Internap Corporation (INAP) Misses Q2 EPS by 24c, Slight Beat on Revenues; Offers FY18 Revenue Outlook

Internap Corporation (NASDAQ: INAP) reported Q2 EPS of ($0.69), $0.24 worse than the analyst estimate of ($0.45). Revenue for the quarter came in at $81.96 million versus the consensus estimate of $81.8 million.

• Reported Revenue of $82.0 Million up 10.5% Sequentially and 17.7% Year-over-Year
  • INAP US, comprising 78% of Revenue, up 12.2% Sequentially and 18.4% Year-over-Year
  • INAP INTL, comprising 22% of Revenue, up 4.5% Sequentially and 15.2% Year-over-Year
• GAAP Net Loss of $(13.9) Million, or GAAP Net Loss Margin of (17.0)%, with Adjusted EBITDA of $28.5 Million up 10.9% Sequentially and 23.4% Year-over-Year; Adjusted EBITDA Margin of 34.7% Up 10 Basis Points Quarter-over-Quarter and up 160 Basis Points Year-over-Year
• Cash Flow from Operations was $15.3 Million, with Capital Expenditures of $11.1 Million
• Raising Adjusted EBITDA Guidance Range to $110-$120 Million, Reaffirming Revenue of $320-330 Million and Capital Expenditures of $40-$45 Million
• INAP Adds New Flagship Data Center in Phoenix, a Key Strategic Market

“INAP has entered the next phase of our development, with 2018 turnaround projects winding down and our prospects for revenue growth and increased scale already in progress,” stated Peter D. Aquino, President and CEO. “We are now closing larger high-density deals, offering innovative cloud solutions, and overlaying a more robust network to serve our customers. Revenue growth and increased scale are being fueled by a combination of new organic Cloud sales, less overall churn, and new business development. Net of non-core planned closures that we called out in past quarters, we have stabilized the top line and are generating pockets of growth that we expect will continue to expand. Given our repeated success in high absorption markets such as the greater Phoenix market, we are expanding once again. We recently announcing a second facility in the market with Bank of America as an anchor tenant in our new flagship. Our enhanced profile is also making us an attractive partner, and we are pleased to announce our global cross-selling arrangement with COLT Data Centre Services. We are very excited about our progress to date and declare that INAP 2.0 is now on offense.”

GUIDANCE:

Internap Corporation sees FY2018 revenue of $320-330 million, versus the consensus of $323.05 million.

For earnings history and earnings-related data on Internap Corporation (INAP) click here.

You May Also Be Interested In

• Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
• MapLight Therapeutics, Inc. (MPLT) Misses Q2 EPS by 33c
• Inhibrx, Inc. (INBX) Misses Q2 EPS by 54c