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):
November 4, 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 500
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 November 4, 2021, Limelight Networks, Inc. issued a press release regarding its financial results for the third quarter ended September 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: November 4, 2021By:/s/ Michael DiSanto
Michael DiSanto
Chief Administrative and Legal Officer & Secretary


Exhibit 99.1
Limelight Networks Reports Strong Financial Results for the Third Quarter of 2021
SCOTTSDALE, Ariz., November 4, 2021 - Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight),a leading provider of content delivery services and AppOps at the edge, today reported financial results for the third quarter ended September 30, 2021. Delivering on several key milestones in its 2021 strategic plan, the company reported significant revenue, gross margin and adjusted EBITDA growth quarter over quarter.
“As expected, our third quarter showed significant sequential quarterly improvement. Revenue for the third quarter came in at $55.2 million, up 14% quarter over quarter. Cash gross margin was 40%, up more than 7% quarter over quarter and Adjusted EBITDA margin was 11%, up from breakeven in the second quarter of 2021,” said Bob Lyons, President and Chief Executive Officer.
“We are executing against our previously outlined strategy and regaining our competitive position. We have been hard at work taking meaningful steps to improve the performance and cost of our globally scaled network, and to expand our client relationships and extend our edge enabled solutions. We remain confident in our ability to continue building on this progress and deliver on our Improve-Expand-Extend strategy,” said Lyons.
Continued improvement in operational performance and cost structure:
Completion of 90% of our $30 million in planned annualized costs savings
700 bps quarter over quarter cash gross margin expansion
Improved operating leverage resulting in an 85% adjusted EBITDA flow through of the sequential quarterly revenue growth
Our internal assessment of client sentiment improved +13 points quarter over quarter across our global top 20
Existing client and new logo growth driving meaningful revenue expansion:
14% sequential quarter over quarter revenue growth
18 of Top 20 Limelight customers grew revenue more than 20% for the second quarter in a row
Closed more than 30 new customer opportunities, more than 10 of which have an Annual Contract Value (ACV) of greater than $100,000 and 2 of which have an ACV of greater than $1M
Strong pipeline growth with new logo bookings up more than 3x quarter over quarter
Our embedded CDN Service Provider offering, EdgeXtend, gaining traction at ISPs globally as evidenced by the NTT Docomo announcement
Extension of new growth products:
Completed acquisition of Layer0 and successfully launched our best-in-class AppOps solution
Diverse new client wins include a large mattress retailer, a global travel industry leader, and a $6B retail giant and the renewal of a top ranked US Bank.
Planned fourth quarter launch of our AppCDN offering and then proprietary integrated Security offerings

Exhibit 99.1
“We have made meaningful progress with our revitalization strategy and are seeing early traction with the groundwork we laid supporting continued momentum. Our acquisition of Layer0 and soon to be launched accretive Application and Security products, the successful acceleration of our EdgeExtend solution, coupled with two new large client wins, support this momentum and improving financial performance into the fourth quarter and beyond,” said Lyons.
Third Quarter 2021 Financial Results
Revenue of $55.2 million, up 14% from the second quarter of 2021 and down 7% compared to the third quarter of 2020.
GAAP net loss of $10.1 million, or $(0.08) per basic share, an improvement of $3.6 million from the net loss of $13.7 million, or $(0.11) per basic share, in the second quarter of 2021. GAAP net loss was $4.0 million, or $(0.03) per basic share in the third quarter of 2020. GAAP net loss included $1.8 million and $2.2 million in restructuring and transition related charges in the third and second quarters of 2021, respectively.
Non-GAAP net loss was $1.5 million, or $(0.01) per basic share, an improvement of $6.5 million from the Non-GAAP net loss of 8.0 million, or $(0.06) per basic share, in the second quarter of 2021. Non-GAAP net loss was $1.2 million, or $(0.01) per basic share in the third quarter of 2020.
EBITDA was $(2.0) million, an improvement of $3.3 million from $(5.3) million for the second quarter of 2021. EBITDA was $3.7 million for the third quarter of 2020.
Adjusted EBITDA was $6.1 million, an improvement of $5.9 million from $0.2 million for the second quarter of 2021. Adjusted EBITDA was $5.6 million for the third quarter of 2020.
Cash and cash equivalents total $75.8 million at the end of the third quarter 2021.
Limelight ended the third quarter of 2021 with 529 employees and employee equivalents, up from 459 at the end of the second quarter of 2021, and down from 620 at the end of the third quarter of 2020. Employee count as of the third quarter includes 55 Layer0 employees.
“Based on forecasts from our larger clients and their view of their content and post COVID traffic patterns, we believe the fourth quarter will represent a return to both sequential and year over year growth; with this traction and new products to be launched over the next few months, we are also accelerating investments in rebuilding our sales team,” continued Lyons. “We are making significant progress across the company. Much has been accomplished in a very short time and much work remains to be done. We will issue full year 2022 guidance with our fourth quarter earnings results in February 2022,” said Lyons.

