On January 20, Limelight Networks Inc. (LLNW) announced record Q4 2021 results along with strong 2022 guidance. Consequently, the stock saw a further push in the pre-market session on Friday.
During the regular trading session, the stock increased by a small 0.81% at its closing price of $3.73. Following the announcement, LLNW added a further 6.43% at $3.97 in the pre-market.
The content delivery network services provider, Limelight Networks Inc. was founded in 2001. Currently, the company has a market capitalization of $495.1 million with 133.81 million shares outstanding. Moreover, LLNW stock has added 8.75% year to date while it decreased by 16.55% last year.
LLNW’s Q4 Financial Results
In the fourth quarter of 2021, which ended on December 31, the company generated revenue of $62.9 million. This marks an increase of 14% quarter over quarter as well as year over year.
Moreover, LLNW reported a non-GAAP net income of $2.4 million in the fourth quarter of 2021. Comparatively, the company had a non-GAAP net loss of $1.5 million and $3.8 million in Q3 of 2021 and Q4 of 2020, respectively. Subsequently, the non-GAAP net income per basic share was $0.02 in Q4 of 2021. While the non-GAAP net loss per basic share was $0.01 in Q3 of 2021, it was $0.03 in Q4 of 2020.
Furthermore, at the end of the fourth quarter on December 31, the company had cash, cash equivalents, and marketable securities of $79.3 million.
2022 Guidance
Along with the Q4 results, the company also reported its guidance for 2022. According to this, LLNW expects revenue for 2022 to be in the range of $240 to $250 million.
Further, the expected GAAP basic EPS is between $(0.27) and $(0.22) while non-GAAP EPS is between $(0.06) and $(0.01).
Additionally, the company expects capital expenditures for 2022 to be somewhere between $20 million and $25 million.
Recent Developments
On December 15, the company announced the general availability of GraphQL functionality for its Layer0 by Limelight web application CDN.
GraphQL enables the easy and fast building and management of the API layer for web builders. Therefore, it is a crucial enabler of headless websites. In addition, Layer0 solves the issue of caching GraphQL APIs at the network edge along with hosting its server in a serverless environment. Thus, enhancing LLNW’s presence in the $4.4 billion web application CDN market as web builders drive the purchase decisions.
