Edgio (EGIOQ) 12 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Dan Boncel	Chief Financial Officer
Bob Lyons	President and Chief Executive Officer
Robert Majek	Raymond James
Rishi Jaluria	D.A. Davidson
Mike Latimore	Northland Capital Markets
Eric Martinuzzi	Lake Street
Colby Synesael	Cowen and Company
James Breen	William Blair
Jeff Van Rhee	Craig-Hallum

Call transcript

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Operator

Good day, and welcome to the Limelight Networks Q4 2020 Earnings Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Dan Boncel, CFO. ahead. go Please

Dan Boncel

on thank quarter and being joining Networks be Limelight on days. approximately Good results you conference fourth archived will and financial XX, is website call. XXXX for February XX afternoon, XXXX, for our This recorded call

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

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

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

Joining Executive is review start detail. Bob our Bob call me I’ll today’s Officer. introduction. a with brief will financial President and results the on then call new today in Chief Lyons,

Limelight. Following call at the and We’ll to a Bob. turn then longer-term for that, Bob the I’ll growth remainder to immediate now profitability will open call discuss plans sustainable our use of the and to Q&A. over drive call

Bob Lyons

the and in of These I an with all and things of of Well, set in joined chip Thank has of because a this unique I market am impressive to capabilities. speak enormous these a front competing blue and and you you, thrilled potential Dan, large possesses customers. Limelight true. are list welcome, growing of join us. everyone. today. Limelight company

they need today that to company are challenges I success. and where edge-based better to Clearly be solutions. are our and I our and growth a refined we fourth believe rule-of-XX Dan? address leader gaps rapidly Later the landscape of company are taking close our is there and steps will Further and Dan a time, in are in the need strategy to call, to performance. profitability Our the here report outline to execution changing company immediate to for these not The addressed. critical financials. be. to I’ll challenges position this it this this position At turn ability quarter pursue over delivering as

Dan Boncel

the with line. Thanks, Bob. start going I’m top to

full QX XX% $XX.X million While X% revenue are our happy in decrease QX growth $XXX XXXX. report year representing of of was to we over from XXXX, million revenue

a international XX top total XX% Our denominated our ago, XX% XX% accounted accounted for prior of quarter QX of year fourth compared customers in to currencies approximately of was a consistent total approximately quarter fourth customers dollar revenue for non-U.S. revenue, years. revenue XX% in with

and As be. Bob need the they our this not where call, of stated profitability growth to opening are at

volumes the streaming during of Let in fourth driven record and adoption traffic the QX month experienced some We me direct-to-consumers decline day, provide quarter quarterly for accelerated by revenue. context services.

expanded front and more share the focusing customers aggressive However, later taking existing new steps year-over-year capabilities explain growth. we compression Bob revenue. by more price will get to offset improving performance resulting decline on and higher volume, in than in are these in with of customers, pressures

we throughout could accomplish we gross margin steps operating believe we margin. in volume quarter Cash from to We quarter. or cost this. in efforts levels increase reduction directly quarter Turning gross not these in impacted to price the taken XX%. have efficiency expenses. and the declines network and said, XXXX and already can That with fourth offset simultaneously compression Price increased COGS was the margin

added have XX second we capacity per approximately XXXX. in of terabits Specifically,

South didn't capacity. traffic traffic this have new on XXX and over customer. from Korea the an of had That been existing we region added It one has points impact large of to where our several we exposure underutilized materialize approximately adverse the anticipation in gross working basis capacity is quarters. margin to reduce last

expect XXXX. This impact out by better reduce has control traffic at to enhancements we us to allowed We our have network material to peak as within least PoPs. that traffic reported, capabilities. automated our previously in half Also, rolled engineering

of $X.XX quarter to $XX.X in share $X to the to this speak fourth approximately detail share. interest capabilities, operating or costs quarter alignment the line, the these share XXXX. decreased in at million with regarding costs. million $X.XX their they policies ago quarter and fourth flow primarily was fourth expenses $X.X flow of reported $X.X quarter. As operating line From all almost strategy. to year's in million million and GAAP in call perspective, efforts congestion income and This Adjusted and expenditures. the the our our we loss basic or $X.X year expense will compared per we capital was improved EBITDA versus paid for evaluate we million expenses in compensation quarter for port million flow million vendor cash million a the $X.X $X Operating per bottom due balance later per of On more includes or continue significantly $X.X term quarter GAAP cash to year a compared the XXXX. of variable down $X.XX COGS sheet. longer alleviate the $XX.X control $X.X to Operating and will million in cash million, Below refine we enable fourth level. Bob to to

