Fastly Set to Unveil Q2 Earnings: An In-Depth Analysis and What to Expect

🌥️Introduction:

Fastly, the leading content delivery network provider, is preparing to announce its financial results for the second quarter of 2023. Market analysts and investors eagerly await this update, as the company has been in the spotlight recently due to its past financial performance and strong growth potential. In this article, we will delve into the fundamental and technical analysis, historical guidance, and analyst estimates to shed light on what investors can expect from Fastly‘s upcoming earnings call.

Fundamental Analysis:

	ReportDate	NetIncome	TotalRevenue	DilutedEPS	unit
Q2	2023-06-30	-10.7	122.8	-0.08	million USD
Q1	2023-03-31	-44.7	117.6	-0.36	million USD
Q4	2022-12-31	-46.7	119.3	-0.38	million USD
Q3	2022-09-30	-63.4	108.5	-0.52	million USD
Q2	2022-06-30	-16.4	102.5	-0.14	million USD

From a fundamental perspective, Fastly has experienced consistent revenue growth over the past year, with a total revenue of $122.8 million in the last quarter. Despite reporting negative net income in recent quarters, the company has managed to reduce the losses steadily. In Q1 2023, Fastly reported a net loss of $44.7 million, which was an improvement compared to the previous quarter. This positive trend indicates that Fastly is making strides towards profitability.

Moreover, the MorningStar consensus estimates reveal that analysts expect an Adjusted EPS of -0.1 for the current quarter. The fact that these estimates have remained unchanged for the past 90 days suggests that analysts are not expecting any major surprises in Fastly‘s financial performance. However, it’s important to note that these estimates are subject to change and may be influenced by other factors, such as market conditions and competitive dynamics.

Technical Analysis:

	since	low	high	change	change%
1D	2023-08-25	20.3	22.2	1.6	7.8
5D	2023-08-21	18.5	22.2	3.0	15.9
1M	2023-07-27	16.3	22.2	5.0	29.5
3M	2023-05-30	14.9	22.2	6.0	37.8

In terms of price performance, Fastly has shown significant growth over the past three months. The stock price has risen steadily, reflecting investor confidence in the company’s prospects. The recent one-day increase of 7.8% and five-day increase of 15.9% indicate that market sentiment is positive leading up to the earnings call. Additionally, the three-month change percentage of 37.8% demonstrates the market’s overall bullishness on Fastly. These positive trends in the stock price suggest that investors anticipate solid financial results from the company.

Historical Guidance:

Fastly‘s past financial performance also provides guidance for what to expect in the upcoming earnings call. Looking at the historical data, it is evident that the company has faced challenges in turning a profit. However, the consistent improvement in net income and decrease in losses quarter over quarter indicate that Fastly is on the right track. The recently reported net loss of $10.7 million in Q2 2023 represents a significant improvement compared to the previous quarters. This positive trajectory bodes well for the company’s future prospects and could provide shareholders with confidence going into the earnings call.

Analysts Estimates:

As mentioned earlier, market analysts’ estimates have remained consistent at an Adjusted EPS of -0.1 for the current quarter. This suggests that analysts have factored in the company’s recent financial performance and do not expect any major deviations from previous results. While this may seem conservative, it is important to remember that Fastly operates in a highly competitive industry, and the estimates likely incorporate factors such as industry trends and competitive dynamics. Nonetheless, analysts’ estimates should be viewed as a benchmark against which Fastly‘s reported results will be evaluated during the earnings call.

Conclusion:

In conclusion, Fastly‘s upcoming earnings call is eagerly anticipated by investors and analysts alike. Analysing the fundamental factors, technical indicators, historical guidance, and consensus estimates, it is evident that Fastly has shown promising signs of growth and improvement. The positive trend in price performance along with gradual reduction in net losses demonstrates that the company is moving towards profitability.

While it is essential to keep an eye on the numbers and listen carefully to what management has to say during the earnings call, it is equally crucial to consider the long-term growth potential of Fastly as a content delivery network leader. Investors looking for opportunities in the tech sector should pay close attention to Fastly‘s upcoming earnings call, as it could provide valuable insights into the company’s future prospects.

Overall, Fastly‘s upcoming earnings call promises to be a significant event that could influence the market’s perception of the company. By assessing the fundamental and technical factors, understanding the historical guidance, and taking into account analysts’ estimates, investors can make informed decisions and potentially capitalize on Fastly‘s growth trajectory. Stay tuned to Fastly‘s Q2 earnings call for a deeper understanding of the company’s financials and its prospects in the ever-evolving digital ecosystem.