Limelight Networks (LLNW) FY18 Guidances Tops Views at Mid-Point

Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a global leader in digital content delivery, today issued the following guidance for full year of 2018.

Based on current conditions, Limelight sees:

• Revenue between $196 and $200 million
• GAAP gross margin improvement of more than 100 basis points
• Non-GAAP earnings per share between $0.11 and $0.15 per share
• Adjusted EBITDA between $32 and $36 million
• Capital Expenditures between $22 and 24 million

(Street sees FY18 EPS of $0.11 on revenue of $196.3 million)

“Our 2017 financial progress includes revenue growth, margin expansion and accelerating earnings and EBITDA improvement. The results have been at the high end of our expectations at the end of three quarters. Our previously issued fourth quarter guidance is further evidence of strong momentum entering 2018. We need to build on our 2017 achievements, and capture the full potential of Limelight’s capabilities. We believe, this guidance fairly reflects the opportunity for delivering a strong 2018,” said Sajid Malhotra, Limelight’s Chief Financial Officer.

“This guidance implies continuing financial improvements across multiple metrics. We aim to gain share in our core business, increase business efficiency across operations, and invest in our future. In addition to the structural improvements, but not evident in this guidance are the investments we are making to organically build our edge-cloud/edge-compute business. Based on early interest, we are very excited about the opportunity and growth prospects from these new initiatives. While small in 2018, we believe success with these initiatives will add to company growth and profitability in 2019 and beyond. Most notably, with the infrastructure in place, the risk-reward ratio is favorable, and the investments required in 2018 are small and manageable in relation to the opportunity and return potential. We believe our best days are ahead of us as we continue the hard work to capture our fair share of these opportunities, and make a meaningful contribution to the success of our customers,” he added.

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