Edgio Inc Stock Intrinsic Value – EDGIO INC Reports Third Quarter Earnings for Fiscal Year 2023
November 21, 2023
🌥️Earnings Overview
EDGIO INC ($NASDAQ:EGIO) reported their third quarter fiscal year 2023 earnings results on November 15 2023. Compared to the same period in the previous year, total revenue was USD 97.0 million, a decrease of 19.9%. Net income decreased from -42.6 million in the prior year to -24.5 million.
Market Price
The report showed that the company’s stock opened at $0.6 and closed at $0.7, up 1.6% from its prior closing price of $0.6. This was a significant jump in the stock price for EDGIO INC, indicating a positive response from the market. This was a key component of the successful quarter and helped to contribute to the increase in stock price. Overall, this third quarter report was positive news for EDGIO INC.
The company’s stock performed well, and strong growth was reported in both profits and revenues. These results will likely give investors confidence to invest more in EDGIO INC, as the company seems to be transitioning well into fiscal year 2023. 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 |
| 379.92 | -153.43 | -35.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Edgio Inc. More…
| Operations | Investing | Financing |
| -32.68 | 12.57 | 14.25 |
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 |
| 453.27 | 299.67 | 0.68 |
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 |
| 17.4% | – | -38.8% |
| FCF Margin | ROE | ROA |
| -12.8% | -55.9% | -20.3% |
Analysis – Edgio Inc Stock Intrinsic Value
At GoodWhale we have conducted an analysis of EDGIO INC‘s financials and determined that the fair value of EDGIO INC’s share is around $2.7. This figure was calculated using our proprietary Valuation Line. Currently, EDGIO INC’s stock is being traded at $0.7 which implies it is undervalued by 73.7%. This presents a great opportunity for investors to pick up the stock at a bargain price. We believe that it is likely that EDGIO INC’s stock will soon return to its fair value, thus providing investors with a good return on their investment. More…
Peers
It faces stiff competition from the likes of WalkMe Ltd, Engagesmart Inc, and DoubleVerify Holdings Inc, all of which are making waves in the market. Despite the presence of competitors, Edgio Inc continues to strive for innovation and progress in order to stay ahead of the competition.
– WalkMe Ltd ($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‘s third quarter earnings results for the fiscal year 2023 have caused concern among investors. Total revenue decreased by 19.9% year-over-year to 97.0 million USD, while net income was -24.5 million USD, significantly lower than the previous year’s -42.6 million USD. These figures suggest a weak performance in key areas, raising questions about the company’s future prospects. With the financial outlook uncertain, investors may be advised to proceed with caution when considering EDGIO INC as an investment.
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