Why Shares of Limelight Networks Popped Today
Shares of Limelight Networks (NASDAQ: LLNW) jumped on Friday after the digital content delivery company reported its second-quarter results. Limelight beat analyst estimates for both revenue and earnings, and it boosted its full-year guidance. The stock was up about 8.1% at 11:40 a.m. EDT after being up as much as 12.6% earlier in the day.
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Limelight reported second-quarter revenue of $50.2 million, up 11% year over year and about $0.6 million higher than the average analyst estimate. Video delivery was the main driver behind the company's growth.
Non-GAAP earnings per share came in at $0.04, up from $0.03 in the prior-year period and $0.01 better than analysts were expecting. Gross margin increased 2.3 percentage points year over year, which combined with revenue growth more than offset a 5% increase in operating expenses.
"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," said Limelight CEO Bob Lento.
The strong second quarter led Limelight to raise its full-year revenue guidance for the second time this year. The company now expects to produce between $200 million and $203 million of revenue, up from a previous range of $198 million to $202 million. Limelight left its guidance for earnings and EBITDA unchanged.
Lento is optimistic on the company's growth prospects: "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."
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