Why Fastly Stock Flopped Today

Shares of edge cloud platform Fastly (NYSE: FSLY) flopped on Thursday after the company reported financial results for the first quarter of 2023. In reality, it likely wasn't Q1 results that had the market concerned, but rather the guidance for the rest of 2023. Fastly stock finished the day down 12%.

In Q1, Fastly generated record quarterly revenue of nearly $118 million, which was up 15% year over year. Importantly, management had only guided for revenue of $114 million to $117 million and that's about what analysts had expected as well. Therefore, Fastly beat expectations on the top line.

Fastly beat expectations on the bottom line, too. For Q1, management's guidance wasn't in accordance with generally accepted accounting principles (GAAP). But its non-GAAP earnings-per-share (EPS) guidance was negative $0.08 to negative $0.12. For its part, the analyst community was expecting a loss per share of around $0.10. But in reality, Fastly did slightly better with a non-GAAP loss per share of just $0.09.

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Source Fool.com