LLNW - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Welcome to the Limelight Networks 2018 Second Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the end of the prepared remarks, we will provide instructions for those interested in entering the queue for the question-and-answer session. I would now turn the call over to Dan Boncel, Limelight's Chief Accounting Officer.

Daniel R. Boncel

you Results the Conference thank Quarter Networks and Financial XXXX Call. afternoon for Limelight joining Second Good This call approximately is and will being recorded on archived our July on Web-site for XX be days. XX, XXXX

to this by quickly be Safe would we Let me remind statements covering that on start everyone forward-looking Harbor. the We like call. making will

business and contemplated of be strategies, materially our as our such indication Forward-looking all that statements fact, announcements. expectations, of functionality statements feature future from should an forward-looking our are for and historical and beyond, XXXX Actual are operational differ not priorities, reported results as plans, not by strictly statements could statements, our outlook performance. considered results our those

in on filings, annual by of we are us For obligation most recent today's XX-K. our Form based required our to and periodic statements, except on more refer on factors information, please this report including as as date, law. forward-looking to to forward-looking The statements the available call update any any information discussed disclaim risk

the me Lento, Officer; Executive Chief our are, Officer. Sajid today Malhotra, Joining our and Chief Bob Financial call on

We will the Bob of like at Sajid. Q&A be the from Bob now call remarks to available I would the over session and turn prepared to end during Lento.

Robert A. Lento

that second were without both net record I'm was double-digit Today generating Thanks, quarter, basis quarter record up high profitable revenue second our our was of gain. recent legal again quarter results. points to Revenue Dan, the performance income, quarter, GAAP over of our year, we gross this our quarter pleased announced settlement the and XXX quarter. the over and margin performance very last last with afternoon. and momentum one-time the ago was growth. only strong This in building good trend up GAAP year second we XX% was on continuing another quarter. year excellent

year quarter, last to up second earnings adjusted performance record XX% year-over-year and ago up Our our our were high with EBITDA and from non-GAAP also quarter. adjusted EBITDA the only income non-GAAP XX%

are business. of and quarterly continued We in the our these results proud momentum

future in We have established goals beyond. well continue a and XXXX financial we positioned foundation believe are achieve and to solid our to we financial performance for

focus on for we during customers' growing well profitable strategic made priorities; delivering needs creating for and the the improving cash, our life During in growing our our strong and We our while position generating of quarter employer long-term serving innovative executed life, as capabilities, customers profitable progress on quarter revenue significant various and revenue choice. ways. creating on and customers features with

customers, our new our deployment capacity For we network. both through technology software and throughout our continued performance to and quarter, the server our optimization expand our improve during of

also important our our expanded adding geographic new are customers. that We to countries locations reach in by

market needs scoping better all launch important new growth. currently an are and to experience portfolio our the We customer and on functionality product regions develop Also the our locations opportunity for customers, based improve us leader. believe of customers which we continue across position our to provide as we across feature for will

in have coming technology moment. I'll We which exciting new discuss soon, out a

needs this level to continue lowest an continues which efforts focus levels we impact to We're declined improve. on pleased year-over-year. quarter more continued its customers, to to grew to traffic meet incident that on quality record. customer while performance churn, As These near-record also tickets on our traffic the efforts network as of and had to our decline customer resulted volumes our in has

the contract industry pricing a from seasonally the limit in quarter. third already of the these during new third negotiations norm the included effective Our quarter. in successful price our on and of six for contract customers is customers. quarter really The expected The also renegotiations our revenue XX low is may focus top growth in for most compression

We are important our these these around position pleased and solidified uncertainty with having with removed customers. contracts successfully outcome, the

more expect traffic improvements performance. of our customers network forward, efficiencies in this given group capacity We and infrastructure going from expanded and which can absorb our

we We coupled on priorities. year-over-year. progress efficiencies our improvements with more other margin to across our network, of customers the quarter service focus cost During in our strategic resulting drive made continued on in improvement

our stable management We also in the expense and turnover was healthy at maintained quarter. Employee during discipline satisfactory strong and increased and cash remained morale levels. position

work. long-term with These are customers strategic their stride. believe we hit employees to momentum proud business accomplishments. on continue demonstrate and Our of hard these priorities our core our We dedication impress its our and highlights has solid

services needs for have more of the bandwidth our look Earlier we It's investment Looking areas attention. opportunities for in Sachs, our demands progress. latency Edge business the in Goldman in and Edge while core our with now existing growth connectivity. we us, and and management dispute address In in video. profitability, a successfully new half largest space we investor, exiting assisted we the behind in managing to services position. Akamai. at quarter, legal distractions our leverages make last to even With and to accelerate business, namely core back then our significant ownership Also, across at on the year these their key concluded marketplace at our momentum infrastructure our low Edge first us as XXXX, to gained customers' we stability announced long-standing other that continue

quality, potential We as by to scale, at driven focus price our with see the are especially market price. In we first, as beyond traction progresses. attractive This increase and given customers to base. potential in market leading with share as video. We to and quality and OTT support, gain gaining is significant customer of its decisions believe the expect strong in demand become the market pleased existing its momentum video, current this are drive video our in strong our are investing in heavily to growth the and market customer we future the provider on expand then year scale. and well is important, are while We the

new to our product and enhance offering We our feature working confident are are with technologies in strong and hard functionality. capabilities

excited most are differentiator we WebRTC-based soon-to-be a us. for about streaming released We which believe will be real-time solution, our

