Latest news with #Fastly
Yahoo
20 hours ago
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Fastly's Q2 Earnings Call
Fastly's second quarter was met with a significant positive market reaction, reflecting stronger-than-expected revenue growth and improving operating margins. Management attributed the outperformance to new customer acquisitions, effective competitive takeout strategies, and disciplined pricing. CEO Charles Compton highlighted the impact of Fastly's expanded security offerings, which now account for a higher share of total revenue, and cited improved network efficiency as another contributor. Fastly also reported progress in diversifying its customer base, with revenue outside its top 10 customers outpacing overall growth. Is now the time to buy FSLY? Find out in our full research report (it's free). Fastly (FSLY) Q2 CY2025 Highlights: Revenue: $148.7 million vs analyst estimates of $144.8 million (12.3% year-on-year growth, 2.7% beat) Adjusted EPS: -$0.03 vs analyst estimates of -$0.05 ($0.02 beat) Adjusted Operating Income: -$4.59 million vs analyst estimates of -$5.94 million (-3.1% margin, 22.7% beat) Revenue Guidance for the full year is $598 million at the midpoint, above analyst estimates of $590 million Adjusted EPS guidance for the full year is -$0.07 at the midpoint, beating analyst estimates by 31.7% Operating Margin: -24.8%, up from -35.3% in the same quarter last year Net Revenue Retention Rate: 104%, up from 100% in the previous quarter Market Capitalization: $1.01 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions From Fastly's Q2 Earnings Call Jonathan Frank Ho (William Blair) asked if recent executive changes signal a new chapter and what opportunities management sees for faster growth. CEO Charles Compton described it as a strategic evolution, emphasizing momentum in go-to-market and product velocity as pathways to profitability. James Edward Fish (Piper Sandler) questioned the effectiveness of cross-sell initiatives and the durability of higher revenue commitments. Compton cited strong customer feedback and increasing use of multiple products, while CFO Ronald Kisling noted improved customer commitments due to platform expansion and sales incentives. Rudy Grayson Kessinger (D.A. Davidson) asked about security revenue volatility and the factors behind recent acceleration. Kisling attributed past volatility to customer concentration but emphasized current stability and new customer acquisition as the main drivers of recent growth. Frank Garrett Louthan (Raymond James) inquired about further management changes and strategic shifts. Compton stressed the importance of evolving leadership as the business grows but does not anticipate imminent changes beyond those announced. The focus remains on executing the existing strategy. Daniel Uriah Hibshman (Craig Hallum) sought specifics on product velocity and profitability priorities. Compton pointed to increased feature releases and a disciplined investment approach, while Kisling discussed sustainable improvements in cash flow from operational efficiency and customer payment discipline. Catalysts in Upcoming Quarters Looking ahead, our analysts will be watching (1) how successfully Fastly expands its international footprint and leverages new leadership in key regions, (2) the pace of adoption for recently launched security and compute products among both existing and new customers, and (3) continued progress in cross-sell and upsell initiatives that drive higher customer retention and revenue diversification. Execution on operational efficiency and free cash flow generation will also serve as important indicators of Fastly's ability to achieve sustainable profitability. Fastly currently trades at $6.89, up from $6.51 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). The Best Stocks for High-Quality Investors Trump's April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Fastly taps new CFO amid record revenue
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Cloud computing and content delivery platform Fastly tapped Richard Wong as its next CFO, effective Aug. 11, the company announced in a Wednesday press release. Wong's appointment is one of several executive leadership changes recently announced by Fastly, which also tapped Scott Lovett, previously its chief revenue officer, will be serving as its president, go to market, effective immediately, according to the release. The moves come after Fastly in June appointed its former Chief Product Officer, Charles 'Kip' Compton, to serve as its CEO, according to a securities filing at the time. Compton succeeded Todd Nightingale, who departed from his role as CEO and president effective June 16 for another opportunity. 'Going forward, I'm excited to share my vision for Fastly with a keen focus on accelerating our growth rate and driving to profitability in the near term,' Compton said during Fastly's Q2 earnings call Wednesday, his first such call as CEO. In a separate press release Wednesday, the San Francisco, California-based company announced results for its second quarter, where it reported record revenue of $148.7 million. Dive Insight: Wong, who will replace Ronald Kisling as finance chief, was also hired as a senior advisor to the company's CEO, effective Aug. 7 and will serve in that role until the CFO transition date, according to a filing with the Securities and Exchange Commission. Kisling, meanwhile, will continue to serve as a strategic advisor to the company, which provides edge computing and content delivery services to businesses including SeatGeek and Neiman Marcus. Wong's previous roles include serving as the first CFO for both software platform Benchling and home remodeling software firm Houzz, according to his LinkedIn profile. His past roles also include serving as VP, finance for LinkedIn, as well as senior director, operations finance for Yahoo Inc. As CFO for Fastly, Wong will receive an annual base salary of $450,000 and will be granted a restricted stock award with an aggregate value of $8 million as 'a material inducement for him to commence employment,' according to the Wednesday company filing. He will also be eligible to receive an annual performance-based bonus with a target amount equal to 70% of his base salary, per the filing. 'Rich has a strong combination of strategic financial planning experience and vision, combined with a robust foundation in investment banking,' Compton said of the CFO appointment Wednesday. 