The third quarter marked Edgio’s first full quarter after combining Limelight Networks and its recently acquired Edgecast business. The company also touted a record number of bookings for its applications solutions, which encompass edge, platforms and security services.
Edgio didn't quantify its applications bookings, but said sales pipeline grew 75% from the beginning of the year with the applications pipeline growing "much faster."
“Our unique ability to seamlessly integrate scale-enabled performance, security and programmability at the edge are being recognized by some of the most savvy technology companies in the world," said Edgio CEO Bob Lyons in prepared remarks. “Our growing pipeline includes major global brands that understand the demonstrative value in our solutions, with many in active proof of concept.”
The company’s revenue totaled $121.2 million, up from $55.2 million in Q3 2021. Consolidated operating expenses increased year-over-year to $76.8 million from $24.2 million, primarily due to an increased headcount from the Edgecast acquisition.
Speaking on Wednesday’s earnings call, CFO Stephen Cummings – who joined Edgio’s executive team this quarter – said Edgio is continuing to integrate all aspects of Limelight and Edgecast and is “already seeing the benefits in the improved capacity we can offer our customers.”
Cummings did note the Edgecast buy brought on some churn across a group of Edgio’s smaller customers. However, he said that development “is not unusual during an acquisition of this magnitude.”
“It’s just 300 accounts that have gone down a little bit and they add up to a bigger number,” Lyons said on the call about churn levels. “Some of them aren’t really churns, some of them are just using less with us and maybe moving more to others where they’re using multi-CDNs.”
Edgio touts the second-largest edge delivery platform in the world, with its content delivery network (CDN) moving 230 terabits per second of data to hundreds of locations, as the company noted in its second quarter earnings report.
Edgio’s streaming platforms services have served as the foundation for OTT platforms in North America, Jason Friedlander, marketing manager of the Edgio Streaming division, told Fierce Video in September.
Edgio in June also bought software company Layer0, now rebranded to Edgio AppOps. Combining Edgio with Layer0, Lyons said, has enabled Edgio to deliver a modern cybersecurity strategy with a focus on automation and machine learning.
The company forecasts Q4 revenue to slightly dip, ranging between $109 million -$114 million.
“We remain bullish on Edgio’s transformation and in our ability to drive long-term value creation for our shareholders,” said Cummings. “Having said that, the current macro environment has made us more cautious in the near-term.”