Limelight Networks, a provider of video delivery and edge cloud services, reported improved second-quarter financials as its traffic reached record levels.
CEO Robert Lento attributed much of the increased demand on internet and content delivery to the pandemic.
“We have good traction with our video-on-demand customers and we are encouraged that some live events are starting to return. While uncertainty remains as the pandemic unfolds, we are confident in the underlying momentum in our business and expect it to continue for the remainder of 2020,” said Lento according to a Seeking Alpha transcript.
He said another contributing factor to higher traffic was Limelight’s participation in the recent launches for NBCUniversal’s Peacock to Comcast only users in April and WarnerMedia’s HBO Max launch in May.
Limelight wouldn't share specifics on traffic growth on a year over year basis but Lento noted that Cisco Internet studies suggest video traffic will grow by 35% in 2020. "We’re exceeding that."
Lento said that business and traffic from existing customers in the second quarter were strong but that new customer acquisition was slower given headwinds related to COVID-19. However, as Limelight continues to build out new edge capabilities, the company said some large customers have completed proof of concept trials and that it expects to close several of these deals this quarter.
“In fact, one is already closed with a global OTT provider who will be using Limelight video delivery and our edge services,” Lento said.
Limelight reported revenue of $58.5 million for the second quarter, up 28% from $45.9 million one year ago. The company’s GAAP net loss of $1.7 million marked an improvement over a net loss of $7.2 million one year ago. Non-GAAP net income was $3.5 million or $0.03 per basic share for the second quarter and EBITDA totaled $4.5 million, compared to negative $2.2 million one year ago. Adjusted EBITDA was $9.7 million compared to $1.4 million one year ago.