Fastly plunges 22% after its June internet outage weighs on 2nd-quarter earnings and leads to lowered guidance

• Shares of Fastly plunged as much as 22% on Thursday after the company's second-quarter earnings report.
• A global internet outage caused by a bug in Fastly's software weighed on results and led to weaker third-quarter guidance, the company said.
• Fastly is down 75% from its record high of $136.50 reached in October 2020 high.
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Fastly plunged as much as 22% on Thursday after the company's second-quarter earnings and third-quarter guidance was lower than analyst expectations.

Here are the key numbers:

Revenue: $85.0 million, missing analyst estimates of $86.0 million
GAAP earnings per share: -$0.51, missing estimates of -$0.48

The company said a global internet outage on June 8, caused by a bug in Fastly's software, weighed on results and led to some customers abandoning their platform. Fastly operates a content delivery network that helps speed up a websites' load time.

"During the second quarter, we also managed through a significant outage that impacted our Q2 results and will have an impact on our Q3 and full year outlook," Fastly CEO Joshua Bixby said.

"We have a couple of customers, one of them being a top 10 customer, that have yet to return their traffic to the platform. We also had several customers delay the launch of certain projects, which delayed the timing of traffic coming onto our platform," Bixby added.

The June 8 internet outage caused by Fastly led to several big name websites being downed for a about an hour, including Reddit, Spotify, and Hulu. Ultimately, the Fastly outage caused thousands of websites to go dark.

Fastly's third quarter revenue guidance of $82 million to $85 million is well below analyst estimates of $98 million. For the full year, Fastly said it expects to generate $340 million to $350 million in revenue, below analyst estimates of $382.5 million.

Shares of Fastly are down 75% from their record high of $136.50 reached in October.