SCOTTSDALE, Ariz., Jan. 20, 2022 /PRNewswire/ -- Limelight
Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of
edge enabled content delivery and AppOps solutions at the edge,
today reported financial results for the fourth quarter ended
December 31, 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 fourth quarter built on the momentum exhibited
in the third quarter. Revenue for the fourth quarter came in at
$62.9 million, up 14% quarter over
quarter and year over year. Gross Margin was 35.4%, up 670 basis
points quarter over quarter and Adjusted EBITDA margin was 15%, up
from 11% in the third quarter of 2021. On an organic basis, revenue
growth was 7% and we generated over $3 million in free cash
flow. Layer0 contributed $3.8 million
in the quarter bringing their total contribution to the year to
$4.5 million, in line with guidance
of $4-5 million," said Bob Lyons, President and Chief Executive
Officer.
"We have made meaningful progress in our core business with
dramatic performance improvements in our network, a revitalized
go-to-market strategy and new product cadence. We are changing the
narrative around Limelight from a usage-based network to a high
growth, higher margin edge enabled solutions company," said Lyons.
"Our integrated solution set is seeing significant traction, be it
among startups or multi-billion companies, and across verticals
such as financial services, consumer products and telecom. We are
already gaining share of the incremental TAM we outlined in our
August strategy session last year."
"We are executing against our strategy and remain confident in
our ability to build on this progress and continue delivering on
our Improve-Expand-Extend framework," said Lyons."
Improve: Continued improvement in operational performance
and cost structure:
- Our client sentiment metric improved double digits in the
second half of 2021, across our global top 20.
- First quarterly revenue growth of our core content delivery
solution in six quarters.
- New traffic records with December
5th exceeding the previous record by 18%. December was the
highest traffic month with traffic exceeding the previous record by
14%. Previous records had been established about a year ago.
- Quarter over quarter cash gross margin expansion of almost 500
basis points and year over year expansion of 380 basis points.
- Completion of $30 million in
planned annualized costs savings.
- Improved operating leverage resulting in a 46% adjusted EBITDA
flow through of the sequential quarterly revenue growth, while
accelerating our investment in our go-to-market efforts.
Expand: Existing client and new logo growth driving
meaningful revenue expansion:
- 14% quarter over quarter and year over year revenue growth
delivering organic growth of 7% year over year.
- 18 of Top 20 Limelight customers grew revenue more than 20% for
the third quarter in a row.
- Total Bookings increased 45% quarter over quarter.
- Many new opportunities were closed in the fourth quarter, with
more than 10 of those averaging greater than $100,000 in Annual Contract Value.
- New client wins include a large consumer products company with
more than 100 household brands.
- We have made significant productivity improvements in our land
and expand motions and are now increasing capacity at an
accelerated pace. We expect to mostly complete sales team hiring
goals by 1Q22, a quarter ahead of plan.
- The pipeline for both solution sets - Content Delivery and
AppOps - continues to grow.
Extend: Extension of new growth products:
- In the fourth quarter, we launched the Layer0 by Limelight
offering for web applications, which is our flagship product for
the AppOps segment. This is the first new product resulting from
our acquisition of Layer0 and empowers development teams to ship up
to twice as fast and offer sub-second page loads.
- This was followed by the GraphQL caching and serverless hosting
functionality. Layer0 has solved the key challenge of caching
GraphQL APIs at the network edge, which is not supported by
traditional web CDNs.
- In a few weeks we will be launching our Security offerings to
round out the suite and improve our value proposition for outcome
buyers.
- EdgeXtend continued to build on the momentum we saw over the
last few quarters. We expect continued growth in this product in
2022.
Strategic priorities for 2022:
- Productive growth capacity: Supported by the improved
productivity of our land-and-expand motions, we will continue to
increase the capacity of our commercial teams.
- Edge architecture: Implementation of identified
architectural improvements with a targeted 30% increase in capacity
and throughput.
- Automation: Leveraging the application skills acquired
with Layer0, we will improve automation across our platform and
operations. This will improve efficiency, quality and increase
productivity.
