Fastly (FSLY) reported a steady enterprise customer count of 600 for Q2 2023, up from 595 in the previous quarter. The company aims to achieve revenues between $143 million and $147 million, with a consensus estimate of $145.07 million, reflecting a year-over-year growth of 9.59%. However, net retention fell to 100.46%, significantly lower than 109.6% reported in the same quarter last year.
In the first quarter, Fastly’s enterprise revenue is predicted to reach approximately $135 million, indicating an 11.6% year-over-year growth. The company’s performance has been challenged by significant competition from Cloudflare and Akamai, both enhancing their edge delivery and cloud security offerings.
FSLY shares have decreased by 28.9% year-to-date, contrasting with a 7.5% rise in the broader Zacks Computer & Technology sector. Fastly has a forward price-to-sales ratio of 1.58X, well below the industry’s 5.72X, while consensus estimates project a loss of 9 cents per share for 2025, unchanged over the past month.
