Edgio (EGIOQ) 10-Q 24 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 17, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	LIMELIGHT NETWORKS, INC.
Entity Central Index Key	0001391127
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		119,658,684
Entity Current Reporting Status	Yes
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 21,421	$ 18,335
Accounts receivable, net	34,603	34,476
Income taxes receivable	76	82
Prepaid expenses and other current assets	11,205	9,920
Total current assets	67,305	62,813
Property and equipment, net	46,636	46,136
Operating lease right of use assets	12,084	12,842
Marketable securities, less current portion	40	40
Deferred income taxes	1,361	1,319
Goodwill	76,867	77,102
Other assets	8,721	9,117
Total assets	213,014	209,369
Current liabilities:
Accounts payable	14,297	12,020
Deferred revenue	726	976
Operating lease liability obligations	2,046	2,056
Income taxes payable	170	178
Other current liabilities	18,188	13,398
Total current liabilities	35,427	28,628
Operating lease liability obligations, less current portion	12,983	13,488
Deferred income taxes	262	239
Deferred revenue, less current portion	161	161
Other long-term liabilities	318	316
Total liabilities	49,151	42,832
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; 119,642 and 118,368 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	120	118
Additional paid-in capital	534,205	530,285
Accumulated other comprehensive loss	(10,549)	(9,210)
Accumulated deficit	(359,913)	(354,656)
Total stockholders’ equity	163,863	166,537
Total liabilities and stockholders’ equity	$ 213,014	$ 209,369

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Convertible preferred stock, par value (in dollars 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 dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	119,642,000	118,368,000
Common stock, shares outstanding	119,642,000	118,368,000

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 57,012	$ 43,280
Cost of revenue:
Cost of services	31,113	22,941
Depreciation — network	5,150	4,317
Total cost of revenue	36,263	27,258
Gross profit	20,749	16,022
Operating expenses:
General and administrative	7,882	7,535
Sales and marketing	11,894	10,972
Research and development	5,618	5,901
Depreciation and amortization	341	245
Total operating expenses	25,735	24,653
Operating loss	(4,986)	(8,631)
Other income (expense):
Interest expense	(10)	(10)
Interest income	25	212
Other, net	(110)	(6)
Total other income (expense)	(95)	196
Loss before income taxes	(5,081)	(8,435)
Income tax expense	176	124
Net loss	$ (5,257)	$ (8,559)
Net loss per share:
Basic (in dollars per share)	$ (0.04)	$ (0.07)
Diluted (in dollars per share)	$ (0.04)	$ (0.07)
Weighted average shares used in per share calculation:
Basic (shares)	118,964	114,410
Diluted (shares)	118,964	114,410

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,257)	$ (8,559)
Other comprehensive income (loss), net of tax:
Unrealized gain on investments	0	29
Foreign exchange translation (loss) gain	(1,339)	347
Other comprehensive (loss) income	(1,339)	376
Comprehensive loss	$ (6,596)	$ (8,183)

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance, shares at Dec. 31, 2018		114,246
Beginning balance at Dec. 31, 2018	$ 165,151	$ 114	$ 513,682	$ (10,033)	$ (338,612)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,559)				(8,559)
Change in unrealized loss on available-for-sale investments, net of taxes	29			29
Foreign currency translation adjustment, net of taxes	347			347
Exercise of common stock options, shares		5
Exercise of common stock options	8		8
Vesting of restricted stock units, shares		928
Vesting of restricted stock units	0	$ 1	(1)
Restricted stock units surrendered in lieu of withholding taxes, shares		(305)
Restricted stock units surrendered in lieu of withholding taxes	(894)		(894)
Share-based compensation	3,456		3,456
Ending balance, shares at Mar. 31, 2019		114,874
Ending balance at Mar. 31, 2019	$ 159,538	$ 115	516,251	(9,657)	(347,171)
Beginning balance, shares at Dec. 31, 2019	118,368	118,368
Beginning balance at Dec. 31, 2019	$ 166,537	$ 118	530,285	(9,210)	(354,656)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5,257)				(5,257)
Change in unrealized loss on available-for-sale investments, net of taxes	0
Foreign currency translation adjustment, net of taxes	(1,339)			(1,339)
Exercise of common stock options, shares		698
Exercise of common stock options	2,139	$ 1	2,138
Vesting of restricted stock units, shares		876
Vesting of restricted stock units	0	$ 1	(1)
Restricted stock units surrendered in lieu of withholding taxes, shares		(300)
Restricted stock units surrendered in lieu of withholding taxes	(1,515)		(1,515)
Share-based compensation	$ 3,298		3,298
Ending balance, shares at Mar. 31, 2020	119,642	119,642
Ending balance at Mar. 31, 2020	$ 163,863	$ 120	$ 534,205	$ (10,549)	$ (359,913)

Unaudited Consolidated Statem_4

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities
Net loss	$ (5,257)	$ (8,559)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	5,491	4,562
Share-based compensation	5,064	3,456
Foreign currency remeasurement (gain) loss	(397)	10
Deferred income taxes	(44)	(51)
Gain on sale of property and equipment	0	(30)
Accounts receivable charges	158	257
Amortization of premium on marketable securities	0	12
Changes in operating assets and liabilities:
Accounts receivable	(285)	(3,720)
Prepaid expenses and other current assets	(1,433)	(474)
Income taxes receivable	3	(2)
Other assets	626	(1,737)
Accounts payable and other current liabilities	5,892	2,243
Deferred revenue	(250)	(297)
Income taxes payable	2	62
Payments related to litigation, net	0	(1,520)
Other long term liabilities	6	(175)
Net cash provided by (used in) operating activities	9,576	(5,963)
Investing activities
Purchases of marketable securities	0	(9,266)
Sale and maturities of marketable securities	0	12,224
Purchases of property and equipment	(6,863)	(5,018)
Proceeds from sale of property and equipment	0	29
Net cash used in investing activities	(6,863)	(2,031)
Financing activities
Payments of employee tax withholdings related to restricted stock vesting	(1,515)	(894)
Proceeds from employee stock plans	2,138	8
Net cash provided by (used in) financing activities	623	(886)
Effect of exchange rate changes on cash and cash equivalents	(250)	(4)
Net increase (decrease) in cash and cash equivalents	3,086	(8,884)
Cash and cash equivalents, beginning of period	18,335	25,383
Cash and cash equivalents, end of period	21,421	16,499
Supplemental disclosure of cash flow information
Cash paid during the period for interest	10	10
Cash paid during the period for income taxes, net of refunds	$ 220	$ 116

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business Limelight Networks Inc., a provider of digital content delivery, online video delivery, cloud security, edge computing and cloud storage services, empowers customers to provide exceptional digital experiences. Limelight’s edge services platform includes a globally distributed, high performance private network, intelligent software, and expert support services that enable current and future workflows. 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	3 Months Ended
	Mar. 31, 2020
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, 2019. 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, 2020, or for any future periods. Recent Accounting Standards Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, which requires measurement and recognition of expected credit losses for financial assets held. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures and there was no cumulative-effect adjustment required. 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. We adopted this guidance effective January 1, 2020, using a prospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15 , to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments . We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. 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. 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 are either entirely usage based or commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment. 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 March 31, 2020, we have approximately $3,293 of remaining unsatisfied performance obligations. We recognized revenue of approximately $2,154 and $2,700 , respectively, during the three months ended March 31, 2020 and 2019, related to these types of contracts with our customers. We expect to recognize approximately 83% of the remaining unsatisfied performance obligations in 2020, approximately 16% in 2021, and approximately 1% in 2022. We may charge the customer an activation fee when services are first activated. We do not charge activation fees for contract renewals. Activation 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. Share-Based Compensation We account for our share-based compensation awards using the fair-value method. The grant date fair value was determined using the Black-Scholes-Merton pricing model. The Black-Scholes-Merton valuation calculation requires us to make key assumptions such as future stock price volatility, expected terms, risk-free rates, and dividend yield. Our expected volatility is derived from our volatility rate as a publicly traded company. The expected term is based on our historical experience. The risk-free interest factor is based on the United States Treasury yield curve in effect at the time of the grant for zero coupon United States Treasury notes with maturities of approximately equal to each grant’s expected term. We have never paid cash dividends and do not currently intend to pay cash dividends, and therefore, we have assumed a 0% dividend yield. We apply the straight-line attribution method to recognize compensation costs associated with awards that are not subject to graded vesting.

Accounts Receivable, net

Accounts Receivable, net	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Accounts Receivable, net	Accounts Receivable, net Accounts receivable, net include: March 31, December 31, 2020 2019 Accounts receivable $ 35,690 $ 35,619 Less: credit allowance (170 ) (170 ) Less: allowance for doubtful accounts (917 ) (973 ) Total accounts receivable, net $ 34,603 $ 34,476 All trade receivables are reported on the Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. We maintain an allowance for credit losses, which represents an estimate of expected losses of our receivables considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of our ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses for our trade receivables. For trade receivables, we apply a reserve percentage to the specific age of the receivable to estimate the allowance for doubtful accounts. The reserve percentages are determined based on our historical write-off experience. Determination of the proper amount of allowance requires management to exercise judgment about the timing, frequency and severity of potential credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. We evaluate the credit risk of the customer when extending credit based on a combination of various financial and qualitative factors that may affect our customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau information. The following is a roll-forward of the allowances for doubtful accounts related to trade accounts receivable for the three months ended March 31, 2020: Three Months Ended March 31, 2020 Beginning of period 973 Provision for credit losses 158 Write-offs (214 ) End of period 917

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2020
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: March 31, December 31, 2020 2019 Prepaid bandwidth and backbone 1,633 1,717 VAT receivable 3,304 3,068 Prepaid expenses and insurance 2,916 1,685 Vendor deposits and other 3,352 3,450 Total prepaid expenses and other current assets $ 11,205 $ 9,920

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net include: March 31, December 31, 2020 2019 Network equipment $ 129,226 $ 126,975 Computer equipment and software 7,521 7,603 Furniture and fixtures 1,901 1,906 Leasehold improvements 7,896 7,888 Other equipment 52 54 Total property and equipment 146,596 144,426 Less: accumulated depreciation (99,960 ) (98,290 ) Total property and equipment, net $ 46,636 $ 46,136 Cost of revenue depreciation expense related to property and equipment was approximately $ 5,150 and $ 4,317 , respectively, for the three months ended March 31, 2020 and 2019, respectively. Operating expense depreciation and amortization expense related to property and equipment was approximately $341 and $245 for the three months ended March 31, 2020 and 2019 , respectively.

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2020
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	Other Current Liabilities Other current liabilities include: March 31, December 31, 2020 2019 Accrued compensation and benefits $ 8,346 $ 4,918 Accrued cost of revenue 5,071 4,176 Other accrued expenses 4,771 4,304 Total other current liabilities $ 18,188 $ 13,398

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2020
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 to $20,000 . Our borrowing capacity is the lesser of the commitment amount or 80% of eligible accounts receivable. 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 March 31, 2020 , 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, 2019, and we had availability under the Credit Agreement of approximately $20,000 . As of March 31, 2020 , 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. Amendment fees and other commitment fees are included in interest expense. During the three months ended March 31, 2020 and 2019, there was no interest expense, and fees expense and amortization was $10 and $10 , 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. 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 March 31, 2020 , we were in compliance with all covenants under the Credit Agreement. In April 2020, we entered into a Fifth Amendment (Fifth Amendment) to the Credit Agreement with SVB. Under the Fifth Amendment, we extended the final maturity date to November 2, 2022. Our only financial covenant is to maintain an Adjusted Quick Ratio of at least 1.0 to 1.0. All other terms and conditions remain the same.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Legal 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 and accordingly, no legal contingencies were accrued as of March 31, 2020 and December 31, 2019. 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	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Loss per Share	Net 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 earnings per share. Diluted earnings 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 (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Net loss $ (5,257 ) $ (8,559 ) Basic weighted average outstanding shares of common stock 118,964 114,410 Basic weighted average outstanding shares of common stock 118,964 114,410 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — Diluted weighted average outstanding shares of common stock 118,964 114,410 Basic net loss per share $ (0.04 ) $ (0.07 ) Diluted net loss per share: $ (0.04 ) $ (0.07 ) For the three months ended March 31, 2020 and 2019 , respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive. Three Months Ended March 31, 2020 2019 Employee stock purchase plan 234 307 Stock options 5,905 2,056 Restricted stock units 1,851 939 7,990 3,302

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
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. During the three months ended March 31, 2020 and 2019, respectively, we did no t repurchase any shares under the repurchase program. As of March 31, 2020 , 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 March 31, 2020 was approximately 11,046 . Employee Stock Purchase Plan In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP), authorizing the issuance of 4,000 shares. In May 2019, our stockholders approved the adoption of Amendment 1 to the ESPP. Amendment 1 increased the number of shares authorized to 9,000 shares (an increase of 5,000 shares) and amended the maximum number of shares of common stock that an eligible employee may be permitted to purchase during each offering period to be 5 shares. 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 months ended March 31, 2020 and 2019, we did no t issue any shares under the ESPP. As of March 31, 2020 , shares reserved for issuance to employees under this plan totaled 4,240 , and we held employee contributions of $835 (included in other current liabilities) for future purchases under the ESPP. Preferred Stock Our board of directors have authorized the issuance of up to 7,500 shares of preferred stock at March 31, 2020 . 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 March 31, 2020 , the board of directors had not adopted any resolutions for the issuance of preferred stock.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020 , was as follows: Foreign Currency Balance, December 31, 2019 $ (9,210 ) Other comprehensive loss before reclassifications (1,339 ) Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive loss (1,339 ) Balance, March 31, 2020 $ (10,549 )

