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Third Quarter Highlights

  • Revenue of $551 million, up 11% year-over-year and up 15% adjusted for foreign exchange*
  • GAAP EPS of $0.49 per diluted share, down 2% year-over-year and up 3% adjusted for foreign exchange*
  • Non-GAAP EPS of $0.62 per diluted share, consistent year-over-year and up 5% adjusted for foreign exchange*

Akamai Technologies, Inc. (NASDAQ: AKAM), the global leader in Content Delivery Network (CDN) services, today reported financial results for the second quarter ended June 30, 2015.
"Akamai delivered a solid second quarter with strong revenue growth across every geography and solution category, with particularly strong growth in our Cloud Security Solutions," said Dr. Tom Leighton, Chief Executive Officer. "We are continuing to make major investments in innovation and the expansion of our platform to develop new products and to accommodate the potential for substantially increased OTT traffic in 2016."

Akamai delivered the following results for the third quarter ended September 30, 2015:

Revenue: Revenue was $551 million, an 11% increase over third quarter 2014 revenue of $498 million and a 15% increase when adjusted for foreign exchange*.

Revenue by Solution Category:

  • Media Delivery Solutions revenue was $245 million, up 5% year-over-year and up 10% when adjusted for foreign exchange*
  • Performance and Security Solutions revenue was $263 million, up 15% year-over-year and up 18% when adjusted for foreign exchange*
  • Cloud Security Solutions revenue, a component of Performance and Security, was $65 million, up 39% year-over-year and up 44% when adjusted for foreign exchange*
  • Service and Support Solutions revenue was $43 million, up 19% year-over-year and up 24% when adjusted for foreign exchange*
Revenue by Geography:
  • U.S. revenue was $401 million, a 10% increase over third quarter 2014
  • International revenue was $150 million, a 12% increase over third quarter 2014 and a 27% increase when adjusted for foreign exchange*

Income from operations: GAAP income from operations was $116 million, a 4% decrease over third quarter 2014 GAAP income from operations of $120 million. GAAP operating margin for the third quarter of 2015 was 21%, down three percentage points from the same period last year.

Non-GAAP income from operations* was $157 million, relatively consistent with third quarter 2014 non-GAAP income from operations of $158 million. Non-GAAP operating margin* for the third quarter of 2015 was 29%, down three percentage points from the same period last year.

Net income: GAAP net income was $88 million, a 3% decrease over third quarter 2014 GAAP net income of $91 million. Non-GAAP net income* was $112 million, relatively consistent with third quarter 2014 non-GAAP net income of $111 million.

EPS: GAAP EPS was $0.49 per diluted share, a 2% decrease over third quarter 2014 GAAP EPS of $0.50, and a 3% increase when adjusted for foreign exchange*. GAAP EPS for the quarter included a $0.06 per diluted share tax benefit from the retroactive application of a U.S. tax court ruling with respect to the treatment of stock-based compensation in intercompany transactions.

Non-GAAP EPS was $0.62 per diluted share, consistent with third quarter 2014 non-GAAP EPS and a 5% increase when adjusted for foreign exchange*.

Adjusted EBITDA*: Adjusted EBITDA was $222 million, a 4% increase over third quarter 2014 Adjusted EBITDA of $213 million. Adjusted EBITDA margin* for the third quarter of 2015 was 40%, down three percentage points from the same period last year.

Other third quarter 2015 results included:

  • Cash from operations was $183 million, or 33% of revenue
  • Cash, cash equivalents and marketable securities as of September 30, 2015 was $1.5 billion
  • The Company spent $76 million to repurchase 1.1 million shares of its common stock at an average price of $72.02 per share
  • The Company had approximately 178 million shares of common stock outstanding as of September 30, 2015
*See Use of Non-GAAP Financial Measures below for definitions.

Quarterly Conference Call

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-877-703-6109 (or 1-857-244-7308 for international calls) and using passcode No. 16030768. A live webcast of the call may be accessed at www.akamai.com in the Investor section. In addition, a replay of the call will be available for one week following the conference by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using passcode No. 32698839. The archived webcast of this event may be accessed through the Akamai website.

About Akamai

As the global leader in Content Delivery Network (CDN) services, Akamai makes the Internet fast, reliable and secure for its customers. The company’s advanced web performance, mobile performance, cloud security and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise and entertainment experiences for any device, anywhere. To learn how Akamai solutions and its team of Internet experts are helping businesses move faster forward, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter.