Limelight Networks Updates Guidance for 2018 and Issues Initial Guidance for 2019
December 12 2018 - 4:30PM
Business Wire
Limelight Networks, Inc. (NASDAQ:LLNW) (Limelight), a leading
provider of edge cloud services, today updated its financial
expectations for the full year 2018 and also issued guidance
2019.
Based on current conditions, Limelight expects the following
financial results for 2018:
- Revenue between $195 and $196
million
- GAAP earnings of between $0.08 and
$0.09
- Includes a one-time $0.12 gain for
settlement and patent license income
- Non-GAAP earnings per share between
$0.10 and $0.11 per share
- Adjusted EBITDA between $30 and $32
million
- Capital Expenditures between $15-17
million
Limelight also expects the following financial results for
2019:
- Revenue between $220 and $225
million
- GAAP earnings of between $0.02 and
$0.07
- Non-GAAP earnings per share between
$0.15 and $0.20 per share
- Adjusted EBITDA between than $35 and 40
million
- Capital Expenditures between $20 and 24
million
“Earlier this year, we made the decision to move forward with a
video-centric strategy, which led to foregoing certain sources of
revenue to focus on more robust, faster-growing opportunities
better aligned with our long-term goals. We also underwent periodic
repricing of certain major accounts, from which we expect
disproportionately positive revenue growth in 2019. Thus, we are
revising our expectations for 2018,” said Bob Lento, Limelight’s
Chief Executive Officer. “At the same time, we are increasingly
confident regarding our outlook, as demonstrated by our positive
2019 guidance.
“Traffic volumes continue to grow in our core business —
we’ve seen significant strengthening in late 4Q that we expect to
carry into early 2019. We’re engaged with several large US
broadcasters, and expect to generate substantial revenues from this
group in 2019. Strategically, the low-latency video streaming
business is seeing such high demand that we have committed to
double our capacity for this product. We believe the Ericsson
initiative will contribute meaningfully towards our 2019 revenue
and margin goals in the second half of 2019. We will also shortly
publish an executive leadership announcement for our edge
initiative, which we believe will further fuel our growth. We are
investing in our business because we are emboldened by the
opportunity. All of these factors together form the foundation for
2019 guidance of revenue growth in low teens, improving earnings
before one-time items, cash generation, and only a moderate
increases in capital expenditures,” Lento added.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These statements include, among
others, statements regarding our strategic focus; our expectations
regarding revenues for the full year 2018 and 2019; gross margin,
non-GAAP net income (loss) and capital expenditures for the full
year 2018 and 2019; traffic volumes, our future prospects; and our
position in our industry. 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
www.investors.limelightnetworks.com and on the SEC website at
www.SEC.gov. All information provided in this release is as of
December 13, 2017, 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, follow us
on Twitter, Facebook, and LinkedIn.
Copyright (C) 2018 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/20181212005822/en/
Limelight Networks, Inc.Sajid Malhotra,
602-850-5778ir@llnw.com
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