LLNW - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen. Welcome to the Limelight Networks 2022 First 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 answering the queue their question-and-answer session. I'll now turn the call over to Sameet Sinha, Vice President of Investor Relations and Corporate Development.

Sameet Sinha

afternoon. Good joining First for Results XXXX Limelight Call. Conference the you Quarter Networks Financial Thank being April XX recorded will is the call The today, on start quickly website safe me harbor. be XX, our for Let approximately days by covering archived and XXXX call. remind this like statements to be forward-looking that everyone We'd will we making on

and forma Forward-looking statements such are business and our statements activities businesses. our priorities, be results results that acquisition secular of from contributions as operational Actual contemplated strategies, statements plans, pro not strictly indication are not all could acquired feature trends, product expectations, results, statements facts of those functionalities, from our future by differ performance. considered should and materially as an our forward-looking reported historical

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

Bob the Joining results start a on are guidance. the call CFO. our call and financial and will Lyons and today's our and results Extend of and on Expand Dan an EVP brief review Improve, and Bob discussion CEO; with Boncel, Dan then me President today will update initiatives.

of discuss that, strategy remainder Following to the corporate aspects our the initiatives Bob will forward. use and call going of

to turn for answer over Bob. questions. CTO also to will the call your We Limelight's will now be will then Q&A where call Kapur Ajay open I available the

Bob Lyons

Thank you, welcome, Sameet and everyone.

on quarters year-over-year profitability of two quarters improvement of three momentum double-digit XXXX with positive quarter our first of continued and sequential to growth. revenue build The sequential

gaming traffic of of spanning, in downloads, traffic $XX and note the improvement year-over-year client and expand events, landing XX% with plan. ahead streaming, also base. Our well our million, and top record diverse expectations ahead In well were market It management highest all-time our have broad-based as ahead QX, days plan. nature quarter. improvements were to that of was renewed client of our Limelight's software as the in traffic XX Revenue XX an operational is financial results driven well improvements focus important live of

Our remain shareholders continuously up we in for are basis create Adjusted alike. cash year-over-year our plan. I million today this consistent our EBITDA our our $X.X momentum ahead improvement year-over-year. operational margin to first, gross to say of pillars was meaningful performance. The of of $X value XX.X% business and to our the for ability supporting continues threefold: meaningful XXX commitment confident clients, strengthen and unwavering was can points plan and employees underlying comfortably with a million that quarter and

As and regions analytics quarter to previously that number reported, reported that our continues data we balancing firm one best-in-class. other to in improve Limelight's Last were on very North standing well. America. rate PerfOps in load hard have as worked we Building third-party performance as we

America Latin us. a critical in We progress market have made notable for

efforts Our region rating number achieving have that one in the in resulted as well.

continue world. our of success that network deliver pursuit in result state number we our we improvements, to confidently best-in-class to consistently a proudly now our unwavering As and in one a critical to dedicated we consistently is be year of can almost the ranked performance performance. performance and The will of

strength. that This from quarter have delivering that intend building great of an on to separates In briefly continue we Second their unmatched our clients the towering conversations many us one told on that team and each to am our something is I and strengths is with commitment the client support. experience. delivering our pack I focus

of high-margin, security believe to edge-enabled be now our high-growth, our Third, what solutions. improving added capabilities to for who and next-generation LayerX, we we With applications their And web an solution protection strategic We has application have productivity new of focused to pivot platform. to our We meaningful deals solutions ability the most this edge-enabled direct and by edge the deliver logo and in developers migrating them are extended platform products on AppOp replaced market our performance, agrees. complete nine quarter. competitors

solutions. additional company support our continuously all success confidence, into confidence short, for modernization improving clients. continuously to to our and creating and In their more shareholder inclined has create SaaS-like value in three clients utilization direct shareholders. to in traffic deeper more performance, turn towards clients. across of drives With products. the and additional commitment our Our can with opportunities and us to and result and down value the turn platform, our result our these That traffic more that pillars our recent they translates been relationships that app a evaluate high-margin deliver improving are creating of our This sustainably addressing needs in

