Akamai Reports Fourth Quarter 2012 and Full-Year 2012 Financial Results
Contacts:
Jeff Young
Media Relations
Akamai Technologies
617-444-3913
jyoung@akamai.com --or-- Natalie Temple
Investor Relations
Akamai Technologies
617-444-3635
ntemple@akamai.com
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Fourth quarter revenue of $378 million, up 17 percent year-over-year; and annual revenue of $1,374 million, up 19 percent year-over-year
Fourth quarter GAAP net income of $68 million, up 14 percent year-over-year, or $0.38 per diluted share, up 15 percent year-over-year; and full-year GAAP net income of $204 million, up 2 percent year-over-year, or $1.12 per diluted share, up 5 percent year-over-year
Fourth quarter normalized net income* of $98 million, up 18 percent year-over-year, or $0.54 per diluted share, up 20 percent year-over-year; and full-year normalized net income* of $329 million, up 16 percent year-over-year, or $1.81 per diluted share, up 19 percent year-over-year
Board of Directors authorizes $150 million extension of share repurchase program
CAMBRIDGE, Mass. February 06, 2013 Akamai Technologies, Inc. (NASDAQ: AKAM), the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere, today reported financial results for the fourth quarter and full-year ended December 31, 2012. Revenue for the fourth quarter 2012 was $378 million, a 9 percent increase over third quarter revenue of $345 million, and a 17 percent increase over fourth quarter 2011 revenue of $324 million. Total revenue for 2012 was $1,374 million, a 19 percent increase over 2011 revenue of $1,159 million.
With strong revenue and profit performance in the fourth quarter, Akamai closed out 2012 with record results on both the top and bottom line, said Tom Leighton, CEO of Akamai. Throughout the year, we announced new products across every solution line, closed a record number of strategic acquisitions, and achieved margin expansion through continued improvement in our network efficiency even as we expanded its capacity worldwide to meet rising demand for Akamai services. We believe these efforts have positioned us well to help our customers capitalize on the opportunities, and mitigate the challenges, of conducting business online.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the fourth quarter of 2012 was $68 million, or $0.38 per diluted share. Full-year GAAP net income for 2012 was $204 million, or $1.12 per diluted share.
The Company generated normalized net income* of $98 million, or $0.54 per diluted share, in the fourth quarter of 2012, a 25 percent increase over the prior quarter's normalized net income of $79 million, or $0.43 per diluted share, and an 18 percent increase over fourth quarter 2011 normalized net income of $83 million, or $0.45 per diluted share. Full-year normalized net income grew 16 percent year-over-year to $329 million, or $1.81 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
Adjusted EBITDA* for the fourth quarter of 2012 was $173 million, up from $157 million in the prior quarter, and $148 million in the fourth quarter of 2011. Adjusted EBITDA margin* for the fourth quarter was 46 percent, up a point from the prior quarter and consistent with the same period last year. For the full year, adjusted EBITDA was $615 million, up from $525 million in 2011. Full-year adjusted EBITDA margin in 2012 was at 45 percent, consistent with the prior year. (*See Use of Non-GAAP Financial Measures below for definitions.)
Full-year cash from operations was $530 million, or 39 percent of revenue, consistent with the prior year. At year end, the Company had over $1 billion of cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 23 percent and 29 percent, respectively, of revenue for the fourth quarter 2012.
Share Repurchase Program
The Company also announced today that its Board of Directors has authorized a $150 million extension of its share repurchase program, effective for a 12-month period beginning on February 1, 2013. As of this date, all prior repurchase authorizations have expired. The Companys goal for this program, which is expected to be funded through its free cash flow, is primarily to offset dilution created by its equity compensation programs.
The timing and amount of any shares repurchased will be determined by the Companys management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. The Company may choose to suspend or discontinue the repurchase program at any time but cannot carry over unused authorization amounts to future periods.
During the fourth quarter of 2012, under its current share repurchase program, the Company spent approximately $30 million repurchasing 0.8 million shares of its common stock, at an average price of $37.53 per share. During 2012, the Company spent approximately $141 million repurchasing 4.4 million shares of its common stock, at an average price of $32.45 per share.
The Company had approximately 178 million shares of common stock outstanding as of December 31, 2012.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-866-314-4483 (or 1-617-213-8049 for international calls) and using passcode No. 17717131. 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 through
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Akamai Reports Fourth Quarter 2012 and Full-Year 2012 Financial Results 
