Edgio Inc

Latest Results (12.06.2024):

Q3 2023 Revenue

In the third quarter of 2023, Edgio Inc reported a revenue of $97.0 million. This represents a 1.3% increase sequentially, although there was a year-over-year decline of 12.4%. The decline was attributed to previously communicated churn at Edgecast and an elongated booking cycle.

Gross Margin Improvement

For Q3 2023, Edgio Inc's GAAP gross margin was 23.9%, showing improvement from 22.6% in the previous quarter and a decrease from 25.8% year over year. The non-GAAP gross margin also rose to 28.0% from 26.9% sequentially, although it was lower compared to 31.4% in the same quarter the previous year.

Operating Expenses Analysis

Edgio Inc's GAAP operating expenses for Q3 2023 were 48% of revenue, which is a decrease from 57.3% in Q2 2023 and 67.6% in Q3 2022. Non-GAAP operating expenses were 44.0% of revenue, improving from 47.0% in the previous quarter and 48.0% year over year. This reduction is primarily due to the realization of cost savings from ongoing efficiency measures.

Adjusted EBITDA and Capital Expenditure

The Adjusted EBITDA for Edgio Inc in Q3 2023 was a loss of $9.5 million, an improvement from a loss of $13.4 million in Q2 2023, driven by higher revenues and continuous cost-saving initiatives. Capital expenditures were tightly controlled at $4.9 million, representing just 1.7% of revenue.

2023 Financial Outlook

Edgio Inc has provided guidance for Q4 2023 with expected revenue between $96 and $98 million and an Adjusted EBITDA ranging from a loss of $1 million to a gain of $1 million. For the full year of 2023, revenue is anticipated to be between $391 and $393 million, marking a growth of 15.5 to 16.0 percent year over year, with capital expenditures projected to be between $10 and $13 million.