Exhibit 99.1
Limelight Networks, Inc.
2021 Guidance
As of November 2021
Revenue$215 to $220 million
GAAP Basic EPS$(0.47) to $(0.42)
Non-GAAP EPS$(0.17) to $(0.12)
Adjusted EBITDA$12 to $15 million
Capital expenditures$15 to $20 million

Exhibit 99.1
Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
September 30,
June 30,
December 31,
Current assets:
Cash and cash equivalents$39,585 $44,065 $46,795 
Marketable securities36,201 75,471 76,928 
Accounts receivable, net46,179 24,867 31,675 
Income taxes receivable62 57 68 
Prepaid expenses and other current assets13,396 14,557 15,588 
Total current assets135,423 159,017 171,054 
Property and equipment, net36,392 42,406 46,418 
Operating lease right of use assets7,683 8,929 10,150 
Marketable securities, less current portion40 40 40 
Deferred income taxes1,693 1,604 1,530 
Goodwill105,221 77,642 77,753 
Intangible assets, net23,680 — — 
Other assets5,972 6,147 7,233 
Total assets$316,104 $295,785 $314,178 
Current liabilities:
Accounts payable$13,768 $12,459 $4,587 
Deferred revenue7,965 524 933 
Operating lease liability obligations1,966 1,977 2,465 
Income taxes payable443 388 253 
Other current liabilities17,950 16,877 17,560 
Total current liabilities42,092 32,225 25,798 
Convertible senior notes, net121,576 121,371 100,945 
Operating lease liability obligations, less current portion10,045 10,358 11,265 
Deferred income taxes308 306 279 
Deferred revenue, less current portion307 272 220 
Other long-term liabilities453 369 479 
Total liabilities174,781 164,901 138,986 
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; 133,812, 126,705 and 123,653 shares issued and outstanding at September 30, 2021, June 30, 2021 and December 31, 2020, respectively
134 127 124 
Additional paid-in capital571,268 550,205 556,512 
Accumulated other comprehensive loss(8,491)(7,965)(7,511)
Accumulated deficit(421,588)(411,483)(373,933)
Total stockholders’ equity141,323 130,884 175,192 
Total liabilities and stockholders’ equity$316,104 $295,785 $314,178 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
 Three Months EndedNine Months Ended
Sept. 30,June 30,PercentSept. 30,PercentSept. 30,Sept. 30,Percent
Revenue$55,202 $48,348 14 %$59,243 (7)%$154,745 $174,801 (11)%
Cost of revenue:
Cost of services (1)33,687 32,976 %31,905 %99,708 92,406 %
Depreciation — network5,685 5,929 (4)%5,602 %17,293 16,112 %
Total cost of revenue39,372 38,905 %37,507 %117,001 108,518 %
Gross profit15,830 9,443 68 %21,736 (27)%37,744 66,283 (43)%
Gross profit percentage28.7 %19.5 %36.7 %24.4 %37.9 %
Operating expenses:
General and administrative (1)10,532 7,515 40 %7,751 36 %30,944 23,820 30 %
Sales and marketing (1)5,987 5,784 %10,456 (43)%21,619 33,279 (35)%
Research and development (1)5,205 5,187 — %5,425 (4)%16,520 16,614 (1)%
Depreciation and amortization730 549 33 %384 90 %1,818 1,049 73 %
Restructuring charges1,770 2,155 NM— NM10,798 — NM
Total operating expenses24,224 21,190 14 %24,016 %81,699 74,762 %
Operating loss(8,394)(11,747)NM(2,280)NM(43,955)(8,479)NM
Other income (expense):
Interest expense(1,308)(1,305)NM(1,674)NM(3,899)(1,756)NM
Interest income17 42 NM10 NM104 40 NM
Other, net(209)(440)NM25 NM(864)(396)NM
Total other expense(1,500)(1,703)NM(1,639)NM(4,659)(2,112)NM
Loss before income taxes(9,894)(13,450)NM(3,919)NM(48,614)(10,591)NM
Income tax expense211 248 NM66 NM718 377 NM
Net loss$(10,105)$(13,698)NM$(3,985)NM$(49,332)$(10,968)NM
Net loss per share:
Weighted average shares used in per share calculation:
Basic126,791 126,050 122,363 125,710 120,519 
Diluted126,791 126,050 122,363 125,710 120,519 
(1) Includes share-based compensation (see supplemental table for figures)