We will pay our They first continue priority. that nothing should and them less. expect making for

share shift quarters in I will frame ahead. done we months plan have around comments my the as framework I have what in Expand and previous some our Extend focus and me and Let and using done detail updates. doing Improve on

network focused Improve our and on operating program reminder, a costs. As performance is

introducing performance system. improvements include increase make and of introduced an And client footprint. our we quarter Improve with them. on on we increase have operational This to a focused program the Under experience highlights growth Linux-based and continue architectural that highlight toward momentum. our initiative edge-enabled best-in-class our focused cost reduce utilization, network to upgrade some recent our focused operating improve margins is network costs. continue last gross program on building and will Improve we to our expanding throughput program, improving on is solutions Let relationships operating Expand me and things reducing new initiative to Our capacity Extend the and that

and ability to expect Further, initiative to and more see an and ISPs as and with quarter consolidate cash rapidly pursue capacity us new platforms XX%, our Limelight incremental with and gain existing We plan capacity asset-light ones. with service. clients of will model increase our earn We to allow over began share improve this bandwidth improvements executing and initiative business are the going more meaningfully performance the wallet a Edgecast forward. accelerates a our by each to on track this which

and to by continue focus We on network improving mix traffic utilization management. traffic

of fourth We in utilization QX. have quarter achieved in maintained our trends despite seasonality levels improved the XXXX,

our every EBITDA results program is million Expand to the adjusted XX%. reminder, utilization of adjusted approximately $X million revenue above that our I had for our clients growing am been XX a in and previously both top Last, report were flat in discussed two to to not growth have we As in QX. flow-through quarter traffic Highlights of plan happy include, EBITDA. $X that delivered of of point year-over-year annual this plan.

new quarter, second is the Our In COVID-induced shortage number of had starting half anticipate year. content the subside. of and to see of a in they launches more the the popular largest client many

continue who with revenue to year-over-year. in focus closed sports. by the XX channel from trend previous on to such new in quarter. positive Improving we their sales, as direction top are added a sourced than Of their Client of customers more expand Additionally, live competitors the newly XX quarters Of were grew direct additions XX% this nine quarter. our on new XX created on quarter, our which by of continue largely content high team they and AppOps. logos replaced in Americas. the achieved those In focused this product were XX% XX a five-quarter the trends

with Our AppOps to than the triple-digits. our pipeline continues grow portion grew more well. by growing the In XX% quarter, as we pipeline by

high for sizes are continue attract for well We and also guide the types and that variety with delivery their looking for the large web in solution to solution LayerX of best at $X.X million company content applications. are our $XX year media million high contributed we towards but gross least revenue. a of tracking its to stakes is relevant companies margin AppOp quarter in full

largely rebuild completed our have of marketing planned sales the and We teams.

continued quarter ample for in opportunity for will the reps, the full The the second providing our be second of of most quarter year. first half momentum quota-carrying

in DDoS announced giant we have CDN rapidly us question, Our significant program become WAF, edge company. to increase this CDN our platforms This strategy with solutions to our the strengthened rich and the with acquisition headlines Edgecast. security, largest and basic and live native Extend enables scale, of November one market. another in edge-enabled video will quarter. we our be With Edgecast, We We lead a detection. billion board app Without capabilities. security leading transformational was leap launch independent taken capabilities web $X.X growing with events coupled bot a with security of the

and target With clients have increased these industries. newly our across of can we the we reach size capabilities, added

robustness edge APIs edge holistic market will direct web a Oh our The will security We popular solution set our to the integrated decisions development govern the world's be all complete to application edge-enabled developers that to strengthen. recognized continue way, frameworks. XX integrated most comprehensive company and industry's especially quickly CDN Our edge solution solutions edge most solution the platform. momentum as AppOps to our to capabilities, business relative are by our and with services complete market. of most and most enterprise-grade and momentum fastest market The indicators approach underwrite of this network cloud platform of by business. and the purchase as powered the seamlessly with edge-enabled over in the in solutions the platform an continues a include believe fastest and from Jamstack already operational to in the build media in world's and and our anchored has leading the positive by integrated tools, continue global will Edgecast the that performant and competitors logic evolution developer

organic revenue margins gross growth, growing EBITDA. are We seeing adjusted and improving

remains have be three past progress quarters positive we much five done. have and meaningful of momentum the work quarters in While to made seen

with of combination us great a set opportunities Edgecast provides profitability. improved Our and for growth with

discipline very bright. clear financials. world's be I investments a our think soon-to-be don't of into Edgio a Edgio Dan a to it's client we solutions most We to $XX edge the At our on over I this to the billion with and future growing company strategic quarter technology solutions right running call win. a platform. will to the looks performant will the can operational we solutions where that report the much Under too addressable turn continue on focusing basics, say market, will banner stress time, focus experience, to complete total the first most all of AppOp establish

