Edgio Reports First Quarter 2023 Results
- Q1 2023 revenue of $101.9 million, representing 84% YoY growth
- Applications bookings in Q3 2023 ahead of Q2 2023 levels and up more than 90% from Q1 2023 bookings
- On target to achieve $85-$90 million of run rate savings by YE23
- Capital expenditure was $3.6 million or 3.6% of revenue
- None.
Q1 2023 revenue of
Applications bookings QTD in 3Q 2023 already ahead of 2Q 2023 levels and up more than
On target to achieve
Capital expenditure, net of payments from ISPs, was
“In the first quarter, we took substantial steps to accelerate progress in each of our product offerings. In Applications, we strengthened our security offering by adding DDoS scrubbing and enhanced WAAP capabilities, further establishing Edgio as a leading security company. In Media, we brought on streaming industry pioneer, Eric Black, as GM/ CTO to spearhead growth of our entire media portfolio,” said Bob Lyons, President and CEO of Edgio. "These enhanced products, new leadership, and improved execution are resulting in reduced churn, increased pipeline conversion, higher attach rates, and increased cross sell/upsell opportunities. This is reflected in our quarter-to-date Applications bookings, which are already ahead of second quarter levels. We expect this momentum to continue, and combined with our cost savings plans, we believe we have established a strong foundation for profitable growth in 2024."
Recent Business Highlights:
- Continued new product momentum with API Security solution in General Availability
- Recognized as a leader in Content Delivery Networks and Edge Computing by technology research firm Frost & Sullivan
- QTD Applications bookings already ahead of second quarter levels with new client wins and existing client expansion
-
QTD Applications bookings are up
90% from total bookings in 1Q 2023 -
On track to operationalize approximately
of expected run rate cost savings, by end of 2023 and forecasted higher by end of 2024$85 -90 million
First Quarter Financial highlights:
Revenue
-
Revenue of
,$101.9 million 84.2% year over year growth due to the inclusion of the Edgecast acquisition. Sequential decline of6.3% was driven by seasonality and previously communicated churn.
Gross margin
-
GAAP gross margin was
30.4% , compared to30.4% year over year and36.6% quarter over quarter. -
Non-GAAP gross margin was
31.2% , compared to31.1% year over year and38.1% quarter over quarter. -
Cash gross margin was
34.7% , compared to41.7% year over year and42.3% quarter over quarter.
Operating expenses
-
GAAP operating expenses, including share-based compensation of
, restructuring charges of$4.5 million to achieve cost synergies, restatement related expenses of$0.5 million , and acquisition and legal related expenses of$2.2 million , were$1.0 million 62.4% of revenue versus78.9% in the fourth quarter of 2022. -
Non-GAAP operating expenses, excluding share-based compensation, restructuring charges, restatement related expenses, and acquisition and legal related expenses, were
54.3% of revenue versus57.3% in the fourth quarter of 2022. -
Cash operating expenses, excluding share-based compensation, restructuring charges, restatement related expenses, and acquisition and legal related expenses, depreciation and amortization were
48.8% of revenue versus51.6% in the fourth quarter of 2022. Sequential decline in cash operating expenses was primarily due to realization of cost savings.
Adjusted EBITDA
-
Adjusted EBITDA for the quarter was a loss of
, compared to a loss of$14.4 million in the fourth quarter of 2022 due to lower gross profit partially offset by realization of cost savings.$10.1 million
Capital Expenditure
-
Capital expenditure, net of payments from ISPs, during the quarter was
, or$3.6 million 3.6% of revenue. - We expect to continue to be efficient with our capital expenditure as a result of stronger operational discipline, leveraging our excess capacity and due to higher revenue contribution from software solutions that have lower capital requirements.
Cash, Cash Equivalents, and Marketable Securities
-
Cash, cash equivalents, and marketable securities were
for the quarter, compared to$48.2 million for the fourth quarter of 2022.$74.0 million -
Cash flow used by operations during the quarter was
.$24.1 million
2023 Guidance:
"With our new products and refined go-to-market, combined with the execution on our target run rate cost savings of approximately
For 2023, our guidance is unchanged and we are currently expecting:
-
Revenue between
and$392 million .$398 million -
Adjusted EBITDA range of negative
to negative$37 million , implying Adjusted EBITDA margin between negative$31 million 9.5% and negative8% . -
Capital expenditure between
and$10 million , implying$13 million 2.5% and3.5% of revenue.