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation The following table summarizes the components of share-based compensation expense included in our consolidated statements of operations: Three Months Ended March 31, 2020 2019 Share-based compensation expense by type: Stock options $ 1,048 $ 1,042 Restricted stock units 3,881 2,250 ESPP 135 164 Total share-based compensation expense $ 5,064 $ 3,456 Share-based compensation expense: Cost of services $ 763 $ 411 General and administrative expense 2,241 2,094 Sales and marketing expense 1,228 484 Research and development expense 832 467 Total share-based compensation expense $ 5,064 $ 3,456 Unrecognized share-based compensation expense totaled approximately $22,741 at March 31, 2020 , of which $7,747 related to stock options and $14,994 related to restricted stock units. We currently expect to recognize share-based compensation expense of $9,028 during the remainder of 2020, $8,431 in 2021 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at March 31, 2020 . We have recorded $1,764 of share based compensation expense during the three months ended March 31, 2020 related to restricted stock units expected to be issued as part of our annual corporate bonus plan. On February 1, 2019, the compensation committee of our board of directors approved a stock for salary program wherein eligible participants elected to receive payment of his or her base salary in shares of our common stock beginning on February 1, 2019. The shares of common stock will be issued under our Restated 2007 Plan. Eligible program participants include our Chief Executive Officer and his direct reports. The stock for salary program permitted eligible participants to receive 0 , 25 , 50 , 75 , or 100% of his or her 2019 salary (including any increases that may occur during the year) in shares of our common stock. On the last trading day of each calendar month, each participant received the number of shares of our common stock determined by dividing (i) 1/12th of his or her enrolled salary by (ii) the trailing 30-day closing average of our common stock, rounded up to the nearest whole share. Once an election was made, it ran for the full year 2019 and was irrevocable, with the program automatically terminating on the earlier to occur of January 1, 2020, or the date upon which our common stock traded on the Nasdaq at $4.00 per share or greater. Participation levels could not be changed after the close of the enrollment period. Once issued, there was no vesting period for the shares. During 2019, our Chief Executive Officer and two of his direct reports elected to participate in the program. Each of the three participants elected to receive 50% of their respective salary in stock. As a result of their participation in the program, we issued 33 shares of common stock and recorded $101 of share based compensation expense during the three months ended March 31, 2019. The salary for stock program terminated on October 17, 2019 as a result of our stock price hitting $4.00 per share on the Nasdaq.

Operating Leases - Right of Use

Operating Leases - Right of Use Assets and Purchase Commitments	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating Leases - Right of Use Assets and Purchase Commitments	Operating Leases - Right of Use Assets and Purchase Commitments Right of Use Assets We have various operating leases for office space that expire through 2030. Below is a summary of our right of use assets and liabilities as of March 31, 2020. Right-of-use assets $ 12,084 Lease liability obligations, current $ 2,046 Lease liability obligations, less current portion 12,983 Total lease liability obligations $ 15,029 Weighted-average remaining lease term 8.35 years Weighted-average discount rate 5.00 % During the three months ended March 31, 2020, we recognized approximately $804 in operating lease costs. Operating lease costs of $131 are included in cost of revenue, and $673 are included in operating expenses in our consolidated statement of operations. During the three months ended March 31, 2020, cash paid for operating leases was approximately $493 . During the three months ended March 31, 2019, we recognized approximately $ 966 in operating lease costs. Operating lease costs of $ 144 are included in cost of revenue, and $ 822 are included in operating expenses in our consolidated statement of operations. During the three months ended March 31, 2019, cash paid for operating leases was approximately $ 589 . Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of March 31, 2020 , are as follows: Remainder of 2020 $ 1,930 2021 3,039 2022 2,212 2023 1,739 2024 1,441 Thereafter 8,269 Total minimum payments 18,630 Less: amount representing interest 3,601 Total $ 15,029 Purchase Commitments We have long-term commitments for bandwidth usage and co-location with various networks and Internet service providers. The following summarizes our minimum non-cancellable commitments for future periods as of March 31, 2020 : Remainder of 2020 $ 24,682 2021 14,615 2022 3,471 2023 1,458 2024 344 Thereafter — Total minimum payments $ 44,570

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2020
Risks and Uncertainties [Abstract]
Concentrations	Concentrations During the three months ended March 31, 2020 , we had two customers, Amazon and Sony, who each represented 10% or more of our total revenue. During the three months ended March 31, 2019, we had one customer, Amazon, who represented 10% or more of our total revenue. Revenue from customers located within the United States, our country of domicile, was $34,018 for the three months ended March 31, 2020 , compared to $23,976 for the three months ended March 31, 2019 . During the three months ended March 31, 2020 and 2019, respectively, based on customer location, we had three countries, the United States, Japan, and the United Kingdom, that accounted for 10% or more of our total revenue.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and 2019, was $ 176 and $124 , 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 month periods. We file income tax returns in jurisdictions with varying statutes of limitations. Tax years 2017 through 2019 remain subject to examination by federal tax authorities. Tax years 2016 through 2019 generally remain subject to examination by state tax authorities. As of March 31, 2020 , we are not under any federal or state examination for income taxes. For the three months ended March 31, 2020 and 2019, respectively, there was no impact to income tax expense related to the Global Intangible Low-Taxed Income inclusion (GILTI) as a result of our net operating loss carryforwards (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. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. We are currently evaluating the impact of the CARES Act, but at present do not expect that the NOL carryback provision of the CARES Act would result in a cash benefit to us.

Segment Reporting and Geographi

Segment Reporting and Geographic Areas	3 Months Ended
	Mar. 31, 2020
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 the 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 March 31, 2020 2019 Americas $ 34,715 61 % $ 25,035 58 % EMEA 9,560 17 % 7,265 17 % Asia Pacific 12,737 22 % 10,980 25 % Total revenue $ 57,012 100 % $ 43,280 100 % 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 March 31, Country / Region 2020 2019 United States / Americas $ 34,018 $ 23,976 United Kingdom / EMEA $ 7,594 $ 5,129 Japan / Asia Pacific $ 8,222 $ 5,823 The following table sets forth long-lived assets by geographic area in which the assets are located: March 31, December 31, 2020 2019 Americas $ 33,987 $ 33,450 International 12,649 12,686 Total long-lived assets $ 46,636 $ 46,136

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
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, 2019. 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, 2020, or for any future periods.
Recent Accounting Standards	Recent Accounting Standards Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, which requires measurement and recognition of expected credit losses for financial assets held. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures and there was no cumulative-effect adjustment required. 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. We adopted this guidance effective January 1, 2020, using a prospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15 , to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments . We adopted this guidance effective January 1, 2020. The adoption of this guidance did not 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. 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 are either entirely usage based or commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment. 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 March 31, 2020, we have approximately $3,293 of remaining unsatisfied performance obligations. We recognized revenue of approximately $2,154 and $2,700 , respectively, during the three months ended March 31, 2020 and 2019, related to these types of contracts with our customers. We expect to recognize approximately 83% of the remaining unsatisfied performance obligations in 2020, approximately 16% in 2021, and approximately 1% in 2022. We may charge the customer an activation fee when services are first activated. We do not charge activation fees for contract renewals. Activation 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.
Share-Based Compensation	Share-Based Compensation We account for our share-based compensation awards using the fair-value method. The grant date fair value was determined using the Black-Scholes-Merton pricing model. The Black-Scholes-Merton valuation calculation requires us to make key assumptions such as future stock price volatility, expected terms, risk-free rates, and dividend yield. Our expected volatility is derived from our volatility rate as a publicly traded company. The expected term is based on our historical experience. The risk-free interest factor is based on the United States Treasury yield curve in effect at the time of the grant for zero coupon United States Treasury notes with maturities of approximately equal to each grant’s expected term. We have never paid cash dividends and do not currently intend to pay cash dividends, and therefore, we have assumed a 0% dividend yield. We apply the straight-line attribution method to recognize compensation costs associated with awards that are not subject to graded vesting.

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Summary of Accounts Receivable and Allowances for Doubtful Accounts	The following is a roll-forward of the allowances for doubtful accounts related to trade accounts receivable for the three months ended March 31, 2020: Three Months Ended March 31, 2020 Beginning of period 973 Provision for credit losses 158 Write-offs (214 ) End of period 917 Accounts receivable, net include: March 31, December 31, 2020 2019 Accounts receivable $ 35,690 $ 35,619 Less: credit allowance (170 ) (170 ) Less: allowance for doubtful accounts (917 ) (973 ) Total accounts receivable, net $ 34,603 $ 34,476

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets include: March 31, December 31, 2020 2019 Prepaid bandwidth and backbone 1,633 1,717 VAT receivable 3,304 3,068 Prepaid expenses and insurance 2,916 1,685 Vendor deposits and other 3,352 3,450 Total prepaid expenses and other current assets $ 11,205 $ 9,920

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net include: March 31, December 31, 2020 2019 Network equipment $ 129,226 $ 126,975 Computer equipment and software 7,521 7,603 Furniture and fixtures 1,901 1,906 Leasehold improvements 7,896 7,888 Other equipment 52 54 Total property and equipment 146,596 144,426 Less: accumulated depreciation (99,960 ) (98,290 ) Total property and equipment, net $ 46,636 $ 46,136

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Other Liabilities Disclosure [Abstract]
Schedule of Other Current Liabilities	Other current liabilities include: March 31, December 31, 2020 2019 Accrued compensation and benefits $ 8,346 $ 4,918 Accrued cost of revenue 5,071 4,176 Other accrued expenses 4,771 4,304 Total other current liabilities $ 18,188 $ 13,398

