Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 29, 2021
(Exact name of Registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
File Number)
(I.R.S. Employer
Identification Number)
1465 North Scottsdale Road Suite 400
Scottsdale, AZ 85257
(Address, including zip code, of principal executive offices)
(602) 850-5000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of exchange on which registered
Common stock, par value $0.001 per shareLLNWNASDAQ
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02Results of Operations and Financial Condition.
On July 29, 2021, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2021, and certain other information. The full text of this press release is furnished herewith as Exhibit 99.1.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits
104.0Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 29, 2021By:/s/ Michael DiSanto
Michael DiSanto
Chief Administrative and Legal Officer & Secretary


Exhibit 99.1
Limelight Networks Reports Financial Results for the Second Quarter of 2021
SCOTTSDALE, Ariz., July 29, 2021 - Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of edge cloud services, today reported financial results for the second quarter ended June 30, 2021, delivering on several key milestones in its 2021 strategic plan, which resulted in over $3 million of adjusted EBITDA improvements quarter over quarter.
Highlights of Strategic Plan Progress – Improve, Expand & Extend to Position for Growth
Under the first full quarter with new leadership, Limelight made significant strides in a number of key areas to return momentum to the business, drive operational improvements and accelerate revenue growth and profitability.
Achieved a 30% reduction in rebuffer rates and increased global network throughput by 20% through the newly formed performance operations team.
Improved the service level agreement position with 8 of our top 10 clients.
Achieved a 55% increase in our traffic in Latin America quarter over quarter; expecting to increase our capacity by 60% in the second half of the year to support growth in the region.
Identified over $8 million in annualized network operations cost savings which is expected to contribute $4 million to gross profit in the second half of the year.
Key client winback expected to yield over $6 million in annualized revenue. This client was formerly a top 10 revenue client.
Appointed Eric Armstrong as Senior Vice President of Growth. Most recently, Eric was Vice President, North American Sales and Services at Harmonic, Inc., a global leader in streaming, broadcast and service provider video infrastructure.
Acquired Layer0, a leading provider of SaaS development and deployment tools for frontend web apps and API's to diversify product offering, clients and deliver an expected revenue contribution of over $20 million in 2022, while being accretive to gross margins and adjusted EBITDA. With the acquisition, Layer0’s founder Ajay Kapur, will join Limelight as our Chief Technology Officer.
“It has been a very productive quarter and I am pleased with our ability to manage change while also aggressively executing on the plans outlined in our last earnings call,” said Bob Lyons, President and Chief Executive Officer. “We were able to make a number of meaningful improvements in the business that position us well for a strong run-rate exiting 2021. We improved our adjusted EBITDA by over $3 million, as savings from the actions taken in the first quarter delivered material operational improvements and most importantly, we see strong early signs of client confidence returning. Our three pillar framework of improving, expanding and extending the core will continue to guide us as we push for continued momentum in the last half of the year.
“Additionally, I am pleased to welcome both Eric and Ajay to the executive management team and welcome the entire Layer0 team to Limelight. I believe the simplified organization and operating structure we established has allowed us to move more quickly and efficiently. The addition of Eric, Ajay and the Layer0 team is a great infusion of diversified experience and talent. The Layer0 team is filled with innovative, results-oriented people and we look forward to what our new combined organization will accomplish together,” said Lyons.

