Limelight Networks Stock is a Speculative Turnaround Opportunity


Internet Content Delivery Network (CDN) provider. Limelight Networks (NASDAQ: LLNW) equities fell in the results of the first fiscal quarter of 2022. Although 19 of its top 20 customers have achieved revenue growth of more than 20%, the sentiment turned negative with the fall in benchmark indices. Customer additions have been the highest levels in five quarters. The company has completed the rebuilding of its sales and marketing equipment and has announced the acquisition of Edgecast, one of the largest standalone computer platforms. Limelight will complete the acquisition in the second fiscal quarter of 2022 and will provide a combined guidance once completed. The company has replaced direct competitors with nine of its new logos for the quarter. There are three pillars that drive the new growth with the company, in addition to the goal of its “Improvement” program to strengthen performance while reducing costs at the operational and architectural level. An incremental improvement is expected with each advancing quarter, it also allows for faster consolidation with the Edgecast platform, which is a key factor in driving change. Prudent speculators looking for a potential double wrap can monitor the opportunistic setback levels of Limelight Networks stocks.



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Publication of results for the first quarter of the financial year 2022

On April 22, 2022, Limelight Networks reported its first quarter 2022 tax gains for the quarter ended March 2022. The company reported a diluted earnings per share (EPS) loss of ( -0.04 dollars) which matches the consensus analysts’ estimates for a loss of (-0.04 $). Revenue fell 13.3% year-over-year (YoY) to $ 58 million, beating consensus estimates of $ 56.15 million. Customer sentiment metrics maintained high ratings for the third consecutive quarter. Gross cash margins rose 404 bp year-on-year. Adjusted EPITDA revenue growth flow was 77% year-on-year. Of the top 20 customers, 17 grew their revenue by more than 20%. Bob Lyons, CEO of Limelight Networks, commented: “During the quarter, our operational improvements and new focus on customer service generated record traffic with 17 of Limelight’s highest historical traffic days in the quarter. We are proud of “Achieving the world’s best performance for state-of-the-art CDN networks. This distinction sets Limelight’s transformation from a media CDN to a state-of-the-art technology solutions company.”

The fiscal direction for the full year 2022 is reaffirmed

The company reaffirmed the EPA for fiscal year 2022 between (-0.06 $) and (-0.01 $) versus (-0.05 $) analysts’ consensus estimates. Limelight expects $ 240 million to $ 250 million in tax revenue by 2022, compared to an estimated $ 246.60 million.

Takeaway calls

CEO Lyons noted that the total pipeline has grown more than 30% since the beginning of the year. Layer0 grew by three digits, contributing $ 3.8 million a quarter on its way to at least $ 20 million for the year. Traffic improvements have been extended to real-time streaming, live events, games, and software downloads. The underlying pillars driving the momentum are operational performance, customer experience, and a strategic focus for delivering cutting-edge security solutions and applications with Layer0. Lyons believes the company has the most complete AppOp solution for developers. It provides protection and productivity of web applications that allow migration to a next-generation edge-enabled platform. This galvanizes trust and builds deeper relationships with customers: “With this trust, they are more inclined to reduce their traffic to us and evaluate our high-margin products. This, in turn, generates more traffic to the customer. our platform, improving our use and creating opportunities to offer additional SaaS – like solutions. All of this translates into a company that can sustainably and continuously create added value for our customers and shareholders. “

The shares of Limelight Networks are an opportunity for speculative change

Limelight Networks price trajectories

The use of rifle charts in weekly and daily time periods provides a broader view of the LLNW stock landscape. The weekly uptrend of the rifle chart collapsed sharply as stocks fell to $ 3.23. Fibonacci level (fib).. The weekly moving average of 5 periods (MA) falls to $ 4.79, as the 15-period MA stops at $ 4.44. The shares are sold through weekly 200-period MA assistance at $ 3.94 and have been recovered from the 50-period weekly MA at $ 3.38. Weekly lower Bollinger Bands (BB) bands are at $ 2.54. The weekly stochastic formed a mini reverse stochastic puppy that collapsed below the 80 band as stocks closed. The weekly Low Market Structure (MSL) Purchase trigger support is $ 2.93. The downward trend in the daily rifle chart has a 5-period MA resistance falling to $ 4.13 that crosses the 50-period daily MA to $ 4.62, followed by the 15-period daily MA falling to $ 4.79. The 200-day MA maintained support at $ 3.43, allowing a coil backup through daily BBs below $ 3.46. The daily stochastic fell through the band of 20 and stagnated in the band of 10 to trigger a crossover or a reverse mini puppy. Speculators can look for opportunistic returns at the $ 3.22 fib, $ 2.98 fib, $ 2.67 fib, $ 2.38 fib, $ 2.20 fib and the $ 2.01 fib level. Upward trajectories range from $ 4.31 fib to the $ 6.54 fib level.



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