Why Edgio Stock Popped Today
Shares of Edgio (NASDAQ: EGIO), the edge-computing company formerly known as Limelight Networks, was surging today after it reported better-than-expected results in its second-quarter earnings report. The stock closed up 20.6%.
Edgio, which was formed after Limelight acquired Yahoo's Edgecast, reported 54% revenue growth in the quarter, or 27% organic growth, to $74.3 million, well ahead of estimates at $63.5 million. It was the third-straight quarter of double-digit growth for the company, a sign that it's capturing market share, according to management.
Gross margin increased from 19.5% to 30% as the business scaled against fixed depreciation costs for its network. However, overhead costs ballooned, due in part to the acquisition, with its employee count almost tripling to 1,317. Customer count also nearly doubled to 1,000 after the acquisition.
Source Fool.com