Financial Tables
Edgio, Inc. Consolidated Balance Sheets (In thousands, except per share data) |
|||||||
|
March 31,
|
|
December 31,
|
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
32,787 |
|
|
$ |
55,275 |
|
Marketable securities |
|
15,396 |
|
|
|
18,734 |
|
Accounts receivable, net |
|
82,461 |
|
|
|
84,627 |
|
Income taxes receivable |
|
373 |
|
|
|
105 |
|
Prepaid expenses and other current assets |
|
36,987 |
|
|
|
36,374 |
|
Total current assets |
|
168,004 |
|
|
|
195,115 |
|
Property and equipment, net |
|
72,976 |
|
|
|
73,467 |
|
Operating lease right of use assets |
|
5,053 |
|
|
|
5,290 |
|
Deferred income taxes |
|
2,388 |
|
|
|
2,338 |
|
Goodwill |
|
168,961 |
|
|
|
169,156 |
|
Intangible assets, net |
|
86,348 |
|
|
|
91,661 |
|
Other assets |
|
2,586 |
|
|
|
5,353 |
|
Total assets |
$ |
506,316 |
|
|
$ |
542,380 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
48,312 |
|
|
$ |
52,776 |
|
Deferred revenue |
|
10,500 |
|
|
|
9,286 |
|
Operating lease liability obligations |
|
4,483 |
|
|
|
4,557 |
|
Income taxes payable |
|
3,286 |
|
|
|
3,133 |
|
Financing obligations |
|
6,839 |
|
|
|
6,346 |
|
Other current liabilities |
|
76,947 |
|
|
|
76,160 |
|
Total current liabilities |
|
150,367 |
|
|
|
152,258 |
|
Convertible senior notes, net |
|
122,849 |
|
|
|
122,631 |
|
Operating lease liability obligations, less current portion |
|
8,066 |
|
|
|
9,181 |
|
Deferred income taxes |
|
602 |
|
|
|
596 |
|
Deferred revenue, less current portion |
|
2,333 |
|
|
|
2,949 |
|
Financing obligations, less current portion |
|
12,738 |
|
|
|
13,784 |
|
Other long-term liabilities |
|
721 |
|
|
|
1,658 |
|
Total liabilities |
|
297,676 |
|
|
|
303,057 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Convertible preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
223 |
|
|
|
222 |
|
Common stock contingent consideration |
|
16,300 |
|
|
|
16,300 |
|
Additional paid-in capital |
|
811,571 |
|
|
|
807,507 |
|
Accumulated other comprehensive loss |
|
(11,430 |
) |
|
|
(11,665 |
) |
Accumulated deficit |
|
(608,024 |
) |
|
|
(573,041 |
) |
Total stockholders’ equity |
|
208,640 |
|
|
|
239,323 |
|
Total liabilities and stockholders’ equity |
$ |
506,316 |
|
|
$ |
542,380 |
|
Edgio, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
March 31, |
|
Dec. 31, |
|
Percent |
|
March 31, |
|
Percent |
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2022 |
|
|
Change |
||
Revenue |
$ |
101,948 |
|
|
$ |
108,841 |
|
|
(6 |
)% |
|
$ |
55,339 |
|
|
84 |
% |
Cost of revenue: |
|
|
|
|
|
|
|
|
|
||||||||
Cost of services (1) |
|
67,353 |
|
|
|
64,356 |
|
|
5 |
% |
|
|
32,673 |
|
|
106 |
% |
Depreciation — network |
|
3,610 |
|
|
|
4,629 |
|
|
(22 |
)% |
|
|
5,848 |
|
|
(38 |
)% |
Total cost of revenue |
|
70,963 |
|
|
|
68,985 |
|
|
3 |
% |
|
|
38,521 |
|
|
84 |
% |
Gross profit |
|
30,985 |
|
|
|
39,856 |
|
|
(22 |
)% |
|
|
16,818 |
|
|
84 |
% |
Gross profit percentage |
|
30.4 |
% |
|
|
36.6 |
% |
|
|
|
|
30.4 |
% |
|
|
||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||
General and administrative (1) |
|
16,836 |
|
|
|
23,367 |
|
|
(28 |
)% |
|
|
15,833 |
|
|
6 |
% |
Sales and marketing (1) |
|
19,622 |
|
|
|
15,894 |
|
|
23 |
% |
|
|
7,627 |
|
|
157 |
% |
Research and development (1) |
|
21,016 |
|
|
|
29,441 |
|
|
(29 |
)% |
|
|
9,577 |
|
|
119 |
% |
Depreciation and amortization |
|
5,607 |
|
|
|
6,258 |
|
|
(10 |
)% |
|
|
1,032 |
|
|
443 |
% |
Restructuring charges |
|
500 |
|
|
|
10,894 |
|
|
(95 |
)% |
|
|
698 |
|
|
(28 |
)% |
Total operating expenses |
|
63,581 |
|
|
|
85,854 |
|
|
(26 |
)% |
|
|
34,767 |
|
|
83 |
% |
Operating loss |
|
(32,596 |
) |
|
|
(45,998 |
) |
|
NM |
|
|
|
(17,949 |
) |
|
NM |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(1,577 |
) |
|
|
(1,660 |
) |
|
NM |
|
|
|
(1,431 |
) |
|
NM |
|
Interest income |
|
397 |
|
|
|
310 |
|
|
NM |
|
|
|
27 |
|
|
NM |
|
Other, net |
|
(809 |
) |
|
|
(1,315 |
) |
|
NM |
|
|
|
(713 |
) |
|
NM |
|
Total other expense |
|
(1,989 |
) |
|
|
(2,665 |
) |
|
NM |
|
|
|
(2,117 |
) |
|
NM |
|
Loss before income taxes |
|
(34,585 |
) |
|
|
(48,663 |
) |
|
NM |
|
|
|
(20,066 |
) |
|
NM |
|