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net (Loss) Income 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 (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Net loss $ (5,257 ) $ (8,559 ) Basic weighted average outstanding shares of common stock 118,964 114,410 Basic weighted average outstanding shares of common stock 118,964 114,410 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — Diluted weighted average outstanding shares of common stock 118,964 114,410 Basic net loss per share $ (0.04 ) $ (0.07 ) Diluted net loss per share: $ (0.04 ) $ (0.07 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three months ended March 31, 2020 and 2019 , respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive. Three Months Ended March 31, 2020 2019 Employee stock purchase plan 234 307 Stock options 5,905 2,056 Restricted stock units 1,851 939 7,990 3,302

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Changes in the components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020 , was as follows: Foreign Currency Balance, December 31, 2019 $ (9,210 ) Other comprehensive loss before reclassifications (1,339 ) Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive loss (1,339 ) Balance, March 31, 2020 $ (10,549 )

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Components of Share-based Compensation Expense	The following table summarizes the components of share-based compensation expense included in our consolidated statements of operations: Three Months Ended March 31, 2020 2019 Share-based compensation expense by type: Stock options $ 1,048 $ 1,042 Restricted stock units 3,881 2,250 ESPP 135 164 Total share-based compensation expense $ 5,064 $ 3,456 Share-based compensation expense: Cost of services $ 763 $ 411 General and administrative expense 2,241 2,094 Sales and marketing expense 1,228 484 Research and development expense 832 467 Total share-based compensation expense $ 5,064 $ 3,456

Operating Leases - Right of U_2

Operating Leases - Right of Use Assets and Purchase Commitments (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Summary of Right-of-use Assets and Lease Liabilities	Below is a summary of our right of use assets and liabilities as of March 31, 2020. Right-of-use assets $ 12,084 Lease liability obligations, current $ 2,046 Lease liability obligations, less current portion 12,983 Total lease liability obligations $ 15,029 Weighted-average remaining lease term 8.35 years Weighted-average discount rate 5.00 %
Future Minimum Lease Payments Over Remaining Lease Periods	Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of March 31, 2020 , are as follows: Remainder of 2020 $ 1,930 2021 3,039 2022 2,212 2023 1,739 2024 1,441 Thereafter 8,269 Total minimum payments 18,630 Less: amount representing interest 3,601 Total $ 15,029
Minimum Purchase Commitments	The following summarizes our minimum non-cancellable commitments for future periods as of March 31, 2020 : Remainder of 2020 $ 24,682 2021 14,615 2022 3,471 2023 1,458 2024 344 Thereafter — Total minimum payments $ 44,570

Segment Reporting and Geograp_2

Segment Reporting and Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Revenue Earned by Geographic Area	The following table sets forth our revenue by geographic area: Three Months Ended March 31, 2020 2019 Americas $ 34,715 61 % $ 25,035 58 % EMEA 9,560 17 % 7,265 17 % Asia Pacific 12,737 22 % 10,980 25 % Total revenue $ 57,012 100 % $ 43,280 100 %
Schedule 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 March 31, Country / Region 2020 2019 United States / Americas $ 34,018 $ 23,976 United Kingdom / EMEA $ 7,594 $ 5,129 Japan / Asia Pacific $ 8,222 $ 5,823
Long-lived Assets by Geographical Area	The following table sets forth long-lived assets by geographic area in which the assets are located: March 31, December 31, 2020 2019 Americas $ 33,987 $ 33,450 International 12,649 12,686 Total long-lived assets $ 46,636 $ 46,136

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Contract terms	These customers have entered into contracts with contract terms generally from one to four years.
Committed revenue from minimum commitment contracts	$ 3.3
Minimum commitment contracts revenue recognized in period	$ 2.2	$ 2.7
Expected dividend rate	0.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Performance Obligations (Details)	Mar. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining unsatisfied performance obligations to be recognized period	3 years
Percent of remaining unsatisfied performance obligations to be recognized	83.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining unsatisfied performance obligations to be recognized period	2 years
Percent of remaining unsatisfied performance obligations to be recognized	16.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining unsatisfied performance obligations to be recognized period	1 year
Percent of remaining unsatisfied performance obligations to be recognized	1.00%

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019
Summary of Accounts Receivable, net
Accounts receivable			$ 35,690	$ 35,619
Less: credit allowance			(170)	(170)
Less: allowance for doubtful accounts	$ (917)		(917)	(973)
Total accounts receivable, net			$ 34,603	$ 34,476
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period	973
Provision for credit losses	158	$ 257
Write-offs	(214)
End of period	$ 917

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid bandwidth and backbone	$ 1,633	$ 1,717
VAT receivable	3,304	3,068
Prepaid expenses and insurance	2,916	1,685
Vendor deposits and other	3,352	3,450
Total prepaid expenses and other current assets	$ 11,205	$ 9,920

