- Revenue grew to $187.0 million, up 34 percent year-over-year
- GAAP net income was $36.9 million, or $0.20 per diluted share, up 92 percent year-over-year
- Normalized net income* was $75.6 million, or $0.41 per diluted share, up 49 percent year-over-year
May 01, 2008 – Akamai Technologies, Inc. (NASDAQ: AKAM), the leader in powering rich media, dynamic transactions and enterprise applications online, today reported financial results for the first quarter ended March 31, 2008. Revenue for the first quarter 2008 was $187.0 million, a 34 percent increase over first quarter 2007 revenue of $139.3 million, and a two percent increase over fourth quarter 2007 revenue of $183.2 million.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the first quarter of 2008 was $36.9 million, or $0.20 per diluted share.
The Company generated normalized net income* of $75.6 million, or $0.41 per normalized diluted share*, in the first quarter of 2008, a 49 percent improvement over 2007 first quarter normalized earnings of $50.7 million, or $0.28 per diluted share, which was roughly consistent with the fourth quarter 2007 normalized net income of $75.9 million, or $0.41 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
“Building on the robust growth we experienced in 2007, these first quarter results demonstrated momentum across our business,” said Paul Sagan, president and CEO of Akamai. “Our performance illustrates the value of having a broad portfolio of solutions and a diverse set of customers. We saw strong demand for our services as businesses continued to take advantage of the Internet to build global scale and reduce costs associated with infrastructure build out.”
Adjusted EBITDA* for the first quarter of 2008 was $87.2 million, a 48 percent increase over first quarter 2007 adjusted EBITDA of $58.8 million, and roughly consistent with $86.9 million in the fourth quarter 2007. Adjusted EBITDA margin* for the first quarter was 47 percent, a five point improvement over the first quarter of last year. (*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations was $88.0 million in the first quarter of 2008, up 66 percent over 2007 first quarter cash from operations of $52.9 million. At the end of the first quarter of 2008, the Company had approximately $687 million in cash, cash equivalents and marketable securities.
The Company had approximately 167.1 million shares of common stock outstanding as of March 31, 2008.
The number of customers under long-term services contracts at the end of the first quarter increased by 27 to a record 2,672, an 8 percent increase year-over-year.
Sales through resellers and sales outside the United States accounted for 16 percent and 25 percent, respectively, of revenue for the first quarter 2008.
To see the consolidated balance sheets, please visit: http://www.akamai.com/html/investor/quarterly_releases/2008/...
The Akamai Difference
Akamai® provides market-leading managed services for powering rich media, dynamic transactions, and enterprise applications online. Having pioneered the content delivery market one decade ago, Akamai's services have been adopted by the world's most recognized brands across diverse industries. The alternative to centralized Web infrastructure, Akamai's global network of tens of thousands of distributed servers provides the scale, reliability, insight and performance for businesses to succeed online. An S&P 500 and NASDAQ 100 company, Akamai has transformed the Internet into a more viable place to inform, entertain, interact, and collaborate.
To experience The Akamai Difference, visit www.akamai.com.
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