What happened

Shares of Fastly (NYSE:FSLY) have skyrocketed today, up by 38% as of 12:40 p.m. EDT, after the company reported first-quarter earnings. The cloud infrastructure specialist beat expectations for both the top and bottom lines as the COVID-19 pandemic drove demand for its services.

So what

Revenue in the first quarter jumped 38% to $63 million, ahead of the consensus estimate of $59.4 million. That all translated into an adjusted net loss of $0.06 per share, which was half as much red ink as analysts were modeling for. The tech company had promoted Joshua Bixby to the CEO role in February so that founder Artur Bergman could focus on development.

Green stock chart going up

Image source: Getty Images.

"The momentum from 2019 continued through the first quarter and was further bolstered in late March by increased traffic on our platform from social distancing orders implemented across the world," Bixby said in a statement. "These unprecedented times highlight the importance of digital transformation now more than ever, and our innovative and resilient customer base enables us to remain confident in the demand for our mission-critical services and the accelerated growth of our business."

Now what

Fastly's business with existing customers continues to grow amid the novel coronavirus outbreak, with dollar-based net expansion rate (DBNER) of 133% in the first quarter. The company is confident in its path to profitability despite macroeconomic conditions, according to Bixby.

In terms of guidance, revenue in the second quarter is expected to be $70 million to $72 million, compared to the consensus estimate of $60 million. Fastly also raised its full-year 2020 outlook, which now calls for revenue of $280 million to $290 million, up from its prior forecast of $255 million to $265 million.