On November 14, 2023, Edgio Inc (EGIO, Financial) released its 8-K filing, detailing the financial outcomes for the third quarter ended September 30, 2023. The company reported a revenue of $97.0 million for Q3 2023 and highlighted a record increase in application bookings, which surged by over 150% sequentially. Edgio Inc (EGIO) confidently reiterates its expectation to reach breakeven Adjusted EBITDA by Q4 2023 and anticipates significant year-over-year improvements in Adjusted EBITDA and free cash flow for 2024.
Financial Highlights and Strategic Developments
Edgio Inc (EGIO, Financial) has made significant strides in its financial and strategic objectives. President and CEO Bob Lyons expressed optimism about the company's transformation strategy and the momentum gained from the recent capital infusion. CFO Stephen Cumming emphasized the focus on revenue quality and unit economics, which, along with cost-saving initiatives, are expected to expand the Adjusted EBITDA margin in 2024.
The company has also revised its guidance for 2023, reflecting confidence in its operational improvements and market initiatives. In a strategic financial move, Edgio Inc (EGIO, Financial) secured $66 million in new financing and successfully exchanged the majority of its existing 2025 convertible notes for new 2027 notes, enhancing its balance sheet and financial flexibility.
Analysis of Financial Statements
Edgio Inc (EGIO, Financial)'s consolidated balance sheets show a decrease in total assets from $542.38 million at the end of 2022 to $453.27 million as of September 30, 2023. The company's cash and cash equivalents have decreased from $55.27 million at the end of 2022 to $27.63 million, while accounts receivable and other current assets have also seen changes.
On the liabilities side, accounts payable increased from $52.77 million at the end of 2022 to $78.25 million as of September 30, 2023. Total current liabilities stand at $152.05 million, with long-term debt including convertible senior notes amounting to $123.29 million.
The consolidated statements of operations reveal a slight increase in revenue from $95.76 million in Q2 2023 to $97.03 million in Q3 2023, with a gross profit of $23.19 million in the third quarter. However, the company reported a net loss of $24.49 million for the quarter, which is an improvement from the $35.65 million loss in the previous quarter.
Share-based compensation and acquisition-related charges are among the significant non-GAAP adjustments, with total share-based compensation amounting to $3.69 million for the quarter. The reconciliation of U.S. GAAP net loss to non-GAAP net loss and Adjusted EBITDA is provided, showing a non-GAAP net loss of $14.63 million for Q3 2023.
Outlook and Investor Relations
Edgio Inc (EGIO, Financial) is scheduled to host its earnings call to discuss the Q3 2023 results and provide further insights into its performance and strategies. Investors and interested parties are encouraged to join the call or access the audiocast live from the company's website.
For a comprehensive understanding of Edgio Inc (EGIO, Financial)'s financial health and strategic direction, investors are advised to review the full 8-K filing and tune into the earnings call for more detailed discussions.
Explore the complete 8-K earnings release (here) from Edgio Inc for further details.