Exhibit 99.1
Limelight Networks, Inc.
Supplemental Financial Data
(In thousands)
 Three Months EndedNine Months Ended
Sept. 30,June 30,Sept. 30,Sept. 30,Sept. 30,
Share-based compensation:
Cost of services$438 $458 $130 $1,142 $1,685 
General and administrative2,301 1,874 1,272 10,203 5,770 
Sales and marketing640 395 206 1,598 2,756 
Research and development662 614 315 1,647 2,027 
Restructuring charges(384)917 — 1,887 — 
Total share-based compensation$3,657 $4,258 $1,923 $16,477 $12,238 
Depreciation and amortization:
Network-related depreciation$5,685 $5,929 $5,602 $17,293 $16,112 
Other depreciation and amortization409 549 384 1,497 1,049 
Amortization of intangible assets321 — — 321 — 
Total depreciation and amortization$6,415 $6,478 $5,986 $19,111 $17,161 
Net increase (decrease) in cash, cash equivalents and marketable securities:$(43,750)$2,608 $106,592 $(47,937)$106,457 
End of period statistics:
Approximate number of active clients581 533 534 581 534 
Number of employees and employee equivalents529 459 620 529 620 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
 Three Months EndedNine Months Ended
Sept. 30,June 30,Sept. 30,Sept. 30,Sept. 30,
Operating activities
Net loss$(10,105)$(13,698)$(3,985)$(49,332)$(10,968)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization6,415 6,478 5,986 19,111 17,161 
Share-based compensation3,657 4,258 1,923 16,477 12,238 
Foreign currency remeasurement (gain) loss(252)257 27 (66)(113)
Deferred income taxes(117)(71)(95)(198)(80)
Gain on sale of property and equipment(112)(107)(1)(219)(1)
Accounts receivable charges200 381 163 1,047 476 
Amortization of premium on marketable securities415 573 87 1,597 87 
Noncash interest expense204 201 868 604 868 
Changes in operating assets and liabilities:
Accounts receivable(18,999)3,903 2,862 (13,037)(8,221)
Prepaid expenses and other current assets1,239 (7)(2,232)1,678 (2,679)
Income taxes receivable(6)46 (10)
Other assets1,105 513 757 2,017 2,504 
Accounts payable and other current liabilities1,431 1,523 1,222 8,163 8,159 
Deferred revenue4,997 (273)(172)4,640 (109)
Income taxes payable69 68 (17)210 (15)
Other long term liabilities84 (108)276 (26)265 
Net cash (used in) provided by operating activities(9,775)3,937 7,659 (7,330)19,575 
Investing activities
Purchases of marketable securities(13,427)(20,537)(52,690)(44,838)(52,690)
Sale and maturities of marketable securities52,285 25,818 2,900 84,000 2,900 
Purchases of property and equipment(2,295)(2,986)(7,180)(11,909)(22,128)
Proceeds from sale of property and equipment112 107 219 
Acquisition of business, net of cash acquired(30,968)— — (30,968)— 
Net cash provided by (used in) investing activities5,707 2,402 (56,969)(3,496)(71,917)
Financing activities
Proceeds from issuance of debt, net— — 121,600 — 121,600 
Purchase of capped calls— — (16,413)— (16,413)
Payment of debt issuance costs— (30)(784)(30)(784)
Payment of employee tax withholdings related to restricted stock vesting(217)(427)(1,041)(1,315)(3,987)
Proceeds from employee stock plans— 2,613 2,598 5,460 8,691 
Net cash (used in) provided by financing activities(217)2,156 105,960 4,115 109,107 
Effect of exchange rate changes on cash and cash equivalents(195)(50)319 (499)69 
Net increase (decrease) in cash and cash equivalents(4,480)8,445 56,969 (7,210)56,834 
Cash and cash equivalents, beginning of period44,065 35,620 18,200 46,795 18,335 
Cash and cash equivalents, end of period$39,585 $44,065 $75,169 $39,585 $75,169 
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, restructuring and transition related charges, acquisition and legal related expenses, and amortization of intangible assets. 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

