SCOTTSDALE, Ariz., Nov. 4, 2021 /PRNewswire/ -- Limelight
Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of
content delivery services and AppOps at the edge, today reported
financial results for the third quarter ended September 30, 2021. Delivering on several
key milestones in its 2021 strategic plan, the company reported
significant revenue, gross margin and adjusted EBITDA growth
quarter over quarter.
"As expected, our third quarter showed significant sequential
quarterly improvement. Revenue for the third quarter came in at
$55.2 million, up 14% quarter over
quarter. Cash Gross Margin was 40%, up more than 7% quarter over
quarter and Adjusted EBITDA margin was 11%, up from breakeven in
the second quarter of 2021," said Bob
Lyons, President and Chief Executive Officer.
"We are executing against our previously outlined strategy and
regaining our competitive position. We have been hard at work
taking meaningful steps to improve the performance and cost of our
globally scaled network, and to expand our client relationships and
extend our edge enabled solutions. We remain confident in our
ability to continue building on this progress and deliver on our
Improve-Expand-Extend strategy," said Lyons.
Continued improvement in operational performance and cost
structure:
- Completion of 90% of our $30
million in planned annualized costs savings
- 700 bps quarter over quarter cash gross margin expansion
- Improved operating leverage resulting in an 85% adjusted EBITDA
flow through of the sequential quarterly revenue growth
- Our internal assessment of client sentiment improved +13 points
quarter over quarter across our global top 20
Existing client and new logo growth driving meaningful revenue
expansion:
- 14% sequential quarter over quarter revenue growth
- 18 of Top 20 Limelight customers grew revenue more than 20% for
the second quarter in a row
- Closed more than 30 new customer opportunities, more than 10 of
which have an Annual Contract Value (ACV) of greater than
$100,000 and 2 of which have an ACV
of greater than $1M
- Strong pipeline growth with new logo bookings up more than 3x
quarter over quarter
- Our embedded CDN for Service Provider offering, EdgeXtend,
gaining traction at ISPs globally as evidenced by the NTT Docomo
announcement
Extension of new growth products:
- Completed acquisition of Layer0 and successfully launched our
best-in-class AppOps solution
- Diverse new client wins include a large mattress retailer, a
global travel industry leader, and a $6B retail giant and the renewal of a top ranked
US Bank.
- Planned fourth quarter launch of our AppCDN offering and then
proprietary integrated Security offerings
"We have made meaningful progress with our revitalization
strategy and are seeing early traction with the groundwork we laid
supporting continued momentum. Our acquisition of Layer0 and soon
to be launched accretive Application and Security products, the
successful acceleration of our EdgeXtend solution, coupled with two
new large client wins, support this momentum and improving
financial performance into the fourth quarter and beyond." said
Lyons.
Third Quarter 2021 Financial Results
- Revenue of $55.2 million, up 14%
from the second quarter of 2021 and down 7% compared to the third
quarter of 2020.
- GAAP net loss of $10.1 million,
or $(0.08) per basic share, an
improvement of $3.6 million from the
net loss of $13.7 million, or
$(0.11) per basic share, in the
second quarter of 2021. GAAP net loss was $4.0 million, or $(0.03) per basic share in the third quarter of
2020. GAAP net loss included $1.8
million and $2.2 million in
restructuring and transition related charges in the third and
second quarters of 2021, respectively.
- Non-GAAP net loss was $1.5
million, or $(0.01) per basic
share, an improvement of $6.5 million
from the Non-GAAP net loss of 8.0 million, or $(0.06) per basic share, in the second quarter of
2021. Non-GAAP net loss was $1.2
million, or $(0.01) per basic
share in the third quarter of 2020.
- EBITDA was $(2.0) million, an
improvement of $3.3 million from
$(5.3) million for the second quarter
of 2021. EBITDA was $3.7 million for
the third quarter of 2020.
- Adjusted EBITDA was $6.1 million,
an improvement of $5.9 million from
$0.2 million for the second quarter
of 2021. Adjusted EBITDA was $5.6
million for the third quarter of 2020.
- Cash and cash equivalents total $75.8
million at the end of the third quarter 2021.
