After reporting massive traffic spike on its content delivery network in the second quarter, Limelight said that levels remained elevated in the most recent quarter.
During Thursday’s earnings call, CEO Robert Lento said his company didn't see as much pullback as expected in the third quarter despite improvements in weather and more people traveling. But he did suggest that lower levels of new content on streaming services had an impact.
“And the other thing in Q3 was, and this has been widely reported, a lack of new content, right? And so, typically, there's a fair amount of new content that starts coming out in the fall. I think this year, there will be less than normal, but in Q3, that was really at a low,” said Lento, according to a Seeking Alpha transcript.
The company still expects expanded traffic through the fourth quarter and into January.
Limelight reported record third-quarter revenue of $59.2 million, up 15% year over year. However, the company’s stock slumped in after-hours trading due to a GAAP net loss of $4 million and a non-GAAP net loss of $1.2 million, compared to non-GAAP net income of $0.6 million in the same quarter last year.
EBITDA was $3.7 million and adjusted EBITDA was $5.6 million.
“As we have consistently done all year, we continue to make investments in the business to support our strategy of doubling down on edge innovation with focus on video, media and gaming customers. We are on track to deliver record revenue and revenue growth for 2020, along with meaningful increases across multiple financial and operational metrics. We are well-positioned to continue delivering value for our customers and growth for our shareholders,” said Lento in a statement.