Edgio (EGIOQ) 10-Q 20 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 13, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	LIMELIGHT NETWORKS, INC.
Entity Central Index Key	1,391,127
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		112,642,013

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 28,719	$ 20,912
Marketable securities	16,851	28,404
Accounts receivable, net	31,862	32,381
Income taxes receivable	153	98
Prepaid expenses and other current assets	18,147	5,397
Total current assets	95,732	87,192
Property and equipment, net	26,303	28,991
Marketable securities, less current portion	40	40
Deferred income taxes	1,550	1,506
Goodwill	76,648	77,054
Other assets	2,235	1,665
Total assets	202,508	196,448
Current liabilities:
Accounts payable	6,179	4,439
Deferred revenue	965	1,187
Income taxes payable	219	452
Provision for litigation	18,000	18,000
Other current liabilities	12,269	18,507
Total current liabilities	37,632	42,585
Deferred income taxes	124	144
Deferred revenue, less current portion	37	16
Provision for litigation, less current portion	0	9,000
Other long-term liabilities	389	558
Total liabilities	38,182	52,303
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 300,000 shares authorized; 112,478 and 110,824 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	112	111
Additional paid-in capital	506,684	502,312
Accumulated other comprehensive loss	(9,324)	(8,328)
Accumulated deficit	(333,146)	(349,950)
Total stockholders’ equity	164,326	144,145
Total liabilities and stockholders’ equity	$ 202,508	$ 196,448

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Convertible Preferred Stock, Par Value (in usd per share)	$ 0.001	$ 0.001
Convertible Preferred Stock, Shares Authorized	7,500,000	7,500,000
Convertible Preferred Stock, Shares Issued	0	0
Convertible Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value (in usd per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares Issued	112,478,000	110,824,000
Common Stock, Shares Outstanding	112,478,000	110,824,000

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 50,249	$ 45,370	$ 102,363	$ 90,105
Cost of revenue:
Cost of services	21,206	19,464	42,260	38,471
Depreciation — network	4,196	4,531	8,576	9,088
Total cost of revenue	25,402	23,995	50,836	47,559
Gross profit	24,847	21,375	51,527	42,546
Operating expenses:
General and administrative	7,517	6,804	17,038	15,319
Sales and marketing	10,022	8,997	20,302	18,265
Research and development	6,073	6,715	12,412	12,934
Depreciation and amortization	633	597	1,221	1,186
Total operating expenses	24,245	23,113	50,973	47,704
Operating income (loss)	602	(1,738)	554	(5,158)
Other income (expense):
Interest expense	(7)	(10)	(66)	(24)
Interest income	134	121	263	239
Settlement and patent license income	14,900	0	14,900	0
Other, net	(221)	153	(109)	241
Total other income	14,806	264	14,988	456
Income (loss) before income taxes	15,408	(1,474)	15,542	(4,702)
Income tax expense	249	151	234	260
Net income (loss)	$ 15,159	$ (1,625)	$ 15,308	$ (4,962)
Net loss per share, Basic and diluted:
Basic (in dollars per share)	$ 0.14	$ (0.01)	$ 0.14	$ (0.05)
Diluted (in dollars per share)	$ 0.13	$ (0.01)	$ 0.13	$ (0.05)
Weighted average shares used in per share calculation:
Basic weighted average outstanding shares of common stock	111,356	108,422	111,059	107,893
Diluted (shares)	120,033	108,422	119,454	107,893

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 15,159	$ (1,625)	$ 15,308	$ (4,962)
Other comprehensive income (loss), net of tax:
Unrealized gain on investments	44	28	20	58
Foreign exchange translation (loss) gain	(1,507)	994	(1,016)	1,935
Other comprehensive (loss) income	(1,463)	1,022	(996)	1,993
Comprehensive income (loss)	$ 13,696	$ (603)	$ 14,312	$ (2,969)

Unaudited Consolidated Stateme6

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net income (loss)	$ 15,308	$ (4,962)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	9,797	10,274
Share-based compensation	6,924	6,330
Settlement and patent license income	(14,900)	0
Foreign currency remeasurement (gain) loss	(161)	579
Deferred income taxes	(70)	(144)
Gain on sale of property and equipment	(113)	(92)
Accounts receivable charges	296	490
Amortization of premium on marketable securities	58	163
Changes in operating assets and liabilities:
Accounts receivable	223	(1,226)
Prepaid expenses and other current assets	227	867
Income taxes receivable	(63)	21
Other assets	(567)	8
Accounts payable and other current liabilities	(5,584)	2,701
Deferred revenue	167	(403)
Income taxes payable	(237)	134
Payments for provision for litigation	(6,020)	(9,000)
Other long term liabilities	(170)	(382)
Net cash provided by operating activities	5,115	5,358
Investing activities
Purchases of marketable securities	0	(7,519)
Sale and maturities of marketable securities	11,515	14,244
Purchases of property and equipment	(6,281)	(10,478)
Proceeds from sale of property and equipment	113	80
Net cash provided by (used in) by investing activities	5,347	(3,673)
Financing activities
Payments of employee tax withholdings related to restricted stock vesting	(2,812)	(1,916)
Cash paid for purchase of common stock	(3,800)	0
Proceeds from employee stock plans	4,062	1,188
Net cash used in financing activities	(2,550)	(728)
Effect of exchange rate changes on cash and cash equivalents	(105)	281
Net increase in cash and cash equivalents	7,807	1,238
Cash and cash equivalents, beginning of period	20,912	21,734
Cash and cash equivalents, end of period	28,719	22,972
Supplemental disclosure of cash flow information
Cash paid during the period for interest	66	4
Cash paid during the period for income taxes, net of refunds	$ 618	$ 224

Nature of Business

Nature of Business	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business Limelight operates a globally distributed, high-performance network and provides a suite of integrated services marketed under the Limelight Orchestrate Platform which include content delivery, video content management, website and web application acceleration, website and content security, cloud storage, and edge services. We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2017. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, or for any future periods. Recent Accounting Standards Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Accounting Standards Codification Topic 605. We recorded a net decrease to opening accumulated deficit of $1,496 as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the costs to obtain a customer contract ($1,129) , specifically commissions and upfront incentive payments, and from the recognition of revenue from customers with contracts that contain minimum commitments billed ratably over the contract term ($367) . The costs associated with obtaining a customer contract were previously expensed in the period they were incurred. Under Topic 606, these payments have been deferred on our consolidated balance sheets and amortized over the expected life of the customer contract. The impact to sales and marketing expense for the three and six months ended June 30, 2018 was not material as a result of applying Topic 606. As of June 30, 2018, prepaid commissions were $1,334 , with the short term portion of $747 included in prepaid expenses and other current assets, and the long term portion of $587 included in other assets. For customers with contracts that contain minimum commitments billed ratably over the contract term, previously, we either accrued or deferred revenue based on actual usage. Under Topic 606, we are required to evaluate the impact of estimating variable consideration related to these types of contracts. We use the expected value method to estimate the total revenue of the contract, constrained by the probability that there would not be a significant revenue reversal in a future period, and recognize a pro-rata share of the total revenue of the contract each month. We continue to evaluate the expected value of revenue over the term of the contract and adjust revenue recognition as appropriate. The impact to revenues for the three and six months ended June 30, 2018 was an increase of $255 and $237 , respectively, as a result of applying Topic 606. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We derive revenue primarily from the sale of services that comprise components of our Orchestrate Platform. Our customers generally execute contracts with terms of one year or longer, which are referred to as recurring revenue contracts or long-term contracts. These contracts generally allow the customer access to our network and commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment, or are entirely usage based. We define usage as customer data sent or received using our content delivery service, or content that is hosted or cached by us at the request or direction of our customers. For contracts that contain minimum monthly commitments, we recognize revenue equal to the greater of the minimum monthly committed amount or actual usage, if actual usage exceeds the monthly committed amount, using the right to invoice practical expedient allowable under Topic 606. For contracts that contain minimum commitments over the contractual term, we estimate an amount of variable consideration by using either the expected value method or the most likely amount method. We include estimates of variable consideration in revenue only when we have a high degree of confidence that revenue will not be reversed in a subsequent reporting period. We believe that the expected value method is the most appropriate estimate of the amount of variable consideration. These customers have entered into contracts with contract terms generally from one to four years. As of June 30, 2018, we have approximately $3,300 of remaining unsatisfied performance obligations. We recognized revenue of approximately $1,000 and $2,000 during the three and six months ended June 30, 2018, respectively, related to these types of contracts with our customers. We may charge the customer an installation fee when services are first activated. We do not charge installation fees for contract renewals. Installation fees are not distinct within the context of the overall contractual commitment with the customer to perform our content delivery service and are therefore recognized initially as deferred revenue and recognized as revenue ratably over the estimated life of the customer arrangement. We also derive revenue from services and events sold as discrete, non-recurring events or based solely on usage. For these services, we recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. At the inception of a customer contract for service, we make an assessment as to that customer’s ability to pay for the services provided. If we subsequently determine that collection from the customer is not probable, we record an allowance for doubtful accounts and bad debt expense or deferred revenue for that customer’s unpaid invoices and cease recognizing revenue for continued services provided until it is probable that revenue will not be reversed in a subsequent reporting period. Our standard payment terms vary by the type and location of our customer. Arrangements with Multiple Performance Obligations Certain of our revenue arrangements include multiple promises to our customers. Revenue arrangements with multiple promises are accounted for as separate performance obligations if each promise is distinct. Such arrangements may include a combination of some or all of the following: content delivery services, video content management services, performance services for website and web application acceleration and security, professional services, cloud storage, edge services, and sale of equipment. Consideration is allocated to the performance obligations using the relative standalone selling price method. Generally, arrangements with performance obligations are provided over the same contract period, and therefore, revenue is recognized over the same period. Deferred Revenue Deferred revenue represents amounts billed to customers for which revenue has not been recognized. Deferred revenue primarily consists of the unearned portion of monthly billed service fees and prepayments made by customers for services to be rendered in future periods. Adopted Accounting Standards - continued In August 2016, the FASB issued ASU No. 2016-15, which amends Accounting Standards Codifcation 230, to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We have adopted this guidance effective January 1, 2018. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. ASU 2017-09 will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if the award's fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. We have adopted this guidance effective January 1, 2018. The adoption of this new guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for most leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. We are utilizing a comprehensive approach to assess the impact of the guidance on our lease portfolio by reviewing our current accounting policies and practices to identify potential differences that would result from applying the new requirements. We continue to make significant progress on the potential impact on our accounting policies, internal control processes including system readiness and the related disclosures that will be required under the new guidance. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We do not plan to early adopt this ASU. We will continue to review additional leases to assess the impact under the new guidance, and expect it will result in an increase in the value of our assets and liabilities on our consolidated balance sheet. We do not know and cannot reasonably estimate quantitative information related to the impact of the new standard on our financial statements at this time. In January 2017, the FASB issued ASU 2017-04, which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, determined in Step 1. This guidance will become effective for us in fiscal years beginning after December 15, 2019, including interim periods within that reporting period. We will adopt this guidance using a prospective approach. Earlier adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not plan to early adopt this ASU, and we are currently evaluating the impact of this guidance on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, which simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. We do not plan to early adopt this ASU. We are currently evaluating the potential impacts of this updated guidance, and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures.

Investments in Marketable Secur

Investments in Marketable Securities	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Investments in Marketable Securities	Investments in Marketable Securities The following is a summary of marketable securities (designated as available-for-sale) at June 30, 2018 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposits $ 40 $ — $ — $ 40 Corporate notes and bonds 16,899 — 48 16,851 Total marketable securities $ 16,939 $ — $ 48 $ 16,891 The amortized cost and estimated fair value of marketable securities at June 30, 2018 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 16,899 $ — $ 48 $ 16,851 Due after one year and through five years 40 — — 40 $ 16,939 $ — $ 48 $ 16,891 The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2017 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 40 $ — $ — $ 40 Corporate notes and bonds 28,472 — 68 28,404 Total marketable securities $ 28,512 $ — $ 68 $ 28,444 The amortized cost and estimated fair value of marketable securities at December 31, 2017 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 23,924 $ — $ 62 $ 23,862 Due after one year and through five years 4,588 — 6 4,582 $ 28,512 $ — $ 68 $ 28,444

Accounts Receivable, net

Accounts Receivable, net	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Accounts Receivable, net	Accounts Receivable, net Accounts receivable, net include: June 30, December 31, 2018 2017 Accounts receivable $ 32,674 $ 33,519 Less: credit allowance (240 ) (240 ) Less: allowance for doubtful accounts (572 ) (898 ) Total accounts receivable, net $ 31,862 $ 32,381

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include: June 30, December 31, 2018 2017 Settlement and patent license receivable $ 11,920 $ — Prepaid bandwidth and backbone 995 1,487 VAT receivable 1,606 1,454 Prepaid expenses and insurance 2,364 1,870 Vendor deposits and other 1,262 586 Total prepaid expenses and other current assets $ 18,147 $ 5,397

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net include: June 30, December 31, 2018 2017 Network equipment $ 103,193 $ 107,916 Computer equipment and software 9,775 9,801 Furniture and fixtures 1,333 2,432 Leasehold improvements 4,252 3,969 Other equipment 166 183 Total property and equipment 118,719 124,301 Less: accumulated depreciation (92,416 ) (95,310 ) Total property and equipment, net $ 26,303 $ 28,991 Depreciation expense related to property and equipment classified in operating expense was $633 and $597 for the three months ended June 30, 2018 and 2017 , respectively and was $ 1,221 and $ 1,186 for the six months ended June 30, 2018 and 2017, respectively.

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill We have recorded goodwill as a result of past business acquisitions. Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. In each of our acquisitions, the objective of the acquisition was to expand our product offerings and customer base and to achieve synergies related to cross selling opportunities, all of which contributed to the recognition of goodwill. No interim indicators of impairment were identified as of June 30, 2018. Foreign currency translation adjustments decreased the carrying amount of goodwill by $ 379 for the three months ended June 30, 2018 . For the six months ended June 30, 2018 , foreign currency translation adjustments decreased the carrying value of goodwill by $ 406 .

Other Current Liabilities

Other Current Liabilities	6 Months Ended
	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	Other Current Liabilities Other current liabilities include: June 30, December 31, 2018 2017 Accrued compensation and benefits $ 5,628 $ 12,181 Accrued cost of revenue 2,687 3,170 Deferred rent 286 434 Accrued legal fees 23 383 Other accrued expenses 3,645 2,339 Total other current liabilities $ 12,269 $ 18,507