Dan Boncel

the of over million of the year. quarters LayerX this prior single-digit organic double-digit when $X.X Revenue chain growth. first percentage X% revenue quarter first the contributed global quarter our was quarter, We we despite up which consecutive growth $XX XXXX to second growth is delivered of and organic Bob. consecutive which supply excluded headwinds million, have for which the our XX% implies modeled Thanks quarter from in continue. revenue two to performance

accounted cash Cash acquisition-related of in were of restructuring down for of operating year. Our operating to quarter first top first year. from Total compared first approximately XXX of or XX% and million, revenue of revenue XX% XX XXXX. down Cash the from revenue, higher by to network. due from an of revenue, of of first XX.X% our or were of quarter last excluding the in last million clients traffic expanded gross basis margins XX.X% XXXX, driven XXXX $XX.X XX% the $XX.X XX.X% increase expenses, XX.X% and expenses points improvement quarter total utilization in XX.X% to expenses growth revenue in quarter

the We continue of improved our costs. benefits operating to realize management from

growth attract within ahead and legal-related talent. As charges plan hired and and our previously qualified resulted invest continued our model proposed sales mentioned, operating to in of million the to of improvements ability Edgecast year-over-year first The given our revenue meaningful aforementioned increase in $X.X were Acquisition adjusted for with a connection we year-over-year quarter. EBITDA. in in marketing had acquisition and

at the revenue a We and million year. of business payments $XX capital XXXX in of million, for days XX% million. to quarter is XX adjusted from $X.X marketable spent for operating end last Improved the the of XX increase network end the compared a loss growth. $X.X utilization of $XX totaled flow-through the Cash of due $X decrease timing securities quarter and The expenditures. received. EBITDA DSO First at million client allowed December. leverage was million, was of the days to up

the from Our accounts receivable December. balance million $XX.X increased end of

DSO to in expect April. collections day to XX We have range and be improved the in seen XX cash

we next XX for are maintaining days, guidance. As transaction anticipate closing the to our guidance, full-year we of Edgecast in given the XX

with close, Edgecast that guidance immediately working as soon we'll begin provide team as for the process. We the for we remainder of on and forecast we expect the year year combined to a bottom-up after the finish

months tight We we and post adjusted these think expect gross be margin second its company the management quarter completion would expansion upon with initiatives, of network combined to close consistent first call take how anticipated of to margin to expect from we flow. I to back positive continued about reiterate approximately quarter to methodical synergies with XX and that, to EBITDA successful integration continue expenses, of cash have and operating to improving the the growth gross margins, With will XX% a turn combined XX%, is than which company approximately free XX%, EBITDA XX% the better XX% to XX% adjusted Bob. rate will

Bob Lyons

Thanks, Dan.

with the On begins a basis, will largest global Edgio networks and outline revenues XXX of to delivering Let have transformative one exceeding more that combined next a in world, rebrand second XXX phase me than this terabytes story of $XXX across per Edgio. PoPs the the million. than company more our to take opportunity XXXX

Our video planned application we million. in net recognized to we with underwritten, of years, two Xx with high-growth, solutions our from industry-leading diversifies that $XXX gross be and an market synergies our high-margin new of $XX revenue. can us the and approximately platform. addition the XX% most platform scale share utilization, security The deliver further having over capabilities, platform operational enable margins application million growing greater our and next complete revenue will improve as to to Edgecast web improved than increase high-margin revenue With our the Edge in a over platform will edge

please and world's client delivery, the and proven the all what a forward less a that, edge has operator, investors point team of brand. for a the To by be meaningfully exciting continued platform, anticipate achieve possible supported this platform AppOps Limelight one together, significant growth leading DDoS as add Management, capabilities, program to us. As industry-leading our proven and includes well under XX%. such in session. expertise employees. success revenue, partners businesses transformation in a of nature this underway, question-and-answer on-demand is improve high acquisition With edge Azure and capabilities, With open risk, Integration presence, result, to our XX client know channel and practices, deeper of and platform. and CDN video we largest ability all a live will growing we on start Linux-based security next best-performing with and XX next for Verizon, synergies. XX% will automation total Edgio the the phase sales planning to client the put highly to capabilities have the uniquely that the superior days on to of We and a cloud we a scaled thank video that team the close multilayered for will the than After and concentration reduce above and our client synergistic their international complementary capture skilled highly close, only is we working expect additional WAF, we ability event look platform, Bot Edgecast, a together dig lines commercial delivered edge coming support fine to will large marketing

Operator

question Elias our & from And you. proceed. now Michael your Thank line Michael Co. [Operator Cowen Please first open. Instructions] is is from

Michael Elias

may. Hi. taking if the Thanks I Two, for question.

and be, second like, you seeing And know with I X% essentially to question customers proxy, range talked end I revenue talking what top I you're the XX% So to about the about between rates the XX that earlier the higher are to believe revenue company. progress how and the you of would know and And XXXX XX%. growth to were first for potentially are of implies growth combined XX% XX% traffic. XXXX. traffic perspective first, to my in the two believe then getting guidance I then terms question. you've year-over-year. flat your between to improved recent And that the for just management your provided levers believe in from I essentially That's of range? XXXX expectations your XX% And getting want

should Just wondering the of also seeing we about guidance you. year what then you're how the throughout result a think there. And standalone that? Thank as

Bob Lyons

days question obviously The Yes. seeing first Hi, on -- call we last the Michael. your It's XX How top second And with XX traffic. in script doing? the are Bob. we of I'll are quarter. we lot a as mentioned of historically the traffic. had start the in you

And that. about so excited pretty we're

two those those one quarter was fact up of customers as that you In well. this mentioned XX%

growth we're again. there of So seeing way. grew the by Both them

So we're that. excited pretty about

how standpoint lot of in the very be months have to our chain to business momentum takes happy months a to of build that. and supply that we're with from is continue to we're we get So servers. running is to challenge X that It disruption. The a XX able capacity seeing business you us have

where from we all tight of the a and thought business traffic doing done in challenges, having those standpoint. of it well running And had do that navigating hey I'm watch raise better back we're flat? merger a period challenges Or happy next guidance and reset in of going short the said in that it's the of I continuing addition with internally we're just with we that the we're it a have think that hold we chain so the to guidance? reset with we just conversation lot let's very fact major come XX a do supply have to days, stay And to given very and about, kind is But Edgecast say, time. to

growth standpoint conversation. On force business its a -- Edgecast this from of you own Verizon into didn't look a company, have when at been the on Verizon has the the tucked sales great The channel. relied Edgecast that's huge really

And despite didn't no didn't commercial presence se. a at so team that the growth when for strategy, sales of had those are a rates even growth have really go-to-market their you fact rates they really per great have those They most look products.

we XX security you more the so been the that spent platform have And to they've expect app and to the when much them capabilities last growth what than model and video see the into put you we the CDN that able they take the months rebuilding, redesign do.

interesting. really pretty fact sell pretty it's favorable in other presence So despite They or capabilities the organization have relying stuff for growth no having on Verizon the commercial them. than to

to upper you So the get that's end. how

think security other up. to continue which growth is push like in I to thing, we other to rate have do that areas the continue products launch will

Michael Elias

Awesome. Thank you.

Bob Lyons

you. Thank

Operator

Michael. you, Thank

Our from question James. proceed. Please now next Frank line Louthan is is your Raymond from Frank, open.

Frank Louthan

us give integration little Linux Edgecast with if update of about can bring to give help that Great. will and more us challenges an great. bit the help us business? -- and a that? what Thanks. as the the you content Thank support sort conversion -- how then would well? And Talk That what you. that's to on to that delivery going does Edgecast How be

Bob Lyons

Frank. Thanks, Yes.

So a couple of things.

at argue when at they're an one, Actually, pretty I'd our video in think, weak very business strong area we're look live They streaming. probably where do events. That's best-in-class video live much over-the-top events. in you more actually. broad delivery I we're

essentially together have combinations the spectrum to span you two and to ability the put events of live the on-demand. you full video So

will area well the ad have is engine which another With platform advertising-driven AVOD. also a growth is think us for they we their that what best-in-class video-on-demand on horizon video position insertion

that. And we're so about excited pretty

to that going and that's I from combine improve when But of having we a is important complementary. capability the capacity you capacity we really out very one -- add Michael We standpoint when the back we've we can gave something throughput actually throughput Linux and without is us. to addition our to to the networks So answer found they're to our learned we of pilot things the that a go hardware. that did

in actually so headwinds as accelerate take to they the and the our Linux of expand our of we be companies we'll supply They're one capacity of we're and already head that's running that the the chain bring rollout over. having that of stages a their and the bring early we When together expertise on networks to of ways the combination able have of excess our so on. and going to without two a And well their can capacity. lot expertise with We're the together disruption network. that of network merged lot

to do that. able be we'll So

In addition Linux us of are they platform. ahead in automation of also far because that

capacity which to also margins. combining into networks and And the all to gross be we'll able will translates transformation bring so the the excess our essentially table higher and Linux-based higher by revenue automation, accelerate accelerate

Frank Louthan

All Thank you. right. Great.

Operator

Thank is from from if you our Breen question next you. William Blair. open, now line James, is And James your proceed/ to like

James Breen

Thanks taking question. the for

need Thanks. Just the business a now you Ukraine technologies what's to Or you products there? that then to through from you security relative you've going can more on on just any sort side. through couple seen comment of, internally? or do grow Are gain in that have development And just impact from secondly, your acquisition the should, here? on

Bob Lyons

Thanks. Yes. Sure.