- Developer Ecosystem: We will continue to invest in
targeted developer communities to further accelerate our AppOps
mindshare.
- Edge enabled solutions: We will continue to release new
and improved edge enabled solutions with a focus on core IP that
delivers the best price-performance feature set for the outcome
buyer by leveraging our edge platform.
Fourth Quarter 2021 Financial Results
- Revenue of $62.9 million, up 14%
from the third quarter of 2021 and compared to the fourth quarter
of 2020.
- GAAP net loss of $7.7 million, or
$(0.06) per basic share, an
improvement of $2.4 million from the
net loss of $10.1 million, or
$(0.08) per basic share, in the third
quarter of 2021. GAAP net loss was $8.3
million, or $(0.07) per basic
share in the fourth quarter of 2020. GAAP net loss included
$2.6 million in restructuring and
transition related charges in the fourth quarter and $1.8 million in the third quarter of 2021,
respectively.
- Non-GAAP net income was $2.4
million, or $0.02 per basic
share, an improvement of $3.9 million
from the Non-GAAP net loss of 1.5 million, or $(0.01) per basic share, in the third quarter of
2021. Non-GAAP net loss was $3.8
million, or $(0.03) per basic
share in the fourth quarter of 2020.
- Adjusted EBITDA was $9.7 million,
an improvement of $3.6 million from
$6.1 million for the third quarter of
2021. Adjusted EBITDA was $3.6
million for the fourth quarter of 2020.
- EBITDA was $0.5 million, an
improvement of $2.5 million from
$(2.0) million for the third quarter
of 2021. EBITDA was breakeven for the fourth quarter of 2020.
- Cash, cash equivalents and marketable securities total
$79.3 million at the end of the
fourth quarter 2021.
- Limelight ended the fourth quarter of 2021 with 552 employees
and employee equivalents, up from 529 at the end of the third
quarter of 2021, and down from 618 at the end of the fourth quarter
of 2020.
Guidance
"In the second half of 2021 we established a sustainable
trajectory and in 2022, we expect to build on the momentum and the
progress. We have a revitalized network, a growing sales team and
new products which should drive continued growth in both solution
sets, Content Delivery and AppOps" said Lyons.
Limelight
Networks, Inc.
|
2022
Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
2022
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
$240 to $250
million
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basic
EPS
|
|
|
|
|
|
|
|
|
|
|
$(0.27) to
$(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EPS
|
|
|
|
|
|
|
|
|
|
|
$(0.06) to
$(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
$24 to $28
million
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
$20 to $25
million
|
Financial Tables
LIMELIGHT
NETWORKS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
41,918
|
|
$
39,585
|
|
$
46,795
|
Marketable
securities
|
|
37,367
|
|
36,201
|
|
76,928
|
Accounts
receivable, net
|
|
42,217
|
|
46,179
|
|
31,675
|
Income taxes
receivable
|
|
61
|
|
62
|
|
68
|
Prepaid
expenses and other current assets
|
|
13,036
|
|
13,396
|
|
15,588
|
Total current
assets
|
|
134,599
|
|
135,423
|
|
171,054
|
Property and
equipment, net
|
|
32,885
|
|
36,392
|
|
46,418
|
Operating lease right
of use assets
|
|
7,413