Exhibit 99.1

Second Quarter 2021 Financial Results
Revenue of $48.3 million, down 6% compared to $51.2 million in the first quarter of 2021, and down 17% compared to $58.5 million in the second quarter of 2020.
GAAP net loss of $13.7 million, or $(0.11) per basic share, an improvement of $11.8 million from the net loss of $25.5 million, or $(0.21) per basic share, in the first quarter of 2021. GAAP net loss was $1.7 million, or $(0.01) per basic share in the second quarter of 2020. GAAP net loss included $2.2 million and $11.7 million in restructuring and transition related charges in the second and first quarters of 2021, respectively.
Non-GAAP net loss was $8.0 million, or $(0.06) per basic share, an improvement of $3.0 million from the net loss of 11.0 million, or (0.09) per basic share, in the first quarter of 2021. Non-GAAP net income was $3.5 million, or $0.03 per basic share in the second quarter of 2020.
EBITDA was $(5.3) million, an improvement of $12.3 million from $(17.6) million for the first quarter of 2021. EBITDA was $4.5 million for the second quarter of 2020.
Adjusted EBITDA was $0.2 million, an improvement of $3.5 million from $(3.3) million for the first quarter of 2021. Adjusted EBITDA was $9.7 million for the second quarter of 2020.
Cash and cash equivalents of $119.6 million increased $2.6 million from $117.0 million at the end of the first quarter 2021.
Limelight ended the second quarter of 2021 with 459 employees and employee equivalents, down from 510 at the end of the first quarter of 2021, and down from 627 at the end of the second quarter of 2020.
Based on current outlook, we are reducing the guidance on capital expenditures from $20-25 million to $15-20 million, but leaving all other components of our guidance unchanged:
July 2021April 2021Actual 2020
Revenue$220 to $230 million$220 to $230 million$230.2 million
GAAP Basic EPS$(0.35) to $(0.25)$(0.35) to $(0.25)$(0.16)
Non-GAAP EPS$(0.15) to $(0.05)$(0.15) to $(0.05)$(0.01)
Adjusted EBITDA$20 to $30 million$20 to $30 million$24.5 million
Capital expenditures$15 to $20 million$20 to $25 million$25.1 million
“While much has been accomplished in a very short time, we have much more to do,” said Lyons. “We will continue our pursuit of operational excellence, restoring client confidence, improving performance and returning value to our shareholders.” On August 24, Limelight will provide a more detailed overview of its go-forward strategy and longer-term business plans. A press release with participation details will be issued by August 10 and also made available on the Investor Relations section of Limelight's website (www.llnw.com).

Exhibit 99.1
Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
June 30,
March 31,
December 31,
Current assets:
Cash and cash equivalents$44,065 $35,620 $46,795 
Marketable securities75,471 81,308 76,928 
Accounts receivable, net24,867 29,151 31,675 
Income taxes receivable57 102 68 
Prepaid expenses and other current assets14,557 14,784 15,588 
Total current assets159,017 160,965 171,054 
Property and equipment, net42,406 46,863 46,418 
Operating lease right of use assets8,929 9,521 10,150 
Marketable securities, less current portion40 40 40 
Deferred income taxes1,604 1,577 1,530 
Goodwill77,642 77,421 77,753 
Other assets6,147 6,742 7,233 
Total assets$295,785 $303,129 $314,178 
Current liabilities:
Accounts payable$12,459 $8,029 $4,587 
Deferred revenue524 844 933 
Operating lease liability obligations1,977 2,233 2,465 
Income taxes payable388 322 253 
Other current liabilities16,877 19,264 17,560 
Total current liabilities32,225 30,692 25,798 
Convertible senior notes, net121,371 121,200 100,945 
Operating lease liability obligations, less current portion10,358 10,781 11,265 
Deferred income taxes306 360 279 
Deferred revenue, less current portion272 226 220 
Other long-term liabilities369 476 479 
Total liabilities164,901 163,735 138,986 
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding— — — 
Common stock, $0.001 par value; 300,000 shares authorized; 126,705, 125,248 and 123,653 shares issued and outstanding at June 30, 2021, March 31, 2021 and December 31, 2020, respectively
127 125 124 
Additional paid-in capital550,205 545,516 556,512 
Accumulated other comprehensive loss(7,965)(8,462)(7,511)
Accumulated deficit(411,483)(397,785)(373,933)
Total stockholders’ equity130,884 139,394 175,192 
Total liabilities and stockholders’ equity$295,785 $303,129 $314,178 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
 Three Months EndedSix Months Ended
June 30,March 31,PercentJune 30,PercentJune 30,June 30,Percent
Revenue$48,348 $51,195 (6)%$58,546 (17)%$99,543 $115,558 (14)%
Cost of revenue:
Cost of services (1)32,976 33,021 — %29,389 12 %66,021 60,502 %
Depreciation — network5,929 5,679 %5,360 11 %11,608 10,510 10 %
Total cost of revenue38,905 38,700 %34,749 12 %77,629 71,012 %
Gross profit9,443 12,495 (24)%23,797 (60)%21,914 44,546 (51)%
Gross profit percentage19.5 %24.4 %40.6 %22.0 %38.5 %
Operating expenses:
General and administrative (1)7,515 12,948 (42)%8,187 (8)%20,412 16,069 27 %
Sales and marketing (1)5,784 9,835 (41)%10,929 (47)%15,631 22,823 (32)%
Research and development (1)5,187 6,113 (15)%5,572 (7)%11,315 11,189 %
Depreciation and amortization549 540 %323 70 %1,089 665 64 %
Restructuring charges2,155 6,873 NM— NM9,028 — NM
Total operating expenses21,190 36,309 (42)%25,011 (15)%57,475 50,746 13 %
Operating loss(11,747)(23,814)NM(1,214)NM(35,561)(6,200)NM
Other income (expense):
Interest expense(1,305)(1,286)NM(71)NM(2,591)(82)NM
Interest income42 45 NMNM87 31 NM
Other, net(440)(214)NM(312)NM(655)(421)NM
Total other expense(1,703)(1,455)NM(377)NM(3,159)(472)NM
Loss before income taxes(13,450)(25,269)NM(1,591)NM(38,720)(6,672)NM
Income tax expense248 260 NM136 NM507 311 NM
Net loss$(13,698)$(25,529)NM$(1,727)NM$(39,227)$(6,983)NM
Net loss per share:
Weighted average shares used in per share calculation:
Basic126,050 124,290 120,230 125,170 119,597 
Diluted126,050 124,290 120,230 125,170 119,597 
(1) Includes share-based compensation (see supplemental table for figures)

