Edgio Reports Second Quarter 2023 Results

Rhea-AI Summary

Edgio, Inc. regains compliance with Nasdaq Listing Rules after filing 10-Q. Q2 2023 revenue reaches $95.8 million, showing 51% YoY growth. QTD Applications bookings in 3Q 2023 already exceed 2Q 2023 levels and more than double 1Q 2023 bookings. Capital expenditure for YTD 2023 is $2.6 million or 1.3% of revenue.

Positive

• Q2 2023 revenue shows 51% YoY growth
• QTD Applications bookings in 3Q 2023 exceed previous levels

Negative

• None.

With 10-Q filed, Company regains compliance with applicable Nasdaq Listing Rules

Q2 2023 revenue of $95.8 million, 51% year over year growth

Applications bookings QTD in 3Q 2023 already ahead of 2Q 2023 levels and more than double from 1Q 2023 bookings

YTD 2023 Capital expenditure, net of payments from ISPs, was $2.6 million or 1.3% of revenue

PHOENIX--(BUSINESS WIRE)-- Edgio, Inc. (Nasdaq: EGIO) (Edgio), the platform of choice to power unmatched speed, security and simplicity at the edge, today reported financial results for the second quarter ended June 30, 2023 along with the filing of its Quarterly Report on Form 10-Q for the period ended June 30, 2023. With this filing, the Company is now compliant with the periodic reporting requirements for continued listing under Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”).

“We had a stronger than expected second quarter with better financial performance and significant improvements in leading indicators. Our transformation is on track and we expect second quarter revenue to be the low point for the year as revitalized sales and commercial motions are reducing churn, driving new product adoption, and increasing conversion of our growing pipeline," said Bob Lyons, President and CEO of Edgio. “Driven by sustained revenue growth, gross margin expansion and cost savings, we expect to deliver substantial year over year improvements in Adjusted EBITDA and free cash flow in 2024.”

Recent Business Highlights:

• QTD Applications bookings already ahead of second quarter levels with new client wins and existing client expansion
• QTD Applications bookings more than doubled from bookings in 1Q 2023
• Customer churn was 1% in the second quarter versus 4% in 4Q22 and logo churn declined 40% in the same period
• Continued new product momentum with API Security solution in General Availability
• Awarded “Competitive Strategy Leadership Award” by Frost & Sullivan
• On track to operationalize approximately $85-90 million of expected run rate cost savings, by end of 2023 and forecasted higher by end of 2024
• Bolstered leadership team with the appointment of Todd Hinders as Chief Revenue Officer
• Notable wins for Applications include a 15,000 employee safety & security solutions company in Europe, a leading Asian webtoon company, a leading global consumer brand and an IR500 domestic pet supplies retailer.
• Achieved Amazon Web Services (AWS) Retail Competency designation with Edgio’s Applications Platform and Uplynk now available in AWS Marketplace.

Second Quarter Financial highlights:

Revenue

• Revenue of $95.8 million, 51% year over year growth due to the inclusion of the Edgecast acquisition. Sequential decline of 6.1% was driven by normal summer seasonality and previously communicated churn and elongated booking cycle.

Gross margin

• GAAP gross margin was 26.4%, compared to 28.4% year over year and 30.4% quarter over quarter.
• Non-GAAP gross margin was 26.9%, compared to 29.1% year over year and 31.2% quarter over quarter.
• Cash gross margin was 30.8%, compared to 39.7% year over year and 34.7% quarter over quarter. Cash gross margin was impacted by the seasonal decline in traffic consistent with having a high fixed cost structure, partially offset by savings from previously announced cost containment efforts.