|
|
7,683
|
|
10,150
|
Marketable
securities, less current portion
|
|
40
|
|
40
|
|
40
|
Deferred income
taxes
|
|
1,908
|
|
1,693
|
|
1,530
|
Goodwill
|
|
114,511
|
|
105,221
|
|
77,753
|
Intangible assets,
net
|
|
14,613
|
|
23,680
|
|
-
|
Other
assets
|
|
5,485
|
|
5,972
|
|
7,233
|
Total
assets
|
|
$
311,454
|
|
$
316,104
|
|
$
314,178
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
11,631
|
|
$
13,768
|
|
$
4,587
|
Deferred
revenue
|
|
3,266
|
|
7,965
|
|
933
|
Operating
lease liability obligations
|
|
1,861
|
|
1,966
|
|
2,465
|
Income taxes
payable
|
|
888
|
|
443
|
|
253
|
Other current
liabilities
|
|
21,934
|
|
17,950
|
|
17,560
|
Total current
liabilities
|
|
39,580
|
|
42,092
|
|
25,798
|
Convertible senior
notes, net
|
|
121,782
|
|
121,576
|
|
100,945
|
Operating lease
liability obligations, less current portions
|
|
9,616
|
|
10,045
|
|
11,265
|
Deferred income
taxes
|
|
308
|
|
308
|
|
279
|
Deferred revenue,
less current portion
|
|
116
|
|
307
|
|
220
|
Other long-term
liabilities
|
|
777
|
|
453
|
|
479
|
Total
liabilities
|
|
172,179
|
|
174,781
|
|
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; 134,337 133,812 and
123,653 shares issued and
|
|
|
|
|
|
|
outstanding at December 31, 2021, September 30, 2021
and December 31, 2020, respectively
|
|
134
|
|
134
|
|
124
|
Additional
paid-in capital
|
|
576,807
|
|
571,268
|
|
556,512
|
Accumulated
other comprehensive loss
|
|
(8,345)
|
|
(8,491)
|
|
(7,511)
|
Accumulated
deficit
|
|
(429,321)
|
|
(421,588)
|
|
(373,933)
|
Total stockholders'
equity
|
|
139,275
|
|
141,323
|
|
175,192
|
Total liabilities and
stockholders' equity
|
|
$
311,454
|
|
$
316,104
|
|
$
314,178
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
Percent
|
|
December
31,
|
|
Percent
|
|
December
31,
|
|
December
31,
|
|
Percent
|
|
|
2021
|
|
2021
|
|
Change
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
62,885
|
|
$
55,202
|
|
14%
|
|
$
55,394
|
|
14%
|
|
$
217,630
|
|
$
230,194
|
|
-5%
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services (1)
|
|
35,434
|
|
33,687
|
|
5%
|
|
33,103
|
|
7%
|
|
135,142
|
|
125,509
|
|
8%
|
Depreciation -
network
|
|
5,215
|
|
5,685
|
|
-8%
|
|
5,468
|
|
-5%
|
|
22,508
|
|
21,579
|
|
4%
|
Total cost of
revenue
|
|
40,649
|
|
39,372
|
|
3%
|
|
38,571
|
|
5%
|
|
157,650
|
|
147,088
|
|
7%
|
Gross
profit
|
|
22,236
|
|
15,830
|
|
40%
|
|
16,823
|
|
32%
|
|
59,980
|
|
83,106
|
|
-28%
|
Gross profit
percentage
|
|
35.4%
|
|
28.7%
|
|
|
|
30.4%
|
|
|
|
27.6%
|
|
36.1%
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative (1)
|
|
10,415
|
|
10,532
|
|
-1%
|
|
7,464
|
|
40%
|
|
41,359
|
|
31,284
|
|
32%
|
Sales and
marketing (1)
|
|
8,433
|
|
5,987
|
|
41%
|
|
9,666
|
|
-13%
|
|
30,051
|
|
42,945
|
|
-30%
|
Research &
development (1)
|
|
5,524
|
|
5,205
|
|
6%
|
|
5,066
|
|
9%
|
|
22,044
|
|
21,680
|
|
2%
|
Depreciation
and amortization
|
|
976
|
|
730
|
|
34%
|
|
542
|
|
80%
|
|
2,794
|
|
1,591
|
|
76%
|
Restructuring
charges
|
|
2,627
|
|
1,770
|
|
NM
|
|
-
|
|
NM
|
|
13,425
|
|
-
|
|
NM
|
Total operating
expenses
|
|
27,975
|
|
24,224
|
|
15%
|
|
22,738
|
|
23%
|
|
109,673
|
|
97,500
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(5,739)
|
|
(8,394)
|
|
NM
|
|
(5,915)
|
|
NM
