LIMELIGHT NETWORKS INVESTOR PRESENTATION July 2019 1 SAFE HARBOR - - PowerPoint PPT Presentation

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LIMELIGHT NETWORKS INVESTOR PRESENTATION July 2019 1 SAFE HARBOR - - PowerPoint PPT Presentation

Mar 12, 2023 117 likes •370 views

LIMELIGHT NETWORKS INVESTOR PRESENTATION July 2019 1 SAFE HARBOR STATEMENT Certain statements in this presentation relate to future results that are forward- looking statements as defined in the Private Securities Litigation Reform Act of

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LIMELIGHT NETWORKS

INVESTOR PRESENTATION

July 2019

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Certain statements in this presentation relate to future results that are forward- looking statements as defined in the Private Securities Litigation Reform Act of

  • 1995. This presentation contains statements involving risks and uncertainties,

including statements relating to Limelight Networks’ market opportunity and future business prospects. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in the Limelight Networks’ Annual Report on Form 10K and our periodic reports on Form 10Q.

SAFE HARBOR STATEMENT

COMPANY CONFIDENTIAL

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We are passionate about connecting people to the world around them. We remove the barriers that stand between our customers’ end users and their entertainment, their news, their community, their educational resources. Our platform supports the highest quality user experience today and accelerates the next generation of real-time, interactive and immersive content. We position our customers’ content and applications right next to their end users at the network’s edge for the most dynamic, real-time interactions no matter where the end users live, work or play. We sweat the details, so our customers don’t have to.

We are Limelight.

COMPANY CONFIDENTIAL

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WHY LIMELIGHT?

ATTRACTIVE OPPORTUNITY UNIQUE VALUE PROPOSITION STRONG PERFORMANCE ATTRACTIVE FINANCIAL MODEL

$

COMPANY CONFIDENTIAL

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ATTRACTIVE OPPORTUNITY UNIQUE VALUE PROPOSITION STRONG PERFORMANCE ATTRACTIVE FINANCIAL MODEL

$

COMPANY CONFIDENTIAL

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CDN, COMPUTE, STORE & SECURE = EDGE CLOUD

COMPANY CONFIDENTIAL

CDN Compute Storage Security

Low Latency & Ubiquity Scalable Flexible Reliable

EDGE CLOUD

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CDN MARKET – ATTRACTIVE

25 23 21 12 9 8

Global CDN market size estimates by various analysts, 2022, USD billion Date of forecast Mar-18 Mar-181 Sep-18 May-18 May-18

11% 20% 29% 26% 24%

CAGR 2017-22 Jul-161

13%

Conservative, lower growth assumptions Aggressive, higher growth assumptions

Analysts believe CDN market is large and growing double digits. We agree.

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OTT VIDEO MARKET TRENDS - COMPELLING

0% 20% 40% 60% 80% 100% 2 4 6 8

1 2

MORE VIEWERS(1)

Household Penetration

Pay-TV OTT

MORE TIME(2)

2016 2018 Viewing Hours

MORE BITS(3) MORE TRAFFIC(4)

2017 2022 2014 2017

SD HD + UHD

+37%

  • 6%

+80%

Sources: (1) https://www.atkearney.com/communications-media-technology/ott-streaming-in-the-limelight-four-trends-and-predictions-for-the-media-industry (2) Limelight State of Online Video research (3) and (4) Cisco VNI, https://www.cisco.com/c/m/en_us/solutions/service-provider/vni-forecast-highlights.html

100 200 300 400

EB/Month Standard Def (SD) High Def (HD) and Ultra-High Def (UHD)

100 200 300 400

EB/Month 2017 2022

UHD 89% CAGR 29% CAGR

COMPANY CONFIDENTIAL

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EDGE COMPUTE OPPORTUNITY - LARGE

Key drivers

IOT - 75bn connected devices by 2025 5G - 1bn 5G connected devices by 2025 Cloud - Latency / bandwidth critical for

  • ver 30 percent of workload

deployments, by 2021

Why Limelight for Edge Compute?