Exhibit 99.1
Limelight Networks, Inc.
Supplemental Financial Data
(In thousands)
 Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
Share-based compensation:
Cost of services$458 $246 $792 $704 $1,555 
General and administrative1,874 6,028 2,257 7,902 4,498 
Sales and marketing395 563 1,322 958 2,550 
Research and development614 371 880 985 1,712 
Restructuring charges917 1,354 — 2,271 — 
Total share-based compensation$4,258 $8,562 $5,251 $12,820 $10,315 
Depreciation and amortization:
Network-related depreciation$5,929 $5,679 $5,360 $11,608 $10,510 
Other depreciation and amortization549 540 323 1,089 665 
Total depreciation and amortization$6,478 $6,219 $5,683 $12,697 $11,175 
Net increase (decrease) in cash, cash equivalents and marketable securities:$2,608 $(6,795)$(3,221)$(4,187)$(135)
End of period statistics:
Approximate number of active clients533 527 560 533 560 
Number of employees and employee equivalents459 510 627 459 627 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
 Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
Operating activities
Net loss$(13,698)$(25,529)$(1,727)$(39,227)$(6,983)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization6,478 6,219 5,683 12,697 11,175 
Share-based compensation4,258 8,562 5,251 12,820 10,315 
Foreign currency remeasurement loss (gain) 257 (71)257 186 (140)
Deferred income taxes(71)(10)59 (81)15 
Gain on sale of property and equipment(107)— — (107)— 
Accounts receivable charges381 466 155 847 313 
Amortization of premium on marketable securities573 609 — 1,182 — 
Noncash interest expense201 199 — 400 — 
Changes in operating assets and liabilities:
Accounts receivable3,903 2,059 (10,798)5,962 (11,083)
Prepaid expenses and other current assets(7)446 986 439 (447)
Income taxes receivable46 (36)10 10 13 
Other assets513 399 1,121 912 1,747 
Accounts payable and other current liabilities1,523 5,209 1,045 6,732 6,937 
Deferred revenue(273)(84)313 (357)63 
Income taxes payable68 73 — 141 
Other long term liabilities(108)(3)(15)(111)(11)
Net cash provided by (used in) operating activities3,937 (1,492)2,340 2,445 11,916 
Investing activities
Purchases of marketable securities(20,537)(10,874)— (31,411)— 
Sale and maturities of marketable securities25,818 5,897 — 31,715 — 
Purchases of property and equipment(2,986)(6,628)(8,085)(9,614)(14,948)
Proceeds from sale of property and equipment107 — — 107 — 
Net cash provided by (used in) investing activities2,402 (11,605)(8,085)(9,203)(14,948)
Financing activities
Payment of debt issuance costs(30)— — (30)— 
Payment of employee tax withholdings related to restricted stock vesting(427)(671)(1,430)(1,098)(2,945)
Proceeds from employee stock plans2,613 2,847 3,954 5,460 6,092 
Net cash provided by financing activities2,156 2,176 2,524 4,332 3,147 
Effect of exchange rate changes on cash and cash equivalents(50)(254)— (304)(250)
Net increase (decrease) in cash and cash equivalents8,445 (11,175)(3,221)(2,730)(135)
Cash and cash equivalents, beginning of period35,620 46,795 21,421 46,795 18,335 
Cash and cash equivalents, end of period$44,065 $35,620 $18,200 $44,065 $18,200 
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles (Non-GAAP) net income (loss), EBITDA and Adjusted EBITDA as supplemental measures of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income (loss) to be an important indicator of overall business performance. We define Non-GAAP net income (loss) to be U.S. GAAP net income (loss) adjusted to exclude share-based compensation, non-cash interest expense and restructuring and transition related charges. We believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define EBITDA as U.S. GAAP net income (loss) adjusted to exclude depreciation and amortization, interest expense, interest and other (income) expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based compensation and restructuring and transition related charges. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. Our management uses these Non-GAAP financial measures because, collectively, they provide valuable information on the performance of our on-going

