What happened
Shares of Fastly (FSLY +2.02%) 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.
So what
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.
Image source: Getty Images.
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.
NASDAQ: FSLY
Key Data Points
Now what
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.
