2011 Investor Overview JEFF LUNSFORD CHAIRMAN AND CEO DOUG LINDROTH CHIEF FINANCIAL OFFICER
Safe Harbor Statement Certain statements in this presentation relate to future results that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. This presentation contains statements involving risks and uncertainties, including statements relating to Limelight Networks’ market opportunity and future business prospects. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in Limelight Networks’ Annual Report on Form10K and Form 10Q.
Proportion of Total U.S. Internet Traffic 1995 2010
Limelight Networks Global Content Delivery Platform Dusseldorf Vienna Tel Aviv Chennai Johannesburg Sao Paulo • 7+ Tbps egress capacity • 15,000+ high-performance servers • • 2.5 billion objects delivered hourly Direct-connected to 900+ ISPs • 15 petabytes of cloud storage • 2 million server compute capacity • 80+ points of presence (POPs)
Q3 11 Q2 11 Q1 11 Q4 10 Q3 10 Q2 10 Traffic Growth – Consistent Trend Q1 10 Q4 09 Q3 09 Q2 09 Q1 09 Q4 08 Q3 08 Q2 08 Q1 08 Q4 07 Q3 07 Q2 07 Q1 07
Our Growth Strategy Be Be the w world’ d’s s #1 o 1 or # #2 2 high-performance ce, g globa bally di dist stribut buted d Delive very, Storage & Compu pute pla platform Laun unch ch complim plimentary SaaS offerin ings f for compe petit itiv ive + fin inancia ial l gain ins. [ [Built ilt: Sit ite, Storage, Transco scodi ding & C Consul sulting] ] [Acq [Acqui uired: d: Mobi bility, OVP, Web b Content Management, Pres. s. Acce Accel.] ] Delig light cust customers w s with be best st-in in-cl class se ss servi vice ce and p d performance ce, co combi bined w d with friendl dly, co consul sultative ve va value ue-adde dded sup d support. Pres. Layer Accel. 6
Our Integrated Solutions For The Online World Consulting & Technical Services Web Application Total Content Mobility & Web Acceleration Management Monetization Infrastructure XD Intelligent Software Layer REPORT l ANALYZE l CONTROL l OPEN APIs Content Delivery Services l Storage l Compute Massively Provisioned Global Computing Platform
From Strategy To Numbers – VAS as Percent of Revenue 29% 30% 27% 50% of $400M target model at 70-80% GM 25% 20% 20% 18% 18% 15% 13% 14% 15% 10% 11% 11% 9% 10% 7% 6% 6% 5% 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Performance Results Limelight DELIVER vs Brand X 3 Response Time (milliseconds) Limelight DELIVER service is on average 35% faster than Brand X 2.5 Brand X 2 1.5 1 0.5 Limelight 0 Real Time Measured by Gomez, 405MB file blind test, commissioned by a third party.
Performance Results Percentage of overall delivered streams with slow load times 192 million streams tested 12.48% 4 out of 5 viewers leave 9.48% if a stream buffers once 7 .96% 5.07% 3.84% Limelight Networks CDNetworks/Panther Akamai Edgecast Bitgravity Source : TubeMogul. Short- and long-form video streams measured over a 14-day period. December 2009.