to DSO with $XXX.X of anticipate range ended out million. December in we strong days. the within collections our and DSO with quarter normal to result, cash XX close of With year, continued cash ended a of equivalents We we days. the cash XX As XXXX XX performance a

evaluating Please release of for year time, the won't see into weeks I As of point to In in At full business, are our cost guidance not ago, this we interest strategy XXXX. we call. time, approximately two press December for less details. the during XXX.X joining are XX, outstanding. issue million today's currently this all additional we had including the go shares Bob aspects results and structure. With of than going company

we plans. additional We as now I comments. details formalize like would Bob? the Bob will additional our to for provide to back turn call

Bob Lyons

Thanks, Dan.

and As call, on. at have in this build front solid outset I to of opportunity said of is the we there foundation a enormous us

leadership performing work to However, last work joining do across not went and and I immediately we better and be strategy, improve profitability the areas. refine should Upon these our our we to are growth, to accelerate execute. our as have team week,

We ensure have and to long-term our priorities success. improve with defined actions three specific performance and near-term

a is Limelight that First, we on improving will the one core large CDN market, growing very and our focus competitive. is business. in

are manage Our us performance we ability to grow costs better line bottom top than to our and than the and our requires line competitors. better today and

Going consulting forward, ensure and excellence. relentless of opportunities firm engaged thorough, a operational We us. to will to be off strike have this will we executed pace, that service reduce in project identify efficiency project costs kicked top our quick performance. To pursuit a we is at help improve and and

our many our to core expand speak I of the customers. business. with Second, we have will had opportunity

new gives with traffic strong flexibility established supporting. cost room pursue our and a structure us also improved have our pipeline spend from have growing of that more allow We opportunities. that customers customer a we a us existing greater that base team done performance has will to fantastic a share pricing Equipped aggressively win job while of and

by will we meaningful changing. to world trust pursue great and and digital growth strategically but Third, extend needs revenue drive opportunities core. our customers their We a experience, that our us their connect biggest mix. in The diversifying can capabilities, to to brands are profitability improvements customers the

As global to continues content customers from evolve our need consumption more us.

core we to forward, invest and aggressively that provide Edge will opportunities capabilities compute Platform our and includes Going content, solutions. and robust in cybersecurity pursue more extend

focus that the will criteria. on We investments meet following

and utilization edge we solutions and leveraging increase the win that our sale where advantage average will diversification. right third, revenue solutions will second, to improve that of and by solutions First, a establish improve capability platform overall price can scale clear network, our global

just on necessary our will and priorities our improving Where XX we strategic next we're I are, again days, core. which the roadmap expanding our adjust extending changes, core Over position. focusing make our outlined core, market the and strategic our refine

needed the leader needed pieces. be to Platform in the ability a have pieces and of the add many Edge solutions We remaining to

more In on details a pursue. update. we addition growth provide strategy refined we and to our will appropriate when update plans quarterly earnings and opportunities This will the virtual will host updates, strategy

distribute months. information be on information in press will please in approximately via advance, coming release a event more lookout for the one-month the this We about

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Operator

[Operator Robert ahead. first Please Majek Instructions] from you. Our Raymond James. comes with question Thank go

Robert Majek

Thanks. Great.

I expect understand sense understand to provide today? for for that receive QX press change any the with in kind release strategy, us X, can leadership that unable business guidance On call. what changed or XXXX you're investors guidance but the January might've revenue you mentioned this help of you just the of the year and on to should had

Dan Boncel

the this At just and evaluate now didn't estimated But in the only some for take guidance him that were and of prudent it's Lyons Yes. felt can to accordingly. job change out with Bob the he announcing we earnings wants have we focus come We do would we in we time, the Thanks date at evaluate on, adjust time. to is the point that weeks, Robert, being what we team, with time, that leadership place. two then that for and on Dan.

that we're undergo within we couple firm process relatively consulting engaged us. to as next a quickly we've going to And of weeks, mentioned, the so help

so information through process, deciding the deciding either but go just minute, that a now And work and guidance out additional in from as with take come and pause to out we come through – coming went kind with want that's with process hold here. we that time back, we out let's where we'll out we'll of for off a figure the step at to –

