Quickly crashes by more than 25% on lower sales projections

Quickly crashes by more than 25% on lower sales projections
Quickly crashes by more than 25% on lower sales projections
Quickly CEO Joshua Bixby on CNBC’s Mad Money.

What: CNBC

Fastly’s shares fell as much as 28% in after-hours trading after the company lowered its guidance for the third quarter.

The company, whose core technology is helping companies accelerate digital content delivery to consumers, now expects revenue to be between $ 70 million and $ 71 million, compared to its previous forecast of $ 73.5 million to $ 75.5 million.

“Due to the impact of the uncertain geopolitical environment, the use of the Fastly platform by the aforementioned largest customer did not meet expectations, resulting in a corresponding significant reduction in sales with this customer,” the company said in the press release.

The customer was quickly not identified. However, CEO Joshua Bixby said on the company’s latest earnings statement that TikTok is the largest customer, generating about 12% of sales in the first six months of the year, and sending the stock down nearly 20% after that announcement.

TikTok was embroiled in an intricate geopolitical dance between China, where parent company ByteDance is based, and the United States. President Donald threatened to ban the app entirely unless a US buyer was found. Last month, the president approved a “concept” deal between TikTok, Oracle and WalMart that could allow the app to continue operating in the US, but the deal has not yet been finalized.

At the close of trading on Wednesday, Fastly shares were up 514% that year. This is the second-largest win among cloud software companies, after just Zoom, which is up 648%.

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