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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Akamai Technologies Inc | NASDAQ:AKAM | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.07 | -0.07% | 99.67 | 97.82 | 130.00 | 100.91 | 98.725 | 100.45 | 1,724,338 | 05:00:02 |
CAMBRIDGE, Mass., April 26, 2016 /PRNewswire/ --
Akamai Technologies, Inc. (NASDAQ: AKAM), the global leader in Content Delivery Network (CDN) services, today reported financial results for the first quarter ended March 31, 2016.
"Q1 was a very solid quarter for Akamai on both the top and bottom lines, representing a great start to 2016," said Dr. Tom Leighton, Chief Executive Officer. "We delivered earnings that exceeded our expectations and saw continued strong revenue growth from our Cloud Security Solutions, which grew 47% year-over-year in constant currency."
Akamai delivered the following results for the first quarter ended March 31, 2016:
Revenue: Revenue was $568 million, an 8% increase over first quarter 2015 revenue of $527 million and a 9% increase when adjusted for foreign exchange.*
Revenue by Solution Category**:
Revenue by Geography:
Customer Revenue by Division***:
Effective in 2016, the Company is now managing the business in a new division structure. Revenue from the customers in the Company's three major divisions is reported below.
Income from operations: GAAP income from operations was $114 million, a 6% decrease from first quarter 2015. GAAP operating margin for the first quarter was 20%, down 3 percentage points from the same period last year.
Non-GAAP income from operations* was $164 million, a 1% increase from first quarter 2015. Non-GAAP operating margin* for the first quarter was 29%, down 2 percentage points from the same period last year.
Net income: GAAP net income was $75 million, a 4% decrease from first quarter 2015. Non-GAAP net income* was $118 million, a 6% increase from first quarter 2015.
EPS: GAAP EPS was $0.42 per diluted share, a 2% decrease from first quarter 2015 and a 2% decrease when adjusted for foreign exchange*. Non-GAAP EPS was $0.66 per diluted share, an 8% increase from first quarter 2015 and an 8% increase when adjusted for foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA was $234 million, a 5% increase from first quarter 2015. Adjusted EBITDA margin* was 41%, down 1 percentage point from the first quarter of 2015.
Other first quarter 2016 results included:
* See Use of Non-GAAP Financial Measures below for definitions
** Revenue by solution category – A product-focused reporting view that reflects revenue by solution purchased.
*** Customer revenue by division – A customer-focused reporting view that reflects revenue from customers that are managed by the division. Historical division revenue can be found on the Investor Relations section of Akamai.com.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-877-258-4918 (or 1-480-405-6743 for international calls) and using passcode No. 81892715. 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 by calling 1-855-859-2056 (or 1-404-537-3406 for international calls) and using passcode No. 81892715. The archived webcast of this event may be accessed through the Akamai website.
About Akamai
As the global leader in Content Delivery Network (CDN) services, Akamai makes the Internet fast, reliable and secure for its customers. The company's advanced web performance, mobile performance, cloud security and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise and entertainment experiences for any device, anywhere. To learn how Akamai solutions and its team of Internet experts are helping businesses move faster forward, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter.