Bob Lyons

Hey Robert, meet to nice you. it's Bob,

Let another me piece to just that. add

accountable burning it get to to To we're I with make little can do important at trying the is get to that you that there have nothing What way, sure time I'm is the platform, a all is when I right. more It also bit to do come what want right commit. transparency really nothing right that proponent from. so build so. And going note time to it's to need take make very accountability. there's we think I definitely out be of no more to I really we're to to you and I for we credibility tell strong I and run we that And that sure a you. than need

Robert Majek

your what makes times. sense, could of of mentioned your just profile a remarks, meet impacting Bob few in you're as to you kind reevaluating some well. to negatively give That right-size Can line that, And the ultimately without sense cost a items in position like? and and on your building business long-term look Yes. margin the you prepared then just nice us you structure

Bob Lyons

Yes. That's question. great a

say would I in at everything. looking So we're the is it way approaching the near-term, we're

so so it only to two the saying, got do going to space, in industry. is much to best a performance costs disallow one be more of take participate way we CDN look in think cost make the can more is the in the the we're when And volume. really sure on is but the to check. competitive you at and drivers for is and front as that customers way our And we've an one are about we're price big the or not approaching down, company think structure I it and right-size this going And rather advent you participate price. there's our we're with costs to either allow more other

So it, with cost looking three-dimensions our structure. that, at of approaching we're

at looking where can we First obviously be more there. efficient costs operating and

that we we'll then different looking synergies may some Secondly, the architectural strategy drive with our costs, that that at to years detail. add things more over cost the talk costs more aspects of of maybe third, can strategic where we done rethink, about have obviously can we that and in

call a project is have comprehensive we on what expect it quick So we're do very to purpose. – taking From that a approach. hits we

some We relentless, forward, we'll needs model of out quick costs. expect as a build that going really driver a on then with very management have ongoing continue to strategy that come our hits and Cost key to improvement become to around continuous company. of

Robert Majek

Bob, could offering the sense and you product it like you just comment would security towards if customer ARPU? services it about made the make portfolio. push WAF to a Does make build be great on expanding DDoS grow in-house to

Bob Lyons

Yes.

is XG, billion let me XX% but oriented security what's the is not is. that experience and doing me and last I to if a CAGR, really focused up XX% $XXX put today security industry anywhere own given then think those everybody of today has when to And the mobile, where been So you way in SaaS essentially big inside I've the what really your for second. all are for little best about doing happening for the The of worked from last the perimeter way you. we're obsolete. grown making really color the on can is talk at let a thing same four happening things opportunity strategy in I’ll else it challenge the with And your a data what's several when had it's you look cloud, security about about a if space. well big at about that's growing over years, Scenario, Overall with XX tools. keep that industry, what But lot spend but have years on the walls. $XXX perimeter you center, think your with is is assets is all a doing, you pack with to that billion opportunity security the where it,

perimeters, Platform the And that wherever their is problem, major now you're if transformation. in the what's new for their And so can what place in they Edge each in solving individual Starbucks, sitting you're happening sitting through a they're at be, is a home, that that industry solve interestingly, office. really industry security for solving happen is going the sitting is to user, because

And and security address those so things. to needs transform

to doing, unique we a global way. how the in our opportunity So on set what doing when that look you people that. of come more do at to really Edge with but but our at some different to Platform given when what you lot in we're to play look to of ability, we're today, got no We've space a an it's where out exactly assets much do are have is compelling than going work figure that, really more

Robert Majek

that as think guiding pricing be? just these I one compression look we just And think Is if question there price me, next can last may to any not but for you're should into know to how investors I reason about XXXX, year? CDN broadly pressures

Bob Lyons

answer would way. I it this Yes,

going there's be like some compression. you're think an this, industry I to always anytime price in

that's said, more focused their get one bring managing to customers bit to table. the why that. – have at performance look point can on our value little have build same that we're the meaningfully you which into so they DNA if time our at that of our we're we're costs premium to be, willing of eyes. a number a And a talked this pay that's improve where of why talked said really of we things; in a the to need Having And I've them to to, that we're for the that, company I've all reasons two

don't we price hard see pressure, as It's but I predict, I And a better see it. always do we're going something to can have so it to job.

that Our a the job peers so well. in better we've this, marketplace do are with doing to got as

Robert Majek

Thanks all a and the Appreciate Analyst Bob. the forward to lot looking Day. color

Bob Lyons

likewise. you, Thank

Operator

Our next with Jaluria ahead. question comes from Davidson. go Please Rishi D.A.

