- Revenue of $57.0 million, up 32% year over year
- GAAP basic EPS of $(0.04) and Non-GAAP EPS of break-even
- Adjusted EBITDA of $5.6 million
- Cash balance of $21.4 million on positive operating cash
flow
- CFO transition planned
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading
provider of edge cloud services, today reported revenue of $57.0
million for the first quarter of 2020, up 32 percent, compared to
$43.3 million in the first quarter of 2019. Year-over-year currency
impact was negative by approximately $0.1 million.
Limelight reported a GAAP net loss of $5.3 million, or $(0.04)
per basic share for the first quarter of 2020, compared to net loss
of $8.6 million, or $(0.07) per basic share in the first quarter of
2019.
Non-GAAP net loss was $0.2 million or break-even per basic share
for the first quarter of 2020, compared to a non-GAAP net loss of
$5.1 million, or $(0.04) per basic share in the first quarter of
2019.
EBITDA was $0.5 million for the first quarter of 2020, compared
to negative $4.1 million for the first quarter of 2019. Adjusted
EBITDA was $5.6 million for the first quarter of 2020 compared to
negative $0.6 million for the first quarter of 2019.
Limelight ended the first quarter with 616 employees and
employee equivalents, up from 610 at the end of the fourth quarter
of 2019, and up from 562 at the end of the first quarter of
2019.
Limelight also announced today that Sajid Malhotra, Chief
Financial Officer, will assume the role of Chief Strategy Officer
and will be responsible for Corporate Strategy, M&A, and
Investor Relations. Dan Boncel, our Vice President Finance,
Principal Accounting Officer will assume the role of Chief
Financial Officer. Both changes will be effective July 1, 2020.
“We’re very pleased with Limelight’s financial and operational
performance, which culminated in the highest first quarter revenue
in the company’s history,” Robert Lento, Chief Executive Officer
said. “We want to express our gratitude for the tireless commitment
of our employees and continued support of our customers and
shareholders in the face of unprecedented global disruption from
the pandemic. We are truly grateful and fortunate that our business
has not experienced the same devastating impact to date as many
others. Our thoughts and well wishes go out to those so
impacted.
"These trying times are spotlighting the critical role
Limelight’s edge services fill in supporting continuity of business
and keeping people digitally connected. There is momentum going
into the second quarter, primarily driven by the increase of
video-on-demand. Nevertheless, in the face of significant
uncertainties related to the pandemic, including the absence of
live sporting events, we are only increasing the low end of our
previous revenue guidance. We remain committed and confident in
meeting or exceeding Limelight’s financial goals for 2020 and
beyond and delivering the best top-line growth in our history as a
public company, as well as corresponding improvements to earnings
and adjusted EBITDA.
”We are excited to have Sajid transition into his new role and
congratulations to Dan who has demonstrated years of growth and
achievement within Limelight.”
Based on current conditions, our full-year 2020 guidance is
updated, and is as follows:
Limelight Networks, Inc. 2020 Guidance
April 2020
January 2020
December 2019
Actual 2019
Revenue
$225 to $235 million
$223 to $235 million
$220 to $235 million
$200.6 million
GAAP Basic EPS
$(0.10) to break-even
$(0.10) to break-even
$(0.10) to break-even
$(0.14)
Non-GAAP EPS
Break-even to $0.10
Break-even to $0.10
Break-even to $0.10
$(0.02)
Adjusted EBITDA
$25 to $35 million
$25 to $35 million
$25 to $35 million
$18.1 million
Capital expenditures
$25 to $30 million
$25 to $30 million
$25 to $30 million
$34.7 million
Financial Tables
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands, except per share data)
March 31, December 31,
2020
2019
(Unaudited) ASSETS Current assets: Cash and cash
equivalents
$
21,421
$
18,335
Accounts receivable, net
