Shares of Limelight Networks Inc. (NASDAQ:LLNW) jumped 25.5% in April, according to data from S&P Global Market Intelligence, after the digital content-delivery specialist announced significantly stronger-than-expected first-quarter results.
Limelight stock popped as much as 28% on April 20, 2018 -- the day after it told investors that quarterly revenue had climbed 16% year over year, to $52.1 million, which translated to adjusted earnings per share tripling over the same period, to $0.06. Analysts, on average, were only expecting earnings of $0.02 per share on revenue of $48 million.
"We continue to be encouraged by healthy growth trends for content delivery," added Limelight CEO Bob Lento, "and we are pleased with the completion of certain matters we think will be of value to limelight shareholders going forward."
More specifically on the latter, Lento explained that not only did Limelight enter a definitive agreement to settle all outstanding patent litigation with rival Akamai -- ending a long-standing legal fight between the two -- but it also saw Goldman Sachs exit its large equity stake in the company during the quarter, effectively removing "a decade-long stock overhang issue."
If that weren't enough, Limelight increased its full-year guidance to call for revenue in the range of $198 million to $202 million (up from $196 million to $200 million previously) and for adjusted earnings per share of $0.13 to $0.17 (up from $0.11 to $0.15 before).
In the end, this was a straightforward beat and raise by Limelight, compounded by the aforementioned positive developments with Goldman Sachs and Akamai. And it's no surprise that investors responded by driving up Limelight stock in kind.