We using video will technology gaming, broadcasting, lowest distributors content be easily the scalable open and offer first to such streaming implement auctions, gambling. on and live live latency, video expect allow offering sub-second is delivery as Web sports scalable global, This to that supported that workflows possible scalable, require standard browsers. to live

call in believe experience. generated will We over to returns. continue our to that base. the financial greater richer by shareholder investments In demand meet we we competitive translate pricing of are intend a healthy business video video for XXXX. customer to addition on and detail goals intend growth year. and the strong. our that, build this summary, continued and our we release also Customer momentum track We great above-market turn performance quarter's In is deliver position provide latency, I'll revenue With to We for financial to our end-user, for base. second We discuss that into and the greater capabilities. to as out is and drive continue the will Edge while believe making control a and our managing in we the of guidance customer cost much and second to user sustainable well-positioned and Sajid this to remainder we'll margin will strategic to low expansion services disciplined expand in technologies in quarter part across remain features creating are our core our

Sajid Malhotra

very Thanks, and goals. long-term Bob, and happy the great good I resulting priorities, on first second following long-term cover forecast, results. quarter to our to update impact a results, an our I'm discuss another afternoon. will strong Limelight for our the strategic financial XXXX quarter quarter

QX Let's get less Starting our of last it. million, compared reported consecutive tailwinds revenue right is second up non-U.S. of in in experienced of growth. customers year XX% currencies. International fourth total foreign quarter the denominated in quarter XX% with quarter revenue, We year. a ago. for of XX% the revenue the was Approximately than This revenue accounted in $XX.X $XXX,XXX, quarter or of exchange to double-digit XX% second minor revenue X.X%. QX, we to dollar approximately from

total years, several QX quality, performance, on discipline. revenue. paid and while as off, customers availability, services, maintaining continue value with methodology was revenue from all XXXX, XX focus want we to XX% who said price our last show large customers. to have the Over In growth we of has largest We top we customers believe this these revenue

$XX,XXX achieve this ago. Our industry. highest belief year, new the seven have in total $XX,XXX, did top In of that ARPU has approximately the XX that our a last revenue. from we this year. Furthermore, customers this of ARPU top is XX% in to increased the distinction year accounted QX in It XX we customers year my QX not for command

we roughly faster base largest revenue requires increased total quality, While we more Video and start in further segment. of volume. At They separates and will customers, total the and OTT has growing continue business. Company attention total video a of to revenue XX% has customers of This a proportion are from today. our delivery video total us at sizes from of about level, to from remaining than of and are these revenue customers customers higher XXXX of competition. percent continue of a the growing a a all price higher point, also to focus average on at to turning XX% revenue the grow rate

shed customers non-video these we In dynamics, addition to have some category. and in volume the some intentionally

initiatives services also Our Edge to progress well. continue

quarter, operating Edge and the this gross the of OTT million On million payments the will low-latency a XX.X%, a again sales to we per expense payments primarily in which $XX.X of $X quarter. and last a by expense We points net $XXX,XXX of continue and marketing QX basis points in share, is year. come. to other salary as Cash QX R&D $XXX,XXX. income/expense quarter sales reported operating increase possibilities Sales increased, force. refund adoption last $X.XX of to line expanded this will believe basis be with them year. year. as We contribute quarter, our being state of of profitability. year, recorded Upon These $XXX,XXX margin our XXXX. the the impact G&A and XXX of to an income tax video increase products to as partially these per increase expenses new GAAP by a of we offset QX bit. and decreased in an payment was revenue a overall and Gross was EPS I quarter basic due netted variable income quarterly as last basis, expenses are against streams customers compared in margin million increase million in this our loss $X to with the to we services XX.X% million, Non-GAAP the $X.XX second required legal of us year-over-year. quarter EPS of from was expected, with $X.X from quarter about gain the quarter this Interest GAAP second the to very compared $X.X an comp income/expense streaming favorable the per same in received quarter was of of Akamai, $X.XX co-terminate will $XXX,XXX in is lawsuit second due basic optimistic quarter over per Akamai a return second second lower live years second increase to pay resolution XXXX. last patent the in share, GAAP for share. were margin to is well of XX expansion below Total million approximately consecutive year. $XX.X achieving settlement this five year to infringement XXXX.

