Limelight Networks (LLNW) Tops Q2 EPS by 1c, Revenues Beat; Boosts FY18 Revenue Outlook

Limelight Networks (NASDAQ: LLNW) reported Q2 EPS of $0.04, $0.01 better than the analyst estimate of $0.03. Revenue for the quarter came in at $50.2 million versus the consensus estimate of $49.63 million.

• Revenue of $50.2 million, up 11 percent year over year
• GAAP gross margin of 49.4%, up 230 basis points, year over year
• GAAP basic EPS of $0.14 and Non-GAAP EPS of $0.04
• Cash and marketable securities of $45.6 million
• Raises revenue guidance for full year 2018, with lower capital expenditures

“Limelight’s customers rewarded us once again in the second quarter of 2018, for our commitment to providing them with the best tools, value, reliability, and customer care. Limelight’s revenues grew more than 11% over the prior year quarter, driven by video delivery services. Limelight generated strong operating cash flow for the quarter, and further strengthened its balance sheet. After raising full-year guidance in April, we remain on track to achieve those results, on even lower capital expenditures. We’re pleased with Limelight’s results through the half-year mark, and owe great thanks to each of our committed employees for putting us on track to make 2018 our best year yet,” said Bob Lento, Chief Executive Officer, Limelight Networks.

“Financial discipline, along with continued investments in people, technology, and services, and our deep understanding of the intricacies of delivering content closer to the consumer, uniquely position Limelight to capitalize on emerging opportunities in low-latency, secure, Edge computing, analytics and communications. We continue to find opportunities to tune our infrastructure for sustained, cost efficient growth, to fully exploit Limelight’s unique Edge-centric platform, and to generate higher shareholder returns,” Lento added.

Based on current conditions, we are raising our previously issued guidance on April 19, 2018 for revenue, from $198 to $202 million to $200 to $203 million. Gross margin percentage improvement, GAAP earnings per share, non-GAAP earnings per share, and adjusted EBITDA remain unchanged. We now expect capital expenditures to be below $20 million for the full year, down from our previous expectation of between $20 and $22 million.

GUIDANCE:

Limelight Networks sees Q3 2018 revenue of $198-202 million, versus the consensus of $202.98 million.

For earnings history and earnings-related data on Limelight Networks (LLNW) click here.

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