Limelight Networks, Inc. (NASDAQ:LLNW) Q2 2020 Earnings Conference Call - Final Transcript

Jul 20, 2020 • 04:30 pm ET


Limelight Networks, Inc. (NASDAQ:LLNW) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the Limelight Networks Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Dan Boncel, Chief Financial Officer. Please go ahead.

Daniel R. Boncel

Good afternoon, and thank you for joining the Limelight Networks second quarter 2020 financial results conference call. This call is being recorded on July 20, 2020, 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 2020 and beyond, our priorities, our expectations, our operational plans, business strategies, secular trends and product, and feature functionality announcements and the impact of COVID-19. 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 the 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 are Bob Lento, our Chief Executive Officer; and Sajid Malhotra, our Chief Strategy Officer. We will be available during the Q&A session at the end of prepared remarks.

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

Robert A. Lento

Thanks, Dan, and good afternoon. Q2 was a strong quarter as we maintained our focus and steady execution during these turbulent times. We continue to build on the first quarter strong business momentum and strengthen our financial and operational performance. Revenue in the second quarter was $58.5 million, up 28% year-over-year. GAAP net loss improved 76% over the year ago quarter, and our non-GAAP net loss improved by almost 200% over the second quarter of 2019. Adjusted EBITDA was more than six times higher than the prior year amount, and our balance sheet remains strong. I'm particularly pleased that our gross margin improved this quarter, both sequentially and year-over-year. I'm proud of our ability to generate these strong results as the world continues to navigate these uncertain times from the COVID-19 pandemic. During these challenging times, we have managed to add capacity, delivered record traffic with high quality, transitioned to a work-from-home model while seamlessly supporting and optimizing performance for our customers. We are fortunate that technology has allowed us to remain actively engaged with both our customers and employees and drive growth in Q2, along with significant progress toward our strategic goals.

Additionally, while commenting on meaningful elements of Q2, it is important to comment on the impact of the Black Lives Matter movement to