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Summary
- Fastly announced CFO transition after reporting an increase in its first quarter loss.
- Cognizant’s first quarter net income soared to US$505 million from US$367 million in the year-ago period.
Shares of Fastly, Inc. (NYSE:FSLY) tumbled as much as 26 percent on Thursday morning while Cognizant (NASDAQ:CTSH)’s shares were down 11.4 percent from the previous close.
Both these U.S.-based technology companies published their first-quarter results on Wednesday evening. In addition, content delivery network company Fastly also announced CFO transition.
Fastly, Inc.
San Francisco-based Fastly on May 5 announced that its CFO Adriel Lares would step down from the company. Lares will continue in the role for a transition period and serve as an advisor for a period after the company appoints a successor.
Fastly’s net loss in the first quarter swelled to US$51 million, or 44 cents per share, compared to US$12 million, or 13 cents per share in the year-ago period. Non-GAAP net loss widened to US$14 million, or 12 cents per share, from US$6 million, or 6 cents per share.
However, revenue recorded a 35 percent year-over-year growth to US$84.8 million.
Fastly’s operating expenses, including R&D, sales and marketing, during the three months period doubled to US$97.31 million from US$47.6 million in the first quarter previous year.
Meanwhile, the technology company lifted its full-year revenue outlook to the range of US$380 million to US$390 million from the previous guidance range of US$375 million to US$385 million. The non-GAAP loss estimate for the year remains the same between 44 cents and 35 cents.
For the second quarter, Fastly expects its revenue to come in between US$84million and US$87 million while non GAAP EPS is projected in the range of 19 cents to 16 cents.
Fastly’s stock rallied more than 300 percent in 2020 but is down 32 percent year to date.
Source: Pixabay
Cognizant
Cognizant, which provides IT, consulting and outsourcing services, said its first-quarter net income jumped to US$505 million, or 95 cents per share, from US$367 million, or 67 cents per share, in the year-ago period.
Adjusted EPS came in at 97 cents, compared to 96 cents in the first quarter previous year.
Cognizant’s revenue rose 4.2 percent to US$4.40 billion from US$4.22 billion in the year-ago quarter. Digital revenue was up 15 percent and now accounts for 44 percent of revenue compared to 39 percent in last year’s quarter.
Revenue from the healthcare segment recorded a 7.9 percent growth. The products and resources segment revenue rose 4.6 percent.
Communication, media and technology segment saw their revenue increase 5 percent while revenue from financial services increased 0.5 percent.
The company also announced a quarterly dividend of 24 cents.
For the full year 2021, Cognizant anticipates its revenue to grow up to 9 percent to the range of US$17.8 and US$18.1 billion. Adjusted EPS expected to come in between US$3.90 and US$4.02.
The company projects its second-quarter revenue in the range of US$4.42 to US$4.46 billion, which would represent a growth of up to 11.5 percent.
Cognizant’s share price gained 31 percent in 2020. It is down around 8 percent year to date.
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