company background image
LLNW

Limelight NetworksNasdaqGS:LLNW Stock Report

Market Cap

US$368.0m

7D

-6.1%

1Y

-36.4%

Updated

01 Dec, 2021

Data

Company Financials +
LLNW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

LLNW Stock Overview

Limelight Networks, Inc. provides content delivery and related services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Limelight Networks Competitors

Cloudflare

NYSE:NET

US$60.6b

Fastly

NYSE:FSLY

US$4.8b

GTT Communications

OTCPK:GTTN.Q

US$1.6m

Amazon.com

NasdaqGS:AMZN

US$1.8t

Price History & Performance

Summary of all time highs, changes and price drops for Limelight Networks
Historical stock prices
Current Share PriceUS$2.75
52 Week HighUS$5.61
52 Week LowUS$2.30
Beta0.62
1 Month Change-7.72%
3 Month Change0.37%
1 Year Change-36.42%
3 Year Change-14.86%
5 Year Change23.32%
Change since IPO-87.60%

Recent News & Updates

Aug 19

Limelight Networks: Uncertain Turnaround Justifies The Valuation Discount

Limelight Networks misses on the top and bottom lines in its latest quarter. While the recent Layer0 acquisition is positive, I am concerned about the ambitious near-term guidance numbers. In light of the challenging backdrop, I view the current valuation premium as unjustified.

Jul 31
Limelight Networks, Inc. (NASDAQ:LLNW) Just Reported Earnings, And Analysts Cut Their Target Price

Limelight Networks, Inc. (NASDAQ:LLNW) Just Reported Earnings, And Analysts Cut Their Target Price

Limelight Networks, Inc. ( NASDAQ:LLNW ) missed earnings with its latest quarterly results, disappointing...

Shareholder Returns

LLNWUS ITUS Market
7D-6.1%-2.1%-2.8%
1Y-36.4%0.9%20.0%

Return vs Industry: LLNW underperformed the US IT industry which returned 0.9% over the past year.

Return vs Market: LLNW underperformed the US Market which returned 20% over the past year.

Price Volatility

Is LLNW's price volatile compared to industry and market?
LLNW volatility
LLNW Average Weekly Movement7.0%
IT Industry Average Movement7.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: LLNW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LLNW's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001529Bob Lyonshttps://www.limelight.com

Limelight Networks, Inc. provides content delivery and related services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates private networks that deliver Websites, mobile applications, videos, music, software, games, and APIs; offers live and on-demand video delivery services; and provides online video platforms that help organizations manage, publish, syndicate, analyze, and monetize video contents. It also offers edge cloud services; cloud security services that provide defense against malicious apps, Website attacks, and unauthorized content access; and cloud storage services.

Limelight Networks Fundamentals Summary

How do Limelight Networks's earnings and revenue compare to its market cap?
LLNW fundamental statistics
Market CapUS$367.98m
Earnings (TTM)-US$57.64m
Revenue (TTM)US$210.14m

1.8x

P/S Ratio

-6.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LLNW income statement (TTM)
RevenueUS$210.14m
Cost of RevenueUS$132.81m
Gross ProfitUS$77.33m
ExpensesUS$134.97m
Earnings-US$57.64m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.43
Gross Margin36.80%
Net Profit Margin-27.43%
Debt/Equity Ratio86.0%

How did LLNW perform over the long term?

See historical performance and comparison

Valuation

Is Limelight Networks undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LLNW ($2.75) is trading below our estimate of fair value ($5.59)

Significantly Below Fair Value: LLNW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LLNW is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: LLNW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LLNW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LLNW is good value based on its PB Ratio (2.6x) compared to the US IT industry average (4.7x).


Future Growth

How is Limelight Networks forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

65.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LLNW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LLNW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LLNW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LLNW's revenue (10.1% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: LLNW's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LLNW's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Limelight Networks performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LLNW is currently unprofitable.

Growing Profit Margin: LLNW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LLNW is unprofitable, but has reduced losses over the past 5 years at a rate of 7.5% per year.

Accelerating Growth: Unable to compare LLNW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LLNW is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (38.3%).


Return on Equity

High ROE: LLNW has a negative Return on Equity (-40.79%), as it is currently unprofitable.


Financial Health

How is Limelight Networks's financial position?


Financial Position Analysis

Short Term Liabilities: LLNW's short term assets ($135.4M) exceed its short term liabilities ($42.1M).

Long Term Liabilities: LLNW's short term assets ($135.4M) exceed its long term liabilities ($132.7M).


Debt to Equity History and Analysis

Debt Level: LLNW's net debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LLNW's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LLNW has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LLNW has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Limelight Networks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LLNW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LLNW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LLNW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LLNW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LLNW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Bob Lyons (52 yo)

0.75

Tenure

Mr. Robert A. Lyons, also known as Bob, has been President, Chief Executive Officer and Director of Limelight Networks, Inc. since February 1, 2021. From 2018 to 2021, he served as Chief Executive Officer...


Leadership Team

Experienced Management: LLNW's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: LLNW's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.8%.


Top Shareholders

Company Information

Limelight Networks, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Limelight Networks, Inc.
  • Ticker: LLNW
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$367.983m
  • Shares outstanding: 133.81m
  • Website: https://www.limelight.com

Number of Employees


Location

  • Limelight Networks, Inc.
  • 1465 North Scottsdale Road
  • Suite 400
  • Scottsdale
  • Arizona
  • 85257
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:02
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.