mentioned the compensation reconciling stock-based non-GAAP reminder, results, $X.X Akamai-related litigation and of our previously than settlement, the expense of million $XXX,XXX. GAAP between a items As and other are only

close stock-based As the only be will Akamai each non-GAAP comp. to item and litigation GAAP other ends, reconciling results would expense the be and

EBITDA gap from and in our and XX% the make $X.X and clearer and results. reconciling to Adjusted $X.X items We million have second million, up was non-GAAP quarter results to between adjustments understand hard the worked of cleaner XXXX. limit

million was balance and from cash $XX.X very the at of end the our best of quarter, second flow, of for up QX. generation, results. to we Moving cash million and This on the at based had sheet a strong operating $XX.X of end cash quarter one marketable securities

outflow to net As had discussed, a million. we of $X.X Akamai

and payable receivable million. addition, In down $X.X was accounts was down accounts $XXX,XXX

a cash We continuing XXXX to one a transformed a generator balance expect than to as major, of day to the milestone. cash cash, QX. see June XX believe higher and of sustained increase major Company our itself user I of continuous from was days, DSO has

of million outstanding. XX, shares As we had approximately XXX.X June

the sudden out count it last money, of you basic of When fully fully does we not versus losing allow share diluted reduce did commented just hand were in as include quarter. Some the share on to diluted jump we not GAAP artificially bunch accounting per would No, shares. a losses. share count us

sales count of year. quarter quarter last XX of personnel. increase and hand, up other of to distributed end of the options for million diluted the and all in-the-money that up the our was last accounted The count. the these The are operational share shares five end the employee in share profitable, distribution over last to from On fully approximately the quarter Total XX at relates adds second support years from X now we additional XXX, the fully diluted count. are

Moving between $XXX million guidance now of year and million. million, and forecast, our believe $XXX increase the we for $XXX from be revenue will between million an to full previous $XXX

We gross of by expect that per includes continue XXX impact per share positive from points $X.XX basis Akamai settlement to April. and approximately margins GAAP share to EPS expected $X.XX the over litigation and is to between $X.XX more be XXXX. than the in concluded with increase

me EPS year $X.XX. million between to $XX expected to some priorities; between to course shed $XX capital let and long-term $X.XX first the Adjusted strong, below million. is of We expect be finish the Long-term EBITDA other light also be million non-GAAP $XX and is expect priorities. and on now priority we expenditures to be

video on results. resources This further soon. this opportunity and trajectory then anytime deployed human space. CDN our growth a yielding it continues we our this takes Later we Within a delivery capital with our To streaming and position us do the Look the to XX. opportunity starting offering, establishing we are the to business, see initiative launch for organic IBC be great and traffic have that Conference, ending capitalize will at year around Edge. efforts this next in not real-time September

all it. all XXX that reduce final with when Fortnite and the Let South advantage to from latency. information CDN, online move premise iOS to server should be Consequently, we the access closer This download from add entire say, To user an another also billion serving dramatically content. World reduce me Internet do the your congestion. been what for and Imagine just would to cross-traffic. would providers devices The years. hitting stream an But is, a we be is later CDN with Edge but months to doing Internet a at have about server is closer in and competing a users you Edge where the and cached reduces life X video, Carolina get central the the congested Cup push copy Russia. of master to it a update where users update, without XXX take gold [indiscernible], We million wanting in copy copy of and eventually a while trying consumer million it software, the the think the FIFA the trying latency. of thereby is to game, it

provide You get Edge suited the we is to to and secure architecture because the density and low DNA believe better global backbone our our and to picture. the providers, amongst is presence move in at It our content latency. of CDN location Edge, services

content Edge. So helped to businesses their the far their we've deliver consumers at

also of at content, a at reducing to consumers. at the latency. the to Edge, businesses it's delivering see all Edge, Edge, with it it we not it's And decisions opportunity analyzing dynamic and Now singular the computing from content the deliver is businesses purpose making is just other

a central in develop We some to provider. why a connect believe prepared are why mile able be and this infrastructure and build with cloud build and space. to better companies channels network than a that head-start cloud communications have This will never the we is business exciting this and is is we last this sizable every

all solution. focus a models. build of been The will business become now Edge Many on to many latency have along. a paramount reducing new struggle We driver is

great We a have start.

