LLNW - Limelight Networks gets bearish downgrade after Q4 earnings fumble
Citing the "disastrous" fourth quarter report, D.A. Davidson downgrades Limelight Networks (LLNW) from Neutral to Underperform.Analyst Rishi Jaluria nottes that revenue was down on the year and sequentially despite multiple tailwinds, which management attributed to price compression, particularly among top 20 customers.Gross margin hit a record low of 30%, and the company didn't issue 2021 guidance, which limits visibility.The analyst is wary of new CEO Bob Lyons' turnaround plan, which includes potential M&A activity.Limelight shares are currently down 19.3% to $3.68.Yesterday, Limelight reported a surprise Q4 loss and a steeper than expected revenue decline.
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Limelight Networks gets bearish downgrade after Q4 earnings fumble