Limelight Networks Reports Record Fourth Quarter Results and Provides Strong Guidance for 2022

Rhea-AI Summary

Limelight Networks reported strong financial results for Q4 2021, achieving a revenue of $62.9 million, a 14% increase quarter-over-quarter and year-over-year. The gross margin improved to 35.4%, up 670 basis points from the previous quarter, while adjusted EBITDA margin rose to 15%. The company generated over $3 million in free cash flow, with Layer0 contributing $3.8 million in the quarter. Limelight is focusing on expanding its client base, enhancing product offerings, and improving operational efficiency as it anticipates revenue between $240 million and $250 million for 2022.

Positive

• Revenue of $62.9 million, up 14% quarter-over-quarter and year-over-year.
• Gross margin improved to 35.4%, up 670 basis points from the previous quarter.
• Adjusted EBITDA margin rose to 15% from 11% in Q3 2021.
• Generated over $3 million in free cash flow.
• Layer0 contributed $3.8 million in Q4, total contribution for 2021 was $4.5 million.
• 18 of the top 20 customers increased revenue more than 20% for three consecutive quarters.

Negative

• GAAP net loss of $7.7 million, though an improvement from $10.1 million in Q3 2021.
• Total gross profit declined 28% year-over-year.
• Overall revenue for 2021 decreased 5% compared to 2020.

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

FAQ

What were Limelight Networks' Q4 2021 financial results?

Limelight Networks reported Q4 2021 revenue of $62.9 million, up 14% from Q3 2021, with a gross margin of 35.4%.

How much free cash flow did Limelight generate in Q4 2021?

Limelight generated over $3 million in free cash flow in Q4 2021.

What is the guidance for Limelight Networks in 2022?

Limelight Networks anticipates revenue between $240 million and $250 million for 2022.

What was the adjusted EBITDA margin for Limelight in Q4 2021?

Limelight's adjusted EBITDA margin rose to 15% in Q4 2021, up from 11% in the previous quarter.

What loss did Limelight Networks report for Q4 2021?

The company reported a GAAP net loss of $7.7 million for Q4 2021.