Local presence, low latency - 100+ global delivery locations connected to 1000 ISP networks Secure, reliable connectivity via global private, high speed backbone Scalable, flexible compute (VM/BYOD/Bare Metal) with access to storage, network and cloud Rapid time to deploy with instant access to Limelight’s network, service and support

Edge computing market $6.72bn by 2022, 35% CAGR

COMPANY CONFIDENTIAL

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REALTIME STREAMING OPPORTUNITY - UNIQUE

Key drivers Why Limelight for Realtime Streaming?

Sub-second latency with 100+ global delivery locations connected to 1000 ISP networks Globally scalable solution supported on standard web browsers without the need for special plug-ins Integrated live data, enabling more interactive live online experiences Explosive growth - live video will grow 15- fold from 2016 to 2021 Intolerance for delay and desire for interactivity; >65% would stream more sports online if not delayed from broadcast Lack of low latency solution in market since Flash reached end-of-life

COMPANY CONFIDENTIAL

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ATTRACTIVE OPPORTUNITY UNIQUE VALUE PROPOSITION STRONG PERFORMANCE ATTRACTIVE FINANCIAL MODEL

$

COMPANY CONFIDENTIAL

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GLOBAL SCALE AND REACH ~50

Tbps Egress Capacity

100+

Delivery Locations

~1000

Connected ISP Networks

COMPANY CONFIDENTIAL

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COMPREHENSIVE PORTFOLIO OF SOLUTIONS

COMPANY CONFIDENTIAL

INNOVATION

Sub-second live streaming >1bn objects purged in less than 1 sec

Customer Enablement Limelight Platform Content Delivery Video Management and Delivery Cloud Security Edge Cloud

Industry’s highest performing origin storage Integrated cloud-based DDoS, WAF and Bot Management protection

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  • Industry leading customer satisfaction
  • Free, unrestricted access to live

technical support

  • 24/7/365 Network Operations Center
  • Dedicated advanced service architects

and service reliability engineers

DIFFERENTIATED CUSTOMER EXPERIENCE

TRUSTED BY WORLD LEADERS RELENTLESS FOCUS ON CUSTOMERS

COMPANY CONFIDENTIAL

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  • Expands reach
  • Within service providers and closer to

the edge

  • Access locations that were previously

hard to reach

  • Increases network capacity via a low-

capex model

  • Faster performance with caching in the

last mile

  • Access to edge compute in the last mile
  • Service provider revenue opportunity

LIMELIGHT + ERICSSON EDGE GRAVITY

COMPANY CONFIDENTIAL

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ATTRACTIVE OPPORTUNITY UNIQUE VALUE PROPOSITION STRONG PERFORMANCE ATTRACTIVE FINANCIAL MODEL

$

COMPANY CONFIDENTIAL

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OPERATIONAL PERFORMANCE

YoY increase in average server capacity

83+

point increase in Net Promoter Score since 2013

COMPANY CONFIDENTIAL

YoY increase in egress capacity

47% 82% 108% 99%

SSD edge server capacity YoY increase in server capacity

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FINANCIAL PERFORMANCE

Revenue YoY Growth Gross Margin

  • Adj. EBITDA Margin

FCF Margin(2)

YoY Revenue Growth per Active Customer(3) Net Promoter Score

$148(1) 0.9%(1) 38.0% 5.5% (4.7%) 11%

Well below Zero

$196 6.1% 47.8% 16.6% 8.4% 20%

>55

  • Continued robust top-line

growth

  • Long-term target:
  • >10% annual growth
  • Continue to make progress with

new higher margin products

  • Long-term targets:
  • >25% adj. EBITDA
  • 10% Capex
  • Refined go-to-market model
  • Shift to large enterprise focus
  • Continue to focus on premium

clients and driving margins

✓ ✓ ✓ ✓ ✓ ✓ ✓

KEY ACTIONS 2018 2012

(1) Revenue excludes Clickability and Netflix. (2) FCF defined as Adj EBITDA less capex. (3) Defined as revenue over average customer count.

