Fiverr (FVRR), Fastly (FSLY) cut FY’21 outlook, stocks plummet

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Fiverr (FVRR), Fastly (FSLY) cut FY’21 outlook, stocks plummet

 Fiverr (FVRR), Fastly (FSLY) cut FY’21 outlook, stocks plummet
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Summary

  • Israel-based Fiverr slashed its forecast to reflect the reduced online activity with the easing of pandemic restrictions.
  • The global outage in June impacted Fastly’s second-quarter results and the impact could persist in the near-to medium-term.
  • Fiverr International stock fell 24%, while Fastly lost 10% on Thursday’s trading.

Stocks of Fiverr International Ltd. (NYSE: FVRR) and Fastly, Inc. (NYSE: FSLY) plunged 24 percent and 10 percent, respectively, on August 5 as both the companies slashed their full-year 2021 outlook after reporting second-quarter results.

Israel-based Fiverr, which provides an online marketplace for freelancers, reduced its 2021 revenue forecast to reflect the reduced online activity with the easing of pandemic restrictions.

Meanwhile, cloud service provider Fastly said the global outage in its network during June impacted its second-quarter results and the impact could persist in the near-to medium-term. The incident led to lower traffic volumes and the company had to issue credits to customers.

READ MORE: Uber (UBER), Lyft (LYFT) report strong second-quarter revenue growth

Fiverr International

Fiverr reduced its full-year revenue expectation to the range of US$280 million to US$288 million from the previous estimate of US$302 million to US$308 million. The revenue is now expected to grow up to 52 percent year over year, compared with the previous projected of up to 63 percent growth.

In the second quarter, the company reported a net loss of US$13.3 million, or 37 cents per share, against a loss of 100,000, or 1 cent per share, in the year-ago quarter. Non-GAAP net income was US$7.9 million, or 19 cents per diluted share, down from US$3.6 million, or 10 cents per share, in the second quarter of 2020.

Revenue climbed 60 percent year over year to US$75.3 million as active buyers at the end of the quarter grew 43 percent to 4 million.

For the third quarter, Fiverr expects revenue in the range of US$68 million to US$72 million, a growth of up to 38 percent.

Fiverr has a market capitalization of US$6.27 billion and its stock ended Thursday’s trading at US$175.06, down 24.08 percent.

READ MORE: FAANG earnings update: Profit streak continues in June quarter

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Fastly Inc.

Fastly now projects its full-year revenue in the range of US$340 million to US$350 million. Non-GAAP loss per share is estimated to come in between 65 cents to 57 cents.

Earlier, Fastly forecasted its revenue to be between US$380 million and US$390 million, while the non-GAAP loss was anticipated in the range of 44 cents per share to 35 cents per share.

Meanwhile, the company’s second quarter net loss totaled US$58 million, or 51 cents per share, compared with US$14 million, or 14 cents per share in the year-ago quarter. Non-GAAP net loss per share came in at 15 cents, up from 2 cents in the same quarter of 2020.

Fastly’s total revenue rose 14 percent year over year to US$85 million during the three months. Customer count increased to 2,581 in the second quarter, of which 4,081 of were enterprise customers. Total operating expenses jumped 80 percent to US$102 million.

The company currently has a market cap of US$4.62 billion and its shares closed on Thursday at US$39.93, down 10.35 percent.

READ MORE: Ford lifts full-year outlook; Comcast Q2 net income up 24%

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.

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