Fastly, Inc. (NYSE: FSLY) saw its stock plummet 20.75% in pre-market trading on Thursday, following its disappointing fourth-quarter 2024 earnings report and weak guidance for 2025.
For Q4 2024, Fastly reported an adjusted loss of $0.03 per share, missing analyst expectations of breakeven results. While revenue grew 2% year-over-year to $140.6 million, slightly exceeding estimates, the company's guidance for the upcoming periods fell short. Fastly projected a Q1 2025 loss of $0.05 to $0.09 per share on revenue of $136-$140 million, missing analyst estimates. For full year 2025, the company forecasted a loss of $0.09 to $0.15 per share on revenue of $575-$585 million, implying a slowdown in growth compared to 2024 and missing earnings estimates.
Fastly's wider-than-expected loss and weak outlook point to challenges in achieving profitability and sustaining growth amid intense competition in the cloud computing services space. The disappointing results and guidance fueled concerns among investors, leading to the sharp sell-off in after-hours trading.