AKAMAI TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) |
March 31, |
December 31, | |||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
312,912 |
$ |
289,473 |
|||
Marketable securities |
524,958 |
460,088 |
|||||
Accounts receivable, net |
365,103 |
380,399 |
|||||
Prepaid expenses and other current assets |
127,855 |
123,228 |
|||||
Total current assets |
1,330,828 |
1,253,188 |
|||||
Property and equipment, net |
770,197 |
753,180 |
|||||
Marketable securities |
685,362 |
774,674 |
|||||
Goodwill |
1,152,376 |
1,150,244 |
|||||
Acquired intangible assets, net |
149,379 |
156,095 |
|||||
Deferred income tax assets |
3,490 |
4,700 |
|||||
Other assets |
92,120 |
89,603 |
|||||
Total assets |
$ |
4,183,752 |
$ |
4,181,684 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
63,822 |
$ |
61,982 |
|||
Accrued expenses |
197,487 |
216,166 |
|||||
Deferred revenue |
64,905 |
54,154 |
|||||
Other current liabilities |
7,019 |
138 |
|||||
Total current liabilities |
333,233 |
332,440 |
|||||
Deferred revenue |
4,238 |
4,163 |
|||||
Deferred income tax liabilities |
11,706 |
12,888 |
|||||
Convertible senior notes |
623,485 |
618,047 |
|||||
Other liabilities |
97,508 |
93,268 |
|||||
Total liabilities |
1,070,170 |
1,060,806 |
|||||
Total stockholders' equity |
3,113,582 |
3,120,878 |
|||||
Total liabilities and stockholders' equity |
$ |
4,183,752 |
$ |
4,181,684 |
AKAMAI TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
Three Months Ended | |||||||||||
(in thousands, except per share data) |
March 31, |
December 31, |
March 31, | ||||||||
Revenue |
$ |
567,725 |
$ |
579,159 |
$ |
526,536 |
|||||
Costs and operating expenses: |
|||||||||||
Cost of revenue (1) (2) |
194,736 |
193,212 |
169,294 |
||||||||
Research and development (1) |
40,842 |
37,674 |
35,828 |
||||||||
Sales and marketing (1) |
102,211 |
118,582 |
103,479 |
||||||||
General and administrative (1) (2) |
102,283 |
99,978 |
89,592 |
||||||||
Amortization of acquired intangible assets |
6,716 |
6,783 |
6,780 |
||||||||
Restructuring charges |
6,818 |
250 |
42 |
||||||||
Total costs and operating expenses |
453,606 |
456,479 |
405,015 |
||||||||
Income from operations |
114,119 |
122,680 |
121,521 |
||||||||
Interest income |
3,320 |
2,935 |
3,001 |
||||||||
Interest expense |
(4,653) |
(4,641) |
(4,576) |
||||||||
Other expense, net |
(189) |
(499) |
(301) |
||||||||
Income before provision for income taxes |
112,597 |
120,475 |
119,645 |
||||||||
Provision for income taxes |
37,739 |
32,055 |
41,899 |
||||||||
Net income |
$ |
74,858 |
$ |
88,420 |
$ |
77,746 |
|||||
Net income per share: |
|||||||||||
Basic |
$ |
0.42 |
$ |
0.50 |
$ |
0.44 |
|||||
Diluted |
$ |
0.42 |
$ |
0.49 |
$ |
0.43 |
|||||
Shares used in per share calculations: |
|||||||||||
Basic |
176,403 |
177,788 |
178,545 |
||||||||
Diluted |
177,539 |
179,732 |
180,825 |
||||||||
(1) Includes stock-based compensation (see supplemental table for figures) | |||||||||||
(2) Includes depreciation and amortization (see supplemental table for figures) |
AKAMAI TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Three Months Ended | |||||||||||
(in thousands) |
March 31, |
December 31, |
March 31, | ||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ |
74,858 |
$ |
88,420 |
$ |
77,746 |
|||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||
Depreciation and amortization |
80,669 |
80,329 |
70,460 |
||||||||
Stock-based compensation |
31,741 |
33,711 |
29,669 |
||||||||
Excess tax benefits from stock-based compensation |
(1,135) |
(4,450) |
(13,128) |
||||||||
Provision for deferred income taxes |
1,072 |
22,039 |
8,305 |
||||||||
Amortization of debt discount and issuance costs |
4,653 |
4,641 |
4,576 |
||||||||
Other non-cash reconciling items, net |
2,752 |
2,533 |
443 |
||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: |
|||||||||||
Accounts receivable |
15,906 |
(15,540) |
(32,552) |
||||||||
Prepaid expenses and other current assets |
(3,481) |
(8,982) |
(1,817) |
||||||||
Accounts payable and accrued expenses |
(32,377) |
25,526 |
(52,703) |
||||||||
Deferred revenue |
10,653 |
(3,684) |
6,947 |
||||||||
Other current liabilities |
6,876 |
(491) |
42 |
||||||||
Other non-current assets and liabilities |
(1,949) |
(6,261) |
1,741 |
||||||||
Net cash provided by operating activities |
190,238 |
217,791 |
99,729 |
||||||||
Cash flows from investing activities: |
|||||||||||
Cash paid for acquired businesses, net of cash acquired |
— |
(18,702) |
(16,062) |
||||||||
Purchases of property and equipment and capitalization of internal-use software development costs |
(82,340) |
(78,837) |
(137,069) |
||||||||
Purchases of short- and long-term marketable securities |
(95,843) |
(108,690) |
(97,304) |
||||||||
Proceeds from sales and maturities of short- and long-term marketable securities |
125,109 |
118,814 |
307,655 |
||||||||
Other non-current assets and liabilities |
(2,354) |
543 |
(82) |
||||||||
Net cash (used in) provided by investing activities |
(55,428) |
(86,872) |
57,138 |
||||||||
Cash flows from financing activities: |
|||||||||||
Proceeds from the issuance of common stock under stock plans |
18,350 |
7,503 |
24,440 |
||||||||
Excess tax benefits from stock-based compensation |
1,135 |
4,450 |
13,128 |
||||||||
Employee taxes paid related to net share settlement of stock-based awards |
(26,496) |
(6,993) |
(31,101) |
||||||||
Repurchases of common stock |
(108,725) |
(100,180) |
(62,680) |
||||||||
Net cash used in financing activities |
(115,736) |
(95,220) |
(56,213) |
||||||||
Effects of exchange rate changes on cash and cash equivalents |
4,365 |
(2,697) |
(6,747) |
||||||||
Net increase in cash and cash equivalents |
23,439 |
33,002 |
93,907 |
||||||||
Cash and cash equivalents at beginning of period |
289,473 |
256,471 |
238,650 |
||||||||
Cash and cash equivalents at end of period |
$ |
312,912 |
$ |
289,473 |
$ |
332,557 |
AKAMAI TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND ADJUSTED EBITDA | ||||||||||||||
Three Months Ended | ||||||||||||||
(in thousands, except per share data) |
March 31, |
December 31, |
March 31, | |||||||||||
Income from operations |
$ |
114,119 |
$ |
122,680 |
$ |
121,521 |
||||||||
GAAP operating margin |
20 |
% |
21 |
% |
23 |
% | ||||||||
Amortization of acquired intangible assets |
6,716 |
6,783 |
6,780 |
|||||||||||
Stock-based compensation |
31,741 |
33,711 |
29,669 |
|||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense |
3,608 |
3,722 |
3,108 |
|||||||||||
Other operating expenses(1) |
7,528 |
1,067 |
1,709 |
|||||||||||
Operating adjustments |
49,593 |
45,283 |
41,266 |
|||||||||||
Non-GAAP income from operations |
$ |
163,712 |
$ |
167,963 |
$ |
162,787 |
||||||||
Non-GAAP operating margin |
29 |
% |
29 |
% |
31 |
% | ||||||||
Net income |
$ |
74,858 |
$ |
88,420 |
$ |
77,746 |
||||||||
Operating adjustments (from above) |
49,593 |
45,283 |
41,266 |
|||||||||||
Amortization of debt discount and issuance costs |
4,653 |
4,641 |
4,576 |
|||||||||||
Loss on investments |
— |
— |
25 |
|||||||||||
Income tax-effect of above non-GAAP adjustments and certain discrete tax items |
(11,323) |
(9,631) |
(12,437) |
|||||||||||
Non-GAAP net income |
117,781 |
128,713 |
