Recap of Limelight Networks Earnings for Q1 2014

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During the earnings call with investors, Limelight Networks (LLNW) reported $41.2M in revenue for Q1 of 2014, and loss from operations of $7.6M. Netflix represented $4.9M of that revenue. At one time in the past, Netflix represented 40% of LLNW’s revenue. The LLNW executive team is estimating that revenue for 2014 to be in the range of $152M to $158M. Nothing out of the ordinary was discussed during the call, only that employee and customer churn were down. On the bright side, LLNW is winning business in APAC, Middle East and Europe.  LLNW financials are average at best. With $112M cash on hand, LLNW needs to put some of that capital to work, and acquire a company in order to stay relevant.

Innovation Driven Business

The CDN business is a innovation driven technology business, and right now the CDN industry is in the throes of a major transformation. New CDN business models are pushing aside the old business models. Although Fastly, CloudFlare and Incapsula are not imminent threats today to LLNW’s business, they will be very soon. LLNW is the most important CDN in the ecosystem. They have to prove to the industry that a public CDN not named Akamai, can co-exist alongside Akamai. Come on LLNW, we’re all rooting for you. Make us believers.

 Q1 2014 Earnings Highlights
  • Revenue is $41.2M
  • Loss from Continuing Operations is $7.6M
  • $112M of cash/equivalents on hand end of quarter
  • Top 100 customers growing with LLNW
  • Netflix is leaving mid-year. LLNW expects 0 revenue from Netflix in Q4
  • In the past, Netflix represented 40% of LLNW total revenue
  • Netflix revenue for Q1 was $4.9M
  • Total Employee count is 472
  • Limelight DSA is faster than the competition, according to some internal/external test via Cedexis
  • Key wins in S. Korea, Middle East and Europe
  • 2014 expected revenue to be in the range of $152M to $158M
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