Operating expenses

• GAAP operating expenses, including share-based compensation of $3.4 million, restructuring charges of $3.3 million to achieve cost synergies, restatement related expenses of $2.6 million, and acquisition and legal related expenses of $1.0 million, were 61% of revenue versus 62.4% in the first quarter of 2023.
• Non-GAAP operating expenses, excluding share-based compensation, restructuring charges, restatement related expenses, and acquisition and legal related expenses, were 50.7% of revenue versus 54.3% in the first quarter of 2023.
• Cash operating expenses, excluding share-based compensation, restructuring charges, restatement related expenses, and acquisition and legal related expenses, depreciation and amortization were 44.8% of revenue versus 48.8% in the first quarter of 2023. Sequential decline in cash operating expenses was primarily due to realization of cost savings from previously announced cost containment efforts.

Adjusted EBITDA

• Adjusted EBITDA for the quarter was a loss of $13.4 million, compared to a loss of $14.4 million in the first quarter of 2023 due to lower gross profit partially offset by realization of cost savings.

Capital Expenditure

• Year-to-date capital expenditure, net of payments from ISPs, was $2.6 million or 1.3% 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 $36.2 million for the quarter, compared to $48.2 million for the first quarter of 2023.
• Cash flow used in operations during the quarter was $12.4 million.

2023 Guidance:

"Our second quarter performance and early signs of positive momentum in leading indicators demonstrates our strategy and execution are on track. We are focused on growing the business with the right economic model and get it to a sustainable trajectory soon,” said Stephen Cumming, CFO, “We expect sequential revenue growth for the rest of the year, with associated improvements in cash gross margins. Combined with a meaningful step down in our operating expense structure, we reiterate our expectation for Adjusted EBITDA break even in the fourth quarter.”

For 2023, our guidance is unchanged and we are currently 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%.
• 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)
		June 30, 2023				March 31, 2023				December 31, 2022
		(Unaudited)				(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	36,188			$	32,787			$	55,275
Marketable securities			—				15,396				18,734
Accounts receivable, net			63,563				82,461				84,627
Income taxes receivable			155				373				105
Prepaid expenses and other current assets			36,778				36,987				36,374
Total current assets			136,684				168,004				195,115
Property and equipment, net			73,667				72,976				73,467
Operating lease right of use assets			4,816				5,053				5,290
Deferred income taxes			2,925				2,388				2,338
Goodwill			168,775				168,961				169,156
Intangible assets, net			80,948				86,348				91,661
Other assets			2,582				2,586				5,353
Total assets		$	470,397			$	506,316			$	542,380
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	63,799			$	48,312			$	52,776
Deferred revenue			10,132				10,500				9,286
Operating lease liability obligations			3,621				4,483				4,557
Income taxes payable			3,155				3,286				3,133
Financing obligations			8,944				6,839				6,346
Other current liabilities			55,271				76,947				76,160
Total current liabilities			144,922				150,367				152,258
Convertible senior notes, net			123,070				122,849				122,631
Operating lease liability obligations, less current portion			7,730				8,066				9,181
Deferred income taxes			1,431				602				596
Deferred revenue, less current portion			2,247				2,333				2,949
Financing obligations, less current portion			14,208				12,738				13,784
Other long-term liabilities			858				721				1,658
Total liabilities			294,466				297,676				303,057
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; 223,380, 222,702, and 222,232 shares issued and outstanding as of June 30, 2023, March 31, 2023, and December 31, 2022, respectively			223				223				222
Common stock contingent consideration			16,300				16,300				16,300
Additional paid-in capital			814,405				811,571				807,507
Accumulated other comprehensive loss			(11,321	)			(11,430	)			(11,665	)
Accumulated deficit			(643,676	)			(608,024	)			(573,041	)
Total stockholders’ equity			175,931				208,640				239,323
Total liabilities and stockholders’ equity		$	470,397			$	506,316			$	542,380