111,176 |
|||||||||||
Depreciation and amortization |
70,345 |
69,824 |
60,572 |
|||||||||||
Interest income |
(3,320) |
(2,935) |
(3,001) |
|||||||||||
Other expense, net |
189 |
499 |
276 |
|||||||||||
Provision for GAAP income taxes |
37,739 |
32,055 |
41,899 |
|||||||||||
Income tax-effect of above non-GAAP adjustments and certain discrete tax items |
11,323 |
9,631 |
12,437 |
|||||||||||
Adjusted EBITDA |
$ |
234,057 |
$ |
237,787 |
$ |
223,359 |
||||||||
Adjusted EBITDA margin |
41 |
% |
41 |
% |
42 |
% | ||||||||
Non-GAAP net income per share: |
||||||||||||||
Basic |
$ |
0.67 |
$ |
0.72 |
$ |
0.62 |
||||||||
Diluted |
$ |
0.66 |
$ |
0.72 |
$ |
0.61 |
||||||||
Shares used in non-GAAP per share calculations: |
||||||||||||||
Basic |
176,403 |
177,788 |
178,545 |
|||||||||||
Diluted |
177,539 |
179,732 |
180,825 |
|||||||||||
(1) |
Other operating expenses excluded from non-GAAP results include: acquisition-related costs, restructuring charges and certain legal matter costs. See the |
AKAMAI TECHNOLOGIES, INC. SUPPLEMENTAL REVENUE DATA BY SOLUTION CATEGORY | |||||||||||
Three Months Ended | |||||||||||
(in thousands) |
March 31, |
December 31, |
March 31, | ||||||||
Revenue by solution category(1): |
|||||||||||
Performance and Security Solutions |
$ |
315,863 |
$ |
314,885 |
$ |
271,959 |
|||||
Media Delivery Solutions |
205,939 |
218,267 |
214,865 |
||||||||
Services and Support Solutions |
45,923 |
46,007 |
39,712 |
||||||||
Total revenue |
$ |
567,725 |
$ |
579,159 |
$ |
526,536 |
|||||
Cloud Security Solutions revenue |
$ |
80,660 |
$ |
72,537 |
$ |
55,183 |
|||||
Revenue growth rates year-over-year: |
|||||||||||
Performance and Security Solutions |
16 |
% |
15 |
% |
19 |
% | |||||
Media Delivery Solutions |
(4) |
(3) |
13 |
||||||||
Services and Support Solutions |
16 |
18 |
12 |
||||||||
Total revenue |
8 |
% |
8 |
% |
16 |
% | |||||
Cloud Security Solutions revenue growth rates |
46 |
% |
46 |
% |
83 |
% | |||||
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(2): |
|||||||||||
Performance and Security Solutions |
17 |
% |
18 |
% |
23 |
% | |||||
Media Delivery Solutions |
(4) |
— |
17 |
||||||||
Services and Support Solutions |
16 |
21 |
16 |
||||||||
Total revenue |
9 |
% |
11 |
% |
20 |
% | |||||
Cloud Security Solutions revenue growth rates(2) |
47 |
% |
50 |
% |
88 |
% | |||||
(1) |
See revenue by solution category definition in press release |
(2) |
See Use of Non-GAAP Financial Measures below for a definition |
AKAMAI TECHNOLOGIES, INC. SUPPLEMENTAL REVENUE DATA BY DIVISION | |||||||||||
Three Months Ended | |||||||||||
(in thousands) |
March 31, |
December 31, |
March 31, | ||||||||
Customer revenue by division(1): |
|||||||||||
Media Division |
$ |
291,933 |
$ |
302,367 |
$ |
293,966 |
|||||
Web Division |
263,743 |
264,897 |
224,240 |
||||||||
Enterprise and Carrier Division |
12,049 |
11,895 |
8,330 |
||||||||
Total revenue |
$ |
567,725 |
$ |
579,159 |
$ |
526,536 |
|||||
Revenue growth rates year-over-year: |
|||||||||||
Media Division |
(1)% |
— |
% |
14 |
% | ||||||
Web Division |
18 |
17 |
18 |
||||||||
Enterprise and Carrier Division |
45 |
53 |
32 |
||||||||
Total revenue |
8 |
% |
8 |
% |
16 |
% | |||||
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(2): |
|||||||||||
Media Division |
— |
% |
2 |
% |
18 |
% | |||||
Web Division |
18 |
20 |
22 |
||||||||
Enterprise and Carrier Division |
44 |
55 |
33 |
||||||||
Total revenue |
9 |
% |
11 |
% |
20 |
% |
AKAMAI TECHNOLOGIES, INC. SUPPLEMENTAL REVENUE DATA BY GEOGRAPHY | |||||||||||
Three Months Ended | |||||||||||
(in thousands) |
March 31, |
December 31, |
March 31, | ||||||||
Revenue by geography: |
|||||||||||
U.S. |
$ |
397,283 |
$ |
415,835 |
$ |
388,973 |
|||||
International |
170,442 |
163,324 |
137,563 |
||||||||
Total revenue |
$ |
567,725 |
$ |
579,159 |
$ |
526,536 |
|||||
Revenue growth rates year-over-year: |
|||||||||||
U.S. |
2 |
% |
5 |
% |
20 |
% | |||||
International |
24 |
17 |
7 |
||||||||
Total revenue |
8 |
% |
8 |
% |
16 |
% | |||||
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(2): |
|||||||||||
U.S. |
2 |
% |
5 |
% |
20 |
% | |||||
International |
27 |
27 |
21 |
||||||||
Total revenue |
9 |
% |
11 |
% |
20 |
% |
(1) |
See customer revenue by division definition in press release |
(2) |
See Use of Non-GAAP Financial Measures below for a definition |
AKAMAI TECHNOLOGIES, INC. OTHER SUPPLEMENTAL FINANCIAL DATA | |||||||||||
Three Months Ended | |||||||||||
(in thousands, except end of period statistics) |
March 31, |
December 31, |
March 31, | ||||||||
Stock-based compensation: |
|||||||||||
Cost of revenue |
$ |
3,970 |
$ |
3,901 |
$ |
3,163 |
|||||
Research and development |
6,438 |
6,570 |
5,366 |
||||||||
Sales and marketing |
12,352 |
14,247 |
12,983 |
||||||||
General and administrative |
8,981 |
8,993 |
8,157 |
||||||||
Total stock-based compensation |
$ |
31,741 |
$ |
33,711 |
$ |
29,669 |
|||||
Depreciation and amortization: |
|||||||||||
Network-related depreciation |
$ |
55,174 |
$ |
54,978 |
$ |
48,988 |
|||||
Other depreciation and amortization |
15,171 |
14,846 |
11,584 |
||||||||
Depreciation of property and equipment |
70,345 |
69,824 |
60,572 |
||||||||
Capitalized stock-based compensation amortization |
3,257 |
3,414 |
2,952 |
||||||||
Capitalized interest expense amortization |
351 |
308 |
156 |
||||||||
Amortization of acquired intangible assets |
6,716 |
6,783 |
6,780 |
||||||||
Total depreciation and amortization |
$ |
80,669 |
$ |
80,329 |
$ |
70,460 |
|||||
Capital expenditures(1)(2): |
|||||||||||
Purchases of property and equipment |
$ |
50,067 |
$ |
58,541 |
$ |
89,129 |
|||||
Capitalized internal-use software development costs |
35,172 |
30,017 |
33,983 |
||||||||
Capitalized stock-based compensation |
5,203 |
5,199 |
4,144 |
||||||||
Capitalized interest expense |
785 |
791 |
675 |
||||||||
Total capital expenditures |
$ |
91,227 |
$ |
94,548 |
$ |
127,931 |
|||||
Net (decrease) increase in cash, cash equivalents and marketable securities |
$ |
(1,003) |
$ |
19,362 |
$ |
(113,145) |
|||||
End of period statistics: |
|||||||||||
Number of employees |
6,119 |
6,084 |
5,409 |
||||||||
Number of deployed servers |
216,435 |
210,533 |
175,094 |
(1) |
Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for at period end. |
(2) |
See Use of Non-GAAP Financial Measures below for a definition |
Use of Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate Akamai's financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, Adjusted EBITDA, Adjusted EBITDA margin, capital expenditures and impact of foreign currency exchange rates, as discussed below.
Management believes that these non-GAAP financial measures reflect Akamai's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in its business, as they exclude expenses and gains that may be infrequent, unusual in nature or not reflective of Akamai's ongoing operating results. Management also believes that these non-GAAP financial measures enable investors to evaluate Akamai's operating results and future prospects in the same manner as management. These non-GAAP financial measures may also facilitate comparing financial results across accounting periods and to those of peer companies.
The non-GAAP financial measures do not replace the presentation of Akamai's GAAP financial results and should only be used as a supplement to, not as a substitute for, Akamai's financial results presented in accordance with GAAP. Akamai has provided a reconciliation of each non-GAAP financial measure used in its financial reporting to the most directly comparable GAAP financial measure. This reconciliation captioned "Reconciliation of GAAP to Non-GAAP Financial Measures" can be found on the Investor Relations section of Akamai's website.
The non-GAAP adjustments, and Akamai's basis for excluding them from non-GAAP financial measures, are outlined below:
Akamai's definitions of its non-GAAP financial measures are outlined below:
Non-GAAP income from operations – GAAP income from operations adjusted for the following items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; amortization of capitalized interest expense; other operating expenses (comprised of acquisition-related costs; restructuring charges; benefit from adoption of software development activities; gains and other activity related to divestiture of a business; gains and losses on legal settlements; and costs incurred with respect to Akamai's internal investigation relating to sales practices in a country outside the U.S); and other non-recurring or unusual items that may arise from time to time.
Non-GAAP operating margin – Non-GAAP income from operations stated as a percentage of revenue.
Non-GAAP net income – GAAP net income adjusted for the following tax-affected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; other operating expenses (comprised of acquisition-related costs, restructuring charges, benefit from adoption of software development activities, gains and other activity related to divestiture of a business, gains and losses on legal settlements, and costs incurred with respect to Akamai's internal investigation relating to sales practices in a country outside the U.S.); loss on early extinguishment of debt; amortization of debt discount and issuance costs; amortization of capitalized interest expense; certain gains and losses on investments; and other non-recurring or unusual items that may arise from time to time.
Non-GAAP net income per share – Non-GAAP net income divided by basic weighted average or diluted common shares outstanding. Basic weighted average shares outstanding are those used in GAAP net income per share calculations. Diluted weighted average shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transaction entered into in connection with the issuance of $690 million of convertible senior notes due 2019. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully-diluted share calculation until they are delivered. However, the company would receive a benefit from the note hedge transaction and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of net income per share. Unless and until Akamai's weighted average stock price is greater than $89.56, the initial conversion price, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.
Adjusted EBITDA – GAAP net income excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; other operating expenses (comprised of acquisition-related costs; restructuring charges; benefit from adoption of software development activities; gains and other activity related to divestiture of a business; gains and losses on legal settlements; and costs incurred with respect to Akamai's internal investigation relating to sales practices in a country outside the U.S.); foreign exchange gains and losses; loss on early extinguishment of debt; amortization of debt discount and issuance costs; amortization of capitalized interest expense; certain gains and losses on investments; and other non-recurring or unusual items that may arise from time to time.
Adjusted EBITDA margin – Adjusted EBITDA stated as a percentage of revenue.
Capital expenditures – Purchases of property and equipment, capitalization of internal-use software development costs, capitalization of stock-based compensation and capitalization of interest expense.
Impact of Foreign Currency Exchange Rates – Revenue and earnings from international operations have historically been an important contributor to Akamai's financial results. Consequently, Akamai's financial results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of Akamai's foreign subsidiaries weaken, consolidated results stated in U.S. dollars are negatively impacted.
Because exchange rates are a meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchange rates on revenue and earnings enhances the understanding of financial results and evaluation of performance in comparison to prior periods. The information presented is calculated by translating current period results using the same average foreign currency exchange rates per month from the comparative period.
Akamai Statement Under the Private Securities Litigation Reform Act
This release and/or our quarterly earnings conference call scheduled for later today contain 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. 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, inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; 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 or failure of such solutions to operate as expected, 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 and on such call 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 |
Tom Barth | |
Media Relations |
Investor Relations | |
Akamai Technologies |
Akamai Technologies | |
617-444-3913 |
617-274-7130 | |
jyoung@akamai.com |
tbarth@akamai.com |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/akamai-reports-first-quarter-2016-financial-results-300257859.html
SOURCE Akamai Technologies, Inc.
Copyright 2016 PR Newswire
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