'He will be an excellent addition to our leadership team as we grow and scale the business, and I look forward to him engaging with our investor community.' Wong will assume the top financial seat for the company as Fastly seeks to continue its growth streak. The quarter ended June 30 represents its second consecutive quarter where the business reported record revenue, after the company logged revenue of $144.5 million for its Q1, according to company results. The company also shrunk its non-GAAP operating loss to $4.5 million compared to $5.8 million for the quarter ended June 30, and raised its full revenue guidance for full-year 2025 to a range between $594 million and $602 million, and expects to generate positive cash flow for the year, according to its earnings report. However, executives also warned of potential changes that could impact the business, including regulatory shifts from the Trump administration relating to social media platform TikTok and its parent company, ByteDance, one of Fastly's largest customers. On June 19, the Trump administration issued an executive order further extending the deadline for TikTok to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act to September 17. The act, which was signed into law by President Joseph Biden and was originally intended to go into effect in January, effectively prohibits TikTok's use in the U.S. while it is owned by a Chinese company. 'Globally, ByteDance, the parent company of TikTok represented less than 10% of our revenue in the second quarter of 2025 and the United States traffic represented less than 2% of our revenue in the same period,' Kisling said Wednesday. 'While we do not know the outcome of U.S. policy on TikTok, to be consistent with our practice in the first half of 2025, we are excluding TikTok's U.S. forecasted revenue beyond September 17 from our guide.' Fastly did not immediately respond to requests for comment. Recommended Reading Jacobs-led QXO taps Barclays alum as first finance chief
Yahoo
6 days ago
- Business
- Yahoo
Why Fastly Stock Was Zooming Higher This Week
Key Points The edge computing company delivered a beat-and-raise second quarter. This led one analyst to upgrade his recommendation on the stock. 10 stocks we like better than Fastly › Edge computing specialist Fastly (NYSE: FSLY) was hardly in the margins for many investors over the past few days. Thanks largely to a beat-and-raise second quarter that generated an analyst recommendation upgrade, plus a C-suite transition that appeared smooth, the company's stock moved well higher across that stretch. According to data compiled by S&P Global Market Intelligence, Fastly's share price had increased by more than 17% week to date as of early Friday morning. Higher revenue, narrower loss For its second quarter, Fastly notched record revenue of almost $149 million, bettering the same period of 2024 by 12%. The company also managed to narrow its non-GAAP (adjusted) net loss to $5 million ($0.03 per share) from slightly more than $8 million in the year-ago quarter. That meant a double beat for Fastly, since analysts tracking the stock were expecting worse for both metrics. Their consensus estimate for revenue was a bit over $145 million, and that for net loss was $0.05 per share. In its earnings release, Fastly CEO Kip Compton said, "Our go-to-market transformation is delivering increased customer acquisition, expanded cross-sell opportunities, and market share growth." What also gave the stock a lift was its raised guidance. For the entirety of 2025 Fastly is forecasting total revenue of $594 million to $602 million. Adjusted net loss should ring in at $0.04 to $0.10 per share. By comparison, the average pundit projection for the former is slightly below $591 million, and for the latter it's $0.10 per share. On Thursday, the day the figures were published, Craig-Hallum analyst Jeff Van Rhee upgraded the stock to buy from his previous hold. His price target on the shares is $10 apiece. New executive arriving Separately, on Wednesday Fastly announced the appointment of a new CFO. The incoming chief is Richard Wong, who is replacing Ronald Kisling. The company wrote that Kisling is "leaving to pursue new opportunities," without elaboration. Wong formally takes up the position on Monday, Aug. 11. Should you invest $1,000 in Fastly right now? Before you buy stock in Fastly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Fastly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fastly. The Motley Fool has a disclosure policy. Why Fastly Stock Was Zooming Higher This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
6 days ago
- Business
- Business Insider
Analysts Offer Insights on Technology Companies: Fastly (FSLY), Wix (WIX) and CSG Systems International (CSGS)
Analysts have been eager to weigh in on the Technology sector with new ratings on Fastly (FSLY – Research Report), Wix (WIX – Research Report) and CSG Systems International (CSGS – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Fastly (FSLY) In a report released yesterday, Rishi Jaluria from RBC Capital maintained a Hold rating on Fastly, with a price target of $7.00. The company's shares closed last Thursday at $7.46. According to Jaluria is ranked 0 out of 5 stars with an average return of -8.0% and a 47.6% success rate. Jaluria covers the Technology sector, focusing on stocks such as Clearwater Analytics Holdings, Zoom Video Communications, and ZoomInfo Technologies. Currently, the analyst consensus on Fastly is a Hold with an average price target of $7.43, representing a -1.3% downside. In a report released yesterday, William Blair also maintained a Hold rating on the stock. Wix (WIX) RBC Capital analyst Brad Erickson maintained a Buy rating on Wix on August 6 and set a price target of $210.00. The company's shares closed last Thursday at $133.49, close to its 52-week low of $117.58. According to Erickson is a 5-star analyst with an average return of 22.2% and a 59.2% success rate. Erickson covers the Technology sector, focusing on stocks such as Uber Technologies, GoDaddy, and Lyft. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Wix with a $212.71 average price target, which is a 60.7% upside from current levels. In a report issued on July 22, Citi also maintained a Buy rating on the stock with a $220.00 price target. CSG Systems International (CSGS) RBC Capital analyst Dan Bergstrom maintained a Buy rating on CSG Systems International yesterday and set a price target of $72.00. The company's shares closed last Thursday at $63.39, close to its 52-week high of $67.60. According to Bergstrom is a 4-star analyst with an average return of 12.3% and a 60.3% success rate. Bergstrom covers the Technology sector, focusing on stocks such as CommVault Systems, Verint Systems, and Fortinet. Currently, the analyst consensus on CSG Systems International is a Strong Buy with an average price target of $77.29, representing a 21.0% upside. In a report issued on July 24, TR | OpenAI – 4o also upgraded the stock to Buy with a $71.00 price target.
Yahoo
06-08-2025
- Business
- Yahoo
Fastly Announces CFO Transition and Executive Leadership Promotion
Richard Wong to join Fastly as Chief Financial Officer Scott Lovett Promoted to President, Go to Market SAN FRANCISCO, August 06, 2025--(BUSINESS WIRE)--Fastly, Inc. (NYSE: FSLY), a leader in global edge cloud platforms, today announced the appointment of Richard "Rich" Wong as Chief Financial Officer (CFO), effective August 11, 2025. Wong will succeed Ronald "Ron" W. Kisling who is leaving to pursue new opportunities. Kisling will remain at Fastly in an advisory capacity through September 15, 2025 to help ensure a smooth transition of responsibilities. In addition, Scott R. Lovett, Fastly's current Chief Revenue Officer, has been appointed President, Go to Market, effective immediately. "On behalf of the Board, I am delighted to welcome Rich Wong as Fastly's new Chief Financial Officer. Rich has a well-earned reputation as a builder with experience in growing high-performing teams in rapidly scaling environments, and he will be a great addition to the executive team," said David Hornik, Chairperson of the Board of Directors of Fastly. "On behalf of the Board, I also want to thank Ron for his hard work and dedication to Fastly over the past four years. We wish him the best in his next chapter." "Fastly has always stood out to me for its powerful technology and deep commitment to developers. I'm excited to join a team so committed to performance, innovation, and customer trust," said Wong. "As CFO, I look forward to helping scale the business with operational discipline while unlocking long-term value for customers and shareholders." Wong is a seasoned executive with nearly three decades of finance leadership experience spanning high-growth startups, public tech companies, and global investment banks. Wong brings a proven ability to drive operational excellence and experience in strategic financial planning, as well as a robust foundation in investment banking. Most recently, Wong served as CFO at Benchling, a vertical SaaS company. While at Benchling, Wong helped the company scale revenue, launch new products, and expand internationally. Prior to Benchling, he served as CFO at Houzz Inc. Wong began his career as an investment banker at JP Morgan and Banc of America Securities, and also held senior finance roles at LinkedIn and Yahoo!. Wong holds an MBA from Northwestern University's Kellogg School of Management and a Bachelor of Science in Business Administration from the University of California, Berkeley. Fastly also announced the promotion of Scott R. Lovett, its current Chief Revenue Officer, to President, Go to Market. This newly created role brings together the revenue organization and the marketing organization under his leadership. Albert Thong, Chief Marketing Officer at Fastly, will report to Scott as part of this organizational update. "I am pleased to announce Scott Lovett's promotion to President, Go to Market," said Kip Compton, Chief Executive Officer of Fastly. "Scott has provided exceptional leadership and go-to-market transformation in his first year. This expanded role will give him an opportunity to have even greater impact. Bringing the revenue and marketing organizations together isn't just a structural change; it's an opportunity to drive even tighter internal alignment across critical customer-centric teams and to accelerate growth and customer acquisition." "I'm incredibly honored to step into this expanded role and continue growing with a company I believe in," said Lovett. "Our momentum is just beginning, and I'm excited to keep building alongside such a talented team as we aim to drive meaningful impact and long-term growth." About Fastly, Inc. Fastly's powerful and programmable edge cloud platform helps the world's top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at global scale. Compared to other providers, Fastly's powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Neiman Marcus, Universal Music Group, and SeatGeek. Learn more about Fastly at and follow us @fastly. Forward-Looking Statements This press release contains "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, those regarding Mr. Wong's appointment as CFO; Fastly's ability to unlock long-term value for customers and shareholders; Mr. Lovett's appointment as President, Go to Market; and Fastly's ability to tighten alignment across teams and accelerate growth and customer acquisition. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission ("SEC"), including without limitation Fastly's Annual Report on Form 10-K for the year ended December 31, 2024. Additional information will also be set forth in Fastly's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2025. Copies of reports filed with the SEC are posted on Fastly's website and are available from Fastly without charge. Source: Fastly, Inc. View source version on Contacts Media ContactSpring Harrispress@ Investor ContactVernon Essi, Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
