Internap Corporation announced earnings results for the first quarter ended March 31, 2018. The company reported revenue totaled $74.2 million in the first quarter of 2018, an increase of $4.2 million or 5.9% sequentially and 2.9% year over year. The sequential increase was primarily due to the SingleHop acquisition. GAAP net loss attributable to INAP shareholders was $14.1 million, or $0.70 per share in the first quarter of 2018, including $2.6 million of costs associated with acquisition costs, compared with $6.9 million, or $0.35 per share in the fourth quarter of 2017, including $0.2 million of costs associated with acquisition costs. GAAP net loss in first quarter 2017 was $8.2 million. Normalized net loss was $10.4 million in the first quarter of 2018 compared with $5.5 million in the fourth quarter of 2017 and $4.8 million in the first quarter of 2017. Adjusted EBITDA totaled $25.7 million in the first quarter of 2018, an increase of 5.3% compared with $24.4 million in the fourth quarter of 2017, and an increase of 19.1% compared with $21.6 million in the first quarter of 2017. The increases in Adjusted EBITDA were primarily driven by continued focus on cost savings in real estate and network facilities, INAP's initiative to exit less profitable data center sites, and one month of SingleHop's financial statements. Cash generated from operations for the three months ended March 31, 2018 was $3.5 million compared to $7.3 million in first quarter 2017, and $13.8 million in fourth quarter of 2017. The main drivers of the sequential decrease were working capital timing and higher onetime acquisition expenses, primarily for legal and other professional fees associated with the SingleHop acquisition. Capital expenditures over the same periods were $6.4 million, compared to $6.0 million and $12.6 million, respectively. The primary driver of the lower spend in the first quarter was the planned timing of some of its larger growth spend initiatives. Adjusted EBITDA less CapEx was $19.3 million, compared to $15.6 million in first quarter 2017 and $11.7 million in the fourth quarter of 2017. On a normalized non-GAAP basis, first quarter 2018 net loss increased by $4.9 million from $5.5 million in the prior quarter and $5.6 million versus $4.8 million in the prior year. The sequential increase was primarily due to higher depreciation and amortization, in addition to higher interest expense, due primarily to the SingleHop acquisition and finance costs associated with it. The positive EBITDA performance was driven by revenue growth and cost reductions.

The company provided earnings guidance for the full year 2018. For the full year the company expects revenue to be between $320 million to $330 million. Adjusted EBITDA is expected to be between $105 million to $115 million. Capital expenditures is expected to be between $40 million to $45 million.

The company anticipates its second half of 2018 CapEx investments to be somewhat higher than the first half of the year 2018.