working towards We in space. leader a are becoming recognized this

About what margin some of margins established XX% line gross five-year than long-term XX% greater XX%. are Included top for of These that targets, and light XX% the achievement goals? In early of growth were to we So Company. excess ago, for GAAP targets. in of in gross time to horizon. top growth line of would these months long-term. like some believe these the attainable mean XX We does over our the goals and based on we long-term were of three update

as today, over appropriate attain update five long-term did them. These they are our date-certain, three of where next to achieve we want will as are years. to we we we not Just elements goals, the goals

inorganic to revenue We existing opportunities our at us offerings, that business, at accelerated our scale, customer differentiate add look would pace. goals base financially continue further our continue realize operationally, a continued In and quarter, generating second an financial expansion achieve and to help to the and year, for growth increasingly on profitability perform prior larger margin we well, both the double-digit consecutive cash. summary, and comps, over

a opportunity our offerings better excited the upcoming than create. a how customer set This We value. healthy do of We competitors. is competitors, want customers and our shareholder are to opportunity better to than we about well-established will market trends, our competitors. their and do create industry finite an and This they with is

call both. up for We your open are the questions. With doing Brandon? that, we'll

Operator

James. with go first ahead. Our question Instructions] [Operator comes Turits Michael Please from Raymond

Michael Turits

competitive the break talk trends at quantitatively growth it in landscape volume can in the changes about also I you don't you any but know and out all?

Robert A. Lento

we the existing customers for pretty way. similar the to market our last share with, even really both in sort of] within changed Michael, that of wallet from the looking of part the other last new landscape, is of around… over the material [ph] companies and And in [cast or compete quarter was hasn't for any customers, year Competitive question

Michael Turits

growth I were you're growth Volume were of quarters? and know I trends, Cup you events, bigger the volume – World just but in there last in relative mean to trends of involved growth, some there don't if volume seeing terms and what some were the big couple

Robert A. Lento

of and tend you time. like So, the there Cup. happen near-term us World time involved people consuming and and device. events linear ongoing live content but were – is year. that of as video-on-demand to obviously see FIFA slowdown number don't what's in well that that as broadcast the We for really the Fortnite see wedding use to in involved network of from We've a on series the couple grow TV a time. more been that of to in for are online interesting of events, our for with traffic. of to as short string growing think events. any of case continuing World We a important programming a know, is they year things I do is growth of traffic in hours, after versus thing Cup But the be in that's and burst live a But period the the

Michael Turits

are they traffic overall accelerated, stayed rates, same? decelerated, or whether you growth the So, on commenting

Robert A. Lento

in for us For Internet general? or the

Michael Turits

For you guys.

Robert A. Lento

different type little that of better our of of one looking us Yes, mix another we a so and are traffic, we for constantly traffic take we can perform so at take may and less to so choose kind. of it's because more

good are areas, disciplined for we what's because our on in proxy certain approach. very that a be going know about don't to we're in trying the focused I industry very So,

caveats aside, those year-over-year. growing and is for both traffic sequentially us All of

Sajid Malhotra

of rates like industry the as has been is out growing the would it ordinary. And is price traffic the think and nothing at for one expect, compression I

Robert A. Lento

of out the Nothing ordinary.

Michael Turits

lot. a thanks Okay,

Operator

Davidson. from next Our Kelleher Please go D.A. comes ahead. question with Mark

Mark Kelleher

what was there a does revenue opportunity. maybe know some details category, I ramp, Neustar just talk but computing any that if spent count revenue was about from wondering there expect cases, when some little it, could quarter, discussing more expectations use on bit some you Thanks. some your Edge more are? you in in the you the I time that maybe

Robert A. Lento

now internally the We and my everything weigh ask about and start of are on example some and of with are an saying they we of service we for question, 'we start that talking in. and to our a best services Mark, a have is company, as competition how It Bob. define gone CDN' what let me an they all services do have are this? discussing they Thanks for sort Edge view sudden Edge overnight from seen do is, Part Sajid to then of Edge company.

So confusing think as if and a talk it's bit little Gartners I others gets new because about industry. it that a

in are do we how a we communicate figure So that's meaningful. this way out trying to

are example require Specifically us that with running low Edge. our a question, seeing come latency in applications to we your closer looking customers the data provider might to of that more today cloud to be move specialized to center it for

you them so, way their And guess any Neustar, than have are that. we best we exclusively, is with a the then – to a the perspective sell that offering to we comments? different are are on. looking their seeing but that, And not business is with then runs We as don't that customers relationship I business, key we our types in And traditional And that us to as two-way from that provide are infrastructure them. partner capabilities our Sajid, they well. capabilities. of security addition respect for to know additional exclusively they more resell for say

Sajid Malhotra

you ones talk think think to you we can about so an think about use I we about well, exciting it and Bob. the the This that GE published for I cases, is Avitas. be, for No, we said example, place talked when example

can read you is mean using basically of high-definition I about them, what company, doing videos capture go to but drones they're a have You infrastructure.

Robert A. Lento

Industrial inspection.

Sajid Malhotra

in, know entire built brand-new so, leaks, Edge, store for – you've compare whatever, got some come an around then look being out, to they Right, come send and timeframe, industry that messages content at they cases. the back it content, they you use they fatigue, structural metal corrosion, back and exceptions, over fatigue,

Robert A. Lento

even And something of, example, think sugar for case use surveillance. like about the

in the latency lifetime. of what Obviously was problems was reporting situation about One last was was that, incident XX between the seconds XX the unfortunate like software surveillance that in reported, a Florida is a their crisis seconds.

we're of lots milliseconds there so, where seeing are And matter. applications

us And that are different use so, reason. there for to coming many cases

Mark Kelleher

clarify, opportunity just for revenue an for is not year, this So, are this next you to looking much year?

Robert A. Lento

That's correct.

Sajid Malhotra

Yes.

So, we to invest you've – started us, been last started to about year. we following this – Mark talk

Robert A. Lento

Second half of the year.

Sajid Malhotra

Right.

new or times I think a are to And of new that a very over from and infrastructure this, we business particular for million in unique caught the think rather of general because dollars short have I the or with in industry world we've also and the we that hundreds and started a we force the themselves. that looking period deployed, thousands like many providers that of against that sales brand-new being need fairly in that high talk you idea the think repositioning in to others as go a that convince something little that's groundswell really may about use us cases. of time that also want this. you others kind on about provide to noted mean this talking very building from are consequently I we business space have, margins CDN to about and infrastructure

are unique what's use marquee excitement. have happening The customer here right this of coming more the of in and because was base is if So, to talking really course in I there's plenty you money and this cases make think I independent we'll we'll names. are appreciate where quarters. visible, flow all it, is no and rather in would and be of the the doubt due I and mark people going about and our the middle we suspect stand-alone

Mark Kelleher

Thanks. great. Okay,

Operator

from Our Cowen comes Company. next question go Jon and ahead. Charbonneau with Please

Jonathan Charbonneau

goal long-term then a of say, don't you contract on expect you new the revenue products? third in maybe guidance and terms how quarterly should what of be percent quarter, versus from XX%, given thinking give quarter? color appreciate us of second you the but that renewals to can growth newer we seasonality your in Thanks. come would revenue about the bit more provide And would you I

Robert A. Lento

Sure.

here's what say. I would So,

because a back go and again, three the and was you to that if kind to other, you what of year back variation see two strong roll would start I our of third you said that is do we the we this of particularly for our we our when if said kind fourth hope year, get we gave think this closer in quarter we guidance down to really that in the quarters a it lot cycle. years, back years, and then were quarter of and quarters, recovering and sinking each

four saying, end So, two I we that. to we quarters gone kind and much quarters put very think have a the of achieved ground at close ahead stick we of the have would and in our to be for million quarters, as the like we the $XX mark, thereabout, roughly

$XXX quarters for how I hope of looks answer that thereabout. think you blended of two the kind to somewhere get that to for a or million next we That's achieve the too. baseline

any to to to So, our four, don't million expect of XX be $XXX somewhere or add actually business from quarter business, X quarter and numbers out to the new but let third are, the have weakest expect for the what variation to between XX less quarters. number think you I but if that, expect say that a and it I XX, a historically I I the changes about trajectory. revenue huge margin between know to have able future, the flow adding the sales of that for get using marketing about And of example I infrastructure, et plans, vehicle, existing that in revenue but $XX existing existing dips are has million, existing presence third a the had we've then we $XX in as let's cetera, the if Edge, market, we'll million some our take think quarters.

as becomes that think able be should long-term over timing to suggesting a I numbers get reality, the So, we horizon. to we the are that

Operator

comes go Please Our question from with Horan Oppenheimer. ahead. next Tim

Timothy Horan

I'm and to for a your more assuming and the now, of just maybe just little give bit much customers be is would are premium you Can color quality willing more this for color a quality mostly around peers, pay your how great? real-time, a versus little

Robert A. Lento

So, any that today aren't real exist global I mean scale. products real-time, there on at a

So, timeframe. we or September product GA with our be are going to October

half – it done response, all very POCs and to it willingness is we've dozen once terms very favorably the very forward very, customers desire deploy GA in a both about of the rapidly. with have favorable have to move who We got product their with

we what technology with you encouraged XX a chunks are resource reliable, out [HOS] very and standpoint, a The delay. been they that from sunsetted. so expensive it's gets Flash challenge second are that is, we to so, And X ability still there seeing a had do not small the with that's but Today [ph], far.

sub-second from importantly capability importantly coming functionality technical new. more we out feature or is with around capability the just that latencies. are perspective a as So, is But business beyond

think media be an a a because a and about or and ability able event if a channel, both what do, video place is live the watch a want event. a and to that's So, group on and to around to opportunity have and with real-time social WebRTC basically basis the creating you bet, can it you audio data communicate

give different user ability that of everybody from than the see the just different platform four me the looks event It's they instead can themselves give more from camera we the cameras we So, three angles. latency. you do. or the choose to at, two Can that low does what have can or it's to to one

gaming there where gambling some fraud where be latency user are and cases the use that about about really like are enriching I our customers am there security experience, excited live protection so, will is excited options think low most I from just And required in standpoint. and sports that a it's But like about. others most

feature the It's improved only In just than customers how streaming. they question the we taken what functionality number quarters create in you But on to but on terms out our that, would a to of are over of to initially point that broadcast price experience, devices. exists your pay traditional report delivery. be about it and of video what investments now from much today yet making that's what the all not varies seen. Internet-enabled be I user in and that willing are Hopefully, it's tell couple able an us of to is, to real-time today exists we'll the for how from more have all

And for our be to so, capability us video enrich more our more customers delivery. and announcing look their user around through experience helping

Timothy Horan

to carriers start all this build talking things to is wireless enabling the of about because component as talked networks you're and they you it seems machine a machine the to XG have this about these out? capability, key IoT like that And

Robert A. Lento

this have obviously do this We world, helping of together, we announcing develop a if us close providers they have or are with are there. the all we not wireless the you around gone involved in we asking, but were partnership – haven't are we

Sajid Malhotra

less it Tim, because And already about alright. our Amsterdam way. One, right, example data physics, are than we went second, to in we are of talking and Boston the out we getting of pushing X.X limits from taking for

of or offering. light to us on second as standpoint. device our from want had speed deployed approaching are in software is call you for an ultra, develop lean offering And important to we to kind this was the a this thing we or to that whatever something premium, a it want – carrier to that you not of be did So addition

So stay of of way kind in that. we've to our agnostic out gone

incremental information. if if they a standard of should on wanted, be business able have wants do get rely way So, it, stuff. it, little their as if consumer an individual to to a should They wants by browsers to

Robert A. Lento

So and put had way, wanted go download that you any you a Flash, plug-in. Flash, to of is in indication got browsers. work going to you had Flash the an it time think to you standard go This use to just about to back natively this all

So, it of in flexibility of how a deploy lot this. gives us we terms

Operator

JMP Our comes Greg from ahead. go question next with Please Securities. McDowell

Greg McDowell

ask I you of want questions. to a couple

contracts. ago? think just mentioned about I and Thanks. contracts negotiating I negotiations three, how four on was have you with years of expand uncertainty follow-up. contracts would big how bit today can compared should how was hoping you your and uncertainty negotiate that around are your you price what one think And paid you First, successful we with two, then six little to customers a removing I customers

Robert A. Lento

Okay.

and the unique anything was than our But contracts there re-negotiated. quarter month this some go of we to some every fact negotiation. it and year the are after all we may take will time, think contracts, months price that till initial multi-year have to don't the at obviously or month us XX XX get I about same the hit So, other they are contracts that being

that top within bit a out, spread bit our just that cadence of the Last little these all are together a at so which especially is So, usually more came quarter is it happened XX. unusual. once, negotiations they little

in So, What the with that's that. What price unusual unusual expectations compression, the competition. was the was amount part. line for unusual our largely of was wasn't

so, them them said of but quarter, of a start for the top about customer. renegotiation that us we of sort two, any a pricing. in a with just have remarks, compared that took X XX And prepared and in – them, contract that of the same effect time nothing as the a to to I pricing the most last of was in some unusual maybe July our It's quarter there unusual that's to did single for in lot

want catch for to price at our and a renegotiation both keep in unusual So, customers to don't hit the continue revenue so But take obviously compression But the up outperforming an just fact grow, the competitors little amount to repeating traffic the unusual could the than that of decline bit will based getting themselves nothing on itself to growing, the pie myself, there the the than, traffic but of other bigger. us time point same again the our it is price. I other time. about

Sajid Malhotra

is not do, commits getting it's done, kind start to get, is level, that I of irrational it's what point, some what at just Also how not head volume the when done know till over competition expect what they mean it good. the might don't might done, it's [indiscernible] its will get. you

like that and that that a negotiation plenty every to from very standpoint contract variability becomes into there's customers So, you large. it's are larger as get and goes larger

our know look less uncertainty is, about we know top signed, our remains look XX us. model for it's like, So, have these us to to to balance we the is needs way what what the XX it. really and behind customers, to when That's there's what done top sealed, at good charge what customers, I the it expect, get the it's It's less of done, get year. you for and to

Robert A. Lento

as growth us, intelligence, on And to you we based I support sort what been, very perfect has drive of price ability as good while quality really market share our very, in quality think our the of for to if I the performance. know been you wouldn't are are focused case think in I news focus our leader track kept that we've every trying fairly that certain And re-negotiations. not customers, have our these say and we we and

always to need while pleased is we be we the did. in And again, want the are be important we performance, So, of to to re-sign, to stay they our because and Limelight game. customers that are with doesn't price the and from leader acknowledgment getting price that renegotiate competitive, need and

Greg McDowell

some And you quality and Thanks. little have you. to on do lowest That's customer the led lowest bit I'm customers. record, mentioned was quick the and segue the lowest record your a of of of nice improving and with some you I follow-up can talk quality has a really hoping that just is, NPS factors level from helpful, commentary to thank one sure about churn, that scores, but

Robert A. Lento

I right you dimensions. appreciate the – it's to of it really sort multiple get on question and have

a to provided so, management back you And to comments mentioned original, if up capabilities. go tend NPS survey, management very as the higher we have NPS, refer share of have account to negative have were if customers Service for organization. have sales NPS the original there lot tends And higher. Architects. our support today. back we time spent different account in to our our of customers building we our be very our we organization I about that market That's go Most Advanced our ASAs The and ASA what services, to

about, of working ASAs important particular strong, strong really configuration our to you customer connected cares a their Obviously group with case to some the we traffic location have around operate customer have or for fine-tune the our world capabilities network maximize of capacity we a scenario. X/XX. not high to to the them to in sort that very understand only the we how in about, we at but has level, use through at what's can quality deliver and customers, that So, so and its level have ISPs at very core and that cares high the a

and is, bar. that of very right employees customers that of are we may at the have and look have feedback a proud both and perfect our the what with where day our we our area improved And across with and of feature may it over in strides them, another personal to level, against we in the what very just network, were, customer, we have the take from and for us because our if customers. on we when those do, that versus be our working we things every achieved. but of we successful it's functionality right So, attacking relationship that is all worked does our supporting how on performance single hard a day night, executive interaction the call been Do be we much to across to we capacity are and really we company ability or not them conventions around day, our get we've have customers, The positive and we which culture receive. perform it bar feel the what software, are bump our important made invariably and we may competition, is as the based like all really, they when not go their obviously problem

Greg McDowell

Thank you. good. Very

Operator

Our comes B. Please next from ahead. with Sinha Riley Sameet question go FBR.

Sameet Sinha

it can put when for you end as a is implies explanations you. of is opportunities you provide I where kind inorganic is just guess of of Couple towards follow-up rest which second third the quarter, one million as to happen, can clarity first the or volume you growth, I fourth it? you something first mentioned, of then guidance. of strongest $XX that quarters. if in clarity mention the growth is, it? say $XX regarding to heard see distributed four quarter around this more the the growth re-pricing, guess million million more quarter, time does seasonally about just exceed – question. the impacts organic provide The If it do And the And did like around it's as Sajid, the have $XX the for we then latter, the for remarks, quarter, third the opportunities? If you questions, for equally start It thing I for revenue that. overall I starts prepared your the I

Sajid Malhotra

Sure.

So, first right. about distribution, revenue talk just let's

manage through said I've the don't before, don't this reason manage the the primarily guidance, and we think year. give we why is quarter. We because I is this quarterly through

quarter a million does or move introduction, things Fortnite event. guidance can penalized and by by often An of when we big game million or cause our and not $X can where – can in revenue large get one And versus so, to or is things these to enough because that $X and around an $X precision September missed quarters software A can $X.X we how give between a happen October, the happening cause that within accommodate million iOS update, upgrade the other. million. all then quarter you download, of

ahead to manage year. and we So go the try through

a think gone million, have guidance $XXX raised that and $XXX we we As guidance you $XXX about revenue from to twice. million, the to million, that now that, gave, has

So, have were are raised where we and we we year times then December, three guidance for now. April, I in strength there we and in business given all this mean to the the guidance. times where at compared have is

trend. is the like the And so, business I right on feel

know and mean – and We I and and as when what you on where us, can. to we because as quickly think go ahead we we don't how I try achieved see else continue results. and stop and

the we that kind Based and raised of stand that's ahead the the everything. of year, people where get on we that our and culture and you our nature have, So, have business guidance. go to things for want

good feel about we are. we think I where

to we I QX, should look closer compared had and the is the back that at this is reason our see think quarter we seen different. any seasonally should in I not this weakest the There XXXX historically, for million think be like numbers. and why have weakness no be will you this or big that also example than quarter, quarter. a number $XX to dip being go we if at just XXXX, QX

get that point fits, to where the we Then right. on and that's So, organic inorganic.

stuff For afford the that at look take not could longest to a time inorganic. was we

We the are opportunity. best focused on That organic. is

We are in a good neighborhood.

