Limelight Networks Inc. (NASDAQ: LLNW), a content infrastructure provider, rose more than 5% in trading on July 30 following the publication of its quarterly results. Limelight Networks’ numbers fell short of Wall Street expectations, but investors are confident that Limelight Networks’ worst days are behind it. LLNW stock closed at $2.97 on August 2, gaining another 5.69%.
The revenue of LLNW stock in the second quarter decreased 17% from a year earlier, with 48.3 million dollars. Rather than an adjusted net income of $0.03 per share, the company received a loss per share of $0.06. Though Limelight Networks’ results fell short of Wall Street’s expectations, it maintained its full-year guidance of an adjusted net loss of $0.1 a share and revenues of around $225 million.
Recent quarters have seen Limelight Networks focusing on optimizing its technical parameters. Particularly, the speed of buffering of media was fastened and the network bandwidth increased by 20%. Additionally, the company cut $8 billion from network operating costs.
Limelight Networks Inc. (LLNW) believes improving performance, managing costs, and launching a new application and deployment acceleration solution will enable it to capture a larger market share. Investors probably agree with this thesis because the share prices rose even after the release of the report, which did not meet expectations.
In Limelight Networks’ current business model, content delivery infrastructure is the main focus. Most of the company’s growth comes from this segment. Limelight Networks’ content delivery network (CDN) is rapidly expanding as the company serves a growing number of streaming video clients. It is a promising market for LLNW, as the demand for streaming services increases, and the amount of data transferred accordingly. Thus, Limelight Networks expects to grow steadily going forward.