- Limelight ended the third quarter of 2021 with 529 employees
and employee equivalents, up from 459 at the end of the second
quarter of 2021, and down from 620 at the end of the third quarter
of 2020. Employee count as of the third quarter includes 55 Layer0
employees.
Guidance
"Based on forecasts from our larger clients and their view of
their content and post COVID traffic patterns, we believe the
fourth quarter will represent a return to both sequential and year
over year growth; with this traction and new products to be
launched over the next few months, we are also accelerating
investments in rebuilding our sales team," continued Lyons. "We are
making significant progress across the company. Much has been
accomplished in a very short time and much work remains to be done.
We will issue full year 2022 guidance with our fourth quarter
earnings results in February 2022,"
said Lyons.
Limelight
Networks, Inc.
|
2021
Guidance
|
|
|
|
|
|
As of November
2021
|
Revenue
|
|
$215 to $220
million
|
|
|
|
GAAP Basic
EPS
|
|
$(0.47) to
$(0.42)
|
|
|
|
Non-GAAP
EPS
|
|
$(0.17) to
$(0.12)
|
|
|
|
Adjusted
EBITDA
|
|
$12 to $15
million
|
|
|
|
Capital
expenditures
|
|
$15 to $20
million
|
|
|
|
Financial Tables
LIMELIGHT
NETWORKS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
2021
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
39,585
|
|
$
44,065
|
|
$
46,795
|
Marketable
securities
|
|
36,201
|
|
75,471
|
|
76,928
|
Accounts
receivable, net
|
|
46,179
|
|
24,867
|
|
31,675
|
Income taxes
receivable
|
|
62
|
|
57
|
|
68
|
Prepaid
expenses and other current assets
|
|
13,396
|
|
14,557
|
|
15,588
|
Total current
assets
|
|
135,423
|
|
159,017
|
|
171,054
|
Property and
equipment, net
|
|
36,392
|
|
42,406
|
|
46,418
|
Operating lease right
of use assets
|
|
7,683
|
|
8,929
|
|
10,150
|
Marketable
securities, less current portion
|
|
40
|
|
40
|
|
40
|
Deferred income
taxes
|
|
1,693
|
|
1,604
|
|
1,530
|
Goodwill
|
|
105,221
|
|
77,642
|
|
77,753
|
Intangible assets,
net
|
|
23,680
|
|
-
|
|
-
|
Other
assets
|
|
5,972
|
|
6,147
|
|
7,233
|
Total
assets
|
|
$
316,104
|
|
$
295,785
|
|
$
314,178
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
13,768
|
|
$
12,459
|
|
$
4,587
|
Deferred
revenue
|
|
7,965
|
|
524
|
|
933
|
Operating
lease liability obligations
|
|
1,966
|
|
1,977
|
|
2,465
|
Income taxes
payable
|
|
443
|
|
388
|
|
253
|
Other current
liabilities
|
|
17,950
|
|
16,877
|
|
17,560
|
Total current
liabilities
|
|
42,092
|
|
32,225
|
|
25,798
|
Convertible senior
notes, net
|
|
121,576
|
|
121,371
|
|
100,945
|
Operating lease
liability obligations, less current portions
|
|
10,045
|
|
10,358
|
|
11,265
|
Deferred income
taxes
|
|
308
|
|
306
|
|
279
|
Deferred revenue,
less current portion
|
|
307
|
|
272
|
|
220
|
Other long-term
liabilities
|
|
453
|
|
369
|
|
479
|
Total
liabilities
|
|
174,781
|
|
164,901
|
|
138,986
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Convertible
preferred stock, $0.001 par value; 7,500 shares authorized; no
shares issued and outstanding
|
|
-
|
|
-
|
|
-
|
Common stock,
$0.001 par value; 300,000 shares authorized; 133,812, 126,705 and
123,653 shares issued and
|
|
|
|
|
|
|
outstanding at September 30, 2021, June 30, 2021 and
December 31, 2020, respectively
|
|
134
|
|
127
|
|
124
|
