LLNW - Limelight Networks rises 3% as analysts praise workforce cuts strategy

Limelight Networks (LLNW) is up 3% after its announcement of structural reforms, including cuts to 16% of its workforce as it pursues better execution and profitability and faster growth. Analysts are looking on the bright side of the cuts. Bullish William Blair says the news is an "important first step" to hitting the goals from the company's strategic review - and the ultimate result should be a path toward more diversified revenue, which would make it less susceptible to contract repricing. Raymond James notes there's still low visibility for revenue and gross margins, and the company is trying a new go-to-market strategy in a tough environment. But EBITDA guidance (between $20M and $30M in 2021) offers a "line of sight towards free cash flow profitability which is necessary for the stock to work," it says. And it likes that Limelight is cutting overhead in operating expenses. LLNW has declined 17%

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Limelight Networks rises 3% as analysts praise workforce cuts, strategy