34,603
34,476
Income taxes receivable
76
82
Prepaid expenses and other current assets
11,205
9,920
Total current assets
67,305
62,813
Property and equipment, net
46,636
46,136
Operating lease right of use assets
12,084
12,842
Marketable securities, less current portion
40
40
Deferred income taxes
1,361
1,319
Goodwill
76,867
77,102
Other assets
8,721
9,117
Total assets
$
213,014
$
209,369
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
14,297
$
12,020
Deferred revenue
726
976
Operating lease liability obligations
2,046
2,056
Income taxes payable
170
178
Other current liabilities
18,188
13,398
Total current liabilities
35,427
28,628
Operating lease liability obligations, less current portions
12,983
13,488
Deferred income taxes
262
239
Deferred revenue, less current portion
161
161
Other long-term liabilities
318
316
Total liabilities
49,151
42,832
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; 119,642
and 118,368 shares issued and outstanding at March 31, 2020 and
December 31, 2019, respectively
120
118
Additional paid-in capital
534,205
530,285
Accumulated other comprehensive loss
(10,549
)
(9,210
)
Accumulated deficit
(359,913
)
(354,656
)
Total stockholders' equity
163,863
166,537
Total liabilities and stockholders' equity
$
213,014
$
209,369
LIMELIGHT NETWORKS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except
per share data) (Unaudited) Three Months
Ended March 31, December 31,
Percent March 31, Percent
2020
2019
Change
2019
Change
Revenue
$
57,012
$
60,129
-5%
$
43,280
32%
Cost of revenue:
Cost of services (1)
31,113
28,586
9%
22,941
36%
Depreciation - network
5,150
5,288
-3%
4,317
19%
Total cost of revenue
36,263
33,874
7%
27,258
33%
Gross profit
20,749
26,255
-21%
16,022
30%
Gross profit percentage
36.4
%
43.7
%
37.0
%
Operating expenses:
General and administrative (1)
7,882
7,554
4%
7,535
5%
Sales and marketing (1)
11,894
10,399
14%
10,972
8%
Research & development (1)
5,618
5,459
3%
5,901
-5%
Depreciation and amortization
341
328
4%
245
39%
Total operating expenses
25,735
23,740
8%
24,653
4%
Operating (loss) income
(4,986
)
2,515
NM
(8,631
)
NM
Other income (expense):
Interest expense
(10
)
(45
)
NM
(10
)
NM
Interest income
25
25
NM
212
NM
Other, net
(110
)
169
NM
(6
)
NM
Total other income (expense)
(95
)
149
NM
196
NM
(Loss) income before income taxes
(5,081
)
2,664
NM
(8,435
)
NM
Income tax expense
176
206
NM
124
NM
Net (loss) income
$
(5,257
)
$
2,458
NM
$
(8,559
)
NM
Net (loss) income per share: Basic
$
(0.04
)
$
0.02
$
(0.07
)
Diluted
$
(0.04
)
$
0.02
$
(0.07
)
Weighted average shares used in per share calculation: Basic
118,964
117,603
114,410
Diluted
118,964
123,801
114,410
(1) Includes share-based compensation (see supplemental
table for figures)
LIMELIGHT NETWORKS, INC.
SUPPLEMENTAL FINANCIAL DATA (In thousands)
(Unaudited) Three Months Ended March
31, December 31, March 31,
2020
2019
2019
Share-based compensation: Cost of
services
$
763
$
376
$
411
General and administrative
2,241
1,858
2,094
Sales and marketing
1,228
597
484
Research and development
832
484
467
Total share-based compensation
$
5,064
$
3,315
$
3,456
Depreciation and amortization: Network-related
depreciation
$
5,150
$
5,288
$
4,317
Other depreciation and amortization
341
328
245
Total depreciation and amortization
$
5,491
$
5,616
$
4,562
Net increase (decrease) in cash, cash equivalents and
marketable securities:
$
3,086
$
285
$
(11,825
)
End of period statistics: Approximate
number of active customers
573
599
643
Number of employees and employee equivalents
616
610
562
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited) Three Months Ended March
31, December 31, March 31,
2020
2019
2019
Operating activities Net (loss) income
$
(5,257
)
$
2,458
$
(8,559
)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: Depreciation and
amortization
5,491
5,616
4,562
Share-based compensation
5,064
3,315
3,456
Foreign currency remeasurement loss (gain)
(397
)
79
10
Deferred income taxes
(44
)
300
(51
)
Gain on sale of property and equipment
-
-
(30
)
Accounts receivable charges
158