I'll the with us security. I let bit start have actually today Ajay Let then take talk a him and piece little around and thoughts the about piece our and security the Ukraine more call I'll me on

but I from we're the well. actually it's piece, stories Ukraine So doing those this, guilty where feel one saying really of

been We professional the can and have It's people. well. focused the the working have really to a testament implementations. geared on the What tell that is safe services really need. I a really as and make against is that a all It's Ukraine in that professional amazing. and XXX company you really done about they we've sure development LayerX The people to AppOps They're largely lot resources they're services. Ukraine

we we things We our obviously govern a bit can. us do and any So, and growth the little to continue there. to we expand the making sure in and not in Ukraine. plans that It the that have that all watch seen can that disruption It's expand resources. hard does monitor

those So though be to we're so watch and well. pretty capabilities looking as been it's today continue that But to that we able team. and at Obviously other we day-to-day expand sit that. regions to working

On capabilities. ourselves January had this We the security launch of a we in front of pick a year. lot up

We up of what also continue Edgecast. in and as pick a have do lot we there some big about And with we we're be to calls pretty there can but previous capabilities ideas said thoughtful patient. inquisitive and I've going to be

Let could security maybe over of about then with me look turn follow stuff it the at to doing forward. and we're looking stuff and as we're of talk we some Ajay he that today some the with I'll up

Ajay Kapur

Bob. you, question for James. Thank Yes. there the Thanks

just is pay of incredible their quarter enjoy support first then on defenses as a really that I of incredibly and able -- Ukraine managers they're which that be and resilient are doing all just supportive they the with a is and little they the group company and the one of team bit So, there. of their employed that. that to really deliverables met as want who taxes They're there the an exceed has and result quickly what for works fact add the to meet here and

able to their what just been watch it's they've in So, resilience been do. to incredible

and before? need in able that second Edgecast be about a But kind I spoke of to security the but the question On for just web of are we around that and growth enterprise API hey do XX% of acquisitions can to And that support double-digit you what allow will kind area have acquisition markets such through rate a scale believe have to acquisitions of take on growth original the faster to And from we security growing growing north as at and Bob be than your small kind the also faster business through grow asked increased LayerX the we of those web allow need like share to we rapidly incumbents the and those result a is is much everything us which AppOps much are business as back or get from application core than of that growth to especially that especially rates of particular. there in and Edgecast first rates. will that think to open that. -- the we and that base. in of work us there capacity And range the further Areas a then we question of are the market. to coming always synergistic things security growth

what is So, those and the we yes here we next for answer couple to over that kind can always will first we of those of, But businesses growth have absolutely be with the looking what do can optimize we rates. years achieve opportunities for growth. further

James Breen

Great. Thanks.

Operator

you, James. Thank

if with open, from like Mike, line now proceed your you would your Northland. Mike to is is Latimore next question of Our question.

Mike Latimore

Yes. Thanks. Great.

play I really you attribute the investments guess end just sales you So, highlighted marketing the that on guys you've traffic it then just the would little healthy February March you're patterns? patterns how been core you one. And to growth give relative making? Or a pipeline did April be January kind here? of a out traffic is and would into more insight that seeing can and mark to

Bob Lyons

Yes.

So, I'll the Dan pipeline then I'll take stuff. answer let and on the traffic

So, robust seeing general. pipeline in we're growth

things. probably it's to attributable three think I

hard put and best-in-class first that the application essentially a when includes that last else. it's clear you find you we've a security XX strategy done look solution platform world's network. can't together months And AppOps foremost a think framework we best-in-class having the over value well-articulated running much on development proposition I at performant what and most anywhere

together. cobble to got You've

a been QX We will quota-carrying helps that lot. number be and first when have really continued the we in That first reps. quarter. December full one. So, ramping that's up team. two, have staff of the the quarter Number started through we

new obviously up team to build so and more a and the programs early as stages that's have pipeline redesigned production our we hired bottom capabilities. put we're starting think around new marketing to demand the And capacity that We gen going of gen And well. from you and that motion and demand see as third, also redesigned I well. then

growth that to CDN in which it also the but it we non-CDN, grow it So, the large- in And want been AppOps and seeing medium-sized growing we're We're call pipeline growth different to see you to support pretty happy diversity in portfolio. it of at look well. customers also when in the industries grow the grow needed areas significantly is we at both talking and with seeing very our it's It rates includes about. that well. we're where rates grow as as we've

the also the has accelerate growth. security pipeline broadened think helped I really story

Dan Boncel

Yes. I'll take we XX% traffic dip see of came that question. we are didn't guiding QX are roughly And we out QX seasonality anticipating. we that And in then number. to When the

And very had we that. that's plan. -- we're in not a that's happy initially so And where expected the only traffic from about broad-based improvement

and customers for that back the that And here new continues and the so to really we that content our are up year the comes continues throughout off-peak in demand as grow traffic as as to to product remainder profile see demanding continue increase, continue be as even strong of strong and in the traffic half. and well, we CDN core streaming normal to our well that expect

Mike Latimore

Thanks.

Operator

Our next of Lake question. question with your is please Capital. from Street Max line from the proceed Michaelis Max,

line open. is Your

Max Michaelis

questions got guys. two quarter. here. Hey just quick Nice I

anytime renewal any large from you are up first is, pressures having recent? for are these customers? And guys then seeing you The pricing any contracts one

Bob Lyons

constantly contracts We that those I'll for Michael and have we're [ph]. conversations. Yes up always having take renewal

to to changed As about having quarters, that we've conversations. in talked approach from waiting be event our those previous we've proactively an for

this pricing continue There's compression in be always going industry. that. we So do to to

that's We're just a or So it and that life. way pricing us. be any with in expect should a consistent that not We're how anything built we our surprise concerns just seeing of plans compression. and to us to navigating forecasted as pretty we navigate

Max Michaelis

little expected the Okay. EBITDA the more just for Thanks. QX. And clarity maybe on profitability then adjusted metrics of a

expansion. that sequentially? guess? I methodical I think from the comments is is that were year-over-year Or Is that --

Dan Boncel

year-over-year. Sequentially that. take I'll Yes, and

positive million we in And obviously, of which breakeven I in terms $X were think our we ahead QX, was plan. adjusted about of in QX EBITDA. were

expect to -- sales of expect as on of the to in our the We the invest the network. R&D in development plans operation and and marketing of focus to automation plan, really continue are we

And our the grows EBITDA as so to continued sequentially even year. adjusted investments, those expect throughout we expand margins continue revenue with to

Bob Lyons

also close I'd -- to we're transaction add big our to more than ready imagine to Yes. getting double can you like revenue. this on and

that ahead manage we're we smoothly. So well that pretty to can as absorb that and make of that transaction investing sure

Max Michaelis

Thanks, guys. Perfect. right. All

Operator

from from Our of the Craig-Hallum. next Jeff, Van please is question line Jeff proceed. Rhee

open. line Your now is

Jeffrey Van Rhee

from couple Great. Thanks questions me. A guys. for taking my

of on thus signings bit guess Obviously, Netflix offset expand about to chain to as Bob, just think on I similar look think basis that? far. sequential bullish at numbers OTT and little a being both in takes can Maybe you QX? sequential those the concerns more maybe referenced with pipeline a issues. the I talk the and as a the it revenues, of lot and around I supply commentary guide you'd of first general QX relates through pretty puts the you you just

growth QX about takes So talk from revenue a QX. puts to on just the bit and

Bob Lyons

we thanks. I out with from management in transparency, call of don't where both those Yes, I'll with agree came guess guidance. that, sure, say all on the us

would we always be and you one risk. upside than have more is be debate. conversation. think asymmetric hey quarter, up there committed it could have transparent assume of I've lot in we'll a lean a like But the -- did that easy we that, to in was we a in downside be guide had should really things we that When risk that the quarter I that will we much certainly and we'll take and have first when of robust and

what we working in that. really this to way and took so, the look quarter. expand you at When -- approach that where had a really we continue is QX had we record traffic. And on we QX same

in we're well actually getting tomorrow, equipment. so we've do. could to we same we backlog business can't We've the the equipment. and a time, that very ready have and disruption on add capacity But bullish get is got that. chain transaction but that running And very got supply at we're a do increase We the traffic

day. day that's so continually a evolving And -- and by conversation

-- that. around And there's so, uncertainty some that

factors with what inflation, obviously the geopolitical the You issues. have that's going to economic do

we're that completely guidance given we're given many you reset just issues days know all going we that of and back with to so to XX So with -- a this navigating where kind there's what we said, a in come look XX from P&L different today. are

and very the thing give Let's we're we'll of is that XX sure more and But on and where we'll come do. thought very we is days business running dynamics with double kind back to well better we we'll happy was prudent well. is. the reset have of we're make us just that make navigating. click We're the and to happy sure with knows the where a are. all we that everybody view that the And fact But running business it

Jeffrey Van Rhee

around concerns customers to I less? unlocks you you What are consume just there? what COVID color you -- you to And people some can cetera, mean, talk concerns the telling expand with Netflix. your just can on add OTT et are

Bob Lyons

interesting Netflix the It's we do that. client they appreciate big don't I with Yes and have Netflix. is themselves. everything only

they so subscribers decrease when actually have us. that helps And

about So it's cost my their actually and you view tank people interesting. to raised what's inflation to have market Netflix saw much react are happening is Netflix, how but there gas fill of it worried We prices. our the

ago, Five Netflix You people in shouldn't years subscriptions. was that be one surprised or model three the canceled. ago plus years

and people have need subscriptions I their don't to household subscriptions. Netflix look, I seven and raised Now has less. the seven want are saying, average really prices

that, customer to a in that and having real watching be just said of movies. content. going happened pick shouldn't and to watching I'm still happen it They're one opinion. my that So that surprise those But watching it places be different the they're different to going places They're in I'm cancel still ours.

So and knows. part record we're works it a of big who actually we're pretty Perhaps why our in that's seeing traffic favor happy.

Jeff Van Rhee

Yes. Helpful.

Dan Boncel

we And base. Edgecast to toward the that subscribers other for that with to continue expand are international is thing we customers customer moving of and to capacity our to acquisition, internationally. that and of Netflix continue global customers lot believe a a other that a continue add The us reach expansion as increase I'd tailwind with as feel our globally scale global

Jeff Van Rhee

sales one tough months? almost on up a you side, everybody one Bob you they're for like you XX obviously, quick from you in And did going on Where hiring sales you're end next sales do met falling other hearing Where think sounds short Okay. headcount? It or goals. environment the and possibly exceeded.

Bob Lyons

the can the since time been this staffed we say probably And Yes. fully that sure. first at I've at for We're point. company it's

staffed. So we're fully

So pleased QX of with happy well. will be We're we're we the first quality very quarter the as that that staff. team the hired

competitors, with so came happy our that. pretty Some from we're of them

We and have They really operative. salespeople time hard things. people had hiring, not going are to going. I we're because They sell where story to like largely like think, want Look make want the money. a

so they can product And they in attract if believe the the industry and in you them. believe

get doing And really and that are excited going I have so better. far continue about we're where and to sell think and soil they they what we're to what only

just gen. all about the that. feel the salespeople demand the not And the pretty it's salespeople, the we've operations, also good redesigned So sales around support, we sales the motions too

And that's have -- you when hit pipeline numbers. also salespeople continually growing that their helps a so we

we come the focused all stay are. and together, it way to are expect so to And coming We we have the things executing just keep together.

Jeff Van Rhee

and relates here -- know as as of Yes. it as platform. guess, you what you LayerX, in questions. as Ajay, wanted capabilities of capturing to I well I Sure. developers as awareness of well. about. to think The on the your both and to front relates developers just be it on that's a the center I couple take advantage

related And So world your developers? can together? the progress proposition you change question in to capturing Edgecast. platforms the does value AppOps on put terms one, How as just of you talk the that two is in second question

Ajay Kapur

of expect but they're with billion team online, to a have being market, things point not we That's Yes. It's the and an hired and and Bob's in headed Great they in plan, an dev we sales relative did this to -- a share and grow able that that product only And of the $X.X small be side market effective best shifting the of Edgecast, of to kind portion Bob great rapidly. a then kind the on trained elevated operations we size which And purchaser. and of the was underscored coming small, significant of in very kind including being It's there then and is of capitalize inevitable to with headed best-in-class not purchaser buyer the thesis shared our in And to away only web solution we question. we're are a made that some of result is QX one-way really security. And as QX trend and far AppOps. the brings to trend. an product closed time we there an here of to market best It's a of happen And and away developer the quarter we direction of channel of the and awareness for really to incredible product. couple progress one capitalize it the developer making APIs a And was and that's have able building opportunity anecdotes the sourced websites earlier a community. kind team set a minimum which best-in-class it ramp-up way wasn't from we and just rapidly. industry and industry. We've the surely every on could is of U.S. CDN with of far which API the in trend. the kind And of small been accelerated to had speaks kind represent in that the best have that attacking kind team is the the have market. kind deals. our to share are with that that you of in around

Jeff Van Rhee

LayerX revenues there, touched the in revenue And part not And the expectations as bit relates how to the of about seasonally as maybe play other observations terms LayerX, the QX just little just you bookings. it a then second but bookings it quarters any roll through seasonality from clear QX year? to a to standpoint on relative my

Ajay Kapur

it's great Yes, a question.