Additional
paid-in capital
|
|
571,268
|
|
550,205
|
|
556,512
|
Accumulated
other comprehensive loss
|
|
(8,491)
|
|
(7,965)
|
|
(7,511)
|
Accumulated
deficit
|
|
(421,588)
|
|
(411,483)
|
|
(373,933)
|
Total stockholders'
equity
|
|
141,323
|
|
130,884
|
|
175,192
|
Total liabilities and
stockholders' equity
|
|
$
316,104
|
|
$
295,785
|
|
$
314,178
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
Percent
|
|
September
30,
|
|
Percent
|
|
September
30,
|
|
September
30,
|
|
Percent
|
|
|
2021
|
|
2021
|
|
Change
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
55,202
|
|
$
48,348
|
|
14%
|
|
$
59,243
|
|
-7%
|
|
$
154,745
|
|
$
174,801
|
|
-11%
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services (1)
|
|
33,687
|
|
32,976
|
|
2%
|
|
31,905
|
|
6%
|
|
99,708
|
|
92,406
|
|
8%
|
Depreciation -
network
|
|
5,685
|
|
5,929
|
|
-4%
|
|
5,602
|
|
1%
|
|
17,293
|
|
16,112
|
|
7%
|
Total cost of
revenue
|
|
39,372
|
|
38,905
|
|
1%
|
|
37,507
|
|
5%
|
|
117,001
|
|
108,518
|
|
8%
|
Gross
profit
|
|
15,830
|
|
9,443
|
|
68%
|
|
21,736
|
|
-27%
|
|
37,744
|
|
66,283
|
|
-43%
|
Gross profit
percentage
|
|
28.7%
|
|
19.5%
|
|
|
|
36.7%
|
|
|
|
24.4%
|
|
37.9%
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative (1)
|
|
10,532
|
|
7,515
|
|
40%
|
|
7,751
|
|
36%
|
|
30,944
|
|
23,820
|
|
30%
|
Sales and
marketing (1)
|
|
5,987
|
|
5,784
|
|
4%
|
|
10,456
|
|
-43%
|
|
21,619
|
|
33,279
|
|
-35%
|
Research &
development (1)
|
|
5,205
|
|
5,187
|
|
0%
|
|
5,425
|
|
-4%
|
|
16,520
|
|
16,614
|
|
-1%
|
Depreciation
and amortization
|
|
730
|
|
549
|
|
33%
|
|
384
|
|
90%
|
|
1,818
|
|
1,049
|
|
73%
|
Restructuring
charges
|
|
1,770
|
|
2,155
|
|
NM
|
|
-
|
|
NM
|
|
10,798
|
|
-
|
|
NM
|
Total operating
expenses
|
|
24,224
|
|
21,190
|
|
14%
|
|
24,016
|
|
1%
|
|
81,699
|
|
74,762
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(8,394)
|
|
(11,747)
|
|
NM
|
|
(2,280)
|
|
NM
|
|
(43,955)
|
|
(8,479)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(1,308)
|
|
(1,305)
|
|
NM
|
|
(1,674)
|
|
NM
|
|
(3,899)
|
|
(1,756)
|
|
NM
|
Interest
income
|
|
17
|
|
42
|
|
NM
|
|
10
|
|
NM
|
|
104
|
|
40
|
|
NM
|
Other,
net
|
|
(209)
|
|
(440)
|
|
NM
|
|
25
|
|
NM
|
|
(864)
|
|
(396)
|
|
NM
|
Total other
expense
|
|
(1,500)
|
|
(1,703)
|
|
NM
|
|
(1,639)
|
|
NM
|
|
(4,659)
|
|
(2,112)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(9,894)
|
|
(13,450)
|
|
NM
|
|
(3,919)
|
|
NM
|
|
(48,614)
|
|
(10,591)
|
|
NM
|
Income tax
expense
|
|
211
|
|
248
|
|
NM
|
|
66
|
|
NM
|
|
718
|
|
377
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(10,105)
|
|
$
(13,698)
|
|
NM
|
|
$
(3,985)
|
|
NM
|
|
$
(49,332)
|
|
$
(10,968)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.08)
|
|
$
(0.11)
|
|
|
|
$
(0.03)
|
|
|
|
$
(0.39)
|
|
$
(0.09)
|
|
|
Diluted
|
|
$
(0.08)
|
|
$
(0.11)
|
|
|
|
$
(0.03)
|
|
|
|
$
(0.39)
|
|
$
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in per share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
126,791
|
|
126,050
|
|
|
|
122,363
|
|
|
|
125,710
|
|
120,519
|
|
|
Diluted
|
|
126,791
|
|
126,050
|
|
|
|
122,363
|
|
|
|
125,710
|
|
120,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation (see supplemental table for
figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
SUPPLEMENTAL
