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Fastly (FSLY - Free Report) reported a quarterly loss of 10 cents per share compared with the Zacks Consensus Estimate of a loss of 16 cents per share. The company had reported a loss of 9 cents per share in the year-ago quarter. It's worth mentioning that these figures are adjusted for non-recurring items.
Total revenues improved 18% year over year to $97.7 million and surpassed the Zacks Consensus Estimate by 4.90%. The top line exceeded the company’s guidance of $90 million to $93 million by 7%.
Quarter in Detail
Fastly revenues were positively driven by revenues from Signal Sciences Products. In the fourth quarter, revenues from Signal Science products accounted for 11% of total revenues.
As of Dec 31, 2021, Fastly had 2804 customers, reflecting 21% growth in customers from the year-ago quarter.
In the fourth quarter, Fastly added 56 net new customers and 15 new enterprise customers compared with 167 and 22 in the third quarter of 2021.
In the fourth quarter, Fastly had 445 enterprise customers who spent more than $1000,000 in the 12 month period compared with 378 in the year-ago quarter. Enterprise customers accounted for 88% of total revenues.
Fastly’s revenues have been aided by the company’s delivery business and delivery portfolio and Computer@Edge platform.
Non-GAAP gross margin in the fourth quarter is 55.8% compared with 63.7% in the year-ago quarter, which was impacted by network investments, network utilization and supply chain constraints.
Non-GAAP sales and marketing expenses, research and development and general administrative expenses, as a percentage of revenues, decreased 380 bps, 270 bps and 10 bps year over year, respectively, to 28.7%, 19.8% and 19.4%.
Operating expenses were $66.3 million in the fourth quarter, up 7.7% year over year.
Balance Sheet
As of Dec 31, 2021, Fastly ended the reported quarter with cash, cash equivalents and marketable securities balance of $1.1 billion, unchanged since the previous quarter ended Sep 30, 2021.
Guidance
In the first quarter of 2022, Fastly expects revenues in the range of $97 million to $100 million, reflecting 16% annual growth. It anticipates a non-GAAP loss per share of 13 cents to 15 cents.
Zacks Rank & Other Stocks to Consider
Fastly currently carries a Zacks Rank #2 (Buy).
Fastly’s shares have fallen 69.5% against the Zacks Computer and Technology sector’s growth of 1.6% in the past year.
Other top-ranked stocks to consider in the same sector are Allied Motion Technologies , Asana (ASAN - Free Report) and Agilent Technologies (A - Free Report) .
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Fastly (FSLY) Reports Q4 Loss, Tops Revenue Estimates
Fastly (FSLY - Free Report) reported a quarterly loss of 10 cents per share compared with the Zacks Consensus Estimate of a loss of 16 cents per share. The company had reported a loss of 9 cents per share in the year-ago quarter. It's worth mentioning that these figures are adjusted for non-recurring items.
Total revenues improved 18% year over year to $97.7 million and surpassed the Zacks Consensus Estimate by 4.90%. The top line exceeded the company’s guidance of $90 million to $93 million by 7%.
Quarter in Detail
Fastly revenues were positively driven by revenues from Signal Sciences Products. In the fourth quarter, revenues from Signal Science products accounted for 11% of total revenues.
As of Dec 31, 2021, Fastly had 2804 customers, reflecting 21% growth in customers from the year-ago quarter.
In the fourth quarter, Fastly added 56 net new customers and 15 new enterprise customers compared with 167 and 22 in the third quarter of 2021.
In the fourth quarter, Fastly had 445 enterprise customers who spent more than $1000,000 in the 12 month period compared with 378 in the year-ago quarter. Enterprise customers accounted for 88% of total revenues.
Fastly’s revenues have been aided by the company’s delivery business and delivery portfolio and Computer@Edge platform.
Non-GAAP gross margin in the fourth quarter is 55.8% compared with 63.7% in the year-ago quarter, which was impacted by network investments, network utilization and supply chain constraints.
Fastly, Inc. Price, Consensus and EPS Surprise
Fastly, Inc. price-consensus-eps-surprise-chart | Fastly, Inc. Quote
Operating Details
Non-GAAP sales and marketing expenses, research and development and general administrative expenses, as a percentage of revenues, decreased 380 bps, 270 bps and 10 bps year over year, respectively, to 28.7%, 19.8% and 19.4%.
Operating expenses were $66.3 million in the fourth quarter, up 7.7% year over year.
Balance Sheet
As of Dec 31, 2021, Fastly ended the reported quarter with cash, cash equivalents and marketable securities balance of $1.1 billion, unchanged since the previous quarter ended Sep 30, 2021.
Guidance
In the first quarter of 2022, Fastly expects revenues in the range of $97 million to $100 million, reflecting 16% annual growth. It anticipates a non-GAAP loss per share of 13 cents to 15 cents.
Zacks Rank & Other Stocks to Consider
Fastly currently carries a Zacks Rank #2 (Buy).
Fastly’s shares have fallen 69.5% against the Zacks Computer and Technology sector’s growth of 1.6% in the past year.
Other top-ranked stocks to consider in the same sector are Allied Motion Technologies , Asana (ASAN - Free Report) and Agilent Technologies (A - Free Report) .
Allied Motion Technologies, Agilent Devices and Alps Electric carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent Technologies’ shares have gained 5.8% in the past year.
Agilent is scheduled to report first-quarter 2022 results on Feb 22.
Asana’s shares have returned 83.1% in the past year.
Asana is scheduled to report fourth-quarter 2022 results on Mar 9.
Allied Motion Technologies’ shares have surged 20.6% in the past year.
AMOT is scheduled to report fourth-quarter 2021 results on Mar 9.