Shares of Limelight Networks (EGIO 3.35%) fell sharply today after the company released its fourth-quarter results yesterday. The company missed analysts' consensus revenue and earnings estimates, resulting in a flurry of downgrades for Limelight's stock.
The tech stock was down by 18.6% as of 2:47 p.m. EST.
Limelight reported revenue of $55.4 million for the fourth quarter, down 8% year over year, which fell far below the Street's consensus estimate of $61.3 million. Additionally, the company's non-GAAP loss per share of $0.03 was much worse than analysts' expectation of a profit of $0.02 per share.
"Our immediate focus is the challenges we faced in the fourth quarter, specifically top-line growth and the resulting pressure on margins. Quite frankly, performance in these areas is not where it should be," Limelight's new CEO, Bob Lyons, said in a press release.
As a result of Limelight's disappointing fourth quarter, analysts at Raymond James, DA Davidson, and Truist all downgraded the company's stock.
Limelight's management didn't issue any guidance and instead said, "With new leadership and active efforts underway to evaluate all aspects of the business strategy and cost structure, the focus is on immediate and long-term steps to position the company as a leader delivering edge-based solutions."
Lyons just started as Limelight's CEO at the beginning of February, so investors will have to wait and see how well he steers the company in the coming quarters.