Edgio Inc. (NASDAQ: EGIO), a provider of content distribution systems, announced revenue growth that was above Wall Street’s expectations. The announcement boosted the company’s stock price, which increased by more than 20% at the auction on August 9. On August 10, EGIO closed at $3.50 per share.
EGIO was founded earlier this year following the acquisition of Edgecast by Limelight Networks from Yahoo. Content delivery solutions are owned by the merged firm. The CDN (content delivery network) architecture is used to assure the functioning of streaming video services in particular.
Edgio Inc. (EGIO)’s sales increased 54% to $74.3 million in the fourth quarter, with organic growth accounting for 27% (excluding acquisitions).
This was the company’s third straight quarter of double-digit growth, indicating that it is gaining market share, according to management. As the company grew to handle fixed network depreciation expenses, Edgio’s gross margin improved from 19.5% to 30%. Because of the purchase, the number of consumers nearly doubled to 1,000.
While Edgio Inc. (EGIO) continues to be unprofitable. The firm recorded an EBITDA loss of $352,000 last quarter, compared to a profit of $227,000 in the same period the prior year. Furthermore, the GAAP loss per share of $0.11 was higher than the $0.03 per share projected.
Edgio Inc. (EGIO) management stated that it has already achieved $17.5 million in synergies ahead of schedule, and the synergy is now projected to save $60 million rather than the original objective of $50 million.
Following a solid quarter, Edgio Inc. (EGIO) raised its revenue forecast to $380-390 million and adjusted EBITDA to $13-16 million. The business has provided preliminary sales and EBITDA projections for 2023 of $550-560 million.
EGIO’s price has increased by 29.71% in the last week. A review of its price performance over the last three months indicates that it is up 15.11%, down -14.56% over the last six months, and up 4.37% since the beginning of the year.