Edgio Reports Fourth Quarter 2022 Financial Results

Q4 2022 revenue of $108.8 million, 90% year over year growth

Applications pipeline increase of approximately 80% for 2023, to date

$85-$90 million of run rate savings expected by YE23, forecasted higher by YE24

Capital expenditure, net of payments from ISPs, was $4.5 million or 4% of revenue

PHOENIX--(BUSINESS WIRE)-- Edgio, Inc. (Nasdaq: EGIO), the platform of choice to power unmatched speed, security and simplicity at the edge, today reported financial results for the fourth quarter ended December 31, 2022. The company expects to file its Quarterly Reports on Form 10-Q for the period ending March 31, 2023, in August, and for the period ending June 30, 2023, shortly thereafter.

“With the restatement behind us, I am pleased to be announcing our Q4 2022 results, reconnecting with our analysts and investors, and providing an update on the significant progress we have made to become an edge solutions company. Since our last earnings call, we have launched award winning products, bolstered our leadership team with industry experts, revitalized our sales and marketing efforts, and expanded our channel partnerships,” said Bob Lyons, President and CEO of Edgio. “We are already seeing tangible benefits in pipeline, bookings and new customer interactions. For 2023, our goal is to achieve Adjusted EBITDA breakeven by year-end on the back of $85-90 million of expected run rate savings, churn reduction and higher pipeline conversion, which we believe should provide the foundation for profitable growth in 2024.”

Recent Business Highlights:

• New product momentum accelerates with launches of Edgio Applications v7, Advanced Bot Management and DDoS scrubbing.
• Notable wins for Applications solutions include a large mattress retailer in the U.S., a fast fashion retailer in China, a global sporting event association, a premium automaker from Europe and a leading premier league football club.
• Won the Web Application Security award from Cyber Defense Magazine (CDM), at the RSA Conference 2023 and, “Best of Show Award” for Uplynk at National Association of Broadcasters 2023.
• Recognized as a leader by technology research firms such as IDC, Frost & Sullivan and GIGAOM.
• Achieved Amazon Web Services (AWS) Retail Competency designation with Edgio’s Applications Platform and Uplynk now available in AWS Marketplace.
• Grew Applications pipeline by approximately 80% from the beginning of the year, with Applications bookings up nearly 100% sequentially in 2Q23
• On track to operationalize approximately $85-90 million of expected cost savings on a run rate basis, by end of 2023.
• Bolstered leadership team with the appointment of Eric Black as CTO/ GM of Media and Todd Hinders as Chief Revenue Officer.
• Launched API Security solution in General Availability

Fourth Quarter Financial Highlights:

Revenue

• Revenue of $108.8 million, 90% year over year growth.

Gross margin

• GAAP gross margin was 36.6%, compared to 35.7% year over year and 29.6% quarter over quarter.
• Non-GAAP gross margin was 38.1%, compared to 36.1% year over year and 31.4% quarter over quarter.
• Cash gross margin was 42.3%, compared to 46.4% year over year and 41.2% quarter over quarter.

Operating expenses

• GAAP operating expenses, including share-based compensation of $7.9 million, restructuring charges of $10.9 million to achieve cost synergies, and acquisition and legal related expenses of $6.2 million, were 78.9% of revenue versus 71.3% in the third quarter of 2022.
• Non-GAAP operating expenses, excluding share-based compensation, restructuring charges, and acquisition and legal related expenses, were 57.2% of revenue versus 50.8% in the third quarter of 2022.
• Cash operating expenses, excluding share-based compensation, restructuring charges, acquisition and legal related expenses, depreciation and amortization were 51.6% of revenue versus 46.4% in the third quarter of 2022.

Adjusted EBITDA

• Adjusted EBITDA for the quarter was a loss of $10.1 million, compared to a loss of $5.7 million in the third quarter of 2022.

Capital Expenditure

• Capital Expenditure, net of payments from ISPs, during the quarter was $4.5 million, or 4% of revenue and for 2022 was $23.0 million or 7% of revenue.
• We expect 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 was $74.0 million for the fourth quarter ended December 31, 2022, compared to $70.8 million for the third quarter ended September 30, 2022, and $79.3 million for the fourth quarter ended December 31, 2021.
• Cash flow provided by operations during the quarter was $8.1 million and cash flow used in operations year-to-date was $11.7 million.

