Bandwidth Provider TikTok Quickly Surpasses Wall Street Expectations For Q3
Shares of content delivery network Fastly, which hosts traffic for the TikTok app, rose late in the day after the company reported Third quarter revenue above Wall Street expectations.
Third-quarter revenue increased 23% year-over-year to $ 87 million, a net loss of 11 cents per share.
Analysts had modeled $ 84.23 million and a loss of $ 0.19 per share.
The report sent Fastly shares up more than 19% at the end of the session.
For the current quarter, the company expects revenue of $ 90 million to $ 93 million and a net loss in the range of 19 to 16 cents.
Also: Shares of bandwidth provider TikTok Fastly slump as fourth quarter revenue, forecast mostly in line with Wall Street estimates
Fastly touted its victories among corporate clients in the quarter, noting that its net dollar expansion rate was 143%, down slightly from 147% in the third quarter. The number of corporate customers of the Company increased to 430 and their total number of customers increased from 2,581 in the second quarter to 2,748.
Average corporate client spend fell from about $ 702,000 in the second quarter to about $ 698,000 in the third quarter.
Joshua Bixby, CEO of Fastly, said he was “happy” that their major customers returned traffic after their outage in the second quarter.
âWe have been through unexpected volatility and constantly changing market conditions over the past two years, but we are encouraged by the opportunities available to us,â Bixby said.
âOur core technology enables enterprise developers to create modern, distributed applications and digital experiences that optimize performance, programmability and security, and we believe our global edge cloud network will be the future of creation. , securing and distributing online content. “
Bixby added that they hope to reach $ 1 billion in revenue by 2025.
For the full year, the company expects revenue of between $ 347 million and $ 350 million and a net loss of 58 to 55 cents per share.
The company announced in May that CFO Adriel Lares was leaving the company, but would stay in the job for a while while a successor is sought.
“CFO Adriel Lares will step down after five years of service,” said CEO Joshua Bixby.