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):
April 29, 2021
(Exact name of Registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
File Number)
(I.R.S. Employer
Identification Number)
1465 North Scottsdale Road Suite 400
Scottsdale, AZ 85257
(Address, including zip code, of principal executive offices)
(602) 850-5000
(Registrant’s telephone number, including area code)

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

Item 2.02Results of Operations and Financial Condition.
On April 29, 2021, Limelight Networks, Inc. issued a press release regarding its financial results for the first quarter ended March 31, 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: April 29, 2021By:/s/ Michael DiSanto
Michael DiSanto
Chief Administrative and Legal Officer & Secretary


Exhibit 99.1
April 29, 2021
Limelight Networks Reports Financial Results for the First Quarter of 2021; Issues Guidance for the Full Year 2021
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of edge cloud services, today reported financial results for the first quarter ended March 31, 2021 as well as guidance for the full year ending December 31, 2021.
Organization and Operational Accomplishments
During the first quarter, Limelight made the following organizational changes and operational improvements to accelerate revenue growth and profitability:
●    Appointed Bob Lyons as our new President and Chief Executive Officer
●    Implemented a new organizational and operating model including:
o    Established a set of standard business performance metrics
o    Streamlined commercial motions in support of our land-perform-expand growth     platform
o    Improved our Client Success processes to support deeper client engagement with proactive client solutioning and customized SLA performance management
o    Flattened our organizational structure resulting in a 16% reduction in workforce and approximately $15 million in annualized savings
●    Established an advanced performance engineering team to enable optimal operational performance based on our clients’ key performance indicators:
o    Reduced rebuffer rates by approximately 30%
o    Increased network throughput by up to 20% through performance tuning
●    Increased LATAM traffic by 40% through capacity optimization
“As anticipated, our first quarter was challenging from a top- and bottom-line perspective. That said, I am confident that we are now on the right path to achieve success,” said Bob Lyons, President and Chief Executive Officer. “Our three-pillared strategy of improve the core, expand the core and extend the core is serving as our playbook to transform the company and improve execution, profitability and accelerate growth.
We have made measurable progress addressing our short-term headwinds and our broader transformation efforts during the quarter. In just a couple of months we have: simplified our operating mode; improved network performance; meaningfully reduced our operating costs; and demonstrated notable improvements in our client SLA’s.
Additionally, we continue to be excited about, and are looking forward to discussing the opportunity available to Limelight to address a large unmet market need with our globally scaled edge platform and operational know-how.”

Exhibit 99.1
First Quarter 2021 Financial Results
●    Revenue of $51.2 million, down 10 percent, compared to $57.0 million in the first quarter of 2020.
●    GAAP net loss of $25.5 million, or $(0.21) per basic share, compared to a net loss of $5.3 million, or $(0.04) per basic share in the first quarter of 2020. GAAP net loss included $11.7 million in restructuring and transition related charges.
●    Non-GAAP net loss was $11.0 million or $(0.09) per basic share, compared to a non-GAAP net loss of $0.2 million, or break-even per basic share in the first quarter of 2020.
●    EBITDA was $(17.6) million, compared to $0.5 million for the first quarter of 2020.
●    Adjusted EBITDA was $(3.3) million, compared to $5.6 million for the first quarter of 2020.
●    Limelight ended the first quarter with 510 employees and employee equivalents, down from 618 at the end of the fourth quarter of 2020, and down from 616 at the end of the first quarter of 2020.
Based on current outlook, our full-year 2021 guidance is as follows:
April 2021Actual 2020
Revenue$220 to $230 million$230.2 million
GAAP Basic EPS$(0.35) to $(0.25)$(0.16)
Non-GAAP EPS$(0.15) to $(0.05)$(0.01)
Adjusted EBITDA$20 to $30 million$24.5 million
Capital expenditures$20 to $25 million$25.1 million
Concluded Lyons, “The actions we have taken to date are only the first steps in our playbook to improve profitability and growth in the second half of the year – and give us confidence in the guidance expectations that we have provided. Over the next 90 days, we believe continued operational performance improvements will drive increased market share of traffic from our clients. We will continue to pursue cost and performance opportunities identified by our network optimization model. We are also formalizing our broader plans to evolve our offerings beyond video so that we can take advantage of our network during low peak times. We plan to hold a strategy update session in early summer. An announcement of the date and participation details will be shared approximately one month in advance of the event.”

