate of $126.61 million.
Analysts at Raymond James added FSLY to their Analyst Current Favourites list as the business is “on track to meet or exceed the expectations set out at the analyst day.”
“Analysts believe the name can rebound from recent lows, and that consensus EBITDA for 2024 is far too low and will come toward our estimate. They believe the recent revenue ramp and improved profitability will be well received by investors and push shares higher in the near term,” analysts wrote.