FINANCIAL DATA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
$
438
|
|
$
458
|
|
$
130
|
|
$
1,142
|
|
$
1,685
|
General and
administrative
|
|
2,301
|
|
1,874
|
|
1,272
|
|
10,203
|
|
5,770
|
Sales and
marketing
|
|
640
|
|
395
|
|
206
|
|
1,598
|
|
2,756
|
Research and
development
|
|
662
|
|
614
|
|
315
|
|
1,647
|
|
2,027
|
Restructuring and
transition related charges
|
|
(384)
|
|
917
|
|
-
|
|
1,887
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total share-based
compensation
|
|
$
3,657
|
|
$
4,258
|
|
$
1,923
|
|
$
16,477
|
|
$
12,238
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network-related
depreciation
|
|
$
5,685
|
|
$
5,929
|
|
$
5,602
|
|
$
17,293
|
|
$
16,112
|
Other depreciation
and amortization
|
|
409
|
|
549
|
|
384
|
|
1,497
|
|
1,049
|
Amortization of
intangible assets
|
|
321
|
|
-
|
|
-
|
|
321
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total depreciation
and amortization
|
|
$
6,415
|
|
$
6,478
|
|
$
5,986
|
|
$
19,111
|
|
$
17,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and marketable
securities:
|
|
$
(43,750)
|
|
$
2,608
|
|
$
106,592
|
|
$
(47,937)
|
|
$
106,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Approximate number of
active clients
|
|
581
|
|
533
|
|
534
|
|
581
|
|
534
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees
and employee equivalents
|
|
529
|
|
459
|
|
620
|
|
529
|
|
620
|
|
|
|
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(10,105)
|
|
$
(13,698)
|
|
$
(3,985)
|
|
$
(49,332)
|
|
$
(10,968)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,415
|
|
6,478
|
|
5,986
|
|
19,111
|
|
17,161
|
|
|
Share-based
compensation
|
|
3,657
|
|
4,258
|
|
1,923
|
|
16,477
|
|
12,238
|
|
|
Foreign currency
remeasurement (gain) loss
|
|
(252)
|
|
257
|
|
27
|
|
(66)
|
|
(113)
|
|
|
Deferred income
taxes
|
|
(117)
|
|
(71)
|
|
(95)
|
|
(198)
|
|
(80)
|
|
|
Gain on sale of
property and equipment
|
|
(112)
|
|
(107)
|
|
(1)
|
|
(219)
|
|
(1)
|
|
|
Accounts receivable
charges
|
|
200
|
|
381
|
|
163
|
|
1,047
|
|
476
|
|
|
Amortization of
premium on marketable securities
|
|
415
|
|
573
|
|
87
|
|
1,597
|
|
87
|
|
|
Non-cash interest
expense
|
|
204
|
|
201
|
|
868
|
|
604
|
|
868
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(18,999)
|
|
3,903
|
|
2,862
|
|
(13,037)
|
|
(8,221)
|
|
|
Prepaid
expenses and other current assets
|
|
1,239
|
|
(7)
|
|
(2,232)
|
|
1,678
|
|
(2,679)
|
|
|
Income taxes
receivable
|
|
(6)
|
|
46
|
|
(10)
|
|
4
|
|
3
|
|
|
Other
assets
|
|
1,105
|
|
513
|
|
757
|
|
2,017
|
|
2,504
|
|
|
Accounts
payable and other current liabilities
|
|
1,431
|
|
1,523
|
|
1,222
|
|
8,163
|
|
8,159
|
|
|
Deferred
revenue
|
|
4,997
|
|
(273)
|
|
(172)
|
|
4,640
|
|
(109)
|
|
|
Income taxes
payable
|
|
69
|
|
68
|
|
(17)
|
|
210
|
|
(15)
|
|
|
Other long
term liabilities
|
|
84
|
|
(108)
|
|
276
|
|
(26)
|
|
265
|
|
Net cash (used in)
provided by operating activities
|
|
(9,775)
|
|
3,937
|
|
7,659
|
|
(7,330)
|
|
19,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
|
(13,427)
|
|
(20,537)
|
|
(52,690)
|
|
(44,838)
|
|
(52,690)
|
|
|
Sale and maturities
of marketable securities
|
|
52,285
|
|
25,818
|
|
2,900
|
|
84,000
|
|
2,900
|
|
|
Purchases of property
and equipment
|
|
(2,295)
|
|
(2,986)
|
|
(7,180)
|
|
(11,909)
|
|
(22,128)
|
|
|
Proceeds from sale of
