Edge cloud platform Fastly (NASDAQ:FSLY) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
Fastly beat analysts’ revenue expectations last quarter, reporting revenues of $173 million, up 19.8% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
Is Fastly a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Fastly’s revenue to grow 17% year on year, improving from the 12.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Fastly has a history of exceeding Wall Street’s expectations.
Looking at Fastly’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 3.6%, and Bandwidth reported revenues up 22.2%, topping estimates by 1.4%. F5 traded down 1.1% following the results while Bandwidth was also down 25.7%.
Read our full analysis of F5’s results here and Bandwidth’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 6.5% on average over the last month. Fastly is up 26.4% during the same time and is heading into earnings with an average analyst price target of $24.40 (compared to the current share price of $23.06).
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