Edge cloud platform Fastly (NYSE:FSLY) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Fastly beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $158.2 million, up 15.3% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Fastly a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Fastly’s revenue to grow 14.8% year on year to $161.4 million, improving from the 2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Fastly has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.
Looking at Fastly’s peers in the software development segment, some have already reported their Q4 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 8.8%, and Dynatrace reported revenues up 18.2%, topping estimates by 1.9%. F5 traded up 8.1% following the results.
Read our full analysis of F5’s results here and Dynatrace’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Unfortunately, software development stocks have struggled in this environment as share prices are down 17.9% on average over the last month. Fastly is down 6.3% during the same time and is heading into earnings with an average analyst price target of $10.57 (compared to the current share price of $8.74).
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