- Revenue grew to $194.0 million, up 27 percent year-over-year
- GAAP net income was $34.3 million, or $0.19 per diluted share, up 59 percent year-over-year
- Normalized net income* was $76.5 million, or $0.41 per diluted share, up 38 percent year-over-year
July 31, 2008 – Akamai Technologies, Inc. (NASDAQ: AKAM), the leader in powering rich media, dynamic transactions and enterprise applications online, today reported financial results for the second quarter ended June 30, 2008. Revenue for the second quarter 2008 was $194.0 million, a 27 percent increase over second quarter 2007 revenue of $152.7 million, and a four percent increase over first quarter 2008 revenue of $187.0 million.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the second quarter of 2008 was $34.3 million, or $0.19 per diluted share.
The Company generated normalized net income* of $76.5 million, or $0.41 per normalized diluted share*, in the second quarter of 2008, a 38 percent improvement over 2007 second quarter normalized earnings of $55.4 million, or $0.30 per diluted share, which was roughly consistent with the first quarter 2008 normalized net income of $75.6 million, or $0.41 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
“We delivered solid results in a challenging environment,” said Paul Sagan, president and CEO of Akamai. “We continued to benefit from the diversity of our enterprise-class customer base and increasingly broad portfolio of value-added solutions that have gained significant acceptance in the marketplace.”
Adjusted EBITDA* for the second quarter of 2008 was $92.7 million, a 41 percent increase over second quarter 2007 adjusted EBITDA of $65.6 million, and a six percent increase over first quarter 2008 adjusted EBITDA of $87.2 million. Adjusted EBITDA margin* for the second quarter was 48 percent, a five point improvement over the second quarter of last year. (*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations was $69.8 million in the second quarter of 2008. Year to date cash from operations was $157.8 million, up 78 percent over the first half of 2007 cash from operations of $88.6 million. At the end of the second quarter of 2008, the Company had approximately $745 million in cash, cash equivalents and marketable securities.
The Company had approximately 168.9 million shares of common stock outstanding as of June 30, 2008.
The number of customers under long-term services contracts at the end of the second quarter increased by 53 to a record 2,725.
Sales through resellers and sales outside the United States accounted for 16 percent and 26 percent, respectively, of revenue for the second quarter 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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