Income tax expense |
|
398 |
|
|
|
(2,137 |
) |
|
NM |
|
|
|
206 |
|
|
NM |
|
Net loss |
$ |
(34,983 |
) |
|
$ |
(46,526 |
) |
|
NM |
|
|
$ |
(20,272 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.16 |
) |
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.15 |
) |
|
|
||
Diluted |
$ |
(0.16 |
) |
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.15 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
222,462 |
|
|
|
222,026 |
|
|
|
|
|
135,528 |
|
|
|
||
Diluted |
|
222,462 |
|
|
|
222,026 |
|
|
|
|
|
135,528 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes share-based compensation (see supplemental table for figures) |
Edgio, Inc. Supplemental Financial Data (In thousands) (Unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
March 31, |
|
Dec. 31, |
|
March 31, |
|||
|
2023 |
|
2022 |
|
2022 |
|||
Share-based compensation: |
|
|
|
|
|
|||
Cost of services |
$ |
679 |
|
$ |
854 |
|
$ |
408 |
General and administrative |
|
1,416 |
|
|
2,190 |
|
|
2,103 |
Sales and marketing |
|
617 |
|
|
552 |
|
|
1,181 |
Research and development |
|
2,488 |
|
|
4,341 |
|
|
3,320 |
Total share-based compensation |
$ |
5,200 |
|
$ |
7,937 |
|
$ |
7,012 |
|
|
|
|
|
|
|||
Acquisition and legal related charges: |
|
|
|
|
|
|||
Cost of services |
$ |
111 |
|
$ |
709 |
|
$ |
— |
General and administrative |
|
589 |
|
|
4,013 |
|
|
5,107 |
Sales and marketing |
|
42 |
|
|
93 |
|
|
— |
Research and development |
|
410 |
|
|
1,370 |
|
|
— |
Total share-based compensation |
$ |
1,152 |
|
$ |
6,185 |
|
$ |
5,107 |
|
|
|
|
|
|
|||
Depreciation and amortization: |
|
|
|
|
|
|||
Network-related depreciation |
$ |
3,610 |
|
$ |
4,629 |
|
$ |
5,848 |
Other depreciation and amortization |
|
294 |
|
|
181 |
|
|
246 |
Amortization of intangible assets |
|
5,313 |
|
|
6,077 |
|
|
786 |
Total depreciation and amortization |
$ |
9,217 |
|
$ |
10,887 |
|
$ |
6,880 |
|
|
|
|
|
|
|||
End of period statistics: |
|
|
|
|
|
|||
Approximate number of active clients |
|
900 |
|
|
954 |
|
|
577 |
|
|
|
|
|
|
|||
Number of employees and employee equivalents |
|
893 |
|
|
980 |
|
|
556 |
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles (“Non-GAAP”) net loss, EBITDA, and Adjusted EBITDA as supplemental measures of operating performance. These measures include the same adjustments that our management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net loss to be an important indicator of our overall business performance. We define Non-GAAP net loss to be
Furthermore, our management uses these Non-GAAP financial measures to assist them in making decisions regarding our strategic priorities and areas for future investment and focus. The terms Non-GAAP net loss, EBITDA, and Adjusted EBITDA are not defined under
- Non-GAAP net loss, EBITDA, and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
- These measures do not reflect changes in, or cash requirements for, our working capital needs;
- Non-GAAP net loss, EBITDA, and Adjusted EBITDA do not reflect the cash requirements necessary for litigation costs, including provision for litigation and litigation expenses;
- These measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;
- These measures do not reflect income taxes or the cash requirements for any tax payments;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA, and Adjusted EBITDA do not reflect any cash requirements for such replacements;
- While share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and
- Other companies may calculate Non-GAAP net loss, EBITDA, and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Item 10(e) of Regulation S-K, we are presenting the most directly comparable
Forward-looking non-GAAP financial measures are presented without reconciliations of such forward-looking non-GAAP measures because the GAAP financial measures are not accessible on a forward-looking basis and reconciling information is not available without unreasonable effort due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments reflected in our reconciliation of historic non-GAAP financial measures, the amounts of which, based on historical experience, could be material.