Line of Credit

Line of Credit	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Line of Credit	Line of Credit In February 2018, we entered into a Fourth Amendment (Fourth Amendment) to the Loan and Security Agreement (the Credit Agreement) with Silicon Valley Bank (SVB) originally entered into in November 2015. Under the Fourth Amendment, we increased the maximum principal commitment amount from $10,000 to $20,000 . Our borrowing capacity is the lesser of the commitment amount or 80% of eligible accounts receivable. The Fourth Amendment extends the Credit Agreement one year. All outstanding borrowings owed under the Credit Agreement become due and payable no later than the final maturity date of November 2, 2020. As of June 30, 2018, we had no outstanding borrowings, and we had availability under the Credit Agreement of approximately $20,000 . We had no outstanding borrowings at December 31, 2017, and we had availability under the Credit Agreement of approximately $10,000 . As of June 30, 2018, borrowings under the Credit Agreement bear interest at the current prime rate minus 0.25% . In the event of default, obligations shall bear interest at a rate per annum that is 3% above the then applicable rate. We incurred an amendment fee of $50 upon entering into the Fourth Amendment. The amendment fee and other commitment fees are included in interest expense. During the three months ended June 30, 2018 and 2017, there was no interest expense, and fees expense and amortization was $7 and $10 , respectively. For the six months ended June 30, 2018 and 2017, there was no interest expense, and fees expense and related amortization was $66 and $24 , respectively. Any borrowings are secured by essentially all of our domestic personal property, with a negative pledge on intellectual property. SVB’s security interest in our foreign subsidiaries is limited to 65% of voting stock of each such foreign subsidiary. Under the Fourth Amendment, we are required to maintain a minimum liquidity of $10,000 at all times, measured quarterly, with a minimum of $5,000 of the $10,000 in cash at SVB. In addition, we are required to maintain an Adjusted Quick Ratio of at least 1.0 to 1.0. We are also subject to certain customary limitations on our ability to, among other things, incur debt, grant liens, make acquisitions and other investments, make certain restricted payments such as dividends, dispose of assets or undergo a change in control. As of June 30, 2018, we were in compliance with all covenants under the Credit Agreement.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Legal Matters Akamai ‘703 Litigation In June 2006, Akamai Technologies, Inc. (Akamai) and the Massachusetts Institute of Technology (MIT) filed a lawsuit against us in the United States District Court for the District of Massachusetts alleging that we were infringing multiple patents assigned to MIT and exclusively licensed by MIT to Akamai. In August 2016, we entered into a settlement and license agreement with Akamai with respect to U.S. Patent No. 6,108,703 (the ’703 patent) and certain other related patents, which settled all asserted and unasserted claims with respect to the licensed patents. The terms of the agreement require us to pay $54,000 over twelve equal quarterly installments, which began on August 1, 2016. We recorded a charge in the quarter ended June 30, 2016 for the full, undiscounted amount of $54,000 . As of June 30, 2018, there remained $18,000 due to Akamai under the terms of the settlement and license agreement. Other Akamai Litigation In November 2015, we filed a lawsuit against Akamai and XO Communications in the District Court for the Eastern District of Virginia alleging the infringement of six of our patents covering a broad range of inventions that we believe are critical to the effective and efficient delivery of bytes by a content delivery network (the Akamai and XO Litigation). Akamai also filed counterclaims in April 2016, alleging the infringement of five of its patents. We filed an answer to Akamai’s counterclaims, denying each of the allegations of infringement in May 2016. In February 2016, Akamai filed a complaint against us in the District Court for the District of Massachusetts alleging infringement of three of its patents. In April 2016, Akamai amended its complaint by withdrawing one of the asserted patents. In April 2016, we filed our answer to the complaint, denying each of the allegations of infringement, and asserting two counterclaims alleging infringement of two of our patents. In December 2016, Akamai filed a second complaint against us in the District Court for the District of Massachusetts alleging infringement of three additional patents, and we later filed our answer to the complaint, denying each of the allegations of infringement. The two cases were ultimately consolidated into a single action by the court. On April 9, 2018, we entered into a definitive settlement and patent license agreement where the parties agreed to (i) license certain patents to the other party, (ii) a covenant not to sue for three years for certain patents related to the licensed patents, and (iii) settle all outstanding legal disputes between the parties. The terms of the agreement also require Akamai to pay to Limelight a total of $14,900 over five equal quarterly installments. The first quarterly payment of $2,980 was received in May 2018. Legal and other expenses associated with litigation have been significant. We include these litigation expenses in general and administrative expenses as incurred, as reported in the consolidated statement of operations. Other Matters We are subject to various other legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows. Litigation relating to the content delivery services industry is not uncommon, and we are, and from time to time have been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future. Taxes We are subject to indirect taxation in various states and foreign jurisdictions. Laws and regulations that apply to communications and commerce conducted over the Internet are becoming more prevalent, both in the United States and internationally, and may impose additional burdens on us conducting business online or providing Internet-related services. Increased regulation could negatively affect our business directly, as well as the businesses of our customers, which could reduce their demand for our services. For example, tax authorities in various states and abroad may impose taxes on the Internet-related revenue we generate based on regulations currently being applied to similar but not directly comparable industries. There are many transactions and calculations where the ultimate tax determination is uncertain. In addition, domestic and international taxation laws are subject to change. In the future, we may come under audit, which could result in changes to our tax estimates. We believe we maintain adequate tax reserves, that are not material in amount, to offset potential liabilities that may arise upon audit. Although we believe our tax estimates and associated reserves are reasonable, the final determination of tax audits and any related litigation could be materially different than the amounts established for tax contingencies. To the extent these estimates ultimately prove to be inaccurate, the associated reserves would be adjusted, resulting in the recording of a benefit or expense in the period in which a change in estimate or a final determination is made.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Loss per Share	Net Income (Loss) per Share We calculate basic and diluted income (loss) per weighted average share. We use the weighted-average number of shares of common stock outstanding during the period for the computation of basic income (loss) per share. Diluted income (loss) per share include the dilutive effect of all potentially dilutive common stock, including awards granted under our equity incentive compensation plans in the weighted-average number of shares of common stock outstanding. The following table sets forth the components used in the computation of basic and diluted net income (loss) per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) $ 15,159 $ (1,625 ) $ 15,308 $ (4,962 ) Basic weighted average outstanding shares of common stock 111,356 108,422 111,059 107,893 Basic weighted average outstanding shares of common stock 111,356 108,422 111,059 107,893 Dilutive effect of stock options, restricted stock units, and other equity incentive plans 8,677 — 8,395 — Diluted weighted average outstanding shares of common stock 120,033 108,422 119,454 107,893 Basic net income (loss) per share $ 0.14 $ (0.01 ) $ 0.14 $ (0.05 ) Diluted net income (loss) per share: $ 0.13 $ (0.01 ) $ 0.13 $ (0.05 ) For the three and six months ended June 30, 2018 and 2017 , respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Employee stock purchase plan — 107 — 107 Stock options 2,832 1,496 3,718 844 Restricted stock units — 2,688 — 2,382 2,832 4,291 3,718 3,333

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock On March 14, 2017, our board of directors authorized a $25,000 share repurchase program. Any shares repurchased under this program will be canceled and returned to authorized but unissued status. This share repurchase program replaced the $9,500 remaining from the previously announced $15,000 share repurchase program. During the three months ended June 30, 2018, we did no t repurchase any shares under the repurchase program. During the six months ended June 30, 2018, we purchased and canceled 1,000 shares for $3,800 , including commissions and fees. During the three and six months ended June 30, 2017, we did no t repurchase any shares under the repurchase programs. As of June 30, 2018, there remained $21,200 under this share repurchase program. Amended and Restated Equity Incentive Plan We established the 2007 Equity Incentive Plan, or the 2007 Plan, which allows for the grant of equity, including stock options and restricted stock unit awards. In June 2016, our stockholders approved the Amended and Restated Equity Incentive Plan, or the Restated 2007 Plan, which amended and restated the 2007 Plan. Approval of the Restated 2007 Plan replaced the terms and conditions of the 2007 Plan with the terms and conditions of the Restated 2007 Plan, and extended the term of the plan to April 2026. There was no increase in the aggregate amount of shares available for issuance. The total number of shares authorized for issuance under the Restated 2007 Plan as of June 30, 2018 was approximately 10,528 . Employee Stock Purchase Plan In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP). The ESPP allows participants to purchase our common stock at a 15% discount of the lower of the beginning or end of the offering period using the closing price on that day. During the three and six months ended June 30, 2018, we issued 250 shares under the ESPP. Total cash proceeds from the purchase of the shares under the ESPP was approximately $1,110 . As of June 30, 2018 , shares reserved for issuance to employees under this plan totaled 380 , and we held employee contributions of $332 (included in other current liabilities) for future purchases under the ESPP. Preferred Stock Our board of directors has authorized the issuance of up to 7,500 shares of preferred stock at June 30, 2018 . The preferred stock may be issued in one or more series pursuant to a resolution or resolutions providing for such issuance duly adopted by the board of directors. As of June 30, 2018 , the board of directors had not adopted any resolutions for the issuance of preferred stock.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2018 , was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2017 $ (8,259 ) $ (69 ) $ (8,328 ) Other comprehensive income (loss) before reclassifications (1,016 ) 20 (996 ) Amounts reclassified from accumulated other comprehensive loss — — — Net current period other comprehensive income (loss) (1,016 ) 20 (996 ) Balance, June 30, 2018 $ (9,275 ) $ (49 ) $ (9,324 )

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation The following table summarizes the components of share-based compensation expense included in our consolidated statement of operations: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Share-based compensation expense by type: Stock options $ 1,046 $ 909 $ 2,107 $ 1,859 Restricted stock units 2,181 2,110 4,347 4,138 ESPP 330 236 470 333 Total share-based compensation expense $ 3,557 $ 3,255 $ 6,924 $ 6,330 Share-based compensation expense: Cost of services $ 350 $ 364 $ 707 $ 723 General and administrative expense 1,969 1,674 3,779 3,208 Sales and marketing expense 633 617 1,236 1,237 Research and development expense 605 600 1,202 1,162 Total share-based compensation expense $ 3,557 $ 3,255 $ 6,924 $ 6,330 Unrecognized share-based compensation expense totaled approximately $20,805 at June 30, 2018 , of which $6,580 related to stock options and $14,225 related to restricted stock units. We currently expect to recognize share-based compensation expense of $6,418 during the remainder of 2018, $9,302 in 2019 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at June 30, 2018 .

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In July 2006, an aggregate of 39,869,960 shares of Series B Preferred Stock was issued at a purchase price of $3.26 per share to certain accredited investors in a private placement transaction. As a result of this transaction, entities affiliated with Goldman, Sachs & Co., one of the lead underwriters of our initial public offering (IPO), became holders of more than 10% of our common stock. On June 14, 2007, upon the closing of our IPO, all outstanding shares of our Series B Preferred Stock automatically converted into shares of common stock on a 1 -for-1 share basis. Between November 2017 and March 2018, investment partnerships affiliated with Goldman Sachs & Co. LLC and Goldman Sachs Group, Inc. sold 30,272,493 shares that they had acquired upon the conversation of their Series B Preferred Stock at the time of the Company’s IPO in June 2007. As of June 30, 2018, Goldman, Sachs & Co. owned less than 1% of our outstanding common stock. We had no other material related party transactions during the three and six months ended June 30, 2018 and 2017.

Leases and Purchase Commitments

Leases and Purchase Commitments	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Leases and Purchase Commitments	Leases and Purchase Commitments Operating Leases We are committed to various non-cancellable operating leases for office space and office equipment which expire through 2022. Certain leases contain provisions for renewal options and rent escalations upon expiration of the initial lease terms. Approximate future minimum lease payments over the remaining lease periods as of June 30, 2018 , are as follows: Remainder of 2018 $ 1,482 2019 1,707 2020 782 2021 466 2022 55 Thereafter — Total minimum payments $ 4,492 Purchase Commitments We have long-term commitments for bandwidth usage and co-location with various networks and Internet service providers. The following summarizes minimum commitments as of June 30, 2018 : Remainder of 2018 $ 18,068 2019 16,123 2020 1,987 2021 250 2022 2 Thereafter — Total minimum payments $ 36,430

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2018
Risks and Uncertainties [Abstract]
Concentrations	Concentrations During the three and six months ended June 30, 2018 and 2017, respectively, we had one customer, Amazon, who represented more than 10% of our total revenue. Revenue from customers located within the United States, our country of domicile, was $30,067 for the three months ended June 30, 2018 , compared to $27,018 for the three months ended June 30, 2017 . For the six months ended June 30, 2018, revenue from customers located within the United States was $ 60,620 , compared to $ 54,391 for the six months ended June 30, 2017. During the three and six months ended June 30, 2018 , based on customer location, we had two countries, the United States, and the United Kingdom, that accounted for 10% or more of our total revenue. During the three and six months ended June 30, 2017, we had three countries, the United States, Japan, and the United Kingdom, that accounted for 10% or more of our total revenue based on customer location.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income taxes for the interim periods presented have been included in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate. Based on an estimated annual effective tax rate and discrete items, income tax expense for the three months ended June 30, 2018 and 2017, was $ 249 and $151 , respectively. For the six months ended June 30, 2018 and 2017, income tax expense was $ 234 and $ 260 , respectively. Income tax expense was different than the statutory income tax rate primarily due to us providing for a valuation allowance on deferred tax assets in certain jurisdictions, and the recording of state and foreign tax expense for the three and six month periods. We file income tax returns in jurisdictions with varying statutes of limitations. Tax years 2014 through 2016 remain subject to examination by federal tax authorities. Tax years 2013 through 2016 generally remain subject to examination by state tax authorities. As of June 30, 2018 , we are not under any federal or state examination for income taxes. On December 22, 2017, the Tax Cuts and Jobs Act (the Tax Act) significantly revised the U.S. corporate income tax law, by among other things, reducing the corporate income tax rate to 21% for tax years beginning in 2018, implementing a modified territorial system that includes a one-time transition tax on deemed repatriated earnings of foreign subsidiaries and creating new taxes on certain foreign sourced earnings. Also on December 22, 2017, The SEC staff issued Staff Accounting Bulletin (SAB) 118 to provide guidance for companies that are not able to complete their accounting for the income tax effects of the Tax Act in the period of enactment. SAB 118 provides for a measurement period of up to one year from the date of enactment. During the measurement period, companies need to reflect adjustments to any provisional amounts if it obtains, prepares or analyzes additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts. At June 30, 2018 we have not yet completed our analysis of the Tax Act; however, in certain circumstances, as described below, we have made a reasonable estimate of the effects of the Tax Act. Provisional Amounts Our deferred tax balances for the year ending December 31, 2017 reflected an estimated $41 tax benefit related to the re-measurement of a deferred tax liability on a long-lived asset. The remaining impact from the re-measurement of our net U.S. deferred tax asset at the lower 21% rate was offset by the valuation allowance. Our deferred tax balances for the year ending December 31, 2017 reflected the estimated impact from the one-time transition tax that we previously deferred from U.S. income taxes. The transition tax that we calculated resulted in an immaterial amount of additional federal taxable income. The additional taxable income from the transition tax was offset by net operating losses (NOLs) and did not result in cash taxes payable. There were no changes to the provisional amounts recorded as of December 31, 2017. We will consider the revaluation of our deferred balances and the one-time transition tax amounts as provisional amounts until our 2017 federal income tax return has been finalized. The tax provision incorporates assumptions made based upon the Company’s current interpretation of the Tax Act, and may change as we receive additional clarification and implementation guidance and as the interpretation of the Tax Act evolves over time. The Tax Act contains several base broadening provisions that became effective on January 1, 2018 that we do not expect to have a material impact on future earnings due to our NOL and valuation allowance position. Also effective for 2018 is a new Global Intangible Low-Taxed Income inclusion (GILTI). There was no impact to income tax expense (benefit) related to the GILTI as a result of our NOL and valuation allowance position. We do not expect the GILTI to have a material impact on future earnings due to our NOL and valuation allowance position.

Segment Reporting and Geographi

Segment Reporting and Geographic Areas	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Reporting and Geographic Areas	Segment Reporting and Geographic Areas Our chief operating decision maker (whom is our Chief Executive Officer) reviews our financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. We operate in one industry segment — content delivery and related services and we operate in three geographic areas — Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific. Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth our revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Americas $ 31,039 62 % $ 28,413 63 % $ 63,617 62 % $ 56,608 63 % EMEA 9,708 19 % 8,807 19 % 21,500 21 % 17,264 19 % Asia Pacific 9,502 19 % 8,150 18 % 17,246 17 % 16,233 18 % Total revenue $ 50,249 100 % $ 45,370 100 % $ 102,363 100 % $ 90,105 100 % The following table sets forth the individual countries and their respective revenue for those countries whose revenue exceeded 10% of our total revenue: Three Months Ended June 30, Six Months Ended June 30, Country / Region 2018 2017 2018 2017 United States / Americas 30,067 27,018 60,620 54,391 United Kingdom / EMEA 6,337 5,002 15,306 9,578 Japan / Asia Pacific 4,922 5,066 9,231 9,817 The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2018 2017 Americas $ 17,186 $ 17,119 International 9,117 11,872 Total long-lived assets $ 26,303 $ 28,991

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements As of June 30, 2018 , and December 31, 2017 , we held certain assets and liabilities that were required to be measured at fair value on a recurring basis. The following is a summary of fair value measurements at June 30, 2018 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 8,808 $ 8,808 $ — $ — Certificate of deposit (1) 40 — 40 — Corporate notes and bonds (1) 16,851 — 16,851 — Total assets measured at fair value $ 25,699 $ 8,808 $ 16,891 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2017 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 6,789 $ 6,789 $ — $ — Certificate of deposit (1) 40 — 40 — Corporate notes and bonds (1) 28,404 — 28,404 — Total assets measured at fair value $ 35,233 $ 6,789 $ 28,444 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The carrying amount of cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of short-term and long-term marketable securities approximates fair value as the securities are marked to market as of each balance sheet date with any unrealized gains and losses reported in stockholders’ equity. The carrying amount of accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term maturity of the amounts.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2017. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, or for any future periods.
Recent Accounting Standards	Recent Accounting Standards Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Accounting Standards Codification Topic 605. We recorded a net decrease to opening accumulated deficit of $1,496 as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the costs to obtain a customer contract ($1,129) , specifically commissions and upfront incentive payments, and from the recognition of revenue from customers with contracts that contain minimum commitments billed ratably over the contract term ($367) . The costs associated with obtaining a customer contract were previously expensed in the period they were incurred. Under Topic 606, these payments have been deferred on our consolidated balance sheets and amortized over the expected life of the customer contract. The impact to sales and marketing expense for the three and six months ended June 30, 2018 was not material as a result of applying Topic 606. As of June 30, 2018, prepaid commissions were $1,334 , with the short term portion of $747 included in prepaid expenses and other current assets, and the long term portion of $587 included in other assets. For customers with contracts that contain minimum commitments billed ratably over the contract term, previously, we either accrued or deferred revenue based on actual usage. Under Topic 606, we are required to evaluate the impact of estimating variable consideration related to these types of contracts. We use the expected value method to estimate the total revenue of the contract, constrained by the probability that there would not be a significant revenue reversal in a future period, and recognize a pro-rata share of the total revenue of the contract each month. We continue to evaluate the expected value of revenue over the term of the contract and adjust revenue recognition as appropriate. The impact to revenues for the three and six months ended June 30, 2018 was an increase of $255 and $237 , respectively, as a result of applying Topic 606. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We derive revenue primarily from the sale of services that comprise components of our Orchestrate Platform. Our customers generally execute contracts with terms of one year or longer, which are referred to as recurring revenue contracts or long-term contracts. These contracts generally allow the customer access to our network and commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment, or are entirely usage based. We define usage as customer data sent or received using our content delivery service, or content that is hosted or cached by us at the request or direction of our customers. For contracts that contain minimum monthly commitments, we recognize revenue equal to the greater of the minimum monthly committed amount or actual usage, if actual usage exceeds the monthly committed amount, using the right to invoice practical expedient allowable under Topic 606. For contracts that contain minimum commitments over the contractual term, we estimate an amount of variable consideration by using either the expected value method or the most likely amount method. We include estimates of variable consideration in revenue only when we have a high degree of confidence that revenue will not be reversed in a subsequent reporting period. We believe that the expected value method is the most appropriate estimate of the amount of variable consideration. These customers have entered into contracts with contract terms generally from one to four years. As of June 30, 2018, we have approximately $3,300 of remaining unsatisfied performance obligations. We recognized revenue of approximately $1,000 and $2,000 during the three and six months ended June 30, 2018, respectively, related to these types of contracts with our customers. We may charge the customer an installation fee when services are first activated. We do not charge installation fees for contract renewals. Installation fees are not distinct within the context of the overall contractual commitment with the customer to perform our content delivery service and are therefore recognized initially as deferred revenue and recognized as revenue ratably over the estimated life of the customer arrangement. We also derive revenue from services and events sold as discrete, non-recurring events or based solely on usage. For these services, we recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. At the inception of a customer contract for service, we make an assessment as to that customer’s ability to pay for the services provided. If we subsequently determine that collection from the customer is not probable, we record an allowance for doubtful accounts and bad debt expense or deferred revenue for that customer’s unpaid invoices and cease recognizing revenue for continued services provided until it is probable that revenue will not be reversed in a subsequent reporting period. Our standard payment terms vary by the type and location of our customer. Arrangements with Multiple Performance Obligations Certain of our revenue arrangements include multiple promises to our customers. Revenue arrangements with multiple promises are accounted for as separate performance obligations if each promise is distinct. Such arrangements may include a combination of some or all of the following: content delivery services, video content management services, performance services for website and web application acceleration and security, professional services, cloud storage, edge services, and sale of equipment. Consideration is allocated to the performance obligations using the relative standalone selling price method. Generally, arrangements with performance obligations are provided over the same contract period, and therefore, revenue is recognized over the same period. Deferred Revenue Deferred revenue represents amounts billed to customers for which revenue has not been recognized. Deferred revenue primarily consists of the unearned portion of monthly billed service fees and prepayments made by customers for services to be rendered in future periods. Adopted Accounting Standards - continued In August 2016, the FASB issued ASU No. 2016-15, which amends Accounting Standards Codifcation 230, to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We have adopted this guidance effective January 1, 2018. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. ASU 2017-09 will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if the award's fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. We have adopted this guidance effective January 1, 2018. The adoption of this new guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for most leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. We are utilizing a comprehensive approach to assess the impact of the guidance on our lease portfolio by reviewing our current accounting policies and practices to identify potential differences that would result from applying the new requirements. We continue to make significant progress on the potential impact on our accounting policies, internal control processes including system readiness and the related disclosures that will be required under the new guidance. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We do not plan to early adopt this ASU. We will continue to review additional leases to assess the impact under the new guidance, and expect it will result in an increase in the value of our assets and liabilities on our consolidated balance sheet. We do not know and cannot reasonably estimate quantitative information related to the impact of the new standard on our financial statements at this time. In January 2017, the FASB issued ASU 2017-04, which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, determined in Step 1. This guidance will become effective for us in fiscal years beginning after December 15, 2019, including interim periods within that reporting period. We will adopt this guidance using a prospective approach. Earlier adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not plan to early adopt this ASU, and we are currently evaluating the impact of this guidance on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, which simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. We do not plan to early adopt this ASU. We are currently evaluating the potential impacts of this updated guidance, and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures.
Revenue Recognition	Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We derive revenue primarily from the sale of services that comprise components of our Orchestrate Platform. Our customers generally execute contracts with terms of one year or longer, which are referred to as recurring revenue contracts or long-term contracts. These contracts generally allow the customer access to our network and commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment, or are entirely usage based. We define usage as customer data sent or received using our content delivery service, or content that is hosted or cached by us at the request or direction of our customers. For contracts that contain minimum monthly commitments, we recognize revenue equal to the greater of the minimum monthly committed amount or actual usage, if actual usage exceeds the monthly committed amount, using the right to invoice practical expedient allowable under Topic 606. For contracts that contain minimum commitments over the contractual term, we estimate an amount of variable consideration by using either the expected value method or the most likely amount method. We include estimates of variable consideration in revenue only when we have a high degree of confidence that revenue will not be reversed in a subsequent reporting period. We believe that the expected value method is the most appropriate estimate of the amount of variable consideration. These customers have entered into contracts with contract terms generally from one to four years. As of June 30, 2018, we have approximately $3,300 of remaining unsatisfied performance obligations. We recognized revenue of approximately $1,000 and $2,000 during the three and six months ended June 30, 2018, respectively, related to these types of contracts with our customers. We may charge the customer an installation fee when services are first activated. We do not charge installation fees for contract renewals. Installation fees are not distinct within the context of the overall contractual commitment with the customer to perform our content delivery service and are therefore recognized initially as deferred revenue and recognized as revenue ratably over the estimated life of the customer arrangement. We also derive revenue from services and events sold as discrete, non-recurring events or based solely on usage. For these services, we recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. At the inception of a customer contract for service, we make an assessment as to that customer’s ability to pay for the services provided. If we subsequently determine that collection from the customer is not probable, we record an allowance for doubtful accounts and bad debt expense or deferred revenue for that customer’s unpaid invoices and cease recognizing revenue for continued services provided until it is probable that revenue will not be reversed in a subsequent reporting period. Our standard payment terms vary by the type and location of our customer. Arrangements with Multiple Performance Obligations Certain of our revenue arrangements include multiple promises to our customers. Revenue arrangements with multiple promises are accounted for as separate performance obligations if each promise is distinct. Such arrangements may include a combination of some or all of the following: content delivery services, video content management services, performance services for website and web application acceleration and security, professional services, cloud storage, edge services, and sale of equipment. Consideration is allocated to the performance obligations using the relative standalone selling price method. Generally, arrangements with performance obligations are provided over the same contract period, and therefore, revenue is recognized over the same period. Deferred Revenue Deferred revenue represents amounts billed to customers for which revenue has not been recognized. Deferred revenue primarily consists of the unearned portion of monthly billed service fees and prepayments made by customers for services to be rendered in future periods.

Investments in Marketable Sec28

Investments in Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Summary of Marketable Securities (designated as available-for-sale)	The following is a summary of marketable securities (designated as available-for-sale) at June 30, 2018 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposits $ 40 $ — $ — $ 40 Corporate notes and bonds 16,899 — 48 16,851 Total marketable securities $ 16,939 $ — $ 48 $ 16,891 The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2017 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 40 $ — $ — $ 40 Corporate notes and bonds 28,472 — 68 28,404 Total marketable securities $ 28,512 $ — $ 68 $ 28,444
Amortized Cost and Estimated Fair Value of Marketable Securities (designated as available-for-sale) by maturity	The amortized cost and estimated fair value of marketable securities at June 30, 2018 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 16,899 $ — $ 48 $ 16,851 Due after one year and through five years 40 — — 40 $ 16,939 $ — $ 48 $ 16,891 The amortized cost and estimated fair value of marketable securities at December 31, 2017 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 23,924 $ — $ 62 $ 23,862 Due after one year and through five years 4,588 — 6 4,582 $ 28,512 $ — $ 68 $ 28,444

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Summary of Accounts Receivable, net	Accounts receivable, net include: June 30, December 31, 2018 2017 Accounts receivable $ 32,674 $ 33,519 Less: credit allowance (240 ) (240 ) Less: allowance for doubtful accounts (572 ) (898 ) Total accounts receivable, net $ 31,862 $ 32,381

Prepaid Expenses and Other Cu30

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets include: June 30, December 31, 2018 2017 Settlement and patent license receivable $ 11,920 $ — Prepaid bandwidth and backbone 995 1,487 VAT receivable 1,606 1,454 Prepaid expenses and insurance 2,364 1,870 Vendor deposits and other 1,262 586 Total prepaid expenses and other current assets $ 18,147 $ 5,397

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and equipment, net include: June 30, December 31, 2018 2017 Network equipment $ 103,193 $ 107,916 Computer equipment and software 9,775 9,801 Furniture and fixtures 1,333 2,432 Leasehold improvements 4,252 3,969 Other equipment 166 183 Total property and equipment 118,719 124,301 Less: accumulated depreciation (92,416 ) (95,310 ) Total property and equipment, net $ 26,303 $ 28,991

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	Other current liabilities include: June 30, December 31, 2018 2017 Accrued compensation and benefits $ 5,628 $ 12,181 Accrued cost of revenue 2,687 3,170 Deferred rent 286 434 Accrued legal fees 23 383 Other accrued expenses 3,645 2,339 Total other current liabilities $ 12,269 $ 18,507

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the components used in the computation of basic and diluted net income (loss) per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) $ 15,159 $ (1,625 ) $ 15,308 $ (4,962 ) Basic weighted average outstanding shares of common stock 111,356 108,422 111,059 107,893 Basic weighted average outstanding shares of common stock 111,356 108,422 111,059 107,893 Dilutive effect of stock options, restricted stock units, and other equity incentive plans 8,677 — 8,395 — Diluted weighted average outstanding shares of common stock 120,033 108,422 119,454 107,893 Basic net income (loss) per share $ 0.14 $ (0.01 ) $ 0.14 $ (0.05 ) Diluted net income (loss) per share: $ 0.13 $ (0.01 ) $ 0.13 $ (0.05 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three and six months ended June 30, 2018 and 2017 , respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Employee stock purchase plan — 107 — 107 Stock options 2,832 1,496 3,718 844 Restricted stock units — 2,688 — 2,382 2,832 4,291 3,718 3,333

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2018 , was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2017 $ (8,259 ) $ (69 ) $ (8,328 ) Other comprehensive income (loss) before reclassifications (1,016 ) 20 (996 ) Amounts reclassified from accumulated other comprehensive loss — — — Net current period other comprehensive income (loss) (1,016 ) 20 (996 ) Balance, June 30, 2018 $ (9,275 ) $ (49 ) $ (9,324 )

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Components of Share-based Compensation Expense	The following table summarizes the components of share-based compensation expense included in our consolidated statement of operations: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Share-based compensation expense by type: Stock options $ 1,046 $ 909 $ 2,107 $ 1,859 Restricted stock units 2,181 2,110 4,347 4,138 ESPP 330 236 470 333 Total share-based compensation expense $ 3,557 $ 3,255 $ 6,924 $ 6,330 Share-based compensation expense: Cost of services $ 350 $ 364 $ 707 $ 723 General and administrative expense 1,969 1,674 3,779 3,208 Sales and marketing expense 633 617 1,236 1,237 Research and development expense 605 600 1,202 1,162 Total share-based compensation expense $ 3,557 $ 3,255 $ 6,924 $ 6,330

Leases and Purchase Commitmen36

Leases and Purchase Commitments (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Over Remaining Lease Periods	Approximate future minimum lease payments over the remaining lease periods as of June 30, 2018 , are as follows: Remainder of 2018 $ 1,482 2019 1,707 2020 782 2021 466 2022 55 Thereafter — Total minimum payments $ 4,492
Minimum Purchase Commitments	The following summarizes minimum commitments as of June 30, 2018 : Remainder of 2018 $ 18,068 2019 16,123 2020 1,987 2021 250 2022 2 Thereafter — Total minimum payments $ 36,430

Segment Reporting and Geograp37

Segment Reporting and Geographic Areas (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Revenue Earned by Geographic Area	The following table sets forth our revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Americas $ 31,039 62 % $ 28,413 63 % $ 63,617 62 % $ 56,608 63 % EMEA 9,708 19 % 8,807 19 % 21,500 21 % 17,264 19 % Asia Pacific 9,502 19 % 8,150 18 % 17,246 17 % 16,233 18 % Total revenue $ 50,249 100 % $ 45,370 100 % $ 102,363 100 % $ 90,105 100 %
Schedules of Concentration of Revenue by Country	The following table sets forth the individual countries and their respective revenue for those countries whose revenue exceeded 10% of our total revenue: Three Months Ended June 30, Six Months Ended June 30, Country / Region 2018 2017 2018 2017 United States / Americas 30,067 27,018 60,620 54,391 United Kingdom / EMEA 6,337 5,002 15,306 9,578 Japan / Asia Pacific 4,922 5,066 9,231 9,817
Long-lived Assets by Geographical Area	The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2018 2017 Americas $ 17,186 $ 17,119 International 9,117 11,872 Total long-lived assets $ 26,303 $ 28,991

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Summary of Money Market Funds, Marketable Securities, Other Investment-related Assets and Current Liabilities	The following is a summary of fair value measurements at June 30, 2018 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 8,808 $ 8,808 $ — $ — Certificate of deposit (1) 40 — 40 — Corporate notes and bonds (1) 16,851 — 16,851 — Total assets measured at fair value $ 25,699 $ 8,808 $ 16,891 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2017 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 6,789 $ 6,789 $ — $ — Certificate of deposit (1) 40 — 40 — Corporate notes and bonds (1) 28,404 — 28,404 — Total assets measured at fair value $ 35,233 $ 6,789 $ 28,444 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effect on accumulated deficit		$ (333,146)		$ (333,146)		$ (349,950)
Effect on revenues		50,249	$ 45,370	102,363	$ 90,105
Committed revenue from minimum commitment contracts		3,300		3,300
Minimum commitment contracts revenue recognized in period		1,000		$ 2,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Minimum commitment contract term				1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Minimum commitment contract term				4 years
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effect on accumulated deficit	$ 1,496
Effect on sales commissions and incentive payments	(1,129)
Prepaid commissions		1,334		$ 1,334
Effect on revenues		255		237
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Prepaid Expenses and Other Current Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid commissions		747		747
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Other Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid commissions		$ 587		$ 587
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Commitments Billed Ratably Over the Contract Term
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effect on revenues	$ (367)

