Shares of Fastly (FSLY -1.77%) were plummeting today after the edge cloud platform company reported a worse-than-expected loss in its first quarter and as it announced that its board will start its search for a new CEO.
The tech stock was down by 18.1% as of 1:16 p.m. ET.
Fastly's loss of $0.15 per share in the quarter was worse than analysts' consensus estimate of a loss of $0.14 per share and the $0.12 loss per share in the year-ago quarter.
The company did manage to beat Wall Street's average revenue estimate for the quarter, with sales of $102.4 million outpacing expectations of $99 million for the quarter.
Investors weren't happy with Fastly missing analysts' bottom-line consensus estimate, but they were also likely upset to see that the company is starting its search to replace current CEO Joshua Bixby.
"As the Board and I considered how to best position Fastly for long-term success, I have decided that now is the right time to transition to a new leader," Bixby said in a press release.
Bixby will remain as CEO until the cmopany's board finds its next leader.
Like many growth stocks in the technology sector, Fastly has seen its share price fall significantly over the past year -- the company's stock is down 76% over the past 12 months.
But aside from the market's instability, investors are right to be cautious about Fastly right now. With the company's losses widening from the year-ago quarter and Fastly currently searching for a new CEO, the company clearly has some work to do to get back on track.
Investors should keep a close eye on who is selected as its next leader and how (if at all) the company's financial results change as a result of new management.