U.S. cloud service provider Fastly says its largest customer TikTok has withdrawn most of its traffic

Thursday, October 29, 2020, 6:18 GMT

ByteDance, its affiliate US cloud service provider, has removed much of its TikTok traffic from Fastly. On Wednesday, local time, cloud storage supplier Fastly said that Bytedance “removed much of the customer traffic from our site” by the end of the third quarter.

Fastly is an American app and utility company for networks. Its core business is to provide businesses with content delivery systems to help end users more easily procure and consume content. ByteDance uses its service to share videos, making it the largest user of Fastly on the popular TikTok app.

Earlier, Tiktok said that Oracle will offer cloud services to TikTok if the strategy is accomplished.

In a letter to shareholders, Fastly CEO Joshua Bixby (Joshua Bixby) wrote: “We will also actively support this customer.” “We are able to receive other traffic from this customer if circumstances permit. But, if we no longer support the customer, we agree that we have the opportunity to reassign the allocated power of the customer in the mid to long term.”

On Wednesday, Fastly also revealed its third-quarter earnings. The firm said in its financial information that it expects sales to be between US$ 80 million and US$ 84 million in the fourth quarter, with a loss of US$ 0.08 to US$ 0.12 per share. Wall Street analysts predict a loss of $0.02 per share and $82.3 million in revenue.

The company also said third-quarter revenue increased year-on-year by 42 percent. Bixby wrote, “Our basic business remains strong.”

On Wednesday, Quick Shares closed at $71.61, up about 1 percent in after-hours trading.

The firm cut its third-quarter sales outlook about two weeks ago and found out that Bytedance is reducing its service investment, which shocked the industry, and that its stock price dropped by 27 percent.