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):
February 11, 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 February 11, 2021, Limelight Networks, Inc. issued a press release regarding its financial results for the fourth quarter and full year ended December 31, 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: February 11, 2021By:/s/ Michael DiSanto
Michael DiSanto
Chief Administrative and Legal Officer & Secretary


Exhibit 99.1
February 11, 2021
Limelight Networks Reports Fourth-quarter and Full-year 2020 Results
Record annual revenue of $230.2 million increases 15% from 2019
2020 GAAP net loss of $(19.3) million versus $(16.0) million in 2019
Full-year Adjusted EBITDA of $24.5 million rises 35% from 2019
Bob Lyons named new President and Chief Executive Officer
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of video delivery and edge cloud services, today reported results for its fourth quarter and year ended December 31, 2020.
Fourth-quarter Results
For the 2020 fourth quarter, the company generated revenue of $55.4 million, compared to $60.1 million in the fourth quarter of 2019.
GAAP net loss was $(8.3) million, or $(0.07) per basic share for the 2020 fourth quarter, compared to net income of $2.5 million, or $0.02 per basic share in the 2019 period. GAAP net loss included $2.2 million of interest expense related to Limelight’s senior convertible notes issued during the 2020 third quarter.
Non-GAAP net loss was $(3.8) million or $(0.03) per basic share for the 2020 fourth quarter, versus non-GAAP net income of $5.8 million, or $0.05 per basic share in 2019. The non-GAAP net loss excluded $1.0 million of interest expense related to the company’s convertible notes noted above.
Fourth-quarter adjusted EBITDA was $3.6 million, versus $11.4 million for the fourth quarter of 2019.
“I am excited to join Limelight, a company with an impressive list of blue-chip customers, in a large and growing market with a unique set of capabilities and solid foundation to build on,” said Bob Lyons, President and Chief Executive Officer. “Our global network and connectivity to billions of people, combined with the digital transformation creates enormous opportunity for us in edge content delivery, computing and cybersecurity.”
“Our immediate focus is the challenges we faced in the fourth quarter, specifically top-line growth and the resulting pressure on margins. Quite frankly, performance in these areas is not where it should be. I believe in our ability to close the gaps and position Limelight as a leader delivering edge-based solutions. While there is no doubt much has been accomplished, I know that our best days are ahead of us. I am confident in the direction we are headed, in our ability to better execute on a refined strategy and pursue rule-of-40 performance,” said Lyons.
Full-year Results
For the full year ended December 31, 2020, Limelight reported revenue of $230.2 million, a 15% increase from $200.6 million in 2019.
The company’s 2020 GAAP net loss was $(19.3) million, or $(0.16) per basic share, versus a net loss of $(16.0) million, or $(0.14) per basic share, in 2019. The 2020 GAAP net loss included $3.8 million of interest expense related to Limelight’s senior convertible notes noted above.

Exhibit 99.1
Non-GAAP net loss was $(1.6) million, or $(0.01) per basic share, for the year ended December 31, 2020, compared to non-GAAP net loss of $(2.3) million, or $(0.02) per basic share, in 2019.
Limelight reported adjusted EBITDA of $24.5 million for 2020, compared to $18.1 million in 2019.
The company does not plan to issue guidance for 2021 at this time. With new leadership and active efforts underway to evaluate all aspects of the business strategy and cost structure, the focus is on immediate and long-term steps to position the company as a leader delivering edge-based solutions. Additional details will be provided as the company formalizes these plans.
Said Lyons, “Limelight delivered a successful year on multiple fronts – but we have work to do. Our industry is on an upward trajectory – and we enter 2021 laser-focused on building a platform for profitable growth.”


