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):
October 22, 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 October 22, 2020, Limelight Networks, Inc. issued a press release regarding its financial results for the third quarter ended September 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
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: October 22, 2020By:/s/ Michael DiSanto
Michael DiSanto
Chief Administrative and Legal Officer & Secretary


Exhibit 99.1
October 22, 2020
Limelight Networks Reports Financial Results for the Third Quarter of 2020
Record third quarter revenue of $59.2 million, up 15% year over year
GAAP basic EPS of $(0.03) and Non-GAAP EPS of $(0.01)
Adjusted EBITDA of $5.6 million
Issued $125.0 million senior convertible notes due 2025
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of video delivery and edge cloud services, today reported record revenue of $59.2 million for the third quarter of 2020, up 15 percent, compared to $51.3 million in the third quarter of 2019.
Limelight reported a GAAP net loss of $4.0 million, or $(0.03) per basic share for the third quarter of 2020, compared to a net loss of $2.8 million, or $(0.02) per basic share in the third quarter of 2019. GAAP net loss included $1.7 million of interest expense related to our convertible notes issued during the third quarter of 2020.
Non-GAAP net loss was $1.2 million or $(0.01) per basic share for the third quarter of 2020, compared to non-GAAP net income of $0.6 million, or $0.01 per basic share in the third quarter of 2019. Non-GAAP net loss excluded $0.9 million of interest expense related to our convertible notes issued during the third quarter of 2020.
EBITDA was $3.7 million for the third quarter of 2020, compared to $2.5 million for the third quarter of 2019. Adjusted EBITDA was $5.6 million for the third quarter of 2020 compared to $5.8 million for the third quarter of 2019.
Limelight ended the third quarter with 620 employees and employee equivalents, down from 627 at the end of the second quarter of 2020, and up from 609 at the end of the third quarter of 2019.
“Q3 was a very strong quarter for us on a number of fronts as we experienced our second highest quarter of revenue ever and made material progress across our strategic imperatives. Most notable in the quarter was the expansion of our edge capabilities with the launch of Edge Functions and gains in our automated traffic engineering efforts to optimize network performance and customer experience. As we have consistently done all year, we continue to make investments in the business to support our strategy of doubling down on edge innovation with focus on video, media and gaming customers. We are on track to deliver record revenue and revenue growth for 2020, along with meaningful increases across multiple financial and operational metrics. We are well-positioned to continue delivering value for our customers and growth for our shareholders.” said Robert Lento, Chief Executive Officer.
We are leaving our full-year 2020 guidance unchanged, except for the impact of the convertible debt offering interest expense on GAAP and Non-GAAP EPS. The ranges for GAAP and Non-GAAP EPS have been adjusted by $0.03 and $0.02, respectively.

Exhibit 99.1
Limelight Networks, Inc.
2020 Guidance
Current GuidancePrevious GuidanceActual 2019
Revenue$230 to $240 million$230 to $240 million$200.6 million
GAAP Basic EPS$(0.13) to $(0.03)$(0.10) to break-even$(0.14)
Non-GAAP EPS$(0.02) to $0.08Break-even to $0.10$(0.02)
Adjusted EBITDA$28 to $35 million$28 to $35 million$18.1 million
Capital expenditures$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)
September 30,
June 30,
December 31,
Current assets:
Cash and cash equivalents$75,169 $18,200 $18,335 
Marketable securities49,623 — — 
Accounts receivable, net42,222 45,246 34,476 
Income taxes receivable81 68 82 
Prepaid expenses and other current assets12,561 10,241 9,920 
Total current assets179,656 73,755 62,813 
Property and equipment, net47,493 48,908 46,136 
Operating lease right of use assets10,844 11,449 12,842 
Marketable securities, less current portion40 40 40 
Deferred income taxes1,428 1,328 1,319 
Goodwill77,126 77,113 77,102 
Other assets7,459 7,915 9,117 
Total assets$324,046 $220,508 $209,369 
Current liabilities:
Accounts payable$12,437 $17,004 $12,020 
Deferred revenue797 934 976 
Operating lease liability obligations2,654 2,390 2,056 
Income taxes payable153 169 178 
Other current liabilities17,584 17,028 13,398 
Total current liabilities33,625 37,525 28,628 
Convertible senior notes, net99,937 — — 
Operating lease liability obligations, less current portion11,745 12,316 13,488 
Deferred income taxes251 283 239 
Deferred revenue, less current portion230 265 161 
Other long-term liabilities579 304 316 
Total liabilities146,367 50,693 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; 122,824, 121,692 and 118,368 shares issued and outstanding at September 30, 2020, June 30, 2020 and December 31, 2019, respectively123 122 118 
Additional paid-in capital552,559 541,363 530,285 
Accumulated other comprehensive loss(9,379)(10,031)(9,210)
Accumulated deficit(365,624)(361,639)(354,656)
Total stockholders’ equity177,679 169,815 166,537 
Total liabilities and stockholders’ equity$324,046 $220,508 $209,369 

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$59,243 $58,546 %$51,321 15 %$174,801 $140,505 24 %
Cost of revenue:
Cost of services (1)31,905 29,389 %25,602 25 %92,406 71,311 30 %
Depreciation — network5,602 5,360 %4,961 13 %16,112 13,905 16 %
Total cost of revenue37,507 34,749 %30,563 23 %108,518 85,216 27 %
Gross profit21,736 23,797 (9)%20,758 %66,283 55,289 20 %
Gross profit percentage36.7 %40.6 %40.4 %37.9 %39.4 %
Operating expenses:
General and administrative (1)7,751 8,187 (5)%7,356 %23,820 23,231 %
Sales and marketing (1)10,456 10,929 (4)%10,713 (2)%33,279 32,679 %
Research and development (1)5,425 5,572 (3)%5,160 %16,614 17,075 (3)%
Depreciation and amortization384 323 19 %172 123 %1,049 545 92 %
Total operating expenses24,016 25,011 (4)%23,401 %74,762 73,530 %
Operating loss(2,280)(1,214)NM(2,643)NM(8,479)(18,241)NM
Other income (expense):
Interest expense(1,674)(71)NM(10)NM(1,756)(30)NM
Interest income10 NM81 NM40 402 NM
Other, net25 (312)NM(13)NM(396)(89)NM
Total other (expense) income(1,639)(377)NM58 NM(2,112)283 NM
Loss before income taxes(3,919)(1,591)NM(2,585)NM(10,591)(17,958)NM
Income tax expense66 136 NM166 NM377 544 NM
Net loss$(3,985)$(1,727)NM$(2,751)NM$(10,968)$(18,502)NM
Net loss per share:
Weighted average shares used in per share calculation:
Basic122,363 120,230 116,270 120,519 115,318 
Diluted122,363 120,230 116,270 120,519 115,318 
(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$130 $792 $331 $1,685 $1,119 
General and administrative1,272 2,257 2,006 5,770 6,240 
Sales and marketing206 1,322 584 2,756 1,666 
Research and development315 880 437 2,027 1,438 
Total share-based compensation$1,923 $5,251 $3,358 $12,238 $10,463 
Depreciation and amortization:
Network-related depreciation$5,602 $5,360 $4,961 $16,112 $13,905 
Other depreciation and amortization384 323 172 1,049 545 
Total depreciation and amortization$5,986 $5,683 $5,133 $17,161 $14,450 
Net increase (decrease) in cash, cash equivalents and marketable securities:$106,592 $(3,221)$(10,872)$106,457 $(32,416)
End of period statistics:
Approximate number of active customers534 560 609 534 609 
Number of employees and employee equivalents620 627 609 620 609 

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$(3,985)$(1,727)$(2,751)$(10,968)$(18,502)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization5,986 5,683 5,133 17,161 14,450 
Share-based compensation1,923 5,251 3,358 12,238 10,463 
Foreign currency remeasurement loss (gain) 27 257 21 (113)(104)
Deferred income taxes(95)59 (61)(80)(30)
Gain on sale of property and equipment(1)— (5)(1)(56)
Accounts receivable charges163 155 580 476 1,274 
Amortization of premium on marketable securities87 — 87 29 
Noncash interest expense868 — — 868 — 
Changes in operating assets and liabilities:
Accounts receivable2,862 (10,798)(5,300)(8,221)(11,051)
Prepaid expenses and other current assets(2,232)986 (885)(2,679)(777)
Income taxes receivable(10)10 45 43 
Other assets757 1,121 781 2,504 (2,641)
Accounts payable and other current liabilities1,222 1,045 (2,798)8,159 3,675 
Deferred revenue(172)313 (112)(109)(557)
Income taxes payable(17)— 61 (15)204 
Payments related to litigation, net— — — — (3,040)
Other long term liabilities276 (15)16 265 (137)
Net cash provided by (used in) operating activities7,659 2,340 (1,908)19,575 (6,757)
Investing activities
Purchases of marketable securities(52,690)— — (52,690)(10,279)
Sale and maturities of marketable securities2,900 — 1,000 2,900 32,153 
Purchases of property and equipment(7,180)(8,085)(7,750)(22,128)(24,224)
Proceeds from sale of property and equipment— 51 
Net cash used in investing activities(56,969)(8,085)(6,745)(71,917)(2,299)
Financing activities
Proceeds from issuance of debt, net121,600 — — 121,600 — 
Purchase of capped calls(16,413)— — (16,413)— 
Payment of debt issuance costs(784)— — (784)— 
Payment of employee tax withholdings related to restricted stock vesting(1,041)(1,430)(1,015)(3,987)(2,528)
Proceeds from employee stock plans2,598 3,954 13 8,691 1,116 
Net cash provided by (used in) financing activities105,960 2,524 (1,002)109,107 (1,412)
Effect of exchange rate changes on cash and cash equivalents319 — (211)69 (83)
Net increase (decrease) in cash and cash equivalents56,969 (3,221)(9,866)56,834 (10,551)
Cash and cash equivalents, beginning of period18,200 21,421 24,698 18,335 25,383 
Cash and cash equivalents, end of period$75,169 $18,200 $14,832 $75,169 $14,832 
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 and non-cash interest expense. 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

Exhibit 99.1
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, 2020June 30, 2020September 30, 2019September 30, 2020September 30, 2019
AmountPer ShareAmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
U.S. GAAP net loss$(3,985)$(0.03)$(1,727)$(0.01)$(2,751)$(0.02)$(10,968)$(0.09)$(18,502)$(0.16)
Share-based compensation1,923 0.02 5,251 0.04 3,358 0.03 12,238 0.10 10,463 0.09 
Non-cash interest expense868 0.01 — — — — 868 0.01 — — 
Non-GAAP net (loss) income$(1,194)$(0.01)$3,524 $0.03 $607 $0.01 $2,138 $0.02 $(8,039)$(0.07)
Weighted average shares used in per share calculation:122,363 120,230 116,270 120,519 115,318 

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$(3,985)$(1,727)$(2,751)$(10,968)$(18,502)
Depreciation and amortization5,986 5,683 5,133 17,161 14,450 
Interest expense1,674 71 10 1,756 30 
Interest and other (income) expense (35)306 (68)356 (313)
Income tax expense 66 136 166 377 544 
EBITDA $3,706 $4,469 $2,490 $8,682 $(3,791)
Share-based compensation1,923 5,251 3,358 12,238 10,463 
Adjusted EBITDA $5,629 $9,720 $5,848 $20,920 $6,672 

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. 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 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 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 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 October 22, 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, visit www.limelight.com, 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