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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how content delivery stocks fared in Q3, starting with Fastly (NYSE:FSLY).
The amount of content on the internet is exploding, whether it is music, movies and or e-commerce stores. Consumer demand for this content creates network congestion, much like a digital traffic jam which drives demand for specialized content delivery networks (CDN) services that alleviate potential network bottlenecks.
The 4 content delivery stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 3% below.
Luckily, content delivery stocks have performed well with share prices up 15.1% on average since the latest earnings results.
Fastly (NYSE:FSLY)
Founded in 2011, Fastly (NYSE:FSLY) provides content delivery and edge cloud computing services, enabling enterprises and developers to deliver fast, secure, and scalable digital content and experiences.
Fastly reported revenues of $137.2 million, up 7.3% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations.
“Fastly delivered significant upside on our revenue guidance in Q3 along with record non-GAAP net income and adjusted EBITDA,” said Todd Nightingale, CEO of Fastly.
Fastly delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Interestingly, the stock is up 20.2% since reporting and currently trades at $9.80.
Read our full report on Fastly here, it’s free.
Best Q3: F5 (NASDAQ:FFIV)
Initially started as a hardware appliances company in the late 1990s, F5 (NASDAQ:FFIV) makes software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyberattacks.
F5 reported revenues of $746.7 million, up 5.6% year on year, outperforming analysts’ expectations by 2.2%. The business had a strong quarter with a solid beat of analysts’ billings estimates and revenue guidance for next quarter slightly topping analysts’ expectations.
F5 delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 23.2% since reporting. It currently trades at $269.12.
Is now the time to buy F5? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Akamai (NASDAQ:AKAM)
Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers.