Limelight Networks Inc. Earnings Cheat Sheet: Revenue Increases Again

Limelight Networks, Inc. (NASDAQ:LLNW) climbed to a profit in the third quarter and beat Wall Street’s expectations in the process. Limelight Networks is a provider of high-performance content delivery network services.

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Limelight Networks Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $5 million (4 cents per diluted share) in the quarter. The business services company had a net loss of $6 million or a loss of 6 cents per share in the year earlier quarter.

Revenue: Rose to $47.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LLNW reported an adjusted net loss of 2 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 12 cents per share.

Quoting Management: “We were pleased with our progress in scaling Limelight Networks’ globally distributed, high-performance content delivery, storage and compute platform in the quarter. This platform serves as a great foundation for our core growth initiative – the launch of high-value, integrated software-as-a-service and platform-as-a-service offerings, which are differentiated from those of point solution providers. Revenue from these value-added services excluding EyeWonder and chors grew 73% year-over-year,” said Jeff Lunsford, chairman and chief executive officer.”In the quarter, we saw many instances of customer success, as Limelight solutions enabled our customers to increase competitiveness, enhance user experience and operate more nimbly and efficiently in today’s hyper-connected world.”

Key Stats:

A year-over-year revenue increase last quarter extends a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 64.3%.

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $13.9 million in the second quarter, a loss of $9.8 million in the first quarter and a loss of $6.3 million in the fourth of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the second quarter with a loss of 10 cents versus a mean estimate of a loss of 9 cents per share.

Looking Forward: For the next quarter, analysts are increasingly pessimistic about the company’s performance. The average estimates for the fourth quarter is at a loss of 7 cents per share, down from 2 cents ninety days ago. Down from a loss of 25 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 40 cents.

Competitors to Watch: Akamai Technologies, Inc. (NASDAQ:AKAM), InterNAP Network Services (NASDAQ:INAP), Adobe Systems Incorporated (NASDAQ:ADBE), Rackspace Hosting, Inc. (NYSE:RAX), Microsoft Corporation (NASDAQ:MSFT), The Walt Disney Company (NYSE:DIS), RealNetworks, Inc. (NASDAQ:RNWK), Equinix, Inc. (NASDAQ:EQIX), and SAVVIS, Inc. (NASDAQ:SVVS).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)