Exhibit 99.1
operations, excluding non-cash charges, taxes and non-core activities (including interest payments related to financing activities). These measures also enable our management to compare the results of our on-going operations from period to period, and allow management to review the performance of our on-going operations against our peer companies and against other companies in our industry and adjacent industries. We believe these measures also provide similar insights to investors, and enable investors to review our results of operations “through the eyes of management.”
Furthermore, our management uses these Non-GAAP financial measures to assist them in making decisions regarding our strategic priorities and areas for future investment and focus.
The terms Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net income (loss), EBITDA and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income (loss), EBITDA and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:
•     EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
•     These measures do not reflect changes in, or cash requirements for, our working capital needs;
•     Non-GAAP net income (loss) and Adjusted EBITDA do not reflect the cash requirements necessary for litigation costs, including provision for litigation and litigation expenses;
•     These measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;
•     These measures do not reflect income taxes or the cash requirements for any tax payments;
•     Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
•     While share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and
•     Other companies may calculate Non-GAAP net income (loss), EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income (loss), EBITDA, and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are calculated as follows for the periods presented in thousands:

Exhibit 99.1
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Item 10(e) of Regulation S-K, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures. Per share amounts may not foot due to rounding.
Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income (Loss)
(In thousands)
Three Months EndedSix Months Ended
June 30, 2021March 31, 2021June 30, 2020June 30, 2021June 30, 2020
AmountPer ShareAmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
U.S. GAAP net loss$(13,698)$(0.11)$(25,529)$(0.21)$(1,727)$(0.01)$(39,227)$(0.31)$(6,983)$(0.06)
Share-based compensation3,341 0.03 2,644 0.02 5,251 0.04 5,985 0.05 10,315 0.09 
Non-cash interest expense201 — 199 — — — 400 — — — 
Restructuring and transition related charges2,155 0.02 11,700 0.09 — — 13,855 0.11 — — 
Non-GAAP net (loss) income$(8,001)$(0.06)$(10,986)$(0.09)$3,524 $0.03 $(18,987)$(0.15)$3,332 $0.03 
Weighted average shares used in per share calculation:126,050 124,290 120,230 125,170 119,597 

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
(In thousands)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
U.S. GAAP net loss$(13,698)$(25,529)$(1,727)$(39,227)$(6,983)
Depreciation and amortization6,478 6,219 5,683 12,697 11,175 
Interest expense1,305 1,286 71 2,591 82 
Interest and other (income) expense 398 169 306 568 390 
Income tax expense 248 260 136 507 311 
EBITDA $(5,269)$(17,595)$4,469 $(22,864)$4,975 
Share-based compensation3,341 2,644 5,251 5,985 10,315 
Restructuring and transition related charges2,155 11,700 — 13,855 — 
Adjusted EBITDA $227 $(3,251)$9,720 $(3,024)$15,290 

For future periods, we are unable to provide a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) as a result of the uncertainty regarding, and the potential variability of, the amounts of depreciation and amortization, interest expense, interest and other (income) expense and income tax expense, that may be incurred in the future.

Exhibit 99.1
Conference Call
At approximately 4:30 p.m. EDT (1:30 p.m. PDT) today, management will host a quarterly conference call for investors. Investors can access this call toll-free at 877-296-5190 within the United States or +1 412-317-5233 outside of the U.S. The conference call will also be audio cast live from http://www.limelight.com and a replay will be available following the call from the Limelight website.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding our expectations regarding revenue, gross margin, non-GAAP net income (loss), capital expenditures, and our future prospects. 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 clients, unforeseen changes in our hiring patterns, adverse outcomes in litigation, experiencing expenses that exceed our expectations, and acquisition activities and contributions from acquired businesses.. 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 investors.limelightnetworks.com and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of July 29, 2021, 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) is an industry-leader in edge access and content delivery services that provides powerful tools and a client-first approach to optimize and deliver digital experiences at the edge. We are a trusted partner to the world’s biggest brands and serve their global customers with experiences such as livestream sporting events, global movie launches, video games or file downloads for new phone apps. Limelight offers one of the largest, best-optimized private networks coupled with a global team of industry experts to provide edge services that are fast, secure and reliable. For more information, visit www.limelight.com, and follow us on Twitter, Facebook and LinkedIn.
Copyright (C) 2021 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.
Source: Limelight Networks
Limelight Networks, Inc.
Dan Boncel, 602-850-4810
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