|
|
(49,693)
|
|
(14,394)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(1,346)
|
|
(1,308)
|
|
NM
|
|
(2,183)
|
|
NM
|
|
(5,245)
|
|
(3,939)
|
|
NM
|
Interest
income
|
|
30
|
|
17
|
|
NM
|
|
29
|
|
NM
|
|
134
|
|
69
|
|
NM
|
Other,
net
|
|
(243)
|
|
(209)
|
|
NM
|
|
28
|
|
NM
|
|
(1,108)
|
|
(368)
|
|
NM
|
Total other
expense
|
|
(1,559)
|
|
(1,500)
|
|
NM
|
|
(2,126)
|
|
NM
|
|
(6,219)
|
|
(4,238)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(7,298)
|
|
(9,894)
|
|
NM
|
|
(8,041)
|
|
NM
|
|
(55,912)
|
|
(18,632)
|
|
NM
|
Income tax
expense
|
|
435
|
|
211
|
|
NM
|
|
268
|
|
NM
|
|
1,153
|
|
645
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(7,733)
|
|
$
(10,105)
|
|
NM
|
|
$
(8,309)
|
|
NM
|
|
$
(57,065)
|
|
$
(19,277)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.06)
|
|
$
(0.08)
|
|
|
|
$
(0.07)
|
|
|
|
$
(0.45)
|
|
$
(0.16)
|
|
|
Diluted
|
|
$
(0.06)
|
|
$
(0.08)
|
|
|
|
$
(0.07)
|
|
|
|
$
(0.45)
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in per share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
134,023
|
|
126,791
|
|
|
|
123,225
|
|
|
|
127,789
|
|
121,196
|
|
|
Diluted
|
|
134,023
|
|
126,791
|
|
|
|
123,225
|
|
|
|
127,789
|
|
121,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation (see supplemental table for
figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
SUPPLEMENTAL
FINANCIAL DATA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
$
590
|
|
$
438
|
|
$
313
|
|
$
1,732
|
|
$
1,998
|
General and
administrative
|
|
3,489
|
|
2,301
|
|
1,840
|
|
13,692
|
|
7,611
|
Sales and
marketing
|
|
1,186
|
|
640
|
|
764
|
|
2,784
|
|
3,519
|
Research and
development
|
|
1,120
|
|
662
|
|
562
|
|
2,767
|
|
2,589
|
Restructuring and
transition related charges
|
|
(254)
|
|
(384)
|
|
-
|
|
1,633
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total share-based
compensation
|
|
$
6,131
|
|
$
3,657
|
|
$
3,479
|
|
$
22,608
|
|
$
15,717
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network-related
depreciation
|
|
$
5,215
|
|
$
5,685
|
|
$
5,468
|
|
$
22,508
|
|
$
21,579
|
Other depreciation
and amortization
|
|
249
|
|
409
|
|
542
|
|
1,746
|
|
1,591
|
Amortization of
intangible assets
|
|
727
|
|
321
|
|
-
|
|
1,048
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total depreciation
and amortization
|
|
$
6,191
|
|
$
6,415
|
|
$
6,010
|
|
$
25,302
|
|
$
23,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and marketable
securities:
|
|
$
3,499
|
|
$
(43,750)
|
|
$
(1,069)
|
|
$
(44,438)
|
|
$
105,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Approximate number of
active clients
|
|
580
|
|
581
|
|
527
|
|
580
|
|
527
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees
and employee equivalents
|
|
552
|
|
529
|
|
618
|
|
552
|
|
618
|
|
|
|
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(7,733)
|
|
$
(10,105)
|
|
$
(8,309)
|
|
$
(57,065)
|
|
$
(19,277)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,191
|
|
6,415
|
|
6,010
|
|
25,302
|
|
23,170
|
|
|
Share-based
compensation
|
|
6,131
|
|
3,657
|
|
3,479
|
|
22,608
|
|
15,717
|
|
|
Foreign currency
remeasurement (gain) loss
|
|
200
|
|
(252)
|
|
327
|
|
134
|
|
214
|
|
|
Deferred income
taxes
|
|
(231)
|
|
(117)
|
|
(14)
|
|
(429)
|
|