Exhibit 99.1
Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
December 31,
September 30,
December 31,
Current assets:
Cash and cash equivalents$46,795 75,169 $18,335 
Marketable securities76,928 49,623 — 
Accounts receivable, net31,675 42,222 34,476 
Income taxes receivable68 81 82 
Prepaid expenses and other current assets15,588 12,561 9,920 
Total current assets171,054 179,656 62,813 
Property and equipment, net46,418 47,493 46,136 
Operating lease right of use assets10,150 10,844 12,842 
Marketable securities, less current portion40 40 40 
Deferred income taxes1,530 1,428 1,319 
Goodwill77,753 77,126 77,102 
Other assets7,233 7,459 9,117 
Total assets$314,178 324,046 $209,369 
Current liabilities:
Accounts payable$4,587 12,437 $12,020 
Deferred revenue933 797 976 
Operating lease liability obligations2,465 2,654 2,056 
Income taxes payable253 153 178 
Other current liabilities17,560 17,584 13,398 
Total current liabilities25,798 33,625 28,628 
Convertible senior notes, net100,945 99,937 — 
Operating lease liability obligations, less current portion11,265 11,745 13,488 
Deferred income taxes279 251 239 
Deferred revenue, less current portion220 230 161 
Other long-term liabilities479 579 316 
Total liabilities138,986 146,367 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; 123,653, 122,824 and 118,368 shares issued and outstanding at December 31, 2020, September 30, 2020 and December 31, 2019, respectively
124 123 118 
Additional paid-in capital556,512 552,559 530,285 
Accumulated other comprehensive loss(7,511)(9,379)(9,210)
Accumulated deficit(373,933)(365,624)(354,656)
Total stockholders’ equity175,192 177,679 166,537 
Total liabilities and stockholders’ equity$314,178 324,046 $209,369 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
 Three Months EndedTwelve Months Ended
Dec. 31,Sept. 30,PercentDec. 31,PercentDec. 31,Dec. 31,Percent
Revenue$55,394 $59,243 (6)%$60,129 (8)%$230,194 $200,634 15 %
Cost of revenue:
Cost of services (1)33,103 31,905 %28,586 16 %125,509 99,89726 %
Depreciation — network5,468 5,602 (2)%5,288 %21,579 19,19312 %
Total cost of revenue38,571 37,507 %33,874 14 %147,088 119,09024 %
Gross profit16,823 21,736 (23)%26,255 (36)%83,106 81,544%
Gross profit percentage30.4 %36.7 %43.7 %36.1 %40.6 %
Operating expenses:
General and administrative (1)7,464 7,751 (4)%7,554 (1)%31,284 30,785%
Sales and marketing (1)9,666 10,456 (8)%10,399 (7)%42,945 43,078— %
Research and development (1)5,066 5,425 (7)%5,459 (7)%21,680 22,534(4)%
Depreciation and amortization542 384 41 %328 65 %1,591 87282 %
Total operating expenses22,738 24,016 (5)%23,740 (4)%97,500 97,269— %
Operating (loss) income (5,915)(2,280)NM2,515 NM(14,394)(15,725)NM
Other income (expense):
Interest expense(2,183)(1,674)NM(45)NM(3,939)(76)NM
Interest income29 10 NM25 NM69 427NM
Other, net28 25 NM169 NM(368)80NM
Total other (expense) income (2,126)(1,639)NM149 NM(4,238)431NM
(Loss) income before income taxes(8,041)(3,919)NM2,664 NM(18,632)(15,294)NM
Income tax expense268 66 NM206 NM645 750NM
Net (loss) income $(8,309)$(3,985)NM$2,458 NM$(19,277)$(16,044)NM
Net (loss) income per share:
Basic$(0.07)$(0.03)$0.02 $(0.16)$(0.14)
Diluted$(0.07)$(0.03)$0.02 (0.16)(0.14)
Weighted average shares used in per
share calculation:
Basic 123,225 122,363 117,603 121,196 115,890 
Diluted 123,225 122,363 123,801 121,196 115,890 
(1) Includes share-based compensation (see supplemental table for figures)

