Fastly Cuts Guidance on Uncertainty, Lower Demand; Shares Slump 28%

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Investing.com – Fastly plunged in after-hours trading Wednesday after trimming its third-quarter guidance, citing an uncertain geopolitical backdrop and lower-than-expected demand.

Shares of Fastly (NYSE:FSLY), a cloud computing company that helps get digital content to consumers, slumped 28% in after-hours trading.

The company guided full-year revenue within a range of $70 million to $71 million, down from previous guidance of $73.5 million to $75.5 million. 

“Due to the impacts of the uncertain geopolitical environment, usage of Fastly’s platform by its previously disclosed largest customer did not meet expectations, resulting in a corresponding significant reduction in revenue from this customer,” the company said in the release. “During the latter part of the third quarter, a few customers had lower usage than Fastly had estimated.”