(94)
|
|
|
(Gain) loss on sale
of property and equipment
|
|
(28)
|
|
(112)
|
|
7
|
|
(247)
|
|
6
|
|
|
Accounts receivable
charges
|
|
35
|
|
200
|
|
325
|
|
1,082
|
|
801
|
|
|
Amortization of
premium on marketable securities
|
|
282
|
|
415
|
|
519
|
|
1,879
|
|
606
|
|
|
Realized loss on
marketable securities
|
|
-
|
|
-
|
|
(3)
|
|
-
|
|
(3)
|
|
|
Non-cash interest
expense
|
|
207
|
|
204
|
|
1,070
|
|
811
|
|
1,938
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
3,928
|
|
(18,999)
|
|
10,221
|
|
(9,109)
|
|
2,000
|
|
|
Prepaid
expenses and other current assets
|
|
288
|
|
1,239
|
|
(3,038)
|
|
1,966
|
|
(5,717)
|
|
|
Income taxes
receivable
|
|
(51)
|
|
(6)
|
|
16
|
|
(47)
|
|
19
|
|
|
Other
assets
|
|
1,604
|
|
1,105
|
|
258
|
|
3,621
|
|
2,762
|
|
|
Accounts
payable and other current liabilities
|
|
1,261
|
|
1,431
|
|
(9,228)
|
|
9,424
|
|
(1,069)
|
|
|
Deferred
revenue
|
|
(5,519)
|
|
4,997
|
|
126
|
|
(879)
|
|
17
|
|
|
Income taxes
payable
|
|
448
|
|
69
|
|
86
|
|
658
|
|
71
|
|
|
Other long
term liabilities
|
|
327
|
|
84
|
|
(99)
|
|
301
|
|
167
|
|
Net cash provided by
(used in) operating activities
|
|
7,340
|
|
(9,775)
|
|
1,753
|
|
10
|
|
21,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
|
(17,238)
|
|
(13,427)
|
|
(36,064)
|
|
(62,076)
|
|
(88,754)
|
|
|
Sale and maturities
of marketable securities
|
|
15,760
|
|
52,285
|
|
8,272
|
|
99,760
|
|
11,172
|
|
|
Purchases of property
and equipment
|
|
(3,901)
|
|
(2,295)
|
|
(2,957)
|
|
(15,810)
|
|
(25,085)
|
|
|
Proceeds from sale of
property and equipment
|
|
28
|
|
112
|
|
1
|
|
247
|
|
2
|
|
|
Acquisition of
business, net of cash acquired
|
|
-
|
|
(30,968)
|
|
-
|
|
(30,968)
|
|
-
|
|
Net cash (used in)
provided by investing activities
|
|
(5,351)
|
|
5,707
|
|
(30,748)
|
|
(8,847)
|
|
(102,665)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of debt, net
|
|
-
|
|
-
|
|
-
|
|
-
|
|
121,600
|
|
|
Purchase of capped
calls
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(16,413)
|
|
|
Payment of debt
issuance costs
|
|
-
|
|
-
|
|
(75)
|
|
(30)
|
|
(859)
|
|
|
Payment of employee
tax withholdings related to restricted stock vesting
|
|
(311)
|
|
(217)
|
|
(891)
|
|
(1,626)
|
|
(4,878)
|
|
|
Proceeds from
employee stock plans
|
|
725
|
|
-
|
|
1,377
|
|
6,185
|
|
10,068
|
|
Net cash provided by
(used in) financing activities
|
|
414
|
|
(217)
|
|
411
|
|
4,529
|
|
109,518
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(70)
|
|
(195)
|
|
210
|
|
(569)
|
|
279
|
Net increase
(decrease) in cash and cash equivalents
|
|
2,333
|
|
(4,480)
|
|
(28,374)
|
|
(4,877)
|
|
28,460
|
Cash and cash
equivalents, beginning of period
|
|
39,585
|
|
44,065
|
|
75,169
|
|
46,795
|
|
18,335
|
Cash and cash
equivalents, end of period
|
|
$
41,918
|
|
$
39,585
|
|
$
46,795
|
|
$
41,918
|
|
$
46,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
December 31,
2020
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP net
loss
|
|
$
(7,733)
|
|
$
(0.06)
|
|
$
(10,105)
|
|
$
(0.08)
|
|
$
(8,309)
|
|
$
(0.07)
|
|
$
(57,065)
|
|
$
(0.45)
|
|
$
(19,277)
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
6,385
|
|
0.05
|
|
4,041
|
|
0.03
|
|
3,479
|
|
0.03
|
|
16,411
|
|
0.13
|
|
15,717
|
|
0.13
|
Non-cash interest