property and equipment
|
|
112
|
|
107
|
|
1
|
|
219
|
|
1
|
|
|
Acquisition of
business, net of cash acquired
|
|
(30,968)
|
|
-
|
|
-
|
|
(30,968)
|
|
-
|
|
Net cash provided by
(used in) investing activities
|
|
5,707
|
|
2,402
|
|
(56,969)
|
|
(3,496)
|
|
(71,917)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of debt, net
|
|
-
|
|
-
|
|
121,600
|
|
-
|
|
121,600
|
|
|
Purchase of capped
calls
|
|
-
|
|
-
|
|
(16,413)
|
|
-
|
|
(16,413)
|
|
|
Payment of debt
issuance costs
|
|
-
|
|
(30)
|
|
(784)
|
|
(30)
|
|
(784)
|
|
|
Payment of employee
tax withholdings related to restricted stock vesting
|
|
(217)
|
|
(427)
|
|
(1,041)
|
|
(1,315)
|
|
(3,987)
|
|
|
Proceeds from
employee stock plans
|
|
-
|
|
2,613
|
|
2,598
|
|
5,460
|
|
8,691
|
|
Net cash (used in)
provided by financing activities
|
|
(217)
|
|
2,156
|
|
105,960
|
|
4,115
|
|
109,107
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(195)
|
|
(50)
|
|
319
|
|
(499)
|
|
69
|
Net increase
(decrease) in cash and cash equivalents
|
|
(4,480)
|
|
8,445
|
|
56,969
|
|
(7,210)
|
|
56,834
|
Cash and cash
equivalents, beginning of period
|
|
44,065
|
|
35,620
|
|
18,200
|
|
46,795
|
|
18,335
|
Cash and cash
equivalents, end of period
|
|
$
39,585
|
|
$
44,065
|
|
$
75,169
|
|
$
39,585
|
|
$
75,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally
accepted accounting principles (Non-GAAP) net income (loss), EBITDA
and Adjusted EBITDA as supplemental measures of operating
performance. These measures include the same adjustments that
management takes into account when it reviews and assesses
operating performance on a period-to-period basis. We consider
Non-GAAP net income (loss) to be an important indicator of overall
business performance. We define Non-GAAP net income (loss) to be
U.S. GAAP net income (loss) adjusted to exclude share-based
compensation, non-cash interest expense, restructuring and
transition related charges, acquisition and legal related expenses,
and amortization of intangible assets. We believe that EBITDA
provides a useful metric to investors to compare us with other
companies within our industry and across industries. We define
EBITDA as U.S. GAAP net income (loss) adjusted to exclude
depreciation and amortization, interest expense, interest and other
(income) expense, and income tax expense. We define Adjusted EBITDA
as EBITDA adjusted to exclude share-based compensation,
restructuring and transition related charges and acquisition and
legal related expenses. We use Adjusted EBITDA as a supplemental
measure to review and assess operating performance. Our management
uses these Non-GAAP financial measures because, collectively, they
provide valuable information on the performance of our on-going
operations, excluding non-cash charges, taxes and non-core
activities (including interest payments related to financing
activities). These measures also enable our management to compare
the results of our on-going operations from period to period, and
allow management to review the performance of our on-going
operations against our peer companies and against other companies
in our industry and adjacent industries. We believe these measures
also provide similar insights to investors and enable investors to
review our results of operations "through the eyes of
management."