Edgio, Inc.
Reconciliation of (In thousands) (Unaudited |
|||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
||||||||||||||||||
|
Amount |
|
Per Share |
|
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||||||
|
$ |
(34,983 |
) |
|
$ |
(0.16 |
) |
|
$ |
(46,526 |
) |
|
$ |
(0.21 |
) |
|
$ |
(20,272 |
) |
|
$ |
(0.15 |
) |
Share-based compensation |
|
5,200 |
|
|
|
0.02 |
|
|
|
7,937 |
|
|
|
0.04 |
|
|
|
7,012 |
|
|
|
0.05 |
|
Non-cash interest expense |
|
218 |
|
|
|
— |
|
|
|
215 |
|
|
|
— |
|
|
|
209 |
|
|
|
— |
|
Restructuring and transition related charges |
|
500 |
|
|
|
— |
|
|
|
10,894 |
|
|
|
0.05 |
|
|
|
698 |
|
|
|
0.01 |
|
Acquisition and legal related expenses |
|
1,152 |
|
|
|
0.01 |
|
|
|
6,185 |
|
|
|
0.03 |
|
|
|
5,107 |
|
|
|
0.04 |
|
Amortization of intangible assets |
|
5,313 |
|
|
|
0.02 |
|
|
|
6,077 |
|
|
|
0.03 |
|
|
|
786 |
|
|
|
0.01 |
|
Restatement related expenses |
|
2,175 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment of private company investment |
|
— |
|
|
|
— |
|
|
|
1,275 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP net loss |
$ |
(20,425 |
) |
|
$ |
(0.09 |
) |
|
$ |
(13,943 |
) |
|
$ |
(0.06 |
) |
|
$ |
(6,460 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares used in per share calculation: |
|
|
|
222,462 |
|
|
|
|
|
222,026 |
|
|
|
|
|
135,528 |
|
Edgio, Inc.
Reconciliation of (In thousands) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
March 31, |
|
Dec. 31, |
|
March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
$ |
(34,983 |
) |
|
$ |
(46,526 |
) |
|
$ |
(20,272 |
) |
Depreciation and amortization |
|
9,217 |
|
|
|
10,887 |
|
|
|
6,880 |
|
Interest expense |
|
1,577 |
|
|
|
1,660 |
|
|
|
1,431 |
|
Interest and other (income) expense |
|
412 |
|
|
|
1,005 |
|
|
|
686 |
|
Income tax expense |
|
398 |
|
|
|
(2,137 |
) |
|
|
206 |
|
EBITDA |
$ |
(23,379 |
) |
|
$ |
(35,111 |
) |
|
$ |
(11,069 |
) |
Share-based compensation |
|
5,200 |
|
|
|
7,937 |
|
|
|
7,012 |
|
Restructuring and transition related charges |
|
500 |
|
|
|
10,894 |
|
|
|
698 |
|
Acquisition and legal related expenses |
|
1,152 |
|
|
|
6,185 |
|
|
|
5,107 |
|
Restatement related expenses |
|
2,175 |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(14,352 |
) |
|
$ |
(10,095 |
) |
|
$ |
1,748 |
|
Edgio, Inc.