Investments in Marketable Sec40

Investments in Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Summary of marketable securities (designated as available-for-sale)
Amortized Cost	$ 16,939	$ 28,512
Gross Unrealized Gains	0	0
Gross Unrealized Losses	48	68
Estimated Fair Value	16,891	28,444
Certificate of deposit
Summary of marketable securities (designated as available-for-sale)
Amortized Cost	40	40
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	40	40
Corporate notes and bonds
Summary of marketable securities (designated as available-for-sale)
Amortized Cost	16,899	28,472
Gross Unrealized Gains	0	0
Gross Unrealized Losses	48	68
Estimated Fair Value	$ 16,851	$ 28,404

Investments in Marketable Sec41

Investments in Marketable Securities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity
Amortized Cost	$ 16,939	$ 28,512
Gross Unrealized Gains	0	0
Gross Unrealized Losses	48	68
Estimated Fair Value	16,891	28,444
Debt securities
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity
Amortized Cost, Due in one year or less	16,899	23,924
Gross Unrealized Gains, Due in one year or less	0	0
Gross Unrealized Losses, Due in one year or less	48	62
Estimated Fair Value, Due in one year or less	16,851	23,862
Amortized Cost, Due after one year and through five years	40	4,588
Gross Unrealized Gains, Due after one year and through five years	0	0
Gross Unrealized Losses, Due after one year and through five years	0	6
Estimated Fair Value, Due after one year and through five years	40	4,582
Amortized Cost	16,939	28,512
Gross Unrealized Gains	0	0
Gross Unrealized Losses	48	68
Estimated Fair Value	$ 16,891	$ 28,444

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Summary of Accounts Receivable, net
Accounts receivable	$ 32,674	$ 33,519
Less: credit allowance	(240)	(240)
Less: allowance for doubtful accounts	(572)	(898)
Total accounts receivable, net	$ 31,862	$ 32,381

Prepaid Expenses and Other Cu43

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Prepaid Expense and Other Assets, Current [Abstract]
Settlement and patent license receivable	$ 11,920	$ 0
Prepaid bandwidth and backbone	995	1,487
VAT receivable	1,606	1,454
Prepaid expenses and insurance	2,364	1,870
Vendor deposits and other	1,262	586
Total prepaid expenses and other current assets	$ 18,147	$ 5,397

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property and equipment, net
Property and equipment, gross	$ 118,719	$ 124,301
Less: accumulated depreciation	(92,416)	(95,310)
Total property and equipment, net	26,303	28,991
Network equipment
Property and equipment, net
Property and equipment, gross	103,193	107,916
Computer equipment and software
Property and equipment, net
Property and equipment, gross	9,775	9,801
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	1,333	2,432
Leasehold improvements
Property and equipment, net
Property and equipment, gross	4,252	3,969
Other equipment
Property and equipment, net
Property and equipment, gross	$ 166	$ 183

Property and Equipment, net (45

Property and Equipment, net (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Operating expense depreciation	$ 633	$ 597	$ 1,221	$ 1,186

Goodwill (Details Textual)

Goodwill (Details Textual) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Foreign currency translation adjustment	$ 379	$ 406

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 5,628	$ 12,181
Accrued cost of revenue	2,687	3,170
Deferred rent	286	434
Accrued legal fees	23	383
Other accrued expenses	3,645	2,339
Total other current liabilities	$ 12,269	$ 18,507

Line of Credit (Details)

Line of Credit (Details) - Revolving Credit Facility - Credit Agreement - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Nov. 02, 2015
Line of Credit Facility [Line Items]
Maximum borrowing amount	$ 20,000,000						$ 10,000,000
Borrowing capacity limit, percent of accounts receivable	80.00%
Proceeds from line of credit						$ 0
Current borrowing capacity		$ 20,000,000		$ 20,000,000		$ 10,000,000
Increase in interest rate in event of default		3.00%		3.00%
Commitment fee percentage paid at closing				5000000.00%
Commitment fees amortization		$ 7,000	$ 10,000	$ 66,000	$ 24,000
Voting stock percentage in foreign subsidiaries				65.00%
Line of credit facility, covenant compliance, minimum cash and revolver availability	$ 10,000,000
Line of credit facility, covenant compliance, minimum cash at lender	$ 5,000,000
Alternative Base Rate
Line of Credit Facility [Line Items]
Variable rate minimum				0.25%

Contingencies (Details)

Contingencies (Details) $ in Thousands	May 09, 2018USD ($)	Apr. 09, 2018USD ($)installment_payment	Aug. 01, 2016USD ($)installment_payment	Apr. 30, 2016Patentcounterclaim	Dec. 31, 2017USD ($)	Dec. 28, 2016Patent	Apr. 29, 2016Patent	Feb. 16, 2016Patent	Nov. 30, 2015Patent
Akamai '703 Litigation | Settled Litigation
Loss Contingencies [Line Items]
Legal settlement awarded to other party | $			$ (54,000)
Number of quarterly installment payments for litigation settlement | installment_payment			12
Litigation reserve, remaining amount due | $					$ 18,000
Akamai and XO Communications Litigation | Pending Litigation
Loss Contingencies [Line Items]
Number of company patents infringed									6
Akamai Litigation | Pending Litigation
Loss Contingencies [Line Items]
Number of patents Company was infringing							5
Akamai Litigation | Settled Litigation
Loss Contingencies [Line Items]
Number of quarterly installment payments for litigation settlement | installment_payment		5
Litigation Settlement, Period of Agreement to Not Sue		3 years
Legal settlement awarded from other party | $		$ 14,900
Proceeds from legal settlement | $	$ 2,980
2016 Akamai Litigation | Pending Litigation
Loss Contingencies [Line Items]
Number of company patents infringed				2
Number Of Patents Company Infringed, Additional						3
Number of patents Company was infringing								3
Number of patents company infringed, withdrawn				1
Number of counterclaims | counterclaim				2

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 15,159	$ (1,625)	$ 15,308	$ (4,962)
Basic weighted average outstanding shares of common stock	111,356	108,422	111,059	107,893
Dilutive effect of stock options, restricted stock units, and other equity incentive plans	8,677	0	8,395	0
Diluted weighted average outstanding shares of common stock	120,033	108,422	119,454	107,893
Basic net income (in dollars per share)	$ 0.14	$ (0.01)	$ 0.14	$ (0.05)
Diluted net income (in dollars per share)	$ 0.13	$ (0.01)	$ 0.13	$ (0.05)

Net Loss per Share Dilutive Com

Net Loss per Share Dilutive Common Stock (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	2,832	4,291	3,718	3,333
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	0	107	0	107
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	2,832	1,496	3,718	844
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	0	2,688	0	2,382

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Mar. 14, 2017	Feb. 12, 2014
Equity, Class of Treasury Stock [Line Items]
Cash paid for purchase of common stock			$ 3,800	$ 0
Issuance of preferred stock authorized (in shares)	7,500,000		7,500,000		7,500,000
Employee Stock Purchase Plan
Equity, Class of Treasury Stock [Line Items]
Discount from market price for employees			15.00%
Shares issued (in shares)			250,000
Proceeds from issuance of shares	$ 1,110
Common Stock reserved for future options and restricted stock awards (in shares)	380,000		380,000
Employee funds held by company for future purchase of shares	$ 332		$ 332
2007 Equity Incentive Plan
Equity, Class of Treasury Stock [Line Items]
Shares authorized for issuance under Restated 2007 Plan (in shares)	10,528,000		10,528,000
2017 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase amount authorized						$ 25,000
Remaining authorized repurchase amount	$ 21,200		$ 21,200
Shares purchased and canceled	0	0	1,000,000	0
Cash paid for purchase of common stock			$ 3,800
2012 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase amount authorized							$ 15,000
Remaining authorized repurchase amount						$ 9,500

Accumulated Other Comprehensi53

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance			$ 144,145
Other comprehensive (loss) income	$ (1,463)	$ 1,022	(996)	$ 1,993
Accumulated other comprehensive income, ending balance	164,326		164,326
Foreign Currency
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance			(8,259)
Other comprehensive income (loss) before reclassifications			(1,016)
Amounts reclassified from accumulated other comprehensive loss			0
Other comprehensive (loss) income			(1,016)
Accumulated other comprehensive income, ending balance	(9,275)		(9,275)
Unrealized Gains (Losses) on Available for Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance			(69)
Other comprehensive income (loss) before reclassifications			20
Amounts reclassified from accumulated other comprehensive loss			0
Other comprehensive (loss) income			20
Accumulated other comprehensive income, ending balance	(49)		(49)
AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance			(8,328)
Other comprehensive income (loss) before reclassifications			(996)
Amounts reclassified from accumulated other comprehensive loss			0
Other comprehensive (loss) income			(996)
Accumulated other comprehensive income, ending balance	$ (9,324)		$ (9,324)

