EDGIO INC Reports 75.9% Increase in Revenue for First Quarter of FY2023
August 19, 2023
☀️Earnings Overview
Edgio Inc ($NASDAQ:EGIO) reported total revenue of USD 102.0 million for the first quarter of FY2023, ending on March 31 2023, which is an increase of 75.9% compared to the same quarter a year ago. Net income for the quarter was USD -35.0 million, as opposed to the previous year’s -19.2 million.
Analysis
GoodWhale’s analysis of EDGIO INC‘s fundamentals has given us some insight into the company’s financial health. According to Star Chart, EDGIO INC is strong in growth, but weak in asset and dividend. Additionally, EDGIO INC has an intermediate health score of 4/10 considering its cashflows and debt, indicating that it may have potential to pay off debt and fund future operations. Overall, we classify EDGIO INC as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be attractive to investors who are looking for high returns in the short term. Investors may also like the challenge of investing in a higher risk-higher reward type of company. Additionally, investors who prefer growth stocks may find EDGIO INC attractive for the same reason. Finally, those investors who are interested in taking part in the growth of a company may be drawn to EDGIO INC due to its potential for growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Edgio Inc. More…
| Total Revenues | Net Income | Net Margin |
| 385.21 | -151.23 | -29.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Edgio Inc. More…
| Operations | Investing | Financing |
| -18.18 | 16.08 | 8.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Edgio Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 506.32 | 297.68 | 0.94 |
Key Ratios Snapshot
Some of the financial key ratios for Edgio Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.6% | – | -43.1% |
| FCF Margin | ROE | ROA |
| -13.4% | -46.3% | -20.5% |
Peers
It faces stiff competition from the likes of WalkMe Ltd, Engagesmart Inc, and DoubleVerify Holdings Inc, all of which are making waves in the market. Despite the presence of competitors, Edgio Inc continues to strive for innovation and progress in order to stay ahead of the competition.
– WalkMe Ltd ($NASDAQ:WKME)
WalkMe Ltd is a digital adoption platform that provides a cloud-based software application, allowing companies to understand and improve software usage. The company has a market capitalization of 816.28M as of 2023, indicating that the company is seen as a valuable asset by investors. Its Return on Equity (ROE) of -26.87%, however, suggests that the company is not creating value for shareholders as its profits are not equal to its invested capital.
– Engagesmart Inc ($NYSE:ESMT)
Engagesmart Inc is a leading software company that provides cutting-edge customer engagement solutions for businesses around the world. As of 2023, the company has a market cap of 2.97B and a Return on Equity of 1.95%, indicating that it is able to generate profits from its investments and reinvestments. The robust market cap provides Engagesmart with more financial and operational flexibility to drive growth and increase their competitive edge in the industry.
– DoubleVerify Holdings Inc ($NYSE:DV)
DoubleVerify Holdings Inc is a digital media measurement and analytics company that provides software solutions to optimize ad campaigns for the digital advertising industry. The company has a market cap of 4.76 billion US dollars as of 2023, which is a strong indicator of the success of its business operations. Additionally, DoubleVerify Holdings Inc has a Return on Equity (ROE) of 5.29 percent, which is an excellent performance for such a large company. This high ROE shows that the company has been able to efficiently use its assets and leverage its equity to generate a strong return on its investments.
Summary
EDGIO INC saw tremendous growth in the first quarter of FY2023, with total revenue increasing by 75.9%. Despite this, EDGIO INC reported a net income loss of -35.0 million due to higher expenses. Investors should keep in mind that such losses are typical for a start-up, and may not be indicative of long-term performance.
Although EDGIO INC has experienced rapid growth, there are still risks to investing in the company. Therefore, investors should thoroughly research and assess the company’s fundamentals before investing.
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