Fastest-growing CDN reaches profitability well ahead of projections
Los Angeles, CA (October 15, 2009) -
EdgeCast Networks, a superior, cost-effective rich media content delivery network (CDN), today announced that the company became profitable in Q3 of 2009 and has been EBITDA positive since Q2 of 2009. Both of these milestones have been achieved several months ahead of plan.
“This is a really exciting moment for the entire EdgeCast team, and the best testament yet to our corporate focus on excellence and efficiency,” said Alex Kazerani, CEO of EdgeCast Networks. “We’re meeting our financial targets much sooner than we planned, we have more cash on hand than we expected, and even our conservative projections have us moving forward profitably. Given the current economic environment, we couldn’t be more pleased about that position.”
EdgeCast’s average revenue growth has exceeded 10% per month in 2009 and more than 30% per month since the company’s public launch in August 2007. The company was initially funded by a Series A financing round that included the company’s founders and several prominent strategic investors. This was followed by a Series B financing led by Steamboat Ventures, the venture capital arm of The Walt Disney Company.
“With the worldwide CDN market for video growing to over $600M by next year, we’ve seen a lot of new CDNs enter the market trying to capture their share of the pie,” said Dan Rayburn, principal analyst, Frost & Sullivan. “Just in the last twelve months alone, many have fallen by the wayside, burning through a ton of cash on the way. EdgeCast has clearly set themselves apart by reaching profitability and have done so with much less money than others, putting themselves in a good position for the future.”
In 2009, EdgeCast has inked strategic deals with leading resellers and telecommunications giants, helping to grow its customer base to more than 1000 companies – just nine months after announcing its 300th customer. The company is powering live events and web services, and delivering rich media, small files, and secure content for companies around the world in industries ranging from media and entertainment to automobile manufacturers to global food brands.