Exhibit 99.1
adjusted to exclude share-based compensation, restructuring and transition related charges, and acquisition and legal related expenses. 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 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 EndedNine Months Ended
September 30, 2021June 30, 2021September 30, 2020September 30, 2021September 30, 2020
AmountPer ShareAmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
U.S. GAAP net loss$(10,105)$(0.08)$(13,698)$(0.11)$(3,985)$(0.03)$(49,332)$(0.39)$(10,968)$(0.09)
Share-based compensation4,041 0.03 3,341 0.03 1,923 0.02 10,026 0.08 12,238 0.10 
Non-cash interest expense204 — 201 — 868 0.01 604 — 868 0.01 
Restructuring and transition related charges1,770 0.01 2,155 0.02 — — 15,625 0.12 — — 
Acquisition and legal related expenses2,263 0.02 — — — — 2,441 0.02 — — 
Amortization of intangible assets321 — — — — — 321 — — — 
Non-GAAP net (loss) income$(1,506)$(0.01)$(8,001)$(0.06)$(1,194)$(0.01)$(20,315)$(0.16)$2,138 $0.02 
Weighted average shares used in per share calculation:126,791 126,050 122,363 125,710 120,519 

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
(In thousands)
Three Months EndedNine Months Ended
Sept. 30,June 30,Sept. 30,Sept. 30,Sept. 30,
U.S. GAAP net loss$(10,105)$(13,698)$(3,985)$(49,332)$(10,968)
Depreciation and amortization6,415 6,478 5,986 19,111 17,161 
Interest expense1,308 1,305 1,674 3,899 1,756 
Interest and other (income) expense 192 398 (35)760 356 
Income tax expense 211 248 66 718 377 
EBITDA $(1,979)$(5,269)$3,706 $(24,844)$8,682 
Share-based compensation4,041 3,341 1,923 10,026 12,238 
Restructuring and transition related charges1,770 2,155 — 15,625 — 
Acquisition and legal related expenses2,263 — — 2,441 — 
Adjusted EBITDA $6,095 $227 $5,629 $3,248 $20,920 

Exhibit 99.1
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.
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 844-200-6205 within the United States or 929-526-1599 outside of the U.S with access code 171804. 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, areas of investment, and product launches. 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 November 4, 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.
Sameet Sinha, 646-337-8909

Exhibit 99.1
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