Limelight Networks is a fast-growing, shockingly under the radar edge computing and content delivery network company that has a hidden asset that may be worth multiples of the company’s entire enterprise value - ultra-low latency (sub-second) realtime streaming software that has applications in sports video streaming, online gaming and sports betting.
Limelight Realtime Streaming is the first scalable, sub-second live video streaming solution that’s natively supported by major browsers without special plug-ins.
Limelight Looks to the Future of Live Sports Streaming: https://www.sportsvideo.org/2019/01/07/limelight-looks-to-th…
The management team owns a large amount of stock, and chose to trade a substantial portion of its salaries for shares in the company last year.
For the company’s core edge computing and content delivery network applications, customers include Amazon Prime Video, Disney+, HBO, Comcast Universal, ABC, ESPN+ and others.
The company’s investor presentation is here: https://investors.limelight.com/events
I own the shares because I think the stock should trade at least at 10x 2021 sales. At the current price of $5.10 the stock trades at only about 2.3x consensus 2021 sales of $255 million. FSLY presently trades at approximately 21x consensus 2021 sales.
In my opinion, this $5 stock could be worth much more, and could also be an acquisition target for one of the bigger industry players.
Quote from the April 23 earnings call: “Customer acquisition was solid in the first quarter despite a slowdown in March, and some opportunities were pushed into subsequent quarters as a result of the pandemic. Even with this headwind, we signed numerous new logos across all regions, and I’m particularly pleased that the average deal size in terms of expected revenue was up 50% year-over-year. We exited the first quarter with a strong pipeline and growing demand for our high-quality services from both new and existing customers. The strong demand we experienced in the first quarter was partially due to our continued participation in new, on-demand OTT offerings by some of the largest media companies in the world. We were pleased to support launches in new geographies in the quarter as well as the recent launch of NBC’s Peacock offering. These companies look to us as a trusted partner in these launches based on the performance of our network, global scale and strong value proposition.”
Just my opinions here, always do your own research to confirm the numbers and form your own opinion. Would be very interested in the board’s thoughts and analysis.
Thanks in advance.