TikTok bandwidth provider Fastly beats Wall Street expectations for Q3
Shares of content distribution networker Fastly, which hosts traffic for the TikTok app, shot up in late trading after the company reported Q3 revenue that beat Wall Street's expectations.
Revenue in Q3 rose 23%, year over year, to $87 million, yielding a net loss of 11 cents a share.
Analysts had been modeling $84.23 million and loss of $0.19 per share.
The report sent Fastly shares up more than 19% in late trading.
For the current quarter, the company expects revenue of $90 million to $93 million, and net loss in a range of 19 cents to 16 cents.
Fastly touted its wins among enterprise customers in the quarter, noting that its dollar-based net expansion rate was 143%, down only slightly from 147% in Q3. The company's enterprise customer count grew to 430 and their total customer count increased from 2,581 in Q2 to 2,748.
Average enterprise customer spend dropped from about $702,000 in Q2 to approximately $698,000 in Q3.
Joshua Bixby, CEO of Fastly, said he was "pleased" that their top customers have returned traffic following their outage in Q2.
"We have navigated unexpected volatility and ever-changing market conditions over the past two years, but are encouraged about the opportunities before us," Bixby said.
"Our foundational technology enables enterprise developers to build modern, distributed applications and digital experiences that maximize performance, programmability, and security, and we believe our global edge cloud network will be the future of how online content is created, secured, and delivered."
Bixby added that they are hoping to reach $1 billion in revenue by 2025.
For the full year, the company sees revenue in a range of $347 million to $350 million, and a net loss of 58 cents to 55 cents per share.
The company said in May that CFO Adriel Lares is leaving the company, but will stay on for a period of time while a successor is sought.
"CFO Adriel Lares will be stepping down after five years of service," said CEO Joshua Bixby.