All $ values in millions

COMPANY CONFIDENTIAL

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ATTRACTIVE OPPORTUNITY UNIQUE VALUE PROPOSITION STRONG PERFORMANCE ATTRACTIVE FINANCIAL MODEL

$

COMPANY CONFIDENTIAL

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IMPROVING FINANCIALS & FUNDAMENTALS

$41.4 $44.7 $52.1 $43.6 $45.4 $50.2 $39.5 $46.1 $49.3 $43.8 $48.2 $44.0 2016 2017 2018 Q1 Q2 Q3 Q4 $4.0 $6.7 $11.0 $6.2 $7.9 $9.2 $5.1 $7.4 $7.7 $7.5 $8.7 $4.6 2016 2017 2018 Q1 Q2 Q3 Q4 $16.6 $21.2 $26.7 $18.8 $21.4 $24.8 $16.2 $22.3 $24.0 $19.7 $23.0 $17.9 2016 2017 2018 Q1 Q2 Q3 Q4 42.4% 47.6% 47.8%

ADJUSTED EBITDA GROSS PROFIT/MARGIN REVENUE PROGRESSION

$168.2 $184.4 $195.7

$ Millions $ Millions $ Millions

$71.3 $87.8 $93.5 $22.8 $30.7 $32.5

COMPANY CONFIDENTIAL

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UNLEVERED AND GENERATING CASH

$4.0 $6.7 $11.0 $6.2 $7.9 $9.2 $5.1 $7.4 $7.7 $7.5 $8.7 $4.6 2016 2017 2018

Q1 Q2 Q3 Q4

Adjusted EBITDA

$ Millions

$22.8 $30.7 $32.5

$1.4 $5.7 $2.0 $4.7 $4.3 $3.0 $5.3 $4.2 $4.9 $4.9 $5.6 2016 2017 2018 Q1 Q2 Q3 Q4

$ Millions

$0.3

$9.6 $20.7 $16.1

Capex

$5.9 $3.2 $4.9 $2.1 $2.1 $3.5 $2.7 $3.8 $(1.0) 2016 2017 2018 Q1 Q2 Q3 Q4

Free Cash Flow

$ Millions

$13.2 $10.0 $16.4

Less Equals

COMPANY CONFIDENTIAL

$8.9 $0.9 $2.5

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2019 PERFORMANCE – TALE OF TWO HALVES

Revenue GAAP EPS Non-GAAP EPS Capital Expenditures $200 – 210

  • $0.10

Near Breakeven $25 $89

  • $0.14
  • $0.08

$16 1H 2019 (Actual) FY 2019 Guidance

$ millions, except per share data

COMPANY CONFIDENTIAL

$111 - 121 $0.04 $0.08 $9 2H 2019 (Implied)

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FINANCIAL PERFORMANCE

Revenue Growth Gross Margin Non GAAP Income Margin

  • Adj. EBITDA Margin

Capex Free Cash Flow Margin 6.1% 47.8% 7.0% 16.6% 8.2% 8.4% 15% 55% >10% >25% ~10% >15%

  • Base business at 8-9% growth
  • New initiatives driving remaining

growth

  • Base business remaining solid
  • Incremental margin expansion

from new high-end initiatives

  • Strong revenue growth
  • Disciplined increase in COGS

expense

  • Effective management of
  • perating expenses

DRIVERS LONG TERM TARGET 2018

  • Strong revenue growth
  • Disciplined increase in COGS

expense

  • Effective management of
  • perating expenses

COMPANY CONFIDENTIAL

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KEY TAKEAWAYS

ATTRACTIVE OPPORTUNITY UNIQUE VALUE PROPOSITION STRONG PERFORMANCE ATTRACTIVE FINANCIAL MODEL

$

COMPANY CONFIDENTIAL

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