2023 Guidance:

"We remain optimistic on Edgio’s transformation and our ability to generate long-term value for our shareholders. During the first half of the year, we experienced a lengthening of sales cycles due to softening macroeconomic conditions and natural uncertainty that comes with a restatement,” said Stephen Cumming, Chief Financial Officer. “However, with the restatement behind us, new best-of-breed products in the market and refined go-to-market strategies exhibiting positive results, we expect to build on our pipeline and improve conversion in the coming quarters. Moreover, we continue to align our cost structure with our revenue baseline and prioritize our margins and cash flow in the near-term. We believe this structure will reduce the fixed cost in the business, further moderating our breakeven point and increasing our cash flow potential."

For 2023, we are expecting:

• Revenue between $392 million and $398 million.
• Adjusted EBITDA range of negative $37 million to negative $31 million, implying Adjusted EBITDA margin between negative 9.5% and negative 8%. We expect Adjusted EBITDA to breakeven in 4Q23.
• Capital expenditure between $10 million and $13 million, implying 2.5% and 3.5% of revenue.

Financial Tables

Edgio, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
		December 31,				September 30,				December 31,
		2022				2022				2021
						As Restated				As Restated
						(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	55,275			$	59,306			$	41,918
Marketable securities			18,734				11,444				37,367
Accounts receivable, net			84,627				102,963				33,528
Income taxes receivable			105				59				61
Prepaid expenses and other current assets			36,374				35,799				17,810
Total current assets			195,115				209,571				130,684
Property and equipment, net			73,467				105,528				40,511
Operating lease right of use assets			5,290				6,680				6,338
Deferred income taxes			2,338				2,745				1,893
Goodwill			169,156				171,065				114,511
Intangible assets, net			91,661				67,738				14,613
Other assets			5,353				7,820				5,525
Total assets		$	542,380			$	571,147			$	314,075
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	52,776			$	38,155			$	10,624
Deferred revenue			9,286				7,048				4,034
Operating lease liability obligations			4,557				4,396				1,861
Income taxes payable			3,133				433				873
Financing obligations			6,346				6,314				4,648
Other current liabilities			76,160				86,645				19,511
Total current liabilities			152,258				142,991				41,551
Convertible senior notes, net			122,631				122,416				121,782
Operating lease liability obligations, less current portions			9,181				10,511				9,616
Deferred income taxes			596				95				308
Deferred revenue, less current portion			2,949				2,938				116
Financing obligations, less current portion			13,784				14,243				7,851
Other long-term liabilities			1,658				710				777
Total liabilities			303,057				293,904				182,001
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding			-				-				-
Common stock, $0.001 par value; 300,000 shares authorized; 22,232, 221,583, and 134,337 shares issued and outstanding at December 31, 2022, September 30, 2022 and December 31, 2021, respectively			222				222				134
Common stock contingent consideration			16,300				16,300				-
Additional paid-in capital			807,507				800,697				576,807
Accumulated other comprehensive loss			(11,665	)			(13,462	)			(8,345	)
Accumulated deficit			(573,041	)			(526,514	)			(436,522	)
Total stockholders' equity			239,323				277,243				132,074
Total liabilities and stockholders' equity		$	542,380			$	571,147			$	314,075

Edgio, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
		Three Months Ended																		Twelve Months Ended
		December 31,				September 30,				Percent			December 31,				Percent			December 31,				December 31,				Percent
		2022				2022				Change			2021				Change			2022				2021				Change
						As Restated							As Restated											As Restated
Revenue		$	108,841			$	110,832			-2	%		$	57,178			90	%		$	338,598			$	201,115			68	%
Cost of revenue:
Cost of services (1)			64,356				67,140			-4	%			30,876			108	%			202,887				122,687			65	%
Depreciation - network			4,629				10,903			-58	%			5,876			-21	%			28,171				24,106			17	%
Total cost of revenue			68,985				78,043			-12	%			36,752			88	%			231,058				146,793			57	%
Gross profit			39,856				32,789			22	%			20,426			95	%			107,540				54,322			98	%
Gross profit percentage			36.6	%			29.6	%						35.7	%						31.8	%			27.0	%
Operating expenses:
General and administrative (1)			23,367				22,138			6	%			9,147			155	%			88,150				40,091			120	%
Sales and marketing (1)			15,894				14,448			10	%			8,341			91	%			48,803				29,960			63	%
Research and development (1)			29,441				32,462			-9	%			5,149			472	%			83,652				21,669			286	%
Depreciation and amortization			6,258				5,943			5	%			976			541	%			14,741				2,794			428	%
Restructuring charges (1)			10,894				4,070			168	%			2,627			315	%			20,030				13,425			49	%
Total operating expenses			85,854				79,061			9	%			26,240			227	%			255,376				107,939			137	%
Operating loss			(45,998	)			(46,272	)		NM				(5,814	)		NM				(147,836	)			(53,617	)		NM
Other income (expense):
Interest expense			(1,660	)			(1,546	)		NM				(1,432	)		NM				(6,094	)			(5,423	)		NM
Interest income			310				140			NM				30			NM				510				134			NM
Other, net			(1,315	)			(1,005	)		NM				(242	)		NM				(4,179	)			(1,106	)		NM
Total other expense			(2,665	)			(2,411	)		NM				(1,644	)		NM				(9,763	)			(6,395	)		NM
Loss before income taxes			(48,663	)			(48,683	)		NM				(7,458	)		NM				(157,599	)			(60,012	)		NM
Income tax (benefit) expense			(2,137	)			440			NM				436			NM				(21,080	)			1,154			NM
Net loss		$	(46,526	)		$	(49,123	)		NM			$	(7,894	)		NM			$	(136,519	)		$	(61,166	)		NM
Net loss per share:
Basic		$	(0.21	)		$	(0.22	)					$	(0.06	)					$	(0.75	)		$	(0.48	)
Diluted		$	(0.21	)		$	(0.22	)					$	(0.06	)					$	(0.75	)		$	(0.48	)
Weighted-average shares used in per share calculation:
Basic			222,026				220,194							134,023							182,381				127,789
Diluted			222,026				220,194							134,023							182,381				127,789
(1) Includes share-based compensation and acquisition and legal related expenses (see supplemental table for figures)