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Components of share-based compensation expense
Share-based compensation	$ 3,557	$ 3,255	$ 6,924	$ 6,330
Cost of services
Components of share-based compensation expense
Share-based compensation	350	364	707	723
General and administrative expense
Components of share-based compensation expense
Share-based compensation	1,969	1,674	3,779	3,208
Sales and marketing expense
Components of share-based compensation expense
Share-based compensation	633	617	1,236	1,237
Research and development expense
Components of share-based compensation expense
Share-based compensation	605	600	1,202	1,162
Stock options
Components of share-based compensation expense
Share-based compensation	1,046	909	2,107	1,859
Restricted stock units
Components of share-based compensation expense
Share-based compensation	2,181	2,110	4,347	4,138
ESPP
Components of share-based compensation expense
Share-based compensation	$ 330	$ 236	$ 470	$ 333

Share-Based Compensation (Det55

Share-Based Compensation (Details Textual) $ in Thousands	Jun. 30, 2018USD ($)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized share-based compensation expense total	$ 20,805
Share-based compensation expense, remainder of 2016	6,418
Share-based compensation expense, 2017	9,302
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized share-based compensation expense total	6,580
Restricted stock units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized share-based compensation expense total	$ 14,225

Related Party Transactions (Det

Related Party Transactions (Details) - Goldman, Sachs & Co. Affiliates [Member]	1 Months Ended	5 Months Ended	12 Months Ended
	Jul. 31, 2006$ / sharesshares	Mar. 31, 2018shares	Dec. 31, 2017	Jun. 30, 2018
Related Party Transaction [Line Items]
Ownership percentage				1.00%
Series B Preferred Stock
Related Party Transaction [Line Items]
Aggregate issuance of Series B Preferred Stock (in shares)	39,869,960
Aggregate issuance of Series B Preferred Stock, purchase price (in dollars per share) | $ / shares	$ 3.26
Preferred Stock conversion ratio			1
Common Stock
Related Party Transaction [Line Items]
Number of shares sold by related party		30,272,493

Leases and Purchase Commitmen57

Leases and Purchase Commitments (Details) $ in Thousands	Jun. 30, 2018USD ($)
Future minimum lease payments over remaining lease periods
Remainder of 2018	$ 1,482
2,019	1,707
2,020	782
2,021	466
2,022	55
Thereafter	0
Total minimum payments	$ 4,492

Leases and Purchase Commitmen58

Leases and Purchase Commitments (Details 1) $ in Thousands	Jun. 30, 2018USD ($)
Minimum purchase commitments
Remainder of 2018	$ 18,068
2,019	16,123
2,020	1,987
2,021	250
2,022	2
Thereafter	0
Total minimum payments	$ 36,430

Concentrations (Details)

Concentrations (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)country	Jun. 30, 2017USD ($)country	Jun. 30, 2018USD ($)customer	Jun. 30, 2017USD ($)customer
Concentration Risk [Line Items]
Number of customers who represented 10% or more of total revenue | customer			1	1
Revenue	$ 50,249	$ 45,370	$ 102,363	$ 90,105
Geographic concentration | Total revenue
Concentration Risk [Line Items]
Number of countries accounting for 10% or more of revenue | country	2	3
United States | Geographic concentration | Total revenue
Concentration Risk [Line Items]
Revenue	$ 30,067	$ 27,018	$ 60,620	$ 54,391

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense	$ 249	$ 151	$ 234	$ 260
Re-measurement of deferred tax liabilities benefit					$ 41

Segment Reporting and Geograp61

Segment Reporting and Geographic Areas (Details Textual)	6 Months Ended
	Jun. 30, 2018SegmentLocation
Segment Reporting [Abstract]
Number of industry segment | Segment	1
Number of geographic areas | Location	3

Segment Reporting and Geograp62

Segment Reporting and Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue earned by geographic area
Revenue	$ 50,249	$ 45,370	$ 102,363	$ 90,105
Americas
Revenue earned by geographic area
Revenue	31,039	28,413	63,617	56,608
EMEA
Revenue earned by geographic area
Revenue	9,708	8,807	21,500	17,264
Asia Pacific
Revenue earned by geographic area
Revenue	$ 9,502	$ 8,150	$ 17,246	$ 16,233
Geographic concentration
Revenue earned by geographic area
Percent of revenue	100.00%	100.00%	100.00%	100.00%
Geographic concentration | Americas
Revenue earned by geographic area
Percent of revenue	62.00%	63.00%	62.00%	63.00%
Geographic concentration | EMEA
Revenue earned by geographic area
Percent of revenue	19.00%	19.00%	21.00%	19.00%
Geographic concentration | Asia Pacific
Revenue earned by geographic area
Percent of revenue	19.00%	18.00%	17.00%	18.00%

Segment Reporting and Geograp63

Segment Reporting and Geographic Areas Segment Reporting and Geographic Areas (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Concentration Risk [Line Items]
Revenue	$ 50,249	$ 45,370	$ 102,363	$ 90,105
Geographic concentration | Total revenue | United States
Concentration Risk [Line Items]
Revenue	30,067	27,018	60,620	54,391
Geographic concentration | Total revenue | United Kingdom
Concentration Risk [Line Items]
Revenue	6,337	5,002	15,306	9,578
Geographic concentration | Total revenue | Japan
Concentration Risk [Line Items]
Revenue	$ 4,922	$ 5,066	$ 9,231	$ 9,817

Segment Reporting and Geograp64

Segment Reporting and Geographic Areas (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Long-lived assets by geographical area
Long-lived assets	$ 26,303	$ 28,991
Americas
Long-lived assets by geographical area
Long-lived assets	17,186	17,119
International
Long-lived assets by geographical area
Long-lived assets	$ 9,117	$ 11,872

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2018		Dec. 31, 2017
Assets:
Total assets measured at fair value	$ 25,699		$ 35,233
Money market funds
Assets:
Total assets measured at fair value	8,808	[1]	6,789	[2]
Certificate of deposit
Assets:
Total assets measured at fair value	40	[3]	40	[4]
Corporate notes and bonds
Assets:
Total assets measured at fair value	16,851	[3]	28,404	[4]
Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets:
Total assets measured at fair value	8,808		6,789
Quoted Prices In Active Markets for Identical Assets (Level 1) | Money market funds
Assets:
Total assets measured at fair value	8,808	[1]	6,789	[2]
Quoted Prices In Active Markets for Identical Assets (Level 1) | Certificate of deposit
Assets:
Total assets measured at fair value	0	[3]	0	[4]
Quoted Prices In Active Markets for Identical Assets (Level 1) | Corporate notes and bonds
Assets:
Total assets measured at fair value	0	[3]	0	[4]
Significant Other Observable Inputs (Level 2)
Assets:
Total assets measured at fair value	16,891		28,444
Significant Other Observable Inputs (Level 2) | Money market funds
Assets:
Total assets measured at fair value	0	[1]	0	[2]
Significant Other Observable Inputs (Level 2) | Certificate of deposit
Assets:
Total assets measured at fair value	40	[3]	40	[4]
Significant Other Observable Inputs (Level 2) | Corporate notes and bonds
Assets:
Total assets measured at fair value	16,851	[3]	28,404	[4]
Significant Unobservable Inputs (Level 3)
Assets:
Total assets measured at fair value	0		0
Significant Unobservable Inputs (Level 3) | Money market funds
Assets:
Total assets measured at fair value	0	[1]	0	[2]
Significant Unobservable Inputs (Level 3) | Certificate of deposit
Assets:
Total assets measured at fair value	0	[3]	0	[4]
Significant Unobservable Inputs (Level 3) | Corporate notes and bonds
Assets:
Total assets measured at fair value	$ 0	[3]	$ 0	[4]
[1]	Classified in cash and cash equivalents
[2]	Classified in cash and cash equivalents
[3]	Classified in marketable securities
[4]	Classified in marketable securities