What happened
Shares of Fastly (FSLY 15.05%) were up 19% this week as of 1:15 p.m. ET Friday, according to data provided by S&P Global Market Intelligence, after the edge-cloud platform leader delivered significantly stronger-than-expected, second-quarter results.
To be sure, the majority of Fastly's gains this week came after its Q2 report hit the wires on Wednesday evening. Quarterly revenue climbed 20% year over year to $122.8 million -- well above the high end of its own guidance and analysts' estimates for $118.8 million -- translating to an adjusted net loss of $0.04 per share, which was far better than the $0.10 per-share loss Wall Street was modeling.
NASDAQ: FSLY
Key Data Points
So what
"We continue to execute on our strategic initiatives to simplify our go-to-market, increase our innovation velocity, and drive a new operational rigor and cost control throughout our business," stated Fastly CEO Todd Nightingale. "All of this progress helps us drive our mission to make every user experience fast, safe, and engaging...fueling growth and delivering a strong financial result."
Indeed, Fastly also delivered an impressive dollar-based net-expansion rate (DNBER) of 123% during Q2, indicating existing customers spent an average of 23% more on Fastly's solutions this year. This expanded by two percentage points from Q1. And while its total customer count declined by 28 customers sequentially from last quarter to a total of 3,072, average enterprise customer spend of $818,000 was up 3%.
Now what
For Q3 2023, Fastly expects revenue of $125 million to $128 million and an adjusted net loss per share of $0.09 to $0.07. As such, for the full-year 2023, Fastly raised its outlook to call for revenue of $500 million to $510 million (up from $495 million to $505 million before) and reiterated its previous guidance for a full-year adjusted net loss of $0.27 to $0.21 per share.
In the end, shares of Fastly have now climbed an incredible 160% year to date in 2023. But given this straightforward beat-and-raise performance, it was no surprise to see investors continuing to bid up this leading cloud stock this week.