Property and Equipment, net - S

Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property and equipment, net
Total property and equipment	$ 146,596	$ 144,426
Less: accumulated depreciation	(99,960)	(98,290)
Total property and equipment, net	46,636	46,136
Network equipment
Property and equipment, net
Total property and equipment	129,226	126,975
Computer equipment and software
Property and equipment, net
Total property and equipment	7,521	7,603
Furniture and fixtures
Property and equipment, net
Total property and equipment	1,901	1,906
Leasehold improvements
Property and equipment, net
Total property and equipment	7,896	7,888
Other equipment
Property and equipment, net
Total property and equipment	$ 52	$ 54

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Cost of revenue depreciation expense	$ 5,150	$ 4,317
Operating expense depreciation	$ 341	$ 245

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 8,346	$ 4,918
Accrued cost of revenue	5,071	4,176
Other accrued expenses	4,771	4,304
Total other current liabilities	$ 18,188	$ 13,398

Line of Credit (Details)

Line of Credit (Details) - Revolving Credit Facility - Credit Agreement	1 Months Ended	3 Months Ended
	Feb. 28, 2018USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Apr. 24, 2020	Dec. 31, 2019USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing amount	$ 20,000,000
Borrowing capacity limit, percent of accounts receivable	80.00%
Proceeds from line of credit		$ 0			$ 0
Current borrowing capacity		$ 20,000,000			$ 20,000,000
Increase in interest rate in event of default		3.00%
Interest expense		$ 0	$ 0
Commitment fees amortization		$ 10,000	$ 10,000
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
Line of credit facility, covenant compliance, adjusted quick ratio	1
Alternative Base Rate
Line of Credit Facility [Line Items]
Variable rate minimum		0.25%
Subsequent Event
Line of Credit Facility [Line Items]
Line of credit facility, covenant compliance, adjusted quick ratio				1

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (5,257)	$ (8,559)
Basic weighted average outstanding shares of common stock	118,964	114,410
Dilutive effect of stock options, restricted stock units, and other equity incentive plans (in shares)	0	0
Diluted weighted average outstanding shares of common stock	118,964	114,410
Basic net loss per share (in dollars per share)	$ (0.04)	$ (0.07)
Diluted net loss per share (in dollars per share)	$ (0.04)	$ (0.07)

Net Loss per Share - Dilutive C

Net Loss per Share - Dilutive Common Stock (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	7,990	3,302
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	234	307
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	5,905	2,056
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	1,851	939

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Mar. 14, 2017	Jun. 30, 2013
Equity, Class of Treasury Stock [Line Items]
Issuance of preferred stock authorized (in shares)		7,500,000		7,500,000
Employee Stock Purchase Plan
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized for issuance	9,000,000					4,000,000
Increase in shares available for issuance	5,000,000
Maximum number of shares permitted to purchase per period	5,000
Discount from market price for employees		15.00%
Shares issued		0	0
Common Stock reserved for future options and restricted stock awards (in shares)		4,240,000
Employee funds held by company for future purchase of shares		$ 835,000
2007 Equity Incentive Plan
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized for issuance		11,046,000
2017 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase amount authorized					$ 25,000,000
Shares purchased and canceled		0	0
Remaining authorized repurchase amount		$ 21,200,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 166,537	$ 165,151
Other comprehensive (loss) income	(1,339)	376
Ending balance	163,863	159,538
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9,210)	(10,033)
Other comprehensive loss before reclassifications	(1,339)
Amounts reclassified from accumulated other comprehensive loss	0
Other comprehensive (loss) income	(1,339)
Ending balance	$ (10,549)	$ (9,657)

Share-Based Compensation - Comp

Share-Based Compensation - Components of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Components of share-based compensation expense
Share-based compensation	$ 5,064	$ 3,456
Cost of services
Components of share-based compensation expense
Share-based compensation	763	411
General and administrative expense
Components of share-based compensation expense
Share-based compensation	2,241	2,094
Sales and marketing expense
Components of share-based compensation expense
Share-based compensation	1,228	484
Research and development expense
Components of share-based compensation expense
Share-based compensation	832	467
Stock options
Components of share-based compensation expense
Share-based compensation	1,048	1,042
Restricted stock units
Components of share-based compensation expense
Share-based compensation	3,881	2,250
ESPP
Components of share-based compensation expense
Share-based compensation	$ 135	$ 164

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / shares	Mar. 31, 2019USD ($)Participantshares	Oct. 17, 2019$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense total	$ 22,741
Share-based compensation expense, remainder of 2019	9,028
Share-based compensation expense, 2020	8,431
Share-based compensation expense	5,064	$ 3,456
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense total	7,747
Share-based compensation expense	1,048	1,042
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense total	14,994
Share-based compensation expense	3,881	$ 2,250
Annual Corporate Bonus Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,764
Stock for Compensation Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock for compensation program, percentage of compensation, election option one	0.00%
Stock for compensation program, percentage of compensation, election option two	25.00%
Stock for compensation program, percentage of compensation, election option three	50.00%	50.00%
Stock for compensation program, percentage of compensation, election option four	75.00%
Stock for compensation program, percentage of compensation, election option five	100.00%
Stock for compensation program, minimum price per share to terminate program (in dollars per share) | $ / shares	$ 4		$ 4
Chief Executive Officer And Direct Reports | Stock for Compensation Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock for compensation program, number of participants | Participant		3
Number of shares issued to program participants | shares		33
Stock issued during period, share-based compensation		$ 101

