Akamai Reports Fourth Quarter 2007 and Full-Year 2007 Financial Results
• Fourth quarter revenue grew to $183.2 million, up 14 percent from the prior quarter and 46 percent year-over-year, and annual revenue increased 48 percent year-over-year to $636.4 million
• Fourth quarter GAAP net income increased 48 percent quarter-over-quarter to $35.9 million, or $0.20 per diluted share, and full-year GAAP net income increased 76 percent year-over-year to $101.0 million, or $0.56 per diluted share
• Fourth quarter normalized net income* increased 22 percent quarter-over-quarter to $75.9 million, or $0.41 per diluted share, and full-year normalized net income* increased 58 percent year-over-year to $244.4 million, or $1.32 per diluted share
CAMBRIDGE, Mass. — February 6, 2008 — Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and applications online, today reported financial results for the fourth quarter and full-year ended December 31, 2007. Revenue for the fourth quarter 2007 was $183.2 million, a 14 percent increase over third quarter revenue of $161.2 million, and a 46 percent increase over fourth quarter 2006 revenue of $125.7 million. Total revenue for 2007 was $636.4 million, a 48 percent increase over 2006 revenue of $428.7 million.
"2007 was another year of impressive growth and significant accomplishments for Akamai," said Paul Sagan, president and CEO of Akamai. "The relationships we’ve built with customers across our target industries drove annual revenue growth of nearly 50 percent. As we begin our tenth year as a company, we believe the value of Akamai’s differentiated services is stronger than ever — a testament to the dedication of our employees and the commitment of our customers to building great businesses on the Internet."
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the fourth quarter of 2007 was $35.9 million, or $0.20 per diluted share. Full-year GAAP net income for 2007 was $101.0 million, or $0.56 per diluted share.
The Company generated normalized net income* of $75.9 million, or $0.41 per diluted share, in the fourth quarter of 2007, a 22 percent increase over prior quarter normalized net income of $62.4 million, or $0.34 per diluted share. Full-year normalized net income grew 58 percent year-over-year to $244.4 million, or $1.32 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
Adjusted EBITDA* for the fourth quarter of 2007 was $86.9 million, up from $71.9 million in the prior quarter, and $53.0 million in the fourth quarter of 2006. Adjusted EBITDA margin for the fourth quarter was 47 percent, a 5-point improvement over the fourth quarter of last year. For the full year, adjusted EBITDA was $283.2 million, up from $173.3 million in 2006. Full-year adjusted EBITDA margin improved to 44 percent, up from 40 percent in 2006. (*See Use of Non-GAAP Financial Measures below for definitions.)
Full-year cash from operations was $235.4 million, or 37 percent of revenue, up 78 percent over the prior year. At year-end, the Company had approximately $633.5 million of cash, cash equivalents and marketable securities.
The Company had approximately 166.5 million shares of common stock outstanding as of December 31, 2007.
The number of customers under long-term service contracts at the end of the fourth quarter increased by 29 to a record 2,645, a 13 percent increase year-over-year.
Sales through resellers and sales outside the United States accounted for 16 percent and 23 percent, respectively, of revenue for the fourth quarter 2007.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-888-689-4521 (or 1-706-645-9202 for international calls). 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 the Akamai Website or by calling 1-800-642-1687 (or 1-706-645-9291 for international calls) and using conference ID No. 30455196.
About Akamai
Akamai® is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted Choice for Online Business." For more information, visit www.akamai.com
Akamai Statement Under the Private Securities Litigation Reform Act
This release contains information about future expectations, plans and prospects of Akamai`s management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements concerning the expected growth and development of our business and expectations with respect to revenue. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, failure to maintain the prices we charge for our services, unexpected increases in Akamai’s use of funds, loss of significant customers, failure to increase our revenue and keep our expenses consistent with revenues, the effects of any attempts to intentionally disrupt our services or network by unauthorized users or others, failure to have available sufficient transmission capacity, a failure of Akamai`s services or network infrastructure, inability to realize the benefits of our net operating loss carryforward, delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities, unexpected expenses associated with the integration of Nine Systems, and other factors that are discussed in the Company`s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.
In addition, the statements in this press release represent Akamai’s expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai’s expectations or beliefs as of any date subsequent to the date of this press release.
Contacts:
Jeff Young
Media Relations
Akamai Technologies
617-444-3913
jyoung@akamai.com
Or
Sandy Smith
Investor Relations
Akamai Technologies
617-444-2804
ssmith@akamai.com
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