Edgio, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
		Three Months Ended																		Six Months Ended
		June 30,				March 31,				Percent			June 30,				Percent			June 30,				June 30,				Percent
			2023				2023			Change				2022			Change				2023				2022			Change
Revenue		$	95,765			$	101,948			(6	)%		$	63,586			51	%		$	197,713			$	118,925			66	%
Cost of revenue:
Cost of services (1)			66,742				67,353			(1	)%			38,718			72	%			134,095				71,391			88	%
Depreciation — network			3,788				3,610			5	%			6,791			(44	)%			7,398				12,639			(41	)%
Total cost of revenue			70,530				70,963			(1	)%			45,509			55	%			141,493				84,030			68	%
Gross profit			25,235				30,985			(19	)%			18,077			40	%			56,220				34,895			61	%
Gross profit percentage			26.4	%			30.4	%						28.4	%						28.4	%			29.3	%
Operating expenses:
General and administrative (1)			14,480				16,836			(14	)%			26,812			(46	)%			31,316				42,645			(27	)%
Sales and marketing (1)			16,167				19,622			(18	)%			10,834			49	%			35,789				18,461			94	%
Research and development (1)			18,739				21,016			(11	)%			12,171			54	%			39,755				21,749			83	%
Depreciation and amortization			5,692				5,607			2	%			1,508			277	%			11,299				2,540			345	%
Restructuring charges			3,336				500			567	%			4,368			(24	)%			3,836				5,066			(24	)%
Total operating expenses			58,414				63,581			(8	)%			55,693			5	%			121,995				90,461			35	%
Operating loss			(33,179	)			(32,596	)		NM				(37,616	)		NM				(65,775	)			(55,566	)		NM
Other income (expense):
Interest expense			(1,701	)			(1,577	)		NM				(1,458	)		NM				(3,278	)			(2,888	)		NM
Interest income			152				397			NM				33			NM				549				60			NM
Other, net			(545	)			(809	)		NM				(1,146	)		NM				(1,354	)			(1,859	)		NM
Total other expense			(2,094	)			(1,989	)		NM				(2,571	)		NM				(4,083	)			(4,687	)		NM
Loss before income taxes			(35,273	)			(34,585	)		NM				(40,187	)		NM				(69,858	)			(60,253	)		NM
Income tax (benefit) expense			379				398			NM				(19,589	)		NM				777				(19,383	)		NM
Net loss			(35,652	)			(34,983	)		NM				(20,598	)		NM				(70,635	)			(40,870	)		NM
Net loss per share:
Basic		$	(0.16	)		$	(0.16	)					$	(0.14	)					$	(0.32	)		$	(0.28	)
Diluted		$	(0.16	)		$	(0.16	)					$	(0.14	)					$	(0.32	)		$	(0.28	)
Weighted-average shares used in per share calculation:
Basic			222,914				222,462							151,776							222,688				143,652
Diluted			222,914				222,462							151,776							222,688				143,652
(1) Includes share-based compensation and acquisition and legal related charges (see supplemental table for figures)

Edgio, Inc. Supplemental Financial Data (In thousands) (Unaudited)
		Three Months Ended									Six Months Ended
		June 30.			March 31,			June 30,			June 30.			June 30.
		2023			2023			2022			2023			2022
Share-based compensation:
Cost of services		$	321		$	679		$	326		$	1,000		$	734
General and administrative			1,151			1,416			2,166			2,567			4,269
Sales and marketing			375			617			1,376			992			2,557
Research and development			1,512			2,488			3,423			4,000			6,743
Total share-based compensation		$	3,359		$	5,200		$	7,291		$	8,559		$	14,303
Acquisition and legal related charges:
Cost of services		$	182		$	111		$	70		$	293		$	70
General and administrative			261			589			14,522			850			19,629
Sales and marketing			49			42			—			91			—
Research and development			549			410			22			959			22
Total acquisition and legal related charges		$	1,041		$	1,152		$	14,614		$	2,193		$	19,721
Depreciation and amortization:
Network-related depreciation		$	3,788		$	3,610		$	6,791		$	7,398		$	12,639
Other depreciation and amortization			292			294			336			586			582
Amortization of intangible assets			5,400			5,313			1,172			10,713			1,958
Total depreciation and amortization		$	9,480		$	9,217		$	8,299		$	18,697		$	15,179
End of period statistics:
Approximate number of active clients			888			900			1,000			888			1,000
Number of employees and employee equivalents			862			982			1,098			862			1,098