Rishi Jaluria

and math declined questions actually start XX you. working taking your wanted my XX much for for QX. ARPU with maybe with sequentially I drop since, to your so customers. QX we've guys, is seen your top XX% thanks right, to customers, largest on the welcome top haven't Hey looking-forward to I'd my a the I Bob with sequential least sequential think quarters say seven for your ARPU at And I from big And ago. customers largest decline that don't seen if ever

So maybe, there helpful? customers? on pricing compression can more bit top and provide on you Is just be some level there these XX with with any there of there Was tell little just what's us color customers? would more a about share attrition traffic going you in going can of your

Bob Lyons

Hey, Rishi. Yes.

So of broader with have shows When at price our up top their it large our have we degree revenue. higher competitors a than compression with numbers customers, represent base. those our customer XX% XX what customers our in

core, part that our of forward our strategy and to our is And customer extend so all driving expand of base. going our diversification improve core core with of our

quarter compression in in And that's diversify, and decline. that that's of reason our our we ARPU the something will fix that going with have we to be the the for that's customers what so that we forward. experienced the have XX, price And and realized larger we fourth our strategy when that top

Rishi Jaluria

a helpful. given season. compression, you OTT are e-commerce more from in you launches, a bit think maybe revenue I into a all pricing the to of stricter, Got little strong were the total gaming then to us quarter, because two want lot right. decline QX tailwinds surprised QX in kind the lockdowns a had mean, it. see really That's drill it, to name I lot a And of sequential

what a is there this other And bit think A, pricing compression a surprise, here? is little compression to factors decline all maybe, are I pricing has so this And see or a sequentially and of that that compression theme in led it seen other ongoing about, was quarters that being in severe talked year? an QX versus you've to so we've pricing the been

Bob Lyons

Yes, experienced level It's significant the it the of had compression where price customer quarter the in the we that where fourth price some story. the largest third of was the we the That's customers, our really through flooded versus compression. quarter.

Rishi Jaluria

helpful. it, a Day. industry talked right be faster aspirational it'll talked know should imagine to Limelight mentioned I goal high ahead it's What talking But high-single But hop. that the to to me that guess, about industry and last growing market you've – level exceeding a to And couple I is this too Obviously like? at rates not about I get I'll want I one timeline close Got least market. is does market of of the and a growth share. speaking about before Analyst sure for we But there’s can. How the return while couple or don't and far growth at Bob, digits now. quarters, are and we rates. I’m And large you've that a you you're timeline growing, least not years? if mean that gaining an be generally I thinking look that's

Bob Lyons

a – Yes, question. it’s great let yes, me

way tell Let you it we’re me observations. and how answer my this it thinking initial about and

think question. to you right. first the going and you that you’re but to the to, market, In were I’m what and ask going in to reframe So I market, growing address that, was CDN is CDN it it which referring I’m

and secondly, had that And us R&D the I’ll reducing that to that that the talk ways make got second. are mid-market. at to that of a which market we’ve we by to performance to to What things. less core then also figure selling and customers we that about in those to is and going in there. largely is the are is a return we call, able in large things what we’ve that got is growing growth happen. things our can in improving performance on reason And two share. to there out than we’ve our participate return improve can some more do our really And CDN the enterprise be two do We’re said focuses strategy costs for And

and performance quickly. those can of it costs, one pretty happen first The

the place pricing. we doing can to is I’m other One to revenue. of our the the and We all have there more lot also are project well as about idea in focus a on more very the of which as go desk. costs spending customers, bit flexibility wind compete reasons where quick We a can little with that existing to performance with strike we our and are money can we really of quickly talk And that if that basically a going try can our back competitors for get more.

of look there I so and And be as mid-market course, expand I by me can What one and the that, well, diversify more would that good, be the that’ll you asked be numbers then click immediate. on our well. to because regional piece. We But was expand we hey, performance smaller the So able more based true. industry, interesting forth. say, to hand, capabilities in we how let double me, your as do it’s if would performance and mean on today? an on

you the to if the can biggest the reason hand, they is And say things other all well and you and the others. CDNs use have don’t things be do they’re seem I’d things a what’s of grow on, sophisticated two improved that do contradictory. performance. those route able our – business. enough On to as But based they that number to do traffic well thing as said, customers CDNs they

customers traffic based our so And on that. route

course to not numbers. of focused to improve a the have get what getting to we’re going to so is and that. got we we’ve on performance And What we’re great really traffic have

in priced we’re a things wind a looking that. do in as that going the all be on allows horizon, are desk to more mid-market of a things, we revenue, of we you but we’re participate those we’re so done that in that to but a us make with to can more growth near-term to abilities around little and then that’ll not bit sure The the place fact our that will obviously tells I’m to that at the urgency. that course, set be place drive do And look other that near-term, more sense expectations into putting of And expand that.

