Fastly. There has been speculation that the new management is doing, and will continue to do, a lot better than the last group. I was willing to take a look. Here’s a summary from SA that I will pick apart
" Fastly shares surged more than 19% on Thursday after the cloud computing services provider reported second-quarter results that topped estimates and raised its full-year guidance, resulting in praise from Wall Street.
For the period ending June 30, Fastly lost an adjusted 4 cents per share as revenue rose 19.8% year-over-year to $122.8M. Analysts were expecting the company to lose 10 cents per share on $118.11M in revenue.
Saul here: Revenue was a 4% beat. We’d expect a company we are following to beat by more than that since everyone estimates low.
It ended the period with 3,07 customers, down 28 from the first quarter, but 551 of those customers were high-spending enterprise customers, as it added 11 during the period.
Saul here: Down total customers, and enterprise customers up all of 2% on the quarter. Whoop-dee-doo. Is that worth a call-out.
On average, enterprise customers spent $818,000 in the second-quarter, up 3% sequentially.
Several Wall Street analysts praised the results, including KeyBanc Capital Markets analyst Tom Blakey, who said the results were solid and the company looks “well positioned to gain share in content delivery.”
Piper Sandler analyst Jim Fish, who has a neutral rating on Fastly , said the turnaround from the new management team is going “fairly smoothly” … etc
Looking ahead, Fastly ([FSLY] sees third-quarter sales between $125M and $128M, above the $127.06M consensus estimate at the mid-point.
Saul here: That’s wrong! The midpoint of 125 and 128 is 126.5 which is slightly below the consensus estimate they gave, and certainly not worth a call-out.
The company also boosted its full-year revenue outlook, as it now sees sales coming in between $500M and $510M, up from a prior range of $495M to $505M.
Saul here: Let’s see, a $5 million raise on $500 million. That’s all of a 1% raise. Barely enough to call it a raise.
Saul here. Did anyone see anything worth a 19% surge on a company that’s already way off its bottom because of hiring new management. I’m not saying they won’t do well in the medium to long term, but i didn’t see anything jump out at me in the present.