What happened
Shares of Limelight Networks Inc. (EGIO -1.70%) were falling this afternoon after the company reported worse-than-expected first-quarter results. The tech stock was down by 14.6% as of 3:37 p.m. EDT.
So what
Limelight's revenue in the first quarter fell 10% year over year to $51.2 million. Not only was that a significant decrease from the year-ago quarter, but it was lower than Wall Street's consensus estimate of $53.8 million for the quarter.
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Additionally, Limelight's non-GAAP diluted loss per share of $0.09 was down significantly, compared to the company's breakeven earnings in the year-ago quarter. The $0.09 loss was also much worse than analysts' consensus estimate of a loss of $0.03 per share for the first quarter.
"As anticipated, our first quarter was challenging from a top- and bottom-line perspective. That said, I am confident that we are now on the right path to achieve success," Limelight Networks CEO Bob Lyons said in a press release.
Even if investors were anticipating a challenging quarter, they clearly weren't expecting the company to miss analysts' estimates by as much as it did.
Now what
Limelight Network's management issued guidance for the full year 2021, with revenue expected to be in the range between $220 million to $230 million. That represents a 2% year-over-year decline at the midpoint of guidance. Additionally, the company expects a non-GAAP loss per share of $0.10 at the midpoint, compared to a loss of just $0.01 in fiscal 2020.
With Limelight's worse-than-expected results for the first quarter and its uninspiring outlook for 2021, it's no wonder why the company's share price took a dive today.