Exhibit 99.1
Limelight Networks, Inc.
Supplemental Financial Data
(In thousands)
 Three Months EndedTwelve Months Ended
Dec. 31,Sept. 30,Dec. 31,Dec. 31,Dec. 31,
Share-based compensation:
Cost of services$313 $130 $376 $1,998 $1,495 
General and administrative1,840 1,272 1,858 7,611 8,098 
Sales and marketing764 206 597 3,519 2,263 
Research and development562 315 484 2,589 1,922 
Total share-based compensation$3,479 $1,923 $3,315 $15,717 $13,778 
Depreciation and amortization:
Network-related depreciation$5,468 $5,602 $5,288 $21,579 $19,193 
Other depreciation and amortization542 384 328 1,591 872 
Total depreciation and amortization$6,010 $5,986 $5,616 $23,170 $20,065 
Net increase (decrease) in cash, cash equivalents and marketable securities:$(1,069)$106,592 $285 $105,388 $(32,131)
End of period statistics:
Approximate number of active customers527 534 599 527 599 
Number of employees and employee equivalents618 620 610 618 610 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
 Three Months EndedTwelve Months Ended
Dec. 31,Sept. 30,Dec. 31,Dec. 31,Dec. 31,
Operating activities
Net (loss) income $(8,309)$(3,985)$2,458 $(19,277)$(16,044)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization6,010 5,986 5,616 23,170 20,065 
Share-based compensation3,479 1,923 3,315 15,717 13,778 
Foreign currency remeasurement (gain) loss 327 27 79 214 (25)
Deferred income taxes(14)(95)300 (94)270 
Loss (gain) on sale of property and equipment(1)— (56)
Accounts receivable charges325 163 519 801 1,793 
Amortization of premium on marketable securities519 87 606 30 
Realized loss on marketable securities(3)— (3)
Noncash interest expense1,070 868 — 1,938 — 
Changes in operating assets and liabilities:
Accounts receivable10,221 2,862 823 2,000 (10,228)
Prepaid expenses and other current assets(3,038)(2,232)(324)(5,717)(1,101)
Income taxes receivable16 (10)(3)19 40 
Other assets258 757 (1,547)2,762 (4,188)
Accounts payable and other current liabilities(9,228)1,222 (2,383)(1,069)1,292 
Deferred revenue126 (172)(232)17 (789)
Income taxes payable86 (17)(143)71 61 
Payments related to litigation, net— — — — (3,040)
Other long term liabilities(99)276 15 167 (121)
Net cash provided by operating activities1,753 7,659 8,503 21,328 1,746 
Investing activities
Purchases of marketable securities(36,064)(52,690)— (88,754)(10,279)
Sale and maturities of marketable securities8,272 2,900 3,211 11,172 35,364 
Purchases of property and equipment(2,957)(7,180)(10,480)(25,085)(34,704)
Proceeds from sale of property and equipment— 51 
Net cash used in investing activities(30,748)(56,969)(7,269)(102,665)(9,568)
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(75)(784)— (859)— 
Payment of employee tax withholdings related to restricted stock vesting(891)(1,041)(1,079)(4,878)(3,607)
Proceeds from employee stock plans1,377 2,598 3,290 10,068 4,406 
Net cash provided by financing activities 411 105,960 2,211 109,518 799 
Effect of exchange rate changes on cash and cash equivalents210 319 58 279 (25)
Net increase (decrease) in cash and cash equivalents(28,374)56,969 3,503 28,460 (7,048)
Cash and cash equivalents, beginning of period75,169 18,200 14,832 18,335 25,383 
Cash and cash equivalents, end of period$46,795 $75,169 $18,335 $46,795 $18,335 
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 because,

Exhibit 99.1
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:
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 Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
Three Months EndedTwelve Months Ended
December 31, 2020September 30, 2020December 31, 2019December 31, 2020December 31, 2019
AmountPer ShareAmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
U.S. GAAP net (loss) income $(8,309)$(0.07)$(3,985)$(0.03)$2,458 $0.02 $(19,277)$(0.16)$(16,044)$(0.14)
Share-based compensation3,479 0.03 1,923 0.02 3,315 0.03 15,717 0.13 13,778 0.12 
Noncash interest expense1,070 0.01 868 0.01 — — 1,938 0.02 — — 
Non-GAAP net (loss) income $(3,760)$(0.03)$(1,194)$(0.01)$5,773 $0.05 $(1,622)$(0.01)$(2,266)$(0.02)
Weighted average shares
used in per share calculation:
123,225 122,363 117,603 121,196 115,890 

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Income (Loss) to EBITDA to Adjusted EBITDA
(In thousands)
Three Months EndedTwelve Months Ended
December 31,September 30,December 31,December 31,December 31,
U.S. GAAP net (loss) income $(8,309)$(3,985)$2,458 $(19,277)$(16,044)
Depreciation and amortization6,010 5,986 5,616 23,170 20,065 
Interest expense2,183 1,674 45 3,939 76 
Interest and other (income) expense (57)(35)(194)299 (507)
Income tax expense268 66 206 645 750 
EBITDA $95 $3,706 $8,131 $8,776 $4,340 
Share-based compensation3,479 1,923 3,315 15,717 13,778 
Adjusted EBITDA $3,574 $5,629 $11,446 $24,493 $18,118 
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 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

Exhibit 99.1
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 February 11, 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), 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 www.limelight.com, and follow us on TwitterFacebook 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