it's contracted On a ton because point, and more consistent of basis. in there second the isn't seasonality,

generally seasonality sort because generally smooth much a slight not relates base existing it of out, of just may to that's seasonality but the recurring of where client there's There the bookings, there. as of So growing. be nature kind

to that's question So of seasonality. the

including web general the of as of pipeline on progress security being the terms on we're web earlier, relates we've to bookings again, -- made shared some about and business growth the it Dan AppOps And the that's that's arena, does. all in just CDN, not as and that in In Edgecast triple-digit are that Bob got things great. things hearing

really we're that well. to looking as So forward

Jeff Van Rhee

displacing? you you from are Last what are displacing? me just what And one

Ajay Kapur

Yes, it's a great question.

replacements. of So least private that CDN displacements. it's nine that direct there pallet who's vendors were in valuations. combined with web Unicorn of a of minimum who at are is it up-and-comer web that and nine mix those companies And combination And a with a of security of were direct the combination

Jeff Van Rhee

number. great Well,

Okay. All right. Thank you.

Operator

line from Rudy is you’d next [Operator to question is Rudy, Instructions] of Kessinger like Our line your if proceed. of the now open, Davidson. D.A.

Rudy Kessinger

taking my for Thanks question. guys. Thanks, Hey.

bit The in at was had I with a than was expected see, $X.X it flat LayerX to million $X.X think I QX million. Going lower back on comment. QX to that seasonality

got of the And the like business. pipeline but you triple-digit $XX pretty gives a so, like in to to year, it understand quarters. XX% growth, confidence to get sequentially hit it you've implies number? to each that that or What next XX% three million acceleration for business I mean, seems grow that rapid I that

Dan Boncel

take chime in. Bob then and and Yes, Ajay I'll that can

us conversion little trial or force, bit will the of quicker types sales gen the productivity product the capabilities as versus we piece, forward procurement that through product in convert that. the that time and And through deals legacy that that which As historical possible, pipeline triple-digit that working in quickly place, get improvements we a we really has. have to run CDN is have developers looking those confidence is we as that efficiency LayerX growth out and the pipeline on a gives believe built with demand and period than which that process best-in-class that the given a business, you to are

time of place us pipeline into for in the of gives really to actual I had a us. that short fact demand period time. the sales for that's And the the only so, just confidence. And team in growth force and we've conversion shortening think, the see something And exciting line gen is that that revenue very

Bob Lyons

Yes.

thing bookings other bifurcate I conversation, separate think, too is the to the from revenue.

mentioned So you Rudy. the revenue number,

track actually in about. We have bookings bookings, we're have We expected we bookings then the on obviously, quarter. the get you a And with that plan every you hit numbers to it every have we year. support month, target you implementation. week talked where to convert And throughout every actually that the when to be revenue of that into to the

that really quarter, turning into in the a of bookings the risk biggest next part translate Probably, that Ukraine in maintain about making on sure is the had earlier, there, that that you'll see you'll the we we revenue. big team and productivity seeing have into that's, in see the bookings quarter. first we're so, obviously, talked And the we revenue we

but And be them. are far probably that area to so great doing closest give -- most will the so, we've that And we credit been job, -- closely monitoring.

Rudy Kessinger

gross nine then, it. secondly, me, adds, Got direct said think, just from I from takeaways And customer from XX you competitors.

So that's good to see.

-- net five three When customers you those sales count kind basis quarters. ramped, of in actually fully you you you'll gross to do reps start is on the think being was I all customer active though, expect adds the up net I that down mean, having highest said basis? the customer a I like QX full think new On it think going where quarter-over-quarter. inflection that quarter, see a first point with

Dan Boncel

Yes.

ads that QX trends that appropriate point where of But historical new would appropriate increase positive ads, net Actually, we're three, is back with for trending be of us. direction. and expectation. an the having I very an that those think our with specifically think, the for in positive I be getting would view and of customers, decline XX

Bob Lyons

Yes.

would ago, we Every And adding We're I we've not plot and better you five attrition QX. I think, to go that having if think probably point fair and lot you it's more less. it quarter customers. at better quarters you and five that. look over quarters, inflection higher and adding is the a out, customers last just the losing gotten were say

And expectation. so, right that's I think, the

Rudy Kessinger

Got helpful. it All right, it. That’s that’s for guys. Thanks, me.

Bob Lyons

you. Thank

Operator

it Thank have that questions you. no [Operator registered And Instructions] appears being today. we further

for to further any I'll So it hand management back remarks.

Bob Lyons

a everyone, you, our analysts and progress going today. continuing Thank with great operator, thank look forward. forward sharing you, and Okay. conversations joining day. for investors and We us Have you. our Thank to

Operator

the to you now disconnect you us today. who call all have joined and your may concludes those Thank This lines.

Edgio (EGIOQ) 28 Apr 222022 Q1 Earnings call transcript