Exhibit 99.1
Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
March 31,
December 31,
Current assets:
Cash and cash equivalents$35,620 $46,795 
Marketable securities81,308 76,928 
Accounts receivable, net29,151 31,675 
Income taxes receivable102 68 
Prepaid expenses and other current assets14,784 15,588 
Total current assets160,965 171,054 
Property and equipment, net46,863 46,418 
Operating lease right of use assets9,521 10,150 
Marketable securities, less current portion40 40 
Deferred income taxes1,577 1,530 
Goodwill77,421 77,753 
Other assets6,742 7,233 
Total assets$303,129 $314,178 
Current liabilities:
Accounts payable$8,029 $4,587 
Deferred revenue844 933 
Operating lease liability obligations2,233 2,465 
Income taxes payable322 253 
Other current liabilities19,264 17,560 
Total current liabilities30,692 25,798 
Convertible senior notes, net121,200 100,945 
Operating lease liability obligations, less current portion10,781 11,265 
Deferred income taxes360 279 
Deferred revenue, less current portion226 220 
Other long-term liabilities476 479 
Total liabilities163,735 138,986 
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding— — 
Common stock, $0.001 par value; 300,000 shares authorized; 125,248 and 123,653 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively125 124 
Additional paid-in capital545,516 556,512 
Accumulated other comprehensive loss(8,462)(7,511)
Accumulated deficit(397,785)(373,933)
Total stockholders’ equity139,394 175,192 
Total liabilities and stockholders’ equity$303,129 $314,178 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
 Three Months Ended
March 31,Dec. 31,PercentMarch 31,Percent
Revenue$51,195 $55,394 (8)%$57,012 (10)%
Cost of revenue:
Cost of services (1)33,021 33,103 — %31,113 %
Depreciation — network5,679 5,468 %5,150 10 %
Total cost of revenue38,700 38,571 — %36,263 %
Gross profit12,495 16,823 (26)%20,749 (40)%
Gross profit percentage24.4 %30.4 %36.4 %
Operating expenses:
General and administrative (1)12,948 7,464 73 %7,882 64 %
Sales and marketing (1)9,835 9,666 %11,894 (17)%
Research and development (1)6,113 5,066 21 %5,618 %
Depreciation and amortization540 542 — %341 58 %
Restructuring charge6,873 — NM— NM
Total operating expenses36,309 22,738 60 %25,735 41 %
Operating loss(23,814)(5,915)NM(4,986)NM
Other income (expense):
Interest expense(1,286)(2,183)NM(10)NM
Interest income45 29 NM25 NM
Other, net(214)28 NM(110)NM
Total other expense(1,455)(2,126)NM(95)NM
Loss before income taxes(25,269)(8,041)NM(5,081)NM
Income tax expense260 268 NM176 NM
Net loss$(25,529)$(8,309)NM$(5,257)NM
Net loss per share:
Weighted average shares used in per share calculation:
Basic124,290 123,225 118,964 
Diluted124,290 123,225 118,964 
(1) Includes share-based compensation (see supplemental table for figures)

Exhibit 99.1
Limelight Networks, Inc.
Supplemental Financial Data
(In thousands)
 Three Months Ended
March 31,Dec. 31,March 31,
Share-based compensation:
Cost of services$246 $313 $763 
General and administrative6,028 1,840 2,241 
Sales and marketing563 764 1,228 
Research and development371 562 832 
Restructuring charge$1,354 $— $— 
Total share-based compensation$8,562 $3,479 $5,064 
Depreciation and amortization:
Network-related depreciation$5,679 $5,468 $5,150 
Other depreciation and amortization540 542 341 
Total depreciation and amortization$6,219 $6,010 $5,491 
Net increase (decrease) in cash, cash equivalents and marketable securities:$(6,795)$(1,069)$3,086 
End of period statistics:
Approximate number of active clients527 527 573 
Number of employees and employee equivalents510 618 616 