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 restatement related expenses. 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, acquisition and legal related expenses, and restatement 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 (In thousands) (Unaudited)
		Three Months Ended																								Six Months Ended
		June 30, 2023								March 31, 2023								June 30, 2022								June 30, 2023								June 30, 2022
		Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share
U.S. GAAP net loss		$	(35,652	)		$	(0.16	)		$	(34,983	)		$	(0.16	)		$	(20,598	)		$	(0.14	)		$	(70,635	)		$	(0.32	)		$	(40,870	)		$	(0.28	)
Share-based compensation			3,359				0.02				5,200				0.02				7,291				0.05				8,559				0.04				14,303				0.10
Non-cash interest expense			220				—				218				—				211				—				438				—				420				—
Restructuring charges			3,336				0.01				500				—				4,368				0.03				3,836				0.02				5,066				0.04
Acquisition and legal related expenses			1,041				—				1,152				0.01				14,614				0.10				2,193				0.01				19,721				0.14
Amortization of intangible assets			5,400				0.02				5,313				0.02				1,172				0.01				10,713				0.05				1,958				0.01
Restatement related expenses			2,588				0.01				2,175				0.01				—				—				4,763				0.02				—				—
Non-GAAP net loss		$	(19,708	)		$	(0.09	)		$	(20,425	)		$	(0.09	)		$	7,058			$	0.05			$	(40,133	)		$	(0.18	)		$	598			$	—
Weighted-average shares used in per share calculation:							222,914								222,462								151,776								222,688								143,652

Edgio, Inc. Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA (In thousands) (Unaudited)
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2023				2023				2022				2023				2022
U.S. GAAP net loss		$	(35,652	)		$	(34,983	)		$	(20,598	)		$	(70,635	)		$	(40,870	)
Depreciation and amortization			9,480				9,217				8,299				18,697				15,179
Interest expense			1,701				1,577				1,458				3,278				2,888
Interest and other (income) expense			393				412				1,113				805				1,799
Income tax expense (benefit)			379				398				(19,589	)			777				(19,383	)
EBITDA		$	(23,699	)		$	(23,379	)		$	(29,317	)		$	(47,078	)		$	(40,387	)
Share-based compensation			3,359				5,200				7,291				8,559				14,303
Restructuring charges			3,336				500				4,368				3,836				5,066
Acquisition and legal related expenses			1,041				1,152				14,614				2,193				19,721
Restatement related expenses			2,588				2,175				—				4,763				—
Adjusted EBITDA		$	(13,375	)		$	(14,352	)		$	(3,044	)		$	(27,727	)		$	(1,297	)

