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 20, 2020
(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 20, 2020, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2020, 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

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 20, 2020By:/s/ Michael DiSanto
Michael DiSanto
Chief Administrative and Legal Officer & Secretary


Exhibit 99.1
July 20, 2020
Limelight Networks Reports Strong Financial Results for the Second Quarter of 2020
Revenue of $58.5 million, up 28% year over year
GAAP basic EPS of $(0.01) and Non-GAAP EPS of $0.03
Adjusted EBITDA of $9.7 million
Increased full year revenue guidance
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of video delivery and edge cloud services, today reported revenue of $58.5 million for the second quarter of 2020, up 28 percent, compared to $45.9 million in the second quarter of 2019. Year-over-year currency impact was negative by approximately $0.1 million.
Limelight reported a GAAP net loss of $1.7 million, or $(0.01) per basic share for the second quarter of 2020, compared to net loss of $7.2 million, or $(0.06) per basic share in the second quarter of 2019.
Non-GAAP net income was $3.5 million or $0.03 per basic share for the second quarter of 2020, compared to a non-GAAP net loss of $3.5 million, or $(0.03) per basic share in the second quarter of 2019.

EBITDA was $4.5 million for the second quarter of 2020, compared to negative $2.2 million for the second quarter of 2019. Adjusted EBITDA was $9.7 million for the second quarter of 2020 compared to $1.4 million for the second quarter of 2019.
Limelight ended the second quarter with 627 employees and employee equivalents, up from 616 at the end of the first quarter of 2020, and up from 594 at the end of the second quarter of 2019.

“This is our best ever second quarter financial performance. Our growth, including the over 400 basis point sequential improvement in gross margin, is due to strong execution of our 2020 strategy. Through our relentless focus on expanding capacity, optimizing proactive management of our network, placing more control in the hands of our customers and driving innovation, we are seeing strength across our business and are raising our revenue guidance for 2020,” said Robert Lento, Chief Executive Officer.
As the world continues to navigate through these uncertain times, we play an important role in connecting people to information and entertainment. COVID-19 has created an increased global reliance on the Internet and content delivery, and we expect to emerge larger and financially stronger when the pandemic ends. The remarkable dedication of our people adapting to the challenging times, and the commitment to meeting increased demand with uncompromised quality for our customers is particularly noteworthy. We recognize many face challenges during these times and will continue our efforts to provide value and help overcome the consequential impact of the pandemic on our communities,” Lento added.
Based on current conditions, our full-year 2020 guidance is updated, and is as follows:

Exhibit 99.1
Limelight Networks, Inc.
2020 Guidance
July 2020April 2020December 2019Actual 2019
Revenue$230 to $240 million$225 to $235 million$220 to $235 million$200.6 million
GAAP Basic EPS$(0.10) to break-even$(0.10) to break-even$(0.10) to break-even$(0.14)
Non-GAAP EPSBreak-even to $0.10Break-even to $0.10Break-even to $0.10$(0.02)
Adjusted EBITDA$28 to $35 million$25 to $35 million$25 to $35 million$18.1 million
Capital expenditures$25 to $30 million$25 to $30 million$25 to $30 million$34.7 million

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$18,200  $21,421  $18,335  
Accounts receivable, net45,246  34,603  34,476  
Income taxes receivable68  76  82  
Prepaid expenses and other current assets10,241  11,205  9,920  
Total current assets73,755  67,305  62,813  
Property and equipment, net48,908  46,636  46,136  
Operating lease right of use assets11,449  12,084  12,842  
Marketable securities, less current portion40  40  40  
Deferred income taxes1,328  1,361  1,319  
Goodwill77,113  76,867  77,102  
Other assets7,915  8,721  9,117  
Total assets$220,508  $213,014  $209,369  
Current liabilities:
Accounts payable$17,004  $14,297  $12,020  
Deferred revenue934  726  976  
Operating lease liability obligations2,390  2,046  2,056  
Income taxes payable169  170  178  
Other current liabilities17,028  18,188  13,398  
Total current liabilities37,525  35,427  28,628  
Operating lease liability obligations, less current portion12,316  12,983  13,488  
Deferred income taxes283  262  239  
Deferred revenue, less current portion265  161  161  
Other long-term liabilities304  318  316  
Total liabilities50,693  49,151  42,832  
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; 121,692, 119,642 and 118,368 shares issued and outstanding at June 30, 2020, March 31, 2020 and December 31, 2019, respectively
122  120  118  
Additional paid-in capital541,363  534,205  530,285  
Accumulated other comprehensive loss(10,031) (10,549) (9,210) 
Accumulated deficit(361,639) (359,913) (354,656) 
Total stockholders’ equity169,815  163,863  166,537  
Total liabilities and stockholders’ equity$220,508  $213,014  $209,369  

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$58,546  $57,012  %$45,904  28 %$115,558  $89,184  30 %
Cost of revenue:
Cost of services (1)29,389  31,113  (6)%22,769  29 %60,502  45,710  32 %
Depreciation — network5,360  5,150  %4,628  16 %10,510  8,944  18 %
Total cost of revenue34,749  36,263  (4)%27,397  27 %71,012  54,654  30 %
Gross profit23,797  20,749  15 %18,507  29 %44,546  34,530  29 %
Gross profit percentage40.6 %36.4 %40.3 %38.5 %38.7 %
Operating expenses:
General and administrative (1)8,187  7,882  %8,340  (2)%16,069  15,875  %
Sales and marketing (1)10,929  11,894  (8)%10,994  (1)%22,823  21,966  %
Research and development (1)5,572  5,618  (1)%6,013  (7)%11,189  11,915  (6)%
Depreciation and amortization323  341  (5)%127  154 %665  372  79 %
Total operating expenses25,011  25,735  (3)%25,474  (2)%50,746  50,128  %
Operating loss(1,214) (4,986) NM(6,967) NM(6,200) (15,598) NM
Other income (expense):
Interest expense(71) (10) NM(10) NM(82) (20) NM
Interest income 25  NM110  NM31  321  NM
Other, net(312) (110) NM(70) NM(421) (76) NM
Total other (expense) income(377) (95) NM30  NM(472) 225  NM
Loss before income taxes(1,591) (5,081) NM(6,937) NM(6,672) (15,373) NM
Income tax expense136  176  NM255  NM311  378  NM
Net loss$(1,727) $(5,257) NM$(7,192) NM$(6,983) $(15,751) NM
Net loss per share:
Basic$(0.01) $(0.04) $(0.06) $(0.06) $(0.14) 
Diluted$(0.01) $(0.04) $(0.06) $(0.06) $(0.14) 
Weighted average shares used in per share calculation:
Basic120,230  118,964  115,275  119,597  114,843  
Diluted120,230  118,964  115,275  119,597  114,843  
(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$792  $763  $377  $1,555  $788  
General and administrative2,257  2,241  2,140  4,498  4,234  
Sales and marketing1,322  1,228  598  2,550  1,082  
Research and development880  832  534  1,712  1,001  
Total share-based compensation$5,251  $5,064  $3,649  $10,315  $7,105  
Depreciation and amortization:
Network-related depreciation$5,360  $5,150  $4,628  $10,510  $8,944  
Other depreciation and amortization323  341  127  665  372  
Total depreciation and amortization$5,683  $5,491  $4,755  $11,175  $9,316  
Net increase (decrease) in cash, cash equivalents and marketable securities:$(3,221) $3,086  $(9,719) $(135) $(21,544) 
End of period statistics:
Approximate number of active customers560  573  621  560  621  
Number of employees and employee equivalents627  616  594  627  594  

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$(1,727) $(5,257) $(7,192) $(6,983) $(15,751) 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization5,683  5,491  4,755  11,175  9,316  
Share-based compensation5,251  5,064  3,649  10,315  7,105  
Foreign currency remeasurement (gain) loss 257  (397) (135) (140) (125) 
Deferred income taxes59  (44) 82  15  31  
Gain on sale of property and equipment—  —  (21) —  (51) 
Accounts receivable charges155  158  437  313  694  
Amortization of premium on marketable securities—  —   —  20  
Changes in operating assets and liabilities:
Accounts receivable(10,798) (285) (2,031) (11,083) (5,751) 
Prepaid expenses and other current assets986  (1,433) 582  (447) 108  
Income taxes receivable10   —  13  (2) 
Other assets1,121  626  (1,685) 1,747  (3,422) 
Accounts payable and other current liabilities1,045  5,892  4,230  6,937  6,473  
Deferred revenue313  (250) (148) 63  (445) 
Income taxes payable—   81   143  
Payments related to litigation, net—  —  (1,520) —  (3,040) 
Other long term liabilities(15)  22  (11) (152) 
Net cash provided by (used in) operating activities2,340  9,576  1,114  11,916  (4,849) 
Investing activities
Purchases of marketable securities—  —  (1,013) —  (10,279) 
Sale and maturities of marketable securities—  —  18,929  —  31,153  
Purchases of property and equipment(8,085) (6,863) (11,456) (14,948) (16,474) 
Proceeds from sale of property and equipment—  —  17  —  46  
Net cash used in investing activities(8,085) (6,863) 6,477  (14,948) 4,446  
Financing activities
Payment of employee tax withholdings related to restricted stock vesting(1,430) (1,515) (619) (2,945) (1,513) 
Proceeds from employee stock plans3,954  2,138  1,095  6,092  1,103  
Net cash provided by (used in) financing activities2,524  623  476  3,147  (410) 
Effect of exchange rate changes on cash and cash equivalents—  (250) 132  (250) 128  
Net (decrease) increase in cash and cash equivalents(3,221) 3,086  8,199  (135) (685) 
Cash and cash equivalents, beginning of period21,421  18,335  16,499  18,335  25,383  
Cash and cash equivalents, end of period$18,200  $21,421  $24,698  $18,200  $24,698  
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. 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. 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

Exhibit 99.1
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:
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.

Exhibit 99.1

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, 2020March 31, 2020June 30, 2019June 30, 2020June 30, 2019
AmountPer ShareAmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
U.S. GAAP net loss$(1,727) $(0.01) $(5,257) $(0.04) $(7,192) $(0.06) $(6,983) $(0.06) $(15,751) $(0.14) 
Share-based compensation5,251  0.04  5,064  0.04  3,649  0.03  10,315  0.09  7,105  0.06  
Non-GAAP net income (loss) $3,524  $0.03  $(193) $—  $(3,543) $(0.03) $3,332  $0.03  $(8,646) $(0.08) 
Weighted average shares used in per share calculation:120,230  118,964  115,275  119,597  114,843  

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$(1,727) $(5,257) $(7,192) $(6,983) $(15,751) 
Depreciation and amortization5,683  5,491  4,755  11,175  9,316  
Interest expense71  10  10  82  20  
Interest and other (income) expense 306  85  (40) 390  (245) 
Income tax expense 136  176  255  311  378  
EBITDA $4,469  $505  $(2,212) $4,975  $(6,282) 
Share-based compensation5,251  5,064  3,649  10,315  7,105  
Adjusted EBITDA $9,720  $5,569  $1,437  $15,290  $823  

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. EST (1:30 p.m. PST) 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 and a replay will be available following the call from the Limelight website

Exhibit 99.1
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, 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 customers, unforeseen changes in our hiring patterns, adverse outcomes in litigation, and experiencing expenses that exceed our expectations. 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 and on the SEC website at All information provided in this release and in the attachments is as of July 20, 2020, 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), a leading provider of digital content delivery, video, cloud security, and edge computing services, empowers customers to provide exceptional digital experiences. Limelight’s edge services platform includes a unique combination of global private infrastructure, intelligent software, and expert support services that enable current and future workflows. For more information, please visit, follow us on Twitter, Facebook and LinkedIn.
Copyright (C) 2020 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.
Source: Limelight Networks
Limelight Networks, Inc.
Sajid Malhotra, 602-850-5778
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