519
257
Amortization of premium on marketable securities
-
1
12
Realized loss on marketable securities
-
9
-
Changes in operating assets and liabilities: Accounts receivable
(285
)
823
(3,720
)
Prepaid expenses and other current assets
(1,433
)
(324
)
(474
)
Income taxes receivable
3
(3
)
(2
)
Other assets
626
(1,547
)
(1,737
)
Accounts payable and other current liabilities
5,892
(2,383
)
2,243
Deferred revenue
(250
)
(232
)
(297
)
Income taxes payable
2
(143
)
62
Payments related to litigation, net
-
-
(1,520
)
Other long term liabilities
6
15
(175
)
Net cash provided by (used in) operating activities
9,576
8,503
(5,963
)
Investing activities Purchases of marketable
securities
-
-
(9,266
)
Sale and maturities of marketable securities
-
3,211
12,224
Purchases of property and equipment
(6,863
)
(10,480
)
(5,018
)
Proceeds from sale of property and equipment
-
-
29
Net cash used in investing activities
(6,863
)
(7,269
)
(2,031
)
Financing activities Payment of employee tax
withholdings related to restricted stock vesting
(1,515
)
(1,079
)
(894
)
Proceeds from employee stock plans
2,138
3,290
8
Net cash provided by (used in) financing activities
623
2,211
(886
)
Effect of exchange rate changes on cash and cash equivalents
(250
)
58
(4
)
Net increase (decrease) in cash and cash equivalents
3,086
3,503
(8,884
)
Cash and cash equivalents, beginning of period
18,335
14,832
25,383
Cash and cash equivalents, end of period
$
21,421
$
18,335
$
16,499
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. 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. 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
Income (Loss) to Non-GAAP Net Income (Loss) (In
thousands) (Unaudited) Three Months Ended
March 31, 2020 December 31, 2019 March 31,
2019 Amount Per Share Amount Per
Share Amount Per Share U.S. GAAP net
(loss) income
$
(5,257
)
$
(0.04
)
$
2,458
$
0.02
$
(8,559
)
$
(0.07
)
Share-based compensation
5,064
0.04
3,315
0.03
3,456
0.03
Non-GAAP net (loss) income
$
(193
)
$
(0.00
)
$
5,773
$
0.05
$
(5,103
)
$
(0.04
)
Weighted average shares used in per share calculation
118,964
117,603
114,410
LIMELIGHT NETWORKS, INC. Reconciliation of U.S.
GAAP Net Income (Loss) to EBITDA to Adjusted EBITDA (In
thousands) (Unaudited) Three Months Ended
March 31, December 31, March 31,
2020
2019
2019
U.S. GAAP net (loss) income
$
(5,257
)
$
2,458
$
(8,559
)
Depreciation and amortization
5,491
5,616
4,562
Interest expense
10
45
10
Interest and other (income) expense
85
(194
)
(206
)
Income tax expense
176
206
124
EBITDA
$
505
$
8,131
$
(4,069
)
Share-based compensation
5,064
3,315
3,456
Adjusted EBITDA
$
5,569
$
11,446
$
(613
)
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 877 296 5190 within the United States
or +1 412 317 5233 outside of the U.S. 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. 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
customers, unforeseen changes in our hiring patterns, adverse
outcomes in litigation, and experiencing expenses that exceed our
expectations. 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 April 23, 2020, 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), a leading provider of
digital content delivery, video, cloud security, and edge computing
services, empowers customers to provide exceptional digital
experiences. Limelight’s edge services platform includes a unique
combination of global private infrastructure, intelligent software,
and expert support services that enable current and future
workflows. For more information, visit www.limelight.com, and
follow us on Twitter, Facebook and LinkedIn.
Copyright (C) 2020 Limelight Networks, Inc. All rights reserved.
All product or service names are the property of their respective
owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20200423005773/en/
Limelight Networks, Inc. Sajid Malhotra, 602-850-5778
ir@llnw.com
Limelight Networks (NASDAQ:LLNW)
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Limelight Networks (NASDAQ:LLNW)
過去 株価チャート
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