| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 112.90 | 112899900 |
| Intrinsic value (DCF) | 16.66 | 16659900 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Edgio, Inc. (formerly Limelight Networks) is a US-based provider of edge-enabled software solutions, specializing in integrated content delivery, applications, and streaming platforms. Operating globally across the Americas, Europe, the Middle East, Africa, and Asia Pacific, Edgio leverages its private global network to offer high-performance distributed computing, video delivery, edge computing, and cloud security services. The company serves diverse sectors, including media, entertainment, gaming, enterprise, and retail, by optimizing digital experiences through its edge infrastructure. With a focus on low-latency content delivery and cybersecurity, Edgio competes in the fast-growing edge computing and content delivery network (CDN) markets. Headquartered in Tempe, Arizona, Edgio has evolved from its origins as a CDN provider into a comprehensive edge platform, positioning itself as a key player in the digital transformation landscape.
Edgio, Inc. presents a high-risk, high-reward investment opportunity in the competitive edge computing and CDN space. The company reported $338.6M in revenue for FY 2022 but posted a net loss of $136.5M, reflecting ongoing challenges in profitability. With a market cap of $586M and a beta of 1.525, Edgio is highly volatile and sensitive to market movements. The negative operating cash flow (-$11.7M) and significant capital expenditures (-$35.5M) suggest aggressive reinvestment but raise liquidity concerns. However, its pivot toward edge-enabled solutions could capitalize on growing demand for low-latency applications. Investors should weigh its technological differentiation against financial instability and intense competition from larger players like Cloudflare and Akamai.
Edgio operates in the highly competitive CDN and edge computing market, where it faces well-capitalized rivals such as Akamai, Cloudflare, and Fastly. Its competitive advantage lies in its integrated platform combining delivery, applications, and streaming—a differentiator from pure-play CDN providers. The company’s private global network offers performance benefits, but its smaller scale compared to giants like Akamai limits its ability to compete on cost efficiency. Edgio’s rebranding and strategic shift toward edge computing reflect an attempt to carve a niche in latency-sensitive applications, but execution risks remain. The company’s financial struggles (negative EPS of -$29.94) further constrain its ability to invest in R&D or acquisitions compared to cash-rich competitors. While its focus on media and gaming verticals provides specialization, broader adoption will depend on proving superior performance versus entrenched alternatives. Security services, though a growth area, face stiff competition from Cloudflare’s robust suite. Overall, Edgio’s positioning hinges on leveraging its edge capabilities in targeted use cases, but it lacks the scale to dominate the broader market.