Why Limelight Networks, Inc. Stock Rose 22% in April
What happened
Shares of Limelight Networks (NASDAQ: LLNW) gained 21.7% in April 2017, according to data from S&P Global Market Intelligence.
So what
The bulk of Limelight's gains last month followed after the release of results for the first quarter of fiscal year 2017. The online content delivery network saw sales rising 8% year over year to land at $44.7 million while adjusted earnings swung from a small loss to a slightly larger profit. Wall Street analysts would have settled for breakeven earnings on sales near $43 million.
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Now what
Limelight's management also raised full-year revenue guidance by 2% and tightened 2017's adjusted earnings targets around the upper half of the previous range.
"We have a clear strategy to deliver against aggressive targets for 2017," said Limelight CEO Bob Lento in a prepared statement. "Pricing discipline is evident in our robust gross margin improvement, and increasingly, we are winning business based on service quality and capabilities, rather than purely on pricing."
The company appears to be stealing media delivery customers from larger rival Akamai Technologieswhile Akamai refocuses on security and high-performance services.
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Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.