What happened
Shares of Fastly (FSLY 5.39%) were climbing quickly today after the company reported better-than-expected third-quarter results that beat Wall Street's top- and-bottom line results.
Fastly's solid financial results also boosted management's optimism, causing the company to raise its revenue outlook for the year.
As a result, the tech stock jumped 10.4% as of 3:08 p.m. ET.
So what
Fastly reported a non-GAAP (adjusted) loss per share of $0.14 in the quarter, which was worse than the $0.11 loss in the year-ago quarter but was still far better than Wall Street's consensus estimate of a loss of $0.17 per share.
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The company's top-line results didn't disappoint either. Fastly's total sales increased 25% from the year-ago quarter to $108.5 million, which outpaced analysts' average estimate of $103.5 million for the quarter.
"We are pleased to announce another record quarter, continuing our revenue momentum into 2022 and exceeding the top end of our guidance range while improving our gross margin significantly," Fastly CEO Todd Nightingale said in a press release.
Adding to the good news was the fact that the company raised its revenue guidance for 2022. Fastly's management said sales will be $427 million for the year, up from its previous guidance of $420 million, both at the midpoint of guidance. The revised outlook is better than Wall Street's expectation of $419.8 million.
Now what
Fastly's leadership said on the company's earnings call that the fourth quarter is historically strong relative to its third quarter, and it anticipates a "similar trajectory" this year.
Fastly's chief financial officer, Ron Kisling, added that the company's fourth quarter and full-year outlook "reflects our continued ability to deliver strong top-line growth via improved customer acquisition and expansion within our enterprise customers, driven in part by new and enhanced products."
Management said fourth-quarter revenue will be in the range between $112 million to $116 million, ahead of analysts' expectation of $113.1 million.
With its strong third-quarter results and management raising its revenue guidance for the year, it's no wonder why investors grew optimistic about the company's financial outlook today.
