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Why Fastly Stock Plunged Today

·3 min read
Why Fastly Stock Plunged Today
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Shares of Fastly (NYSE: FSLY) were tumbling today as the edge-computing specialist came up slightly short of estimates in its first-quarter earnings report, and indicated that revenue growth would be flat on a sequential basis in the second quarter. Fastly's revenue grew 35% in the quarter to $84.9 million, which was slightly short of estimates at $85.1 million, and includes a benefit from the Signal Sciences acquisition. What also concerned investors was that Fastly's net retention rate, a measure of revenue that excludes the addition of new customers, was 107%, down from 115% in the fourth quarter, indicating that revenue from its customer base from the prior year rose just 7%.