Recap on Limelight’s 2013 Results

Limelight seems to be turning the corner. It’s stock price rose about 20% after the earnings call.  To sum it up, Limelight hit a home run in the 4th quarter, whereas, Akamai hit a grand slam. Below are some of the highlight of the earnings call that Bob (CEO) & Pete (CFO) had with the financial analyst.

 Limelight is focused on improving the following features
  • Adapted format streaming for mobile devices
  • Additional improvements to DRM functionality
  • Instant global purge capabilities
  • Enhancement to the cloud storage offering
Here are the business highlights
  • 2013 4th Quarter Revenue is $42.2M, down 9% from last year
  • Board approved $15M of share buybacks
  • Customer churn and employee churn are down in the 4th quarter compared to earlier quarters
  • LLNW is re-engineering the quote-to-cash process
  • LLNW is integrating disparate systems to improve process efficiency and customer service
  • Netflix is Limelight’s largest customer
  • Netflix is moving off of Limelight by mid-year of 2014
  • Organic growth and new customer acquisitions are going to offset Netflix’s departure
  • The WCM business that was sold was due to generate $15M in revenue in 2014
  • Employee count is down from 511 to 482. Some of the WCM employees are leaving LLNW to join the company that acquired WCM
  • LLNW now has 4 Product groups: Content Delivery, Dynamic Website Acceleration, Video Asset Management, and Cloud Storage