Akamai Reports First Quarter 2020 Financial Results

Akamai, the intