Fastly, Inc.

Kula v. Fastly, Inc. et al., No. 4:24-cv-03170 (N.D. Cal.)

Stock ticker:
FSLY

A lawsuit was recently filed against Fastly, Inc., alleging the company and its executives misrepresented to investors that new customer acquisition throughout 2023 would fuel revenue growth in calendar year 2024, when, in fact, Fastly was experiencing a significant deceleration in growth among its largest customers and was losing the market share it had gained through consolidation in 2023. On May 1, 2024, Fastly lowered its FY 2024 revenue guidance by $35 million and explained on an earnings call that "[t]he biggest factor" in the disappointing revised outlook "is a reduction of revenue from a small number of our largest customers." The Company's CFO said "the revenue declines in our largest customers [are] overshadowing the impact of new customer acquisition and product pipeline." Fastly's stock price plummeted 32% on this news.

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