Operating Leases - Right of U_3

Operating Leases - Right of Use Assets and Purchase Commitments - Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Operating Leased Assets [Line Items]
Right-of-use assets	$ 12,084		$ 12,842
Operating lease liability obligations	2,046		2,056
Operating lease liability obligations, less current portion	12,983		$ 13,488
Total lease liability obligations	$ 15,029
Weighted-average remaining lease term	8 years 4 months 7 days
Weighted-average discount rate	5.00%
Operating lease costs	$ 804	$ 966
Operating cash flows from operating leases	493	589
Cost of Revenue
Operating Leased Assets [Line Items]
Operating lease costs	131	144
Operating Expenses
Operating Leased Assets [Line Items]
Operating lease costs	$ 673	$ 822

Operating Leases - Right of U_4

Operating Leases - Right of Use Assets and Purchase Commitments - Future Minimum Lease Payments Over Remaining Lease Periods (Details) $ in Thousands	Mar. 31, 2020USD ($)
Future minimum lease payments over remaining lease periods
Remainder of 2020	$ 1,930
2021	3,039
2022	2,212
2023	1,739
2024	1,441
Thereafter	8,269
Total minimum payments	18,630
Less: amount representing interest	3,601
Total	$ 15,029

Operating Leases - Right of U_5

Operating Leases - Right of Use Assets and Purchase Commitments - Minimum Purchase Commitments (Details) $ in Thousands	Mar. 31, 2020USD ($)
Minimum purchase commitments
Remainder of 2020	$ 24,682
2021	14,615
2022	3,471
2023	1,458
2024	344
Thereafter	0
Total minimum payments	$ 44,570

Concentrations (Details)

Concentrations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)customercountry	Mar. 31, 2019USD ($)customercountry
Concentration Risk [Line Items]
Number of customers who represented 10% or more of total revenue | customer	2	1
Revenue	$ 57,012	$ 43,280
Geographic concentration | Sales revenue
Concentration Risk [Line Items]
Number of countries accounting for 10% or more of revenue | country	3	3
United States / Americas | Geographic concentration | Sales revenue
Concentration Risk [Line Items]
Revenue	$ 34,018	$ 23,976

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 176	$ 124

Segment Reporting and Geograp_3

Segment Reporting and Geographic Areas - Narrative (Details)	3 Months Ended
	Mar. 31, 2020SegmentLocation
Segment Reporting [Abstract]
Number of industry segment | Segment	1
Number of geographic areas | Location	3

Segment Reporting and Geograp_4

Segment Reporting and Geographic Areas - Revenue Earned by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue earned by geographic area
Revenue	$ 57,012	$ 43,280
Americas
Revenue earned by geographic area
Revenue	34,715	25,035
EMEA
Revenue earned by geographic area
Revenue	9,560	7,265
Asia Pacific
Revenue earned by geographic area
Revenue	$ 12,737	$ 10,980
Sales revenue | Geographic concentration
Revenue earned by geographic area
Percent of revenue	100.00%	100.00%
Sales revenue | Geographic concentration | Americas
Revenue earned by geographic area
Percent of revenue	61.00%	58.00%
Sales revenue | Geographic concentration | EMEA
Revenue earned by geographic area
Percent of revenue	17.00%	17.00%
Sales revenue | Geographic concentration | Asia Pacific
Revenue earned by geographic area
Percent of revenue	22.00%	25.00%

Segment Reporting and Geograp_5

Segment Reporting and Geographic Areas - Schedule of Concentration of Revenue by Country (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Concentration Risk [Line Items]
Revenue	$ 57,012	$ 43,280
Geographic concentration | Sales revenue | United States / Americas
Concentration Risk [Line Items]
Revenue	34,018	23,976
Geographic concentration | Sales revenue | United Kingdom / EMEA
Concentration Risk [Line Items]
Revenue	7,594	5,129
Geographic concentration | Sales revenue | Japan / Asia Pacific
Concentration Risk [Line Items]
Revenue	$ 8,222	$ 5,823

Segment Reporting and Geograp_6

Segment Reporting and Geographic Areas - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Long-lived assets by geographical area
Long-lived assets	$ 46,636	$ 46,136
Americas
Long-lived assets by geographical area
Long-lived assets	33,987	33,450
International
Long-lived assets by geographical area
Long-lived assets	$ 12,649	$ 12,686