What happened
Shares of Fastly (FSLY 4.06%) dropped 10.4% on Thursday after the edge-computing platform delivered disappointing second-quarter results and offered a tepid full-year sales forecast.
So what
Fastly's revenue rose 14% year over year to $85 million. That was slightly below Wall Street's expectations for revenue of $85.7 million.
The shortfall was driven in part by a global network outage on June 8. The outage impacted nearly all of Fastly's customers, many of which responded by sending less traffic through its network. Fastly issued credits to customers to mitigate the damage, which further weighed on its sales.
Fastly's stock price fell sharply on Thursday. Image source: Getty Images.
Fastly noted that the fallout from the outage also included the loss of one of its largest customers, though it declined to disclose the name of the company. Fastly warned these issues will likely continue to negatively impact its sales growth in the quarters ahead.
Now what
Fastly now expects to generate roughly $345 million in revenue and an adjusted net loss of approximately $0.61 per share. Analysts had forecast revenue of $382.8 million and a net loss per share of $0.43.
Still, management is optimistic that it can win back much of the business that it lost. "We believe that this traffic will come onto the network in 2021 but later than we had originally forecasted," CEO Joshua Bixby said in a letter to shareholders.