Reconciliation of (In thousands) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
||||||
GAAP gross profit |
$ |
30,985 |
|
|
$ |
39,856 |
|
|
$ |
16,818 |
|
Share-based compensation expense |
|
679 |
|
|
|
854 |
|
|
|
408 |
|
Acquisition and legal related charges |
|
111 |
|
|
|
709 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
31,775 |
|
|
$ |
41,419 |
|
|
$ |
17,226 |
|
Non-GAAP gross margin |
|
31.2 |
% |
|
|
38.1 |
% |
|
|
31.1 |
% |
|
|
|
|
|
|
||||||
GAAP general and administrative expense |
$ |
16,836 |
|
|
$ |
23,367 |
|
|
$ |
15,833 |
|
Share-based compensation expense |
|
1,416 |
|
|
|
2,190 |
|
|
|
2,103 |
|
Acquisition and legal related charges |
|
589 |
|
|
|
4,013 |
|
|
|
5,107 |
|
Restatement related expenses |
|
2,175 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP general and administrative expense |
$ |
12,656 |
|
|
$ |
17,164 |
|
|
$ |
8,623 |
|
|
|
|
|
|
|
||||||
GAAP sales and marketing expense |
$ |
19,622 |
|
|
$ |
15,894 |
|
|
$ |
7,627 |
|
Share-based compensation expense |
|
617 |
|
|
|
552 |
|
|
|
1,181 |
|
Acquisition and legal related charges |
|
42 |
|
|
|
93 |
|
|
|
— |
|
Non-GAAP sales and marketing expense |
$ |
18,963 |
|
|
$ |
15,249 |
|
|
$ |
6,446 |
|
|
|
|
|
|
|
||||||
GAAP research and development expense |
$ |
21,016 |
|
|
$ |
29,441 |
|
|
$ |
9,577 |
|
Share-based compensation expense |
|
2,488 |
|
|
|
4,341 |
|
|
|
3,320 |
|
Acquisition and legal related charges |
|
410 |
|
|
|
1,370 |
|
|
|
— |
|
Non-GAAP research and development expense |
$ |
18,118 |
|
|
$ |
23,730 |
|
|
$ |
6,257 |
|
|
|
|
|
|
|
||||||
GAAP depreciation and amortization |
$ |
5,607 |
|
|
$ |
6,258 |
|
|
$ |
1,032 |
|
Amortization of intangibles |
|
(5,313 |
) |
|
|
(6,077 |
) |
|
|
(786 |
) |
Non-GAAP depreciation and amortization |
$ |
294 |
|
|
$ |
181 |
|
|
$ |
246 |
|
|
|
|
|
|
|
||||||
GAAP operating loss |
$ |
(32,596 |
) |
|
$ |
(45,998 |
) |
|
$ |
(17,949 |
) |
Share-based compensation expense |
|
5,200 |
|
|
|
7,937 |
|
|
|
7,012 |
|
Amortization of intangibles |
|
5,313 |
|
|
|
6,077 |
|
|
|
786 |
|
Restatement related expenses |
|
2,175 |
|
|
|
— |
|
|
|
— |
|
Acquisition and legal related charges |
|
1,152 |
|
|
|
6,185 |
|
|
|
5,107 |
|
Restructuring charges |
|
500 |
|
|
|
10,894 |
|
|
|
698 |
|
Non-GAAP operating (loss) income |
$ |
(18,256 |
) |
|
$ |
(14,905 |
) |
|
$ |
(4,346 |
) |
|
|
|
|
|
|
||||||
GAAP pre-tax loss |
$ |
(34,585 |
) |
|
$ |
(48,663 |
) |
|
$ |
(20,066 |
) |
Share-based compensation expense |
|
5,200 |
|
|
|
7,937 |
|
|
|
7,012 |
|
Amortization of intangibles |
|
5,313 |
|
|
|
6,077 |
|
|
|
786 |
|
Acquisition and legal related charges |
|
1,152 |
|
|
|
6,185 |
|
|
|
5,107 |
|
Restructuring charges |
|
500 |
|
|
|
10,894 |
|
|
|
698 |
|
Non-cash interest expense |
|
218 |
|
|
|
215 |
|
|
|
209 |
|
Restatement related expenses |
|
2,175 |
|
|
|
— |
|
|
|
— |
|
Impairment of private company investment |
|
— |
|
|
|
1,275 |
|
|
|
— |
|
Non-GAAP pre-tax (loss) income |
$ |
(20,027 |
) |
|
$ |
(16,080 |
) |
|
$ |
(6,254 |
) |
|
|
|
|
|
|
||||||
GAAP net loss |
$ |
(34,983 |
) |
|
$ |
(46,526 |
) |
|
$ |
(20,272 |
) |
Share-based compensation expense |
|
5,200 |
|
|
|
7,937 |
|
|
|
7,012 |
|
Amortization of intangibles |
|
5,313 |
|
|
|
6,077 |
|
|
|
786 |
|
Acquisition and legal related charges |
|
1,152 |
|
|
|
6,185 |
|
|
|
5,107 |
|
Restructuring charges |
|
500 |
|
|
|
10,894 |
|
|
|
698 |
|
Non-cash interest expense |
|
218 |
|
|
|
215 |
|
|
|
209 |
|
Restatement related expenses |
|
2,175 |
|
|
|
— |
|
|
|
— |
|
Impairment of private company investment |
|
— |
|
|
|
1,275 |
|
|
|
— |
|
Non-GAAP net (loss) income |
$ |
(20,425 |
) |
|
$ |
(13,943 |
) |
|
$ |
(6,460 |
) |
Non-GAAP fully weighted-average basic shares |
|
222,462 |
|
|
|
222,026 |
|
|
|
135,528 |
|
Non-GAAP fully weighted-average diluted shares |
|
222,462 |
|
|
|
222,026 |
|
|
|
135,528 |
|
Non-GAAP net (loss) income per Non-GAAP basic share |
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.05 |
) |
Non-GAAP net (loss) income per Non-GAAP diluted share |
$ |
(0.09 |
) |
$ |
(0.06 |
) |
|
$ |
(0.05 |
) |
Edgio, Inc.
Reconciliation of (In thousands) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
||||||
GAAP gross profit |
$ |
30,985 |
|
|
$ |
39,856 |
|
|
$ |
16,818 |
|
Share-based compensation expense |
|
679 |
|
|
|
854 |
|
|
|
408 |
|
Acquisition and legal related charges |
|
111 |
|
|
|
709 |
|
|
|
— |
|
Non-GAAP gross profit |
|
31,775 |
|
|
|
41,419 |
|
|
|
17,226 |
|
Non-GAAP gross margin |
|
31.2 |
% |
|
|
38.1 |
% |
|
|
31.1 |
% |
|
|
|
|
|
|
||||||
Depreciation |
|
3,610 |
|
|
|
4,629 |
|
|
|
5,848 |
|
Cash gross profit |
$ |
35,385 |
|
|
$ |
46,048 |
|
|
$ |
23,074 |
|
Cash gross margin |
|
34.7 |
% |
|
|
42.3 |
% |
|
|
41.7 |
% |
Conference Call
Management will host a conference call for investors when it files the Q2 2023 Form 10-Q for the period ended June 30, 2023, which is expected in September 2023. Access details will be provided at a later date.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding our expectations regarding revenue, gross margin, non-GAAP net loss, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, capital expenditures, run-rate savings, churn reductions, and pipeline conversions, including the impacts of seasonality, our ability to drive long-term value creation for our shareholders, our ability to achieve Adjusted EBITDA profitability, reduce our fixed costs and our breakeven point, and align our cost structure with our revenue baseline, our ability to leverage excess capacity and exercise operational discipline, the integration of Edgecast and our future prospects, areas of investment, product launches, and the anticipated timing of filing our Quarterly Reports on Form 10-Q for the period ended June 30, 2023. Our expectations and beliefs regarding these matters may not materialize. The potential risks and uncertainties that could cause actual results or outcomes to differ materially from the results or outcomes predicted include, among other things, reduction of demand for our services from new or existing clients, unforeseen changes in our hiring patterns, adverse outcomes in litigation, experiencing expenses that exceed our expectations, and acquisition activities and contributions from acquired businesses. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online on our investor relations website at investors.edg.io and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of August 15, 2023, and we undertake no duty to update this information in light of new information or future events, unless required by law.
About Edgio
Edgio (NASDAQ: EGIO) helps companies deliver online experiences and content faster, safer, and with more control. Its developer-friendly, globally scaled edge network, combined with fully integrated application and media solutions, provide a single platform for the delivery of high-performing, secure web properties and streaming content. Through this fully integrated platform and end-to-end edge services, companies can deliver content quicker and more securely, thus boosting overall revenue and business value. To learn more, visit edg.io and follow us on Twitter, LinkedIn and Facebook.
Copyright (C) 2023 Edgio, Inc. All rights reserved. All product or service names are the property of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230815645028/en/
Edgio, Inc.
Investor relations: Sameet Sinha, 602-850-4973
ir@edg.io
Source: Edgio, Inc.
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