What happened
Shares of edge computing specialist Fastly (FSLY -1.54%) surged on Thursday. As of noon ET today, shares were up about 20%.
The stock's gain comes after the tech company reported better-than-expected fourth-quarter results. Not only did Fastly's quarterly revenue and loss per share come in better than expected, but guidance also was ahead of analysts' consensus forecast.
So what
Fastly's fourth-quarter revenue increased 22% year over year, growing to more than $119 million. That exceeded the high end of management's guidance range and surpassed analysts' average estimate for revenue of about $115 million.
The company's loss narrowed year over year on both an adjusted and unadjusted basis. Adjusted earnings per share came in at a loss of $0.08, beating the consensus forecast for a loss per share of $0.13. The company's unadjusted loss per share was $0.38, narrower than a loss of $0.49 in the year-ago quarter.
Fastly said it added 33 customers during the quarter, with 11 of those being enterprise customers. Management also said that the average enterprise customer spent $782,000 during the quarter.
Now what
Management provided upbeat first-quarter and full-year guidance. The outlook for first-quarter revenue between $114 million and $117 million implies year-over-year growth of 13% at the midpoint of that range. The midpoint of Fastly's guidance for full-year revenue, between $495 million and $505 million, implies growth of almost 16%.
In the company's fourth-quarter earnings release, CEO Todd Nightingale said: "I've been incredibly impressed with the speed of innovation at Fastly and the focus our teams have demonstrated as we move to a higher velocity go-to-market motion. Our customers are passionate about our ability to elevate digital experiences at scale, and we look forward to continued momentum in 2023."