Edgio, Inc. Reconciliation of U.S. GAAP Financial Measures to Non-GAAP Financial Measures (In thousands) (Unaudited)
		Three Months Ended												Six Months Ended
		June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
GAAP gross profit		$	25,235			$	30,985			$	18,077			$	56,220			$	34,895
Share-based compensation			321				679				326				1,000				734
Acquisition and legal related charges			182				111				70				293				70
Non-GAAP gross profit		$	25,738			$	31,775			$	18,473			$	57,513			$	35,699
Non-GAAP gross margin			26.9	%			31.2	%			29.1	%			29.1	%			30.0	%
GAAP general and administrative expense		$	14,480			$	16,836			$	26,812			$	31,316			$	42,645
Share-based compensation			1,151				1,416				2,166				2,567				4,269
Acquisition and legal related charges			261				589				14,522				850				19,629
Restatement related expenses			2,588				2,175				—				4,763				—
Non-GAAP general and administrative expense		$	10,480			$	12,656			$	10,124			$	23,136			$	18,747
GAAP sales and marketing expense		$	16,167			$	19,622			$	10,834			$	35,789			$	18,461
Share-based compensation			375				617				1,376				992				2,557
Acquisition and legal related charges			49				42				—				91				—
Non-GAAP sales and marketing expense		$	15,743			$	18,963			$	9,458			$	34,706			$	15,904
GAAP research and development expense		$	18,739			$	21,016			$	12,171			$	39,755			$	21,749
Share-based compensation			1,512				2,488				3,423				4,000				6,743
Acquisition and legal related charges			549				410				22				959				22
Non-GAAP research and development expense		$	16,678			$	18,118			$	8,726			$	34,796			$	14,984
GAAP depreciation and amortization		$	5,692			$	5,607			$	1,508			$	11,299			$	2,540
Amortization of intangibles			(5,400	)			(5,313	)			(1,172	)			(10,713	)			(1,958	)
Non-GAAP depreciation and amortization		$	292			$	294			$	336			$	586			$	582
GAAP operating loss		$	(33,179	)		$	(32,596	)		$	(37,616	)		$	(65,775	)		$	(55,566	)
Share-based compensation			3,359				5,200				7,291				8,559				14,303
Amortization of intangibles			5,400				5,313				1,172				10,713				1,958
Restatement related expenses			2,588				2,175				—				4,763				—
Acquisition and legal related charges			1,041				1,152				14,614				2,193				19,721
Restructuring charges			3,336				500				4,368				3,836				5,066
Non-GAAP operating loss		$	(17,455	)		$	(18,256	)		$	(10,171	)		$	(35,711	)		$	(14,518	)
GAAP pre-tax loss		$	(35,273	)		$	(34,585	)		$	(40,187	)		$	(69,858	)		$	(60,253	)
Share-based compensation			3,359				5,200				7,291				8,559				14,303
Amortization of intangibles			5,400				5,313				1,172				10,713				1,958
Acquisition and legal related charges			1,041				1,152				14,614				2,193				19,721
Restructuring charges			3,336				500				4,368				3,836				5,066
Non-cash interest expense			220				218				211				438				420
Restatement related expenses			2,588				2,175				—				4,763				—
Non-GAAP pre-tax loss		$	(19,329	)		$	(20,027	)		$	(12,531	)		$	(39,356	)		$	(18,785	)
GAAP net loss		$	(35,652	)		$	(34,983	)		$	(20,598	)		$	(70,635	)		$	(40,870	)
Share-based compensation			3,359				5,200				7,291				8,559				14,303
Amortization of intangibles			5,400				5,313				1,172				10,713				1,958
Acquisition and legal related charges			1,041				1,152				14,614				2,193				19,721
Restructuring charges			3,336				500				4,368				3,836				5,066
Non-cash interest expense			220				218				211				438				420
Restatement related expenses			2,588				2,175				—				4,763				—
Non-GAAP net (loss) income		$	(19,708	)		$	(20,425	)		$	7,058			$	(40,133	)		$	598
Non-GAAP fully weighted-average basic shares			222,914				222,462				151,776				222,688				143,652
Non-GAAP fully weighted-average diluted shares			222,914				222,462				151,776				222,688				143,652
Non-GAAP net (loss) income per Non-GAAP basic share		$	(0.09	)		$	(0.09	)		$	0.05			$	(0.18	)		$	—
Non-GAAP net (loss) income per Non-GAAP diluted share		$	(0.09	)		$	(0.09	)		$	0.05			$	(0.18	)		$	—

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												Six Months Ended
		June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
GAAP gross profit		$	25,235			$	30,985			$	18,077			$	56,220			$	34,895
Share-based compensation expense			321				679				326				1,000				734
Acquisition and legal related charges			182				111				70				293				70
Non-GAAP gross profit			25,738				31,775				18,473				57,513				35,699
Non-GAAP gross margin			26.9	%			31.2	%			29.1	%			29.1	%			30.0	%
Depreciation			3,788				3,610				6,791				7,398				12,639
Cash gross profit		$	29,526			$	35,385			$	25,264			$	64,911			$	48,338
Cash gross margin			30.8	%			34.7	%			39.7	%			32.8	%			40.6	%

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 7179917. 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, 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, and product launches. 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 September 12, 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/20230912301722/en/

Edgio, Inc.

Investor relations: Sameet Sinha, 602-850-4973

ir@edg.io

Source: Edgio, Inc.