Unidentified Analyst

All a Thank helpful. right. you. That’s super

Operator

next ahead. go Latimore with Northland comes question Our Please from Capital Mike Markets.

Mike Latimore

Yes. I but did quarter? I volume did the the that, it Dan, thought price Great. guess heard give growth Thanks. I and in I get you the down. decline

Dan Boncel

We No. day, price experienced traffic mentioned we that record quarterly that’s more compression offset but volumes, months than that. and

Mike Latimore

Okay, right.

just terms rates, traffic In of last quarter? from growth change volume much they did

Dan Boncel

consistent were throughout with rates year, growth we’ve the what experienced The I would say.

And so we QX the into took lockdowns and continues QX I in with the level COVID throughout QX, up think just with that and seasonality.

Mike Latimore

the like any sounds requirements, Just couple price then price a from color would on of contracts, guess prompted And great. the Okay. came it I – largest that sort launches, new was your what new competition? customers. that ended compression more of it be a

Bob Lyons

Yes.

participate. and then costs down up. back system. volume experienced some well as throughout make volume year. But as that decisions already growth of step or contracts the whether how we and In the they’ve traffic get in out growth, ramp we the the already, on those that see where in competition the volumes In to and we to based to think volume on going accelerated people the I we with can cases, volume drive established you have tiers as table renegotiations not balanced the pricing traffic and initial we tiers them due brings in exceeded

that, revenue saying. and that’s that to base be customer what to base. that our going was I job And It’s so diversify

we’re step on a And here. get don’t make order. to thumb that huge progress in in going that to experienced forward that relatively sore these like down So expect stick going and short strategy prices we that the that’s we’ve out employ

Mike Latimore

yes. Right,

revenues, on you’ve do color much how contributed Okay. the And time? XXXX? revenues on just some for -- what have Like then over edge one edge last given you number

Dan Boncel

million pretty couple under course just a ago it started upper-single a to from nothing XX%. couple grown But really of it couple digits last years grew of of Yes, the total. to XX% with in the And years. We it of to nothing. rapidly under over was has

Mike Latimore

good. you. Very Okay. very much. Thank Thanks

Operator

ahead. Our Street. next question Eric from Lake with go comes Martinuzzi Please

Eric Martinuzzi

and wanted side. then I because the about the well. and tiers last the place volume things QX of competitive months there in changed outlook Was – or an big the compression quarter. that impetus Obviously, price the on had you on as took that tiers, competition of you with towards volume Yes. tiers these that to two that the talked volume changed are October, the focus on end

Dan Boncel

It was a of both. mix

Eric Martinuzzi

Okay. get And every else I making that and of concession an aren’t customer? customers for traffic you, anything or you concession, know some term between of as guys to you’re from exclusive a far other there large is tradeoff fighting as price your but out a that day extension the you the

Dan Boncel

we with performance, it’s can life upper an you performance our can against ourselves from in of where goes. to them Yes, competition to that well I really else. relationship our going terms them come hold If and back mean differentiate our how we perform for that everyone and continue we’ll

And largest gain focusing market to of drive continued near-term customers, what so we’re on to as customers. the as well our new that’s in from share

Eric Martinuzzi

you’re Bob, last one developed? mind? get in we talked you strategy, an is Is as to you’ve element a then How introducing it If about, is put the what do have strategically, Is pretty for And this platform. targets cybersecurity there? Okay. do this one you acquired? M&A internally robust it

Bob Lyons

will not doing – there I it we internally. great get Yes, by question. fully

there. and know know really how where to We in the would I well, No that it to very it’s do space can understanding know And have But I opportunities you lot player we plans. of be I what I come takes offer is there. big worth back a are. specific the what a with surprise. work win to

participate some to some acquisitions. You’ve really of compelling can the heard that our that in reason And want do meaningful we opportunity think we for and it really is competitors the a in recent about and just it is place in with talking way.

