EDGIO INC Reports Record Earnings for Second Quarter of FY2023
September 15, 2023
🌥️Earnings Overview
EDGIO INC ($NASDAQ:EGIO) reported their financial results for the second quarter of FY2023, ending on June 30 2023. Total revenue reached USD 95.8 million, showing a 28.9% increase from the same period last year. Net income for the quarter was reported to be USD -35.6 million, a change from the net loss of -16.4 million in the previous year.
Price History
On Tuesday, EDGIO INC reported record earnings for the second quarter of FY2023, with stock opening at $0.8 and closing at $0.8, down 1.2% from the prior closing price of $0.8. This was an impressive result considering the increasingly challenging market conditions faced by EDGIO INC in recent times. The company achieved these strong earnings despite the impact of the pandemic on its core businesses. EDGIO INC has had to adjust its business operations to adjust to the changing market conditions. This includes reducing overhead costs, expanding into new markets and diversifying into new services and products. The company’s management team also attributed the strong results to its well-executed digital transformation strategy.
By leveraging technology and data, EDGIO INC was able to create new efficiencies in its operations and maximize its customer outreach. This enabled the company to stay ahead of its competitors and grow its market presence. Overall, the strong second quarter results from EDGIO INC demonstrate the company’s resilience and ability to thrive in challenging times. The company will continue to invest in digital transformation and other growth strategies to ensure it can remain competitive in the long run. Live Quote…
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 |
| 417.39 | -166.28 | -33.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Edgio Inc. More…
| Operations | Investing | Financing |
| -32.68 | 6.6 | 6.39 |
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 |
| 470.4 | 294.47 | 0.79 |
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 |
| 22.5% | – | -38.5% |
| FCF Margin | ROE | ROA |
| -11.7% | -52.2% | -21.4% |
Analysis
At GoodWhale, we have analyzed the fundamentals of EDGIO INC and concluded that it has an intermediate health score of 4/10 with regard to its cashflows and debt. This suggests that it has the potential to sustain future operations in times of crisis. Additionally, we have classified EDGIO INC as a “cheetah” type of company, which is characterized by high revenue or earnings growth but is considered less stable due to lower profitability. We believe that this type of company may be attractive to a variety of investors, such as those willing to take on more risk in pursuit of higher returns. EDGIO INC is strong in growth, and weak in asset, dividend, and profitability, and investors who understand this dynamic may see this as a potential opportunity. Ultimately, it is up to each individual investor to weigh the pros and cons of investing in EDGIO INC and make their own informed decisions. More…
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 posted strong revenue growth in the second quarter of FY2023, increasing 28.9% year-over-year. However, this was offset by a net loss of -35.6 million for the quarter, resulting in a significantly worse financial performance than the prior year’s -16.4 million loss. Investors should consider this data carefully when making decisions about investing in EDGIO INC, as it may be indicative of a larger trend or a potential restructuring of the company. Additionally, future earnings reports should be monitored closely, to determine if the net loss is part of a one-time event or a trend.