Furthermore, our management uses these Non-GAAP financial
measures to assist them in making decisions regarding our strategic
priorities and areas for future investment and focus. The terms
Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are not
defined under U.S. GAAP, and are not measures of operating income,
operating performance or liquidity presented in accordance with
U.S. GAAP. Our Non-GAAP net income (loss), EBITDA and Adjusted
EBITDA have limitations as analytical tools, and when assessing our
operating performance, Non-GAAP net income (loss), EBITDA and
Adjusted EBITDA should not be considered in isolation, or as a
substitute for net income (loss) or other consolidated income
statement data prepared in accordance with U.S. GAAP. Some of these
limitations include, but are not limited to:
- EBITDA and Adjusted EBITDA do not reflect our cash expenditures
or future requirements for capital expenditures or contractual
commitments;
- These measures do not reflect changes in, or cash requirements
for, our working capital needs;
- Non-GAAP net income (loss) and Adjusted EBITDA do not reflect
the cash requirements necessary for litigation costs, including
provision for litigation and litigation expenses;
- These measures do not reflect the interest expense, or the cash
requirements necessary to service interest or principal payments,
on our debt that we may incur;
- These measures do not reflect income taxes or the cash
requirements for any tax payments;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will be replaced
sometime in the future, and EBITDA and Adjusted EBITDA do not
reflect any cash requirements for such replacements;
- While share-based compensation is a component of operating
expense, the impact on our financial statements compared to other
companies can vary significantly due to such factors as the assumed
life of the options and the assumed volatility of our common stock;
and
- Other companies may calculate Non-GAAP net income (loss),
EBITDA and Adjusted EBITDA differently than we do, limiting their
usefulness as comparative measures.
We compensate for these limitations by relying primarily on our
U.S. GAAP results and using Non-GAAP net income (loss), EBITDA, and
Adjusted EBITDA only as supplemental support for management's
analysis of business performance. Non-GAAP net income (loss),
EBITDA and Adjusted EBITDA are calculated as follows for the
periods presented in thousands:
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Item 10(e) of Regulation
S-K, we are presenting the most directly comparable U.S. GAAP
financial measures and reconciling the unaudited Non-GAAP financial
metrics to the comparable U.S. GAAP measures. Per share amounts may
not foot due to rounding.
LIMELIGHT
NETWORKS, INC.
|
Reconciliation of
U.S. GAAP Net Loss to Non-GAAP Net Income (Loss)
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP net
loss
|
|
$
(10,105)
|
|
$
(0.08)
|
|
$
(13,698)
|
|
$
(0.11)
|
|
$
(3,985)
|
|
$
(0.03)
|
|
$
(49,332)
|
|
$
(0.39)
|
|
$
(10,968)
|
|
$
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
4,041
|
|
0.03
|
|
3,341
|
|
0.03
|
|
1,923
|
|
0.02
|
|
10,026
|
|
0.08
|
|
12,238
|
|
0.10
|
Non-cash interest
expense
|
|
204
|
|
0.00
|
|
201
|
|
0.00
|
|
868
|
|
0.01
|
|
604
|
|
0.00
|
|
868
|
|
0.01
|
Restructuring and
transition related charges
|
|
1,770
|
|
0.01
|
|
2,155
|
|
0.02
|
|
-
|
|
-
|
|
15,625
|
|
0.12
|
|
-
|
|
-
|
Acquisition and legal
related expenses
|
|
2,263
|
|
0.02
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,441
|
|
0.02
|
|
-
|
|
-
|
Amortization of
intangible assets
|
|
321
|
|
0.00
|
|
-
|
|
-
|
|
-
|
|
-
|
|
321
|
|
0.00
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss)
income
|
|
$
(1,506)
|
|
$
(0.01)
|
|
$
(8,001)
|
|
$
(0.06)
|
|
$
(1,194)
|
|
$
(0.01)
|
|
$
(20,315)
|
|
$
(0.16)
|
|
$
2,138
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares used in per share calculation
|
|
|
|
126,791
|
|
|
|
126,050
|
|
|
|
122,363
|
|
|
|
125,710
|
|
|
|
120,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
Reconciliation of
