Limelight Networks, Inc. (NASDAQ:LLNW) Q4 2019 Earnings Conference Call - Final Transcript

Jan 29, 2020 • 04:30 pm ET

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Limelight Networks, Inc. (NASDAQ:LLNW) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions] The first question is from Lee Krowl with B. Riley FBR. Please go ahead.

Analyst
Lee Krowl

Great. Thanks for taking my question, guys. And congrats on a record quarter.

Executive
Robert A. Lento

Thanks.

Analyst
Lee Krowl

So, just wanted to start out on the revenue guidance. I think, you kind of alluded to it in your commentary around the investments throughout 2019. But you guys took out revenue guidance from the December outlook slightly, but EBITDA kind of stayed flat. Curious if there's kind of some implied reinvestment there or some sort of utilization around margins that is implied? Any commentary would be great.

Executive
Sajid Malhotra

No. I think, the range of outcomes in the EBITDA early is wide enough to move that by a little amount. I didn't think it made sense. At the same time, revenue, we were feeling better about. And as we do and if we continue to feel better over the course of the year, we'll continue to give guidance accordingly.

Analyst
Lee Krowl

Got it. And then, you guys kind of alluded to solid customer pipeline building in Q4. Curious, kind of the composition of the customer pipeline. Is it skewed towards kind of the video streaming offering or is it kind of new deployments in edge and serverless?

Executive
Robert A. Lento

So, the pipeline is pretty strong right now. We feel good about the mix as well. We're very focused on video and within those video customers, the use of our edge services capabilities for those customers. So, a lot of it is one and the same. There are some edge service deals that are not video related, but the majority of the pipeline is video delivery and video based edge services that we're providing.

Executive
Sajid Malhotra

And Lee, what I would say is, we expect the video based pipeline to be strong. Right? This is our core business, this is the largest volume, you want to constantly have that. But I think, in terms of the delta or the change or the incremental additions that are getting added, the rate of change in the edge business is quite remarkable, and we are very pleased with the traction that we're seeing there.

So, I think this is a really good thing, we focused on video, I think that is happening. We believe that for our video customers, we can provide them with add-on edge-like services or edge services that complement the video services that we provide to them. We feel very good about what's happening there. And then, there are some standalone opportunities for some edge services, and we feel very good about what we see there.

Analyst
Lee Krowl

And then, last one for me. Just curious if you guys could provide some updated thoughts on the Ericsson relationship and the UDN build out?

Executive
Robert A. Lento

Yeah. I'll take that one, Lee. So, as you know, we entered into the Ericsson relationship late in 2018, 2019 really didn't go as planned. They had some leadership changes, which in the end we're excited about, but took a little