Limelight Networks, Inc.

Hello, and thank you for joining today's call and for your patience. The Limelight Network's Q3 2021 Financial Results Conference call is happening. My name is Victoria, and I'll be coordinating your call today. If you would like to ask a question during the presentation, you may do so by pressing star 1 on your telephone keypad. I will now hand over to your host, Sumit Sinha, from Limelight Network, to begin. Sumit, please go ahead.

Thank you, operator. Good afternoon. Thank you for joining Limelight's third quarter financial results conference call. This call is being recorded today, November 4th, 2021, and will be archived on our website for approximately 10 days. Let me start by quickly covering the safe harbor. We'd like to remind everyone that we will be making forward-looking statements on this call. Forward-looking statements are all statements that are not strictly statements of historical facts, such as our priorities, our expectations, our operational plans, business strategies, secular trends, product and feature functionalities, pro forma results, acquisition activities, and contributions from acquired businesses. Actual results could differ materially from those contributed by a forward-looking statement, and reported results should not be considered as an indication of future performance. For more information, please refer to the risk factors discussed in our periodic filing, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements on this call are based on information available to us as of today's date, and we disclaim any obligation to update any forward-looking statements except as required by law. Joining me on the call today, Bob Lyons, our President and Chief Executive Officer, and Dan Bonsell, our EVP and CFO. Bob will start today's call with a brief discussion of the results and an update on our improve, expand, and extend initiative. Dan will then review financial results and guidance. Following that, Bob will use the remainder of the call to discuss aspects of her strategy and corporate initiatives going forward. We will then open the call for Q&A. I will now turn the call over to Bob.

Thank you, Sumit, and welcome, everyone. As expected, the third quarter marked a reversal from the second quarter for us as we saw strong sequential growth and margin expansion. Revenue for the quarter came in at $55.2 million, up 14% quarter-over-quarter, Cash course margin was 40% up more than 7% quarter over quarter, and adjusted EBITDA margin was 11% up from break-even in the second quarter. Consistent with our previously outlined strategy to regain and grow our competitive position, we have taken meaningful steps to improve the performance and cost of our globally scaled network, expand our client relationships, and extend our edge-enabled solutions. These efforts have allowed us to improve our revenue, gross margin, adjusted EBITDA, and free cash flow despite normalization of streaming patterns post-COVID. We remain confident in our ability to continue building on this progress going forward. At our strategy summit in August, we presented a vision for Limelight 2.0, and they plan to execute against it. We are on track to deliver on that plan and remain encouraged with our initial traction and momentum. As a quick reminder, our improved program is focused on network performance and operating costs. Our EXPAND program is focused on revenue growth with existing and new clients, and our EXTEND program is focused on introducing new edge-enabled solutions that increase network utilization, growth, and gross margins. Let me highlight the progress we have made in the third quarter against our IMPROVE, EXPAND, and EXTEND framework. Under our IMPROVE program, we have remediated the previously discussed network performance issues, and we continue to improve our cost model. Highlights include Third-party load balancing and data analytics firm, PerpOps, has rated Limelight as demonstrating top-rated performance globally in North America, South America, and Europe. This is a great achievement, especially when compared to January of this year when we were not listed in the top 20. This is an important proof point of the improvements we are making to our network. We have completed 90% of our $30 million in planned annualized cost savings. We have identified additional opportunities and will continue to pursue these to help fund our planned growth initiatives. In this last quarter, we improved our client sentiment scores by 13 points quarter over quarter across our global top 20. Fittingly, our Expand program benefits from these operational and cost improvements by supporting the addition of new clients and expanding existing clients. Highlights this quarter include, in the third quarter, we closed two tier one wins. One, a win back of a large software client who left us a couple of years ago. And the second, a large gaming company. We now support the three largest gaming console companies. Both of these clients began the ramp in late third quarter, providing additional momentum into Q4. Previously, we had discussed that two of our top 20 clients had meaningfully reduced our traffic due to performance concerns. Both have begun to return traffic, albeit slower than we would have desired. You may recall that our largest client uses algorithms to allocate traffic based on performance and has been down year over year. We did not see the traffic rebound as rapidly as we hoped, but we do continue to see growth. We will continue to optimize our network performance to address their prioritized KPIs with the intent of gaining traffic share faster. With this client, we have signed two new contracts for additional live sport venues and remain an integral strategic partner to them with ongoing discussions on additional initiatives. For the second quarter in a row, 18 of our top 20 customers grew revenues by more than 20% year over year. We have closed more than 30 new opportunities in third quarter with 10 of those averaging more than $100,000 in annual contract value and two customers with ATVs of more than $1 million. We are ahead of plan to expand our growth capacity and have grown our sales team by 25%, including a channel year to help us create more leverage in our sales organization. We saw strong pipeline growth in the quarter and our focus on new logos is paying off with new logo bookings up more than three times quarter over quarter. As highlighted during our strategy session, Edge Extend is a key initiative that helps us extend our network, edge platform, and solutions into a service provider's network and portfolio of offers. This key element of our strategy has outperformed our plans in this third quarter. On to our extend program. We are pleased to announce the closing of our acquisition of Layer Zero. This acquisition is critical to our evolution from a network company to a performance software technology company. Highlights of this acquisition include We now have the world's first JavaScript configurable CDN that gives developers control over the edge from within their application. Layer Zero utilizes server-side rendering, edge caching, and optimizations across the browser, edge, and serverless tiers to guarantee the best performance. All this with self-service provisioning and onboarding. This all supports our ability to deliver a best-in-class, edge-enabled app-off solution designed for the outcome buyer with integrated performance, productivity, and protection. Layer Zero also brings us the highly talented applications and product development team who are excited to be building products on our global private edge platform. Ajay Kapoor, Layer Zero's founder, has joined Limelight as Chief Technology Officer and taken technology, product, and operations in his charge. We will be announcing and launching new security and developer solutions in November and December. These solutions, enabled with our world-class edge network, position us to be a compelling competitor in the multi-billion dollar app ops market. Stay tuned for more exciting news to come on this front. The combination of Limelight's global network and Layer Zero's edge and application assets have quickly demonstrated value. During the quarter, we had a new logo win with a large mattress retailer, a global travel industry leader, tripled the number of sites with us. We renewed the business of a top-ranked U.S. bank and launched the site of a $6 billion retail giant. The pipeline is growing, and we are adding resources to accelerate this momentum. Overall, we are very happy with the progress the team has made in such a short time. That being said, much work remains to be done. We are steadfast in building on our recent progress and remain focused on the significant opportunity in front of us. We are committed to creating unmatched value for our clients, returning value to our shareholders, and building a company culture that inspires our employees. We thank our investors for the continued support and look forward to, together, building a company we can all be proud of. At this time, I will turn the call over to Dan to report third quarter financials. Dan?