Edgio, Inc.
Supplemental Financial Data
(In thousands)
(Unaudited)
		Three Months Ended										Twelve Months Ended
		December 31,			September 30,			December 31,				December 31,			December 31,
		2022			2022			2021				2022			2021
					As Restated			As Restated							As Restated
Share-based compensation:
Cost of services		$	854		$	855		$	243			$	2,443		$	1,385
General and administrative			2,190			2,200			2,311				8,659			12,514
Sales and marketing			552			727			915				3,836			2,513
Research and development			4,341			4,571			788				15,655			2,435
Restructuring charges			-			-			(254	)			-			1,633
Total share-based compensation		$	7,937		$	8,353		$	4,003			$	30,593		$	20,480
Acquisition and legal related charges:
Cost of services (1)		$	709		$	1,106		$	-			$	1,885		$	-
General and administrative (1)			4,013			6,898			199				30,540			2,640
Sales and marketing			93			292			-				385			-
Research and development (1)			1,370			2,975			-				4,367			-
Total acquisition and legal related charges		$	6,185		$	11,271		$	199			$	37,177		$	2,640
Depreciation and amortization:
Network-related depreciation		$	4,629		$	10,903		$	5,876			$	28,171		$	24,106
Other depreciation and amortization			181			1,026			249				1,789			1,746
Amortization of intangible assets			6,077			4,917			727				12,952			1,048
Total depreciation and amortization		$	10,887		$	16,846		$	6,852			$	42,912		$	26,900
End of period statistics:
Approximate number of active clients			954			994			570				954			570
Number of employees and employee equivalents			980			1,057			552				980			552

(1) For the three months ended December 31, 2022 and September 30, 2022, and the twelve months ended December 31, 2022, acquisition and legal related charges included $359, $430, and $859 recorded in cost of services, $1,821, $2,175, and $4,351 recorded in general and administrative, and $115, $137, and $274 recorded in research and development, respectively, for non-cash transition service expenses which were credited from College Parent and its related affiliates and recorded as capital contributions in the consolidated statements of stockholders’ equity.

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 U.S. GAAP net loss, adjusted to exclude share-based compensation, non-cash interest expense, restructuring charges, acquisition and legal related expenses, amortization of intangible assets, and impairment charges. We believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define EBITDA as U.S. GAAP net loss, adjusted to exclude interest expense, interest and other (income) expense, income tax expense, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based compensation, restructuring charges, and acquisition and legal related expenses. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. Our management uses these Non-GAAP financial measures because, collectively, they provide valuable information on the performance of our on-going operations, and they also enable us to compare against our peer companies and against other companies in our industry and adjacent industries. We believe these measures also provide similar insights to investors, and enable investors to review our results of operations “through the eyes of management.”

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 U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net loss, EBITDA and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net loss, EBITDA and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

• 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 U.S. GAAP financial results and using Non-GAAP net loss, EBITDA, and Adjusted EBITDA only as supplemental support for management’s analysis of business performance. Non-GAAP net loss, EBITDA, and Adjusted EBITDA are calculated as follows for the periods presented in thousands.