Exhibit 99.1
Limelight Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
 Three Months Ended
March 31,December 31,March 31,
Operating activities
Net loss$(25,529)$(8,309)$(5,257)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization6,219 6,010 5,491 
Share-based compensation8,562 3,479 5,064 
Foreign currency remeasurement (gain) loss(71)327 (397)
Deferred income taxes(10)(14)(44)
Loss (gain) on sale of property and equipment— — 
Accounts receivable charges466 325 158 
Amortization of premium on marketable securities609 519 — 
Realized loss on marketable securities— (3)— 
Noncash interest expense199 1,070 — 
Changes in operating assets and liabilities:
Accounts receivable2,059 10,221 (285)
Prepaid expenses and other current assets446 (3,038)(1,433)
Income taxes receivable(36)16 
Other assets399 258 626 
Accounts payable and other current liabilities5,209 (9,228)5,892 
Deferred revenue(84)126 (250)
Income taxes payable73 86 
Other long term liabilities(3)(99)
Net cash (used in) provided by operating activities(1,492)1,753 9,576 
Investing activities
Purchases of marketable securities(10,874)(36,064)— 
Sale and maturities of marketable securities5,897 8,272 — 
Purchases of property and equipment(6,628)(2,957)(6,863)
Proceeds from sale of property and equipment— — 
Net cash used in investing activities(11,605)(30,748)(6,863)
Financing activities
Payment of debt issuance costs— (75)— 
Payment of employee tax withholdings related to restricted stock vesting(671)(891)(1,515)
Proceeds from employee stock plans2,847 1,377 2,138 
Net cash provided by financing activities2,176 411 623 
Effect of exchange rate changes on cash and cash equivalents(254)210 (250)
Net increase (decrease) in cash and cash equivalents(11,175)(28,374)3,086 
Cash and cash equivalents, beginning of period46,795 75,169 18,335 
Cash and cash equivalents, end of period$35,620 $46,795 $21,421 
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles (Non-GAAP) net income (loss), EBITDA and Adjusted EBITDA as supplemental measures of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income (loss) to be an important indicator of overall business performance. We define Non-GAAP net income (loss) to be U.S. GAAP net income (loss) adjusted to exclude share-based compensation, non-cash interest expense and restructuring and transition related charges. We believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define EBITDA as U.S. GAAP net income (loss) adjusted to exclude depreciation and amortization, interest expense, interest and other (income) expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based compensation and restructuring and transition related charges. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. Our management uses these Non-GAAP financial measures because, collectively, they provide valuable information on the performance of our on-going

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

Exhibit 99.1
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Item 10(e) of Regulation S-K, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures. Per share amounts may not foot due to rounding.

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income (Loss)
(In thousands)
Three Months Ended
March 31, 2021December 31, 2020March 31, 2020
AmountPer ShareAmountPer ShareAmountPer Share
U.S. GAAP net loss$(25,529)$(0.21)$(8,309)$(0.07)$(5,257)$(0.04)
Share-based compensation2,644 0.02 3,479 0.03 5,064 0.04 
Non-cash interest expense199 — 1,070 0.01 — — 
Restructuring and transition related charges11,700 0.09 — — — — 
Non-GAAP net loss$(10,986)$(0.09)$(3,760)$(0.03)$(193)$0.00 
Weighted average shares used in per share calculation:124,290 123,225 118,964 

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
(In thousands)
Three Months Ended
March 31,Dec. 31,March 31,
U.S. GAAP net loss$(25,529)$(8,309)$(5,257)
Depreciation and amortization6,219 6,010 5,491 
Interest expense1,286 2,183 10 
Interest and other (income) expense 169 (57)85 
Income tax expense 260 268 176 
EBITDA $(17,595)$95 $505 
Share-based compensation2,644 3,479 5,064 
Restructuring and transition related charges11,700 — — 
Adjusted EBITDA $(3,251)$3,574 $5,569 

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 877-296-5190 within the

Exhibit 99.1
United States or +1 412-317-5233 outside of the U.S. The conference call will also be audio cast live from http://www.limelight.com and a replay will be available following the call from the Limelight website.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding our expectations regarding revenue, gross margin, non-GAAP net income (loss), capital expenditures, and our future prospects. Our expectations and beliefs regarding these matters may not materialize. The potential risks and uncertainties that could cause actual results or outcomes to differ materially from the results or outcomes predicted include, among other things, reduction of demand for our services from new or existing clients, unforeseen changes in our hiring patterns, adverse outcomes in litigation, 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 April 29, 2021, and we undertake no duty to update this information in light of new information or future events, unless required by law.
About Limelight
Limelight Networks, Inc. (NASDAQ: LLNW) is an industry-leader in edge access and content delivery services that provides powerful tools and a client-first approach to optimize and deliver digital experiences at the edge. We are a trusted partner to the world’s biggest brands and serve their global customers with experiences such as livestream sporting events, global movie launches, video games or file downloads for new phone apps. Limelight offers one of the largest, best-optimized private networks coupled with a global team of industry experts to provide edge services that are fast, secure and reliable. For more information, visit www.limelight.com, and follow us on Twitter, Facebook and LinkedIn.
Copyright (C) 2021 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.
Source: Limelight Networks
Limelight Networks, Inc.
Dan Boncel, 602-850-4810
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