Edge computing specialist Fastly (FSLY -6.17%) was hardly in the margins for many investors over the past few days.
Thanks largely to a beat-and-raise second quarter that generated an analyst recommendation upgrade, plus a C-suite transition that appeared smooth, the company's stock moved well higher across that stretch. According to data compiled by S&P Global Market Intelligence, Fastly's share price had increased by more than 17% week to date as of early Friday morning.
Higher revenue, narrower loss
For its second quarter, Fastly notched record revenue of almost $149 million, bettering the same period of 2024 by 12%. The company also managed to narrow its non-GAAP (adjusted) net loss to $5 million ($0.03 per share) from slightly more than $8 million in the year-ago quarter.
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That meant a double beat for Fastly, since analysts tracking the stock were expecting worse for both metrics. Their consensus estimate for revenue was a bit over $145 million, and that for net loss was $0.05 per share.
In its earnings release, Fastly CEO Kip Compton said, "Our go-to-market transformation is delivering increased customer acquisition, expanded cross-sell opportunities, and market share growth."
What also gave the stock a lift was its raised guidance. For the entirety of 2025 Fastly is forecasting total revenue of $594 million to $602 million. Adjusted net loss should ring in at $0.04 to $0.10 per share. By comparison, the average pundit projection for the former is slightly below $591 million, and for the latter it's $0.10 per share.
On Thursday, the day the figures were published, Craig-Hallum analyst Jeff Van Rhee upgraded the stock to buy from his previous hold. His price target on the shares is $10 apiece.
New executive arriving
Separately, on Wednesday Fastly announced the appointment of a new CFO. The incoming chief is Richard Wong, who is replacing Ronald Kisling. The company wrote that Kisling is "leaving to pursue new opportunities," without elaboration. Wong formally takes up the position on Monday, Aug. 11.