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 U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures. Per share amounts may not foot due to rounding.

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 U.S. GAAP Net Loss to Non-GAAP Net (Loss) Income
(In thousands)
(Unaudited)
		Three Months Ended																								Twelve Months Ended
		December 31, 2022								September 30, 2022								December 31, 2021								December 31, 2022								December 31, 2021
										As Restated								As Restated																As Restated
		Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share
U.S. GAAP net loss		$	(46,526	)		$	(0.21	)		$	(49,123	)		$	(0.22	)		$	(7,894	)		$	(0.06	)		$	(136,519	)		$	(0.75	)		$	(61,166	)		$	(0.48	)
Share-based compensation			7,937				0.04				8,353				0.04				4,257				0.03				30,593				0.17				18,847				0.15
Noncash interest expense			215				0.00				214				0.00				207				0.00				849				0.00				811				0.01
Restructuring charges			10,894				0.05				4,070				0.02				2,890				0.02				20,030				0.11				13,688				0.11
Acquisition and legal related expenses			6,185				0.03				11,271				0.05				199				0.00				37,177				0.20				2,640				0.02
Amortization of intangible assets			6,077				0.03				4,917				0.02				727				0.01				12,952				0.07				1,048				0.01
Impairment of private company investment			1,275				0.01				-				-				-				-				1,275				0.01				-				-
Non-GAAP net (loss) income		$	(13,943	)		$	(0.06	)		$	(20,298	)		$	(0.09	)		$	386			$	0.00			$	(33,643	)		$	(0.18	)		$	(24,132	)		$	(0.19	)
Weighted-average basic shares used in per share calculation:							222,026								220,194								134,023								182,381								127,789

Edgio, Inc.
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
(In thousands)
(Unaudited)
			Three Months Ended												Twelve Months Ended
			December 31,				September 30,				December 31,				December 31,				December 31,
			2022				2022				2021				2022				2021
							As Restated				As Restated								As Restated
U.S. GAAP net loss			$	(46,526	)		$	(49,123	)		$	(7,894	)		$	(136,519	)		$	(61,166	)
	Depreciation and amortization			10,887				16,846				6,852				42,912				26,900
	Interest expense			1,660				1,546				1,432				6,094				5,423
	Interest and other expense			1,005				865				212				3,669				972
	Income tax (benefit) expense			(2,137	)			440				436				(21,080	)			1,154
EBITDA			$	(35,111	)		$	(29,426	)		$	1,038			$	(104,924	)		$	(26,717	)
	Share-based compensation			7,937				8,353				4,257				30,593				18,847
	Restructuring charges			10,894				4,070				2,890				20,030				13,688
	Acquisition and legal related expenses			6,185				11,271				199				37,177				2,640
Adjusted EBITDA			$	(10,095	)		$	(5,732	)		$	8,384			$	(17,124	)		$	8,458