expense
|
|
207
|
|
0.00
|
|
204
|
|
0.00
|
|
1,070
|
|
0.01
|
|
811
|
|
0.01
|
|
1,938
|
|
0.02
|
Restructuring and
transition related charges
|
|
2,627
|
|
0.02
|
|
1,770
|
|
0.01
|
|
-
|
|
-
|
|
18,252
|
|
0.14
|
|
-
|
|
-
|
Acquisition and legal
related expenses
|
|
199
|
|
0.00
|
|
2,263
|
|
0.02
|
|
-
|
|
-
|
|
2,640
|
|
0.02
|
|
-
|
|
-
|
Amortization of
intangible assets
|
|
727
|
|
0.01
|
|
321
|
|
0.00
|
|
-
|
|
-
|
|
1,048
|
|
0.01
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss)
|
|
$
2,412
|
|
$
0.02
|
|
$
(1,506)
|
|
$
(0.01)
|
|
$
(3,760)
|
|
$
(0.03)
|
|
$
(17,903)
|
|
$
(0.14)
|
|
$
(1,622)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares used in per share calculation
|
|
|
|
134,023
|
|
|
|
126,791
|
|
|
|
123,225
|
|
|
|
127,789
|
|
|
|
121,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMELIGHT
NETWORKS, INC.
|
Reconciliation of
U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP net
loss
|
|
$
(7,733)
|
|
$
(10,105)
|
|
$
(8,309)
|
|
$
(57,065)
|
|
$
(19,277)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,191
|
|
6,415
|
|
6,010
|
|
25,302
|
|
23,170
|
|
Interest
expense
|
|
1,346
|
|
1,308
|
|
2,183
|
|
5,245
|
|
3,939
|
|
Interest and other
(income) expense
|
|
213
|
|
192
|
|
(57)
|
|
974
|
|
299
|
|
Income tax
expense
|
|
435
|
|
211
|
|
268
|
|
1,153
|
|
645
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
452
|
|
$
(1,979)
|
|
$
95
|
|
$
(24,391)
|
|
$
8,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
6,385
|
|
4,041
|
|
3,479
|
|
16,411
|
|
15,717
|
|
Restructuring and
transition related charges
|
|
2,627
|
|
1,770
|
|
-
|
|
18,252
|
|
-
|
|
Acquisition and legal
related expenses
|
|
199
|
|
2,263
|
|
-
|
|
2,640
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
9,663
|
|
$
6,095
|
|
$
3,574
|
|
$
12,912
|
|
$
24,493
|
|
|
|
|
|
|
|
|
|
|
|
|
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. EST
(1:30 p.m. PST) today, management
will host a quarterly conference call for investors. Interested
parties can access the call by dialing (844)-200-6205 from
the United States or
(929)-526-1599 internationally, with access code 647856. 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 January 20, 2022, and we undertake no duty to
update this information in light of new information or future
events, unless required by law.
About Limelight
Limelight (NASDAQ: LLNW) is an industry leader in providing
edge-enabled solutions to deliver fast, secure digital experiences
on a global scale. We offer powerful tools that optimize,
protect and deliver our clients' valuable digital assets in an
increasingly competitive marketplace. From content delivery and
AppOps to Jamstack application architecture and web security, we
are uniquely positioned to leverage our global private network and
client-obsessed experts to help our customers win. The world's
largest brands trust Limelight and we invite you to learn more
about us by visiting www.limelight.com, Twitter, Facebook and
LinkedIn.
Copyright (C) 2022 Limelight Networks, Inc. All rights reserved.
All product or service names are the property of their respective
owners.
Source: Limelight Networks
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SOURCE Limelight Networks