Limelight Network Provides Details on Q2 Financial Report
Limelight Networks reported revenue of $50.2 million for the second quarter of 2018, up 11% compared to $45.4 million in the second quarter of 2017. Currency did not materially impact reported revenue in the quarter.
On a GAAP basis, Limelight reported net income of $15.2 million, or $0.14 per basic share and $0.13 per fully diluted share, for the second quarter of 2018, compared to a net loss of $1.6 million, or $0.01 per basic share, in the second quarter of 2017. Net income in the second quarter of 2018 included $14.9 million of non-operating income ($0.13 per basic share and $0.12 per fully diluted share) related to a settlement and patent license agreement.
Non-GAAP net income was $4.0 million, or $0.04 per basic share, for the second quarter of 2018, compared to $2.9 million, or $0.03 per basic share, in the second quarter of 2017.
EBITDA was $20.3 million for the second quarter of 2018, compared to $3.4 million for the second quarter of 2017. Adjusted EBITDA was $9.2 million for the second quarter of 2018, compared to $7.9 million for the second quarter of 2017.
Limelight ended the second quarter with 549 employees and employee equivalents, up from 544 at the end of the first quarter of 2018, and up from 533 in the year ago period.
“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,” says Bob Lento, Chief Executive Officer, Limelight Networks. “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.”
“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 adds.
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.