Eric Martinuzzi

good Understand. and Thanks luck.

Bob Lyons

Thank you.

Operator

Our next question and go comes Co. with from ahead. Please Cowen Colby Synesael

Michael Elias

This Two Colby. may. questions, for if I is Michael on

improving after the diversification. talked mid-market about you and First, revenue your going

the additional pricing I stand color as – about in you. you aggressively what to through pursue part we any we to Do you table? – would as go come of order additional just to think we larger As risk also need the of the salesforce opportunity? the back appreciated. would XXXX? greatly mean that And you frame of Thank compression, customers that to pricing more will decline expect larger declines – be Any these how

Bob Lyons

Michael. Bob. sure. Yes, Thanks, It’s

call our that are do to really features far security. make UI that more So them. do to the richness is more our with But things in and looking salespeople. delivery, consumable strategy. and proposition, spend And expanding buyers. ease more outcome buyers versus of market access capability There’s mid-market things going than They’re Mid-market of revenue. and there. functionality. the I we as edge as we’ll get three and first we’ve way winning the best got to really two edge really come partners. diversifying more importantly, back look focused start to is on and platform do more in with sure job talking space through – for about somebody the to around And versus Obviously the time I’ll for that channel really most value as oftentimes edge, dashboards capabilities use them. They’re come the But broaden buyers we’re mid-market for platform that just to is our when our

compression, structure customers making at of do experience price for there’s think space to in going platform be win channels. right that place the everybody got a think But the the we’ve what in get that combination natural to we much through and sure prices. to our then experiences, And is, is And we get right a mid-market. job the front in that mid-market a drives those to beast also I our And has the features nature more compression. getting looking that’ll just So getting one be going why of down. our session. then compression we’ve there’s really the is of. market And price the I having that the in of where one that’s would aggressive when of the talk and one, the where got And a thing – price get conversation cost more have part to I’m that better with is can to on the market forward. I we’re that’s we of willingness secondarily, say pay things we’ll that that about strategy And

know little So just a early I and normalizing. has been market an our priced that a compression some this, really and bit I being above maybe think, result of don’t but of price it’s observation

on that, it’s that, things see never on going that expect I less once based these we see adjust we although, headwinds So would away. might some to

Unidentified Analyst

there’s a that I for sense if Thanks that saw other want perceived would a quarter-over-quarter, get mentioned the times. Perfect. performance. Because the And your in question is, say few you customers one performance the you changed change that. on to you any way just side.

Dan Boncel

think don’t a they in demand Like, that, market. get best customers that point I so. price at our can the performance the

And so that’s consistent quarter-over-quarter. year-over-year,

Bob Lyons

in how difference tell thing, I’ll double And on about the Yes. to it. that I think you just performance click

at you day-to-day, and we what have performance look our what going start they’re all focusing and of where you we top and double-click what conversations. on happy spoken we very when a I’ve company, with performance that. if have parts participating can getting But do good get I our of and to customers, today performance, almost you’re you not we say, to not minded do the so And growth you’re If the have really go that market after that’s – we’re in. to to we’re what on

Unidentified Analyst

very much for that. it. you Thank Perfect. Appreciate

Bob Lyons

you. Thank

Operator

Our question James comes with Breen Please from ahead go Blair. next William

James Breen

questions. the taking for Thanks

a lost on up sequential questions much their traffic you immediate your was was up of these seeing given step own And to revenue. the Thanks. that industry. volumes throughout as contract why whole you decline you’re customer some price, go back Is a hits benchmark volume on then sort grow secondly, hits a give into up. of a just experience, Do of of again, some sort the like quarter, the a if the already that’s to you feel market you across been follow-up, you reprice. you how asked. it traffic down Just couple from a reprice and and us was contracts, part for as, the around, have you’ve In table little the and comes an said that these share, can some color then the reason of and sort of in

Dan Boncel

first from Yes. then your answer I’ll way that second resets your question pricing it – question the is Yes. first. is Yes. typically, That works like one.