Edgio, Inc.
Reconciliation of U.S. GAAP Financial Measures to Non-GAAP Financial Measures
(In thousands)
(Unaudited)
		Three Months Ended												Twelve Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2022				2022				2021				2022				2021
						As Restated				As Restated								As Restated
GAAP gross profit		$	39,856			$	32,789			$	20,426			$	107,540			$	54,322
Share-based compensation expense			854				855				243				2,443				1,385
Acquisition and legal related charges			709				1,106				-				1,885				-
Non-GAAP gross profit		$	41,419			$	34,750			$	20,669			$	111,868			$	55,707
Non-GAAP gross margin			38.1	%			31.4	%			36.1	%			33.0	%			27.7	%
GAAP general and administrative expense		$	23,367			$	22,138			$	9,147			$	88,150			$	40,091
Share-based compensation expense			2,190				2,200				2,311				8,659				12,514
Acquisition and legal related charges			4,013				6,898				199				30,540				2,640
Non-GAAP general and administrative expense		$	17,164			$	13,040			$	6,637			$	48,951			$	24,937
GAAP sales and marketing expense		$	15,894			$	14,448			$	8,341			$	48,803			$	29,960
Share-based compensation expense			552				727				915				3,836				2,513
Acquisition and legal related charges			93				292				-				385				-
Non-GAAP sales and marketing expense		$	15,249			$	13,429			$	7,426			$	44,582			$	27,447
GAAP research and development expense		$	29,441			$	32,462			$	5,149			$	83,652			$	21,669
Share-based compensation expense			4,341				4,571				788				15,655				2,435
Acquisition and legal related charges			1,370				2,975				-				4,367				-
Non-GAAP research and development expense		$	23,730			$	24,916			$	4,361			$	63,630			$	19,234
GAAP depreciation and amortization		$	6,258			$	5,943			$	976			$	14,741			$	2,794
Amortization of intangibles			(6,077	)			(4,917	)			(727	)			(12,952	)			(1,048	)
Non-GAAP depreciation and amortization		$	181			$	1,026			$	249			$	1,789			$	1,746
GAAP operating loss		$	(45,998	)		$	(46,272	)		$	(5,814	)		$	(147,836	)		$	(53,617	)
Share-based compensation expense			7,937				8,353				4,257				30,593				18,847
Amortization of intangibles			6,077				4,917				727				12,952				1,048
Acquisition and legal related charges			6,185				11,271				199				37,177				2,640
Restructuring charges			10,894				4,070				2,890				20,030				13,688
Non-GAAP operating (loss) income		$	(14,905	)		$	(17,661	)		$	2,259			$	(47,084	)		$	(17,394	)
GAAP pre-tax loss		$	(48,663	)		$	(48,683	)		$	(7,458	)		$	(157,599	)		$	(60,012	)
Share-based compensation expense			7,937				8,353				4,257				30,593				18,847
Amortization of intangibles			6,077				4,917				727				12,952				1,048
Acquisition and legal related charges			6,185				11,271				199				37,177				2,640
Restructuring charges			10,894				4,070				2,890				20,030				13,688
Noncash interest expense			215				214				207				849				811
Impairment of private company investment			1,275				-				-				1,275				-
Non-GAAP pre-tax (loss) income		$	(16,080	)		$	(19,858	)		$	822			$	(54,723	)		$	(22,978	)
GAAP net loss		$	(46,526	)		$	(49,123	)		$	(7,894	)		$	(136,519	)		$	(61,166	)
Share-based compensation expense			7,937				8,353				4,257				30,593				18,847
Amortization of intangibles			6,077				4,917				727				12,952				1,048
Acquisition and legal related charges			6,185				11,271				199				37,177				2,640
Restructuring charges			10,894				4,070				2,890				20,030				13,688
Noncash interest expense			215				214				207				849				811
Impairment of private company investment			1,275				-				-				1,275				-
Non-GAAP net (loss) income		$	(13,943	)		$	(20,298	)		$	386			$	(33,643	)		$	(24,132	)
Non-GAAP fully weighted-average basic shares			222,026				220,194				134,023				182,381				127,789
Non-GAAP fully weighted-average diluted shares			222,026				220,194				134,023				182,381				127,789
Non-GAAP net (loss) income per Non-GAAP basic share		$	(0.06	)		$	(0.09	)		$	0.00			$	(0.18	)		$	(0.19	)
Non-GAAP net (loss) income per Non-GAAP diluted share		$	(0.06	)		$	(0.09	)		$	0.00			$	(0.18	)		$	(0.19	)

Edgio, Inc.
Reconciliation of U.S. GAAP Gross Profit to U.S. Non-GAAP Gross Profit to Cash Gross Profit
(In thousands)
(Unaudited)
	Three Months Ended												Twelve Months Ended
	December 31,				September 30,				December 31,				December 31,				December 31,
	2022				2022				2021				2022				2021
					As Restated				As Restated								As Restated
GAAP gross profit	$	39,856			$	32,789			$	20,426			$	107,540			$	54,322
Share-based compensation expense		854				855				243				2,443				1,385
Acquisition and legal related charges		709				1,106				-				1,885				-
Non-GAAP gross profit	$	41,419			$	34,750			$	20,669			$	111,868			$	55,707
Non-GAAP gross margin		38.1	%			31.4	%			36.1	%			33.0	%			27.7	%
Depreciation	$	4,629			$	10,903			$	5,876			$	28,171			$	24,106
Cash gross profit	$	46,048			$	45,653			$	26,545			$	140,039			$	79,813
Cash gross margin		42.3	%			41.2	%			46.4	%			41.4	%			39.7	%

Conference Call

At approximately 4:30 p.m. EDT (1:30 p.m. PDT) today, management will host a quarterly conference call for investors. Interested parties can access the call by dialing (800) 715-9871 from the United States or (646) 307-1963 internationally, with access code 7892919. The conference call will also be audio cast live from www.edg.io and a replay will be available following the call from the Edgio website.

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, 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 periods ended March 31, 2023 and 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.edgio.com and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of July 19, 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/20230719034497/en/

Edgio, Inc.

Investor relations: Sameet Sinha, 602-850-4973

ir@edg.io

Source: Edgio, Inc.