Full-Year Highlights Revenue of $2.2 billion, up 12% year-over-year and up 16% adjusted for foreign exchange*
GAAP EPS of $1.78 per diluted share, down 3% year-over-year and up 2% when adjusted for foreign exchange*
Non-GAAP EPS* of $2.52 per diluted share, up 2% year-over-year and up 6% when adjusted for foreign exchange*
Board of Directors Authorizes New $1 Billion Share Repurchase Program Akamai Technologies, Inc. (NASDAQ: AKAM), the global leader in Content Delivery Network (CDN) services, today reported financial results for the fourth quarter and full-year ended December 31, 2015.
Akamai's solid fourth quarter performance capped off an excellent year on both the top and bottom lines, said Dr. Tom Leighton, CEO of Akamai. Revenue achievement in the quarter was driven by a robust online holiday shopping season, as well as continued rapid growth of our Cloud Security Solutions. Our Security business grew 50% year-over-year in constant currency and has now achieved an annualized run rate of nearly $300 million.
Akamai delivered the following results for the fourth quarter and full-year ended December 31, 2015:
Revenue: Revenue for the fourth quarter was $579 million, an 8% increase over fourth quarter 2014 revenue of $536 million, and an 11% increase when adjusted for foreign exchange.* Total revenue for 2015 was $2.197 billion, a 12% increase over 2014 revenue of $1.964 billion and a 16% increase when adjusted for foreign exchange.*
Revenue by Solution Category:
Performance and Security Solutions revenue for the fourth quarter was $286 million, up 16% year-over-year and up 19% when adjusted for foreign exchange.* Performance and Security Solutions revenue for 2015 was $1.050 billion, up 17% year-over-year and up 20% when adjusted for foreign exchange.*
Cloud Security Solutions revenue, a component of Performance and Security, for the fourth quarter was $73 million, up 46% year-over-year and up 50% when adjusted for foreign exchange.* Cloud Security Solutions revenue for 2015 was $254 million, up 50% year-over-year and up 54% when adjusted for foreign exchange.*
Media Delivery Solutions revenue for the fourth quarter was $247 million, down 2% year-over-year and up 1% when adjusted for foreign exchange.* Media Delivery Solutions revenue for 2015 was $977 million, up 7% year-over-year and up 10% when adjusted for foreign exchange.*
Service and Support Solutions revenue for the fourth quarter was $46 million, up 18% year-over-year and up 21% when adjusted for foreign exchange.* Service and Support Solutions revenue for 2015 was $170 million, up 16% year-over-year and up 20% when adjusted for foreign exchange.*
Revenue by Geography:
U.S. revenue was $416 million for the fourth quarter, a 5% increase over fourth quarter 2014 revenue. U.S. revenue for 2015 was $1.604 billion, a 12% increase over 2014 revenue.
International revenue was $163 million for the fourth quarter, a 17% increase over fourth quarter 2014 revenue and a 27% increase when adjusted for foreign exchange.* International revenue for 2015 was $593 million, an 11% increase over 2014 revenue and a 24% increase when adjusted for foreign exchange.*
Income from operations: GAAP income from operations for the fourth quarter was $123 million, a 10% decrease from fourth quarter 2014 GAAP income from operations of $136 million. GAAP operating margin for the fourth quarter was 21%, down 4 percentage points from the same period last year. GAAP income from operations for 2015 was $466 million, a 5% decrease from the prior years GAAP income from operations of $490 million. Full-year GAAP operating margin was 21%, down 4 percentage points from the prior year.
Non-GAAP income from operations* for the fourth quarter was $168 million, a 4% decrease from fourth quarter 2014 non-GAAP income from operations of $175 million. Non-GAAP operating margin* for the fourth quarter was 29%, down 4 percentage points from the same period last year. Non-GAAP income from operations* for 2015 was $638 million, a 1% decrease from the prior years non-GAAP income from operations of $648 million. Full-year non-GAAP operating margin* was 29%, down 4 percentage points from the prior year.
Net Income: GAAP net income for the fourth quarter was $88 million, a 9% decrease from fourth quarter 2014 GAAP net income of $97 million. Full-year GAAP net income was $321 million, a 4% decrease from 2014 GAAP net income of $334 million.
Non-GAAP net income* for the fourth quarter was $129 million, a 1% increase over fourth quarter 2014 non-GAAP net income of $127 million. Full-year non-GAAP net income* was $454 million, a 1% increase over 2014 non-GAAP net income of $449 million.
GAAP and non-GAAP net income* results for the fourth quarter include a $12 million, or $0.06 per diluted share, benefit from the reinstatement of the federal R&D tax credit, which was retroactive to January 1, 2015.
EPS: GAAP EPS was $0.49 per diluted share, a 9% decrease from fourth quarter 2014 GAAP EPS of $0.54 and a 5% decrease when adjusted for foreign exchange*. Full-year GAAP EPS was $1.78 per diluted share, a 3% decrease from 2014 GAAP EPS of $1.84 per diluted share and a 2% increase when adjusted for foreign exchange.*
Non-GAAP EPS* was $0.72 per diluted share, a 3% increase over fourth quarter 2014 non-GAAP EPS* of $0.70 and a 5% increase when adjusted for foreign exchange*. Full-year non-GAAP EPS* was $2.52 per diluted share, a 2% increase over 2014 non-GAAP EPS* of $2.48 per diluted share and a 6% increase when adjusted for foreign exchange.*
Adjusted EBITDA: Adjusted EBITDA* for the fourth quarter was $238 million, a 3% increase over fourth quarter 2014 Adjusted EBITDA* of $232 million. Adjusted EBITDA margin* for the fourth quarter was 41%, down 2 percentage points from the same period last year. Adjusted EBITDA* for the full-year was $897 mi