The we on. they’re going second market performance region all in with so to geographic back I what and market we have individual it’s say customer, question would those share and again, the capacity share, on in that do perform And cases, we how each didn’t some regions. well. gain we focused And others

that’s for And us evaluation forward. under going here what’s so

James Breen

follow-up just to then one And that.

seemed see there that Over of aggressive two like there one the there out we’ve really years, the in few was particular revenue quarters bit or quarter. course where the trying were you any and seen environment? last certain company of from the grab of share quarter given competitors, irrational terms in pricing, a market that this little your Did to some of maybe

Dan Boncel

that mean, I Yes, last someone they over going that I to it several the and you’re one have want seen we’ve to fill fill going think capacities another. or years, consistently, has they’re to way what where some in go given

maybe traffic have we that can performing level at the make that competitors a so the far differentiate goes. service get price market sure to as and maybe from is that network that our as get outpacing our And compression

James Breen

thanks. Great,

Operator

Please question [Operator go Jeff ahead. Van Instructions] Rhee Our comes Craig-Hallum. next from with

Jeff Van Rhee

questions. for my Great, taking thanks. Thanks

to the it if understanding of boil What’s you kind and back had headwind. me, breadth quarter. fully the happened for missing in damage where to the customers of take the Just guys, players did few most on, sort down a I on of boiled from of of to sort what Is the breadth really the two five Just the one just down mean, of felt? XX% place? or the this any the where that was or three? the sense impact coming of to

Dan Boncel

of particular customer, less that within than given than more quarter. the much small any a significant the – XX, it’s number five. Again, bottom But concentration of revenue top of Yes. are within five, customer obviously the five top

when you five, have more. And up those top within going to it’s so happened something show

Jeff Van Rhee

saw I all some you to like trends is but one five? or across mean, more or two Yes, this

Dan Boncel

was five. all a It it couple, wasn’t

Jeff Van Rhee

in customers quarter. the XX% Okay.

Dan Boncel

out come that’ll two our case, in that’ll be were filed There tomorrow.

Jeff Van Rhee

think then Got out just, that framing position point getting but me network. the anything I kind out one up it as complaints, competitive into this just architecture Granted like where size there belt, more I Bob, yet. you’re you when be have last you feel There’s compare trying as and you as answer, yourselves for the stand a Does don’t to it. structure. seat And stand of an might because really you got you know no flawed? cost things at you it the peers, the in is were in if – to relates just to other to network

Bob Lyons

positive that or to negative. you this No, talking actually, say on you’re days yourself, it’s interesting I in? think what surprises the more job, I feelings, I’ve coming question. just you expected okay, was somebody And would always the and asked it at point, ask had I when seven is I

don’t started at burning look the on, I when as it think I a said early have we have platform. I we network,

talked and be space the UI in able job we more some for a solve do have it, We better have to to the being smaller to competitive the about. network. then do need a to improve to And of mid-market I things and know, There’s as you good very we configurability. objects

this addressable, smaller do. those are fixable more things that all and be very but we can we mid-sized can So customers,

it focus on major where got boils is issues, sure our costs to, we’ve things. no really in I making market are the pricing just to line down So think with

got the network. network way. different have help when the going in we also desks after return capital. can where lot. a invested regions, start that’ll the solutions get on can to And by we demand utilization And other putting a utilization wind improve it will of that we So the on improve We’ve target right our That’ll help patterns. help both that

So really no initially that. And get right. focused other we’re then it But on major going costs to issues. and the just than strategy, that, on on execution, focused focus is

to improve to start do industry. when just where not is, to So good going the and be. seen to news this done in that, it they you see can need we It’s that overnight, we’ve utilization to the continue gross margins, but obviously, happen get you’ll

issue I have an It guys speculate issue. nothing to suspend us and to execution So ask for you disbelief. or more is than really strategy don’t a

we’re going focus what so And to on. that’s

Jeff Van Rhee

you’ve I think terms higher a updates you higher score. the it get of Any what into Fair in enough. to push One will. one if could that I witnessed was was if last, real-time pivots sneak streaming, in. there space, this margin The of a differentiation,

Dan Boncel

availability. for out roll real update No you continues limited to in where that

goes customers are testing experiencing a of for that POC product from from underway We’re there. good how and – pipeline we’ll and and evaluate that

Jeff Van Rhee

Got okay. Thanks taking for it, questions. my

Dan Boncel

Thank you.

Operator

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

Bob Lyons

growth. forward with for enter Thank the I laser XXXX you, everybody building for a today. you on operator, thank in conversation. joining look continuing us profitable to platform focused and We working everyone

Our that of is advantage to are growth. industry an Limelight in upward trajectory and take we positioning

we the to in Thank the you. progress ability our our you forward look first We at do so, of updating end and are optimistic to on quarter.

Operator

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

disconnect. may You now

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