Revenue History $183 $200 $180 $160 $132 $130 $140 $106 Consensus $120 $100 $65 $80 $60 $21 $40 $11 $20 $- 2004 2005 2006 2007 2008 2009 2010 2011
Target Model TARGET EBITDA Margin YEAR ENDED YTD ENDED MODEL Pickup 12/31/2010 9/30/2011 (Estimated ) (Estimated ) $154.2 $125.3 $400 Revenue ($ in Millions) 39% 35% 56% Gross Margin 55% 53% 15% 68% Cash Gross Margin 22% 22% 2% S&M 20% 5% 8% 6% 2% R&D 13% 14% 5% G&A (without litigation) 9% 15% 9% Adj. EBITDA Margin 24% 33% 22% 22% Capital Expenditures 15% Costs are represented without stock-based compensation and without litigation costs and acquisition-related expenses 12
Financial Trends (in Millions) v Revenue v GM 43.0 42.4 45 v 41.6 v CGM Adj. EBITDA Margin 41.4 40.0 40 75% 35.9 35.7 35.6 33.2 33.6 33.1 32.5 32.3 35 30.3 65% 30.2 60% 30 56% 56% 56% 57% 56% 54% 54% 54% 57% 55% 55% 53% 51% 52% 25 53% 45% 43% 39% 39% 40% 41% 38% 38% 37% 20 37% 37% 37% 37% 36% 35% 33% 33% 15 25% 18% 18% 10 15% 15% 15% 14% 15% 14% 10% 12% 13% 15% 13% 8% 8% 5 7% 5% 0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Gro Gross marg rgin a and c cash gro ross m marg rgin a are re re repre resente ted with thout t sto tock-bas ased c com ompensat ation on
Mobility & Monetization Solutions Cloud-based services for addressing a universe of devices Limelight REACH Limelight ADS Devi vice ce-opt ptim imiz ized d deliv livery Dynamic ic mobile ile a ad in insertio ion Cloud-based device Dynamically insert targeted detection and optimization advertising into mobile video of mobile video stream m.espn.com Support for smartphones, m.nbc.com Target by date range, feature phones, and demographics, geographic m.fox.com connected device OS data, and content topic/tag m.comedycentral.com Publish one Universal Integration with third-party ad URL and deliver properly servers formatted video to any environment
Cloud Solutions for Mobile OS Video Format Support Display Size Universal Source Mobile Browser Support URL Platform Files Available Bandwidth Ad Server Analytics DEVICE DETECTION AUTO FORMATTING & AD INSERTION
Limelight Video Platform Deliver Report Acquire Transcode Store Manage Monetize Cloud-based software-as-a-service for publishing and monetizing video content on a website. Encapsulates Limelight media delivery services in a single workflow and login Enables customers of all sizes and business complexity to leverage Limelight’s video delivery service Robust programming interfaces, flexible architecture, and patent-pending innovations
Limelight Content Management Measure Adapt Create Manage Publish Serve Interact Cloud-based software-as-a-service for publishing web content globally, tracking visitor experiences, and implement branding, social media, and demand generation campaigns Enables online publishers and enterprise marketers to engage with visitors across multiple channels and devices. Encapsulates Limelight web and application acceleration services in a single workflow
Web Infrastructure Services Cloud storage solutions 100% availability SLA 10+ PB storage online, delivering 2.5+ billion objects/hr. Content replicated in multiple geographic locations Superior access performance through Limelight’s connectivity to last- mile networks Traffic Balancer DNS nameserver solution Look ookup Per ercen ent Tim ime Sl Slower t than (Se Seconds) Lim imelig light Lim imelig light .016 016 - AK AKAM AM – DN DNS .045 045 -281% 281% Ultra raDNS NS – DN DNS .069 069 -431% 431% Average ge DN DNS resp sponse se t times s over er t the c e course e of a w week eek a as mea easured ed from a g glo lobal l footp tprint o t of te testi ting ag agents by a a third rd-part rty.
Revenue Composition Q3 2011 Customer Concentration Geographic Region AP APAC AC 17% 46% 43% EMEA EA TOP 1-20 TO 20 REMA MAINI NING NG 15% CUS USTOMERS RS NORTH AM AMERICA 68% 11% TOP 21-40 40
Key Success Metrics Traction with high-value SaaS offerings in Mobile, OVP and Web Content Management Traction with differentiated PaaS offerings for Acceleration and Cloud Storage (PaaS) Gross margin expansion as SaaS offerings CDN scale and performance serving as platform for the above.
Thank you! Question & Answer Session
Recommend
More recommend
