Limelight Networks, Inc. (NASDAQ:LLNW) Q2 2019 Earnings Conference Call - Final Transcript

Jul 17, 2019 • 04:30 pm ET

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Limelight Networks, Inc. (NASDAQ:LLNW) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Limelight Network's Second Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions]

I would now like to turn the conference over to Dan Boncel, Limelight's Chief Accounting Officer. Please go ahead.

Executive
Daniel Boncel

Good afternoon, and thank you for joining the Limelight Networks' second quarter 2019 financial results conference call. This conference call is being recorded on July 17, 2019, and will be archived on our website for approximately 10 days.

Let me start by quickly covering the safe harbor. We would like to remind everyone that we will be making forward-looking statements on this call. Forward-looking statements are all statements that are not strictly statements of historical fact, such as our outlook for 2019 and beyond, our priorities, our expectations, our operational plans, business strategies, secular trends and product and feature functionality announcements. Actual results could differ materially from those contemplated by our forward-looking statements, and reported results should not be considered as an indication of future performance.

For more information, please refer to our risk factors discussed in our periodic filings, including our most recent Annual Report on Form 10-K. The forward-looking statements on this call are based on information available to us as of today's date, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Joining me on the call today today are, Bob Lento, our Chief Executive Officer; and Sajid Malhotra, our Chief Financial Officer. We will be available during the Q&A session at the end of prepared remarks from Bob and Sajid.

I would now like to turn the call over to Bob Lento.

Executive
Robert A. Lento

Thanks, Dan, and good afternoon. Today we announced the second quarter results. We made good progress on multiple priorities during the quarter, setting the foundation for a strong second half across many operational and financial measures.

Revenue in the second quarter was $45.9 million, GAAP net loss was $7.2 million, non-GAAP net loss $3.5 million, and adjusted EBITDA was $1.4 million. These results were largely inline with analyst expectations. Our revenue in the second quarter continue to be impacted by the decisions we made last year to secure our top customers and align our customer base with our strategy. We continue to invest in opportunities expected to drive revenue growth in the coming quarters. We believe those decisions have better positioned us for growth and the long-term financial success.

Many financial and operational metrics improved sequentially this quarter, and we expect this trend to continue in the second half of 2019 with particular strength in the fourth quarter when many of our new deals and initiatives are expected to have a more substantial impact. One such initiative is our partnership with Ericsson Edge Gravity, where we are the exclusive provider of content delivery capabilities for it's global scale, edge cloud platform with points of presence within more than 40 service provider networks.

While the partnership remains strong, momentum on executing our plan with Edge Gravity slowed in the second quarter after the