Akamai Reports First Quarter 2017 Financial Results
Cambridge, MA | May 02, 2017
Revenue of $609 million, up 7% year-over-year and up 8% when adjusted for foreign exchange*
Revenue excluding Internet Platform Customers(1) up 13% year-over-year and when adjusted for foreign exchange*
GAAP EPS of $0.46 per diluted share, up 10% year-over-year and up 11% when adjusted for foreign exchange*
Non-GAAP EPS of $0.69 per diluted share, up 5% year-over-year and when adjusted for foreign exchange*
Akamai Technologies, Inc. (NASDAQ: AKAM), the worlds largest and most trusted cloud delivery platform, today reported financial results for the first quarter ended March 31, 2017.
Q1 was a very solid quarter for Akamai on both the top and bottom lines, said Dr. Tom Leighton, Chief Executive Officer. We are especially pleased with the strong results of our performance and security solutions, which grew 17% year-over-year, or 18% in constant currency*, and now account for over 60% of our overall revenue. As we look forward, I remain excited about the opportunities that lie ahead, as Akamai is uniquely positioned to help our customers provide the highest quality and most secure digital experiences on the Internet.
Akamai delivered the following financial results for the first quarter ended March 31, 2017:
Revenue: Revenue was $609 million, a 7% increase over first quarter 2016 revenue of $568 million and an 8% increase when adjusted for foreign exchange.*
Revenue by Solution Category(2):
Performance and Security Solutions revenue was $369 million, up 17% year-over-year and up 18% when adjusted for foreign exchange*
Cloud Security Solutions revenue, a component of Performance and Security, was $110 million, up 36% year-over-year and up 37% when adjusted for foreign exchange*
Media Delivery Solutions revenue was $187 million, down 9% year-over-year and when adjusted for foreign exchange*
Services and Support Solutions revenue was $53 million, up 15% year-over-year and when adjusted for foreign exchange*
Revenue by Geography:
U.S. revenue was $407 million, up 2% year-over-year
International revenue was $203 million, up 19% year-over-year and up 21% when adjusted for foreign exchange*
Customer Revenue by Division(3):
Web Division revenue was $305 million, up 14% year-over-year and up 15% when adjusted for foreign exchange*
Media Division revenue was $285 million, consistent year-over-year and up 1% when adjusted for foreign exchange*
Enterprise and Carrier Division revenue was $19 million, up 24% year-over-year and when adjusted for foreign exchange*
Revenue from Internet Platform Customers(1):
Revenue from Internet Platform Customers was $51 million, down 29% year-over-year and when adjusted for foreign exchange*
Revenue excluding Internet Platform Customers was $558 million, up 13% year-over-year and when adjusted for foreign exchange*
Income from operations: GAAP income from operations was $115 million, a 1% increase from first quarter 2016. GAAP operating margin for the first quarter was 19%, down 1 percentage point from the same period last year.
Non-GAAP income from operations* was $165 million, a 1% increase from first quarter 2016. Non-GAAP operating margin* for the first quarter was 27%, down 2 percentage points from the same period last year.
Net income: GAAP net income was $81 million, an 8% increase from first quarter 2016. Non-GAAP net income* was $120 million, a 2% increase from first quarter 2016.
EPS: GAAP EPS was $0.46 per diluted share, a 10% increase from first quarter 2016 and an 11% increase when adjusted for foreign exchange.* Non-GAAP EPS was $0.69 per diluted share, a 5% increase from first quarter 2016 and when adjusted for foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA was $241 million, a 3% increase from first quarter 2016. Adjusted EBITDA margin* was 39%, down 2 percentage points from first quarter of 2016.
Other first quarter 2017 results:
Cash from operations was $143 million, or 23% of revenue
Cash, cash equivalents and marketable securities as of March 31, 2017 was $1.6 billion
The Company spent $72 million to repurchase 1.1 million shares of its common stock at an average price of $65.78 per share
The Company had approximately 173 million shares of common stock outstanding as of March 31, 2017
* See Use of Non-GAAP Financial Measures below for definitions
(1) Internet Platform Customers - Six customers that are large Internet platform companies: Amazon, Apple, Facebook, Google, Microsoft and Netflix
(2) Revenue by solution category - A product-focused reporting view that reflects revenue by solution purchased
(3) Customer revenue by division - A customer-focused reporting view that reflects revenue from customers that are managed by the division. During the first quarter of 2017, the divisional categorization of certain customers was adjusted based on how those customer categorizations are currently being managed. The historical presentation of divisional revenue was revised in order to reflect the most recent categorization and to provide a comparable view for all periods presented.
Quarterly Conference Call Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-844-578-9671 (or 1-508-637-5655 for international calls) and using passcode 7543905. 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 two weeks following the conference by calling 1-855-859-2056 (or 1-404-537-3406 for international calls) and using passcode 7543905. The archived webcast of this event may be accessed through the Akamai website.
About Akamai As the world's largest and most trusted cloud delivery platform, Akamai makes it easier for its customers to provide the best and most secure digital expe
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Akamai Reports First Quarter 2017 Financial Results 
