Akamai Reports First Quarter 2016 Financial Results
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- Revenue of $568 million, up 8% year-over-year and up 9% when adjusted for foreign exchange*
- GAAP EPS of $0.42 per diluted share, down 2% year-over-year
- Non-GAAP EPS of $0.66 per diluted share, up 8% year-over-year
Akamai Technologies, Inc. (NASDAQ: AKAM), the global leader in Content Delivery Network (CDN) services, today reported financial results for the first quarter ended March 31, 2016.
“Q1 was a very solid quarter for Akamai on both the top and bottom lines, representing a great start to 2016,” said Dr. Tom Leighton, Chief Executive Officer. “We delivered earnings that exceeded our expectations and saw continued strong revenue growth from our Cloud Security Solutions, which grew 47% year-over-year in constant currency.”
Akamai delivered the following results for the first quarter ended March 31, 2016:
Revenue: Revenue was $568 million, an 8% increase over first quarter 2015 revenue of $527 million and a 9% increase when adjusted for foreign exchange.*
Revenue by Solution Category**:
- Performance and Security Solutions revenue was $316 million, up 16% year-over-year and up 17% when adjusted for foreign exchange*
- Cloud Security Solutions revenue, a component of Performance and Security, was $81 million, up 46% year-over-year and up 47% when adjusted for foreign exchange*
- Media Delivery Solutions revenue was $206 million, down 4% year-over-year and down 4% when adjusted for foreign exchange*
- Services and Support Solutions revenue was $46 million, up 16% year-over-year and up 16% when adjusted for foreign exchange*
Revenue by Geography:
- U.S. revenue was $397 million, up 2% year-over-year
- International revenue was $170 million, up 24% year-over-year and up 27% when adjusted for foreign exchange*
Customer Revenue by Division***:
Effective in 2016, the Company is now managing the business in a new division structure. Revenue from the customers in the Company's three major divisions is reported below.
- Media Division revenue was $292 million, down 1% year-over-year and consistent year-over-year when adjusted for foreign exchange*
- Web Division revenue was $264 million, up 18% year-over-year and up 18% when adjusted for foreign exchange*
- Enterprise and Carrier Division revenue was $12 million, up 45% year-over-year and up 44% when adjusted for foreign exchange*
Income from operations: GAAP income from operations was $114 million, a 6% decrease from first quarter 2015. GAAP operating margin for the first quarter was 20%, down 3 percentage points from the same period last year.
Non-GAAP income from operations* was $164 million, a 1% increase from first quarter 2015. Non-GAAP operating margin* for the first quarter was 29%, down 2 percentage points from the same period last year.
Net income: GAAP net income was $75 million, a 4% decrease from first quarter 2015. Non-GAAP net income* was $118 million, a 6% increase from first quarter 2015.
EPS: GAAP EPS was $0.42 per diluted share, a 2% decrease from first quarter 2015 and a 2% decrease when adjusted for foreign exchange*. Non-GAAP EPS was $0.66 per diluted share, an 8% increase from first quarter 2015 and an 8% increase when adjusted for foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA was $234 million, a 5% increase from first quarter 2015. Adjusted EBITDA margin* was 41%, down 1 percentage point from the first quarter of 2015.
Other first quarter 2016 results included:
- Cash from operations was $190 million, or 34% of revenue
- Cash, cash equivalents and marketable securities as of March 31, 2016 was $1.5 billion
- The Company spent $109 million to repurchase 2.2 million shares of its common stock at an average price of $48.97 per share
- The Company had approximately 176 million shares of common stock outstanding as of March 31, 2016
* See Use of Non-GAAP Financial Measures below for definitions
** Revenue by solution category – A product-focused reporting view that reflects revenue by solution purchased.
*** Customer revenue by division – A customer-focused reporting view that reflects revenue from customers that are managed by the division. Historical division revenue can be found on the Investor Relations section of Akamai.com.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-877-258-4918 (or 1-480-405-6743 for international calls) and using passcode No. 81892715. 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 1-855-859-2056 (or 1-404-537-3406 for international calls) and using passcode No. 81892715. The archived webcast of this event may be accessed through the Akamai website.
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.
Akamai powers and protects life online. Leading companies worldwide choose Akamai to build, deliver, and secure their digital experiences — helping billions of people live, work, and play every day. With the world’s most distributed compute platform — from cloud to edge — we make it easy for customers to develop and run applications, while we keep experiences closer to users and threats farther away. Learn more about Akamai’s security, compute, and delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on Twitter and LinkedIn.