U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP net
loss
|
|
$
(10,105)
|
|
$
(13,698)
|
|
$
(3,985)
|
|
$
(49,332)
|
|
$
(10,968)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,415
|
|
6,478
|
|
5,986
|
|
19,111
|
|
17,161
|
|
Interest
expense
|
|
1,308
|
|
1,305
|
|
1,674
|
|
3,899
|
|
1,756
|
|
Interest and other
(income) expense
|
|
192
|
|
398
|
|
(35)
|
|
760
|
|
356
|
|
Income tax
expense
|
|
211
|
|
248
|
|
66
|
|
718
|
|
377
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
(1,979)
|
|
$
(5,269)
|
|
$
3,706
|
|
$
(24,844)
|
|
$
8,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
4,041
|
|
3,341
|
|
1,923
|
|
10,026
|
|
12,238
|
|
Restructuring and
transition related charges
|
|
1,770
|
|
2,155
|
|
-
|
|
15,625
|
|
-
|
|
Acquisition and legal
related expenses
|
|
2,263
|
|
-
|
|
-
|
|
2,441
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
6,095
|
|
$
227
|
|
$
5,629
|
|
$
3,248
|
|
$
20,920
|
|
|
|
|
|
|
|
|
|
|
|
|
For future periods, we are unable to provide a reconciliation of
EBITDA and Adjusted EBITDA to net income (loss) as a result of the
uncertainty regarding, and the potential variability of, the
amounts of depreciation and amortization, interest expense,
interest and other (income) expense and income tax expense, that
may be incurred in the future.
Conference Call
At approximately 4:30 p.m. EDT
(1:30 p.m. PDT) today, management
will host a quarterly conference call for investors. Investors can
access this call toll-free at 844-200-6205 within the United States or 929-526-1599 outside of
the U.S. with access code 171804. The conference call will
also be audio cast live from http://www.limelight.com and a replay
will be available following the call from the Limelight
website.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These statements include, among
others, statements regarding our expectations regarding revenue,
gross margin, non-GAAP net income (loss), capital expenditures, and
our future prospects, areas of investment, and product launches.
Our expectations and beliefs regarding these matters may not
materialize. The potential risks and uncertainties that could cause
actual results or outcomes to differ materially from the results or
outcomes predicted include, among other things, reduction of demand
for our services from new or existing clients, unforeseen changes
in our hiring patterns, adverse outcomes in litigation,
experiencing expenses that exceed our expectations, and acquisition
activities and contributions from acquired businesses. A detailed
discussion of these factors and other risks that affect our
business is contained in our SEC filings, including our most recent
reports on Forms 10-K and 10-Q, particularly under the heading
"Risk Factors." Copies of these filings are available online on our
investor relations website at investors.limelightnetworks.com and
on the SEC website at www.SEC.gov. All information provided in this
release and in the attachments is as of November 4, 2021, and we undertake no duty to
update this information in light of new information or future
events, unless required by law.
About Limelight
Limelight Networks, Inc. (NASDAQ: LLNW) is an industry-leader in
edge access and content delivery services that provides powerful
tools and a client-first approach to optimize and deliver digital
experiences at the edge. We are a trusted partner to the world's
biggest brands and serve their global customers with experiences
such as livestream sporting events, global movie launches, video
games or file downloads for new phone apps. Limelight offers one of
the largest, best-optimized private networks coupled with a global
team of industry experts to provide edge services that are fast,
secure and reliable. For more information, visit www.limelight.com,
and follow us on Twitter, Facebook and LinkedIn.
Copyright (C) 2021 Limelight Networks, Inc. All rights reserved.
All product or service names are the property of their respective
owners.
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SOURCE Limelight Networks