house We have fronts many feel are. on our connected we and about good where we

haven't it. or the small that and the opportunities years, technology, here some a in We we here acquisition mean been two to people always or or we've at to or acquire we – here three there haven't but that participate continue look some course doesn't of looking build over at some that years, become and last capability gotten

and at of the looking going that say, do been is not it not capable because we was can't not now state say, revenue about our feel trajectory always then about be our little really capabilities, customer things are yes, our So, I the I these that about should would going look on that. start of that's our changed. about to bit confident business, surviving. more in that, just was can the – can there our finally business, business balance mean, of to all time kind at looking companies would sheet, a about bad no, a them. base here have and base, at all we base a even idea of not where But put wonder like blinders I we

You remember just a were year the half days and at a ago. $X.XX when we

of and the to what benefit ahead on at marketplace at think have are stay of So, have in we I where today we least aware what's achieved going [indiscernible]. having and the go we the point

Sameet Sinha

would would be at, both? or looking provide M&A look So, or us more more into opportunities, were it you to technology if you which information, product can specific some you sectors be

Sajid Malhotra

go ahead would tell and us the to really not to what that get Company take adjacency that would some I why not This to But a base has our deliver to you CDN go could our and a go customer when has to done to go absolutely company look done on to and services where try idea. it do. and for on go could that. explain into really good infrastructure be that. base infrastructure, expect we available well crazy use it if opportunity Don't on customer mean of and at that before done you that's example jump and that I not a layer ahead base. ahead would became we we

us very, aligned that you So, tightly things to with been we've about. the of think of very all talking it's where

Robert A. Lento

video, services, We'd our I layer then add capabilities and at of CDN at to customer, Edge So, physical as look important an is are a there opportunity Edge we lot us. in that core right. customers look in market mean to that video be services, infrastructure was what the there would those expansion, Sajid's at well the the as opportunities, point, both we'd utilize do. that beyond

we shape, very a integrate one least the pulling heard of the is good the have your look of on this first the for plus choiceful even Sachs the Akamai time time obviously Goldman felt about be not management perspective could and the And two. money. it's are say to a like, we two, and spend out to be it. we bandwidth So ever are to hey, trying enough We're very a we disciplined rush that to point, bunch first the time that But trigger at business something in from signal in foundation strong business one going to we we careful, to that, in. was and than And go continue with very core first settled e-mails take had reading and the the calls anything. the the you the that I've first for in of time some been greater us in right the come way that that luxury come cash of our have to moving or direction, since at continue here

Sameet Sinha

sense Okay. median traffic My average from shy have final of traffic about what kind providing a can you maybe for us growth? I question, and this cohort you when know classic you customers, six of speak away renewals, you figures, but these or minimums signed that give of

Sajid Malhotra

you give a carry I let that little basically minimum, very would meaning, behaves industry I you this and Sameet wouldn't tell where the that. me minimums the but explain

for Somebody will horizon or long kind in what customer do. as at that's sign the possible to possible possible and That's small they built-in, the the go lowest trained minimum ahead out over as of as price. to procurement companies as has up time a departments the been of a base set

extend doesn't a length threshold sign sometimes some months, So, through of the whatever if months. four that months, is, the you minimum run customers entire of six kind in or through eight It the contract. even out

the minimum, feeling a big time this a you customer minimum. a a that have to had want So, give minimum I we with don't that signed didn't

revenue improving. the it's the all draw headed. beat guidance raised that, revenue you would of a which feel Now can broader is actually more trajectory guidance about say, sudden from many important. on the I We confident our inferences than of business is That's We the our focused by guys. where and but what's stay

Sameet Sinha

you. Thank Perfect.

Operator

question-and-answer the for any our back over to to would conference I session. closing like turn Sajid concludes Malhotra This remarks.

Sajid Malhotra

Thanks Brandon.

a are financial many to track XXXX we net-net, had and strong strong fronts. the best operational first half, on and So, a we make on quarter, ever

and in We raising having long-term it are DNA, is we because some quickly advantaged in the long-term and emerging goals, this guidance year's Edge targets. are opportunities both realized our our

at York place will industry which an place Next at on you that October Edge be forward content taking is in focus XX and of some security, latency, analyst Rayburn's will City, Summit taking there. look seeing with We to infrastructure distribution more. I low Edge all Dan the New CDN, and

D.A. on upcoming the New Technology, at Annual Conference Forum Boston at In for XXst visit the Communications addition, venues Web-site Davidson & and in Internet at the August Oppenheimer dates in Please we Investor on X. www.limelight.com events. August Technology Annual are XXth and Relations of York X, presenting

that support day. appreciate course and all we joining call. a Have Of you thank great for our concludes your us and today

Operator

conference you presentation. attending now today's is Thank The concluded. for

disconnect. may You now

Edgio (EGIOQ) 19 Jul 182018 Q2 Earnings call transcript