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2022-02-17 14:49

Fastly Inc is down by 31% to a new 52-week decline on Thursday. The company did please with its Q4 financial results but its future outlook wasn’t very confidence inspiring.

Revenue outlook for fiscals 2022
The company has reported its financial results for the fourth quarter and full year 2021 on Wednesday afternoon, which is considered as the reason behind this decline in stock-price however the problem is not with the financial results but the financial outlook it has provided for the year 2022 has caused the damage.

For the first quarter, the business expects sales of $97 million to $100 million. It produced $97.7 million in the fourth quarter of 2021, thus revenue increase is anticipated to be unchanged. Furthermore, the projection range of $400 million to $410 million for the whole year does not suggest substantial increase in the second to fourth quarters.

Including the price action on Thursday, shares are now exchanging hands at $19.50. This compares to $16 a share at which the cloud company had its initial public offering in 2019. CEO Joshua Bixby said:

“Our foundational technology continues to attract and empower enterprise developers in their moments of inspiration. We continue to uniquely unlock programmable ways for our customers to build modern digital experiences for billions of people every day on our technology. Coupled with a strong roadmap of new products, we’re excited about opportunities in 2022.”

Financial results for the fourth quarter
For the fourth quarter 2021, the company has reported a total revenue of $97.7 million which is an 18% rise on yearly basis. While for the full year 2021 the revenue was $354.3 million which is an increase. Annual recurring revenue stood at 99.2%. For the fourth quarter of 2021 and full year 2021 the GAAP gross margin was 50.9% and 52.9% respectively, compared to 59.2% and 58.7% during the fourth quarter and full year 2020.

Non-GAAP gross margin for the fourth quarter and full year 2021 was 55.8% and 57.7% respectively which is less than 63.7% and 60.9% in the fourth quarter and full year of 2020. In the fourth quarter 2021 GAAP net loss was $57.5 million, up from $45.7 million in the fourth quarter of 2020. A non-GAAP net loss of $11.7 million was reported in the fourth quarter of 2021, compared to $10.5 million in the previous quarter.

For year 2021, the company had a GAAP net loss of $222.7 million, compared to $95.9 million in fiscal 2020. Net loss was $55.9 million in non-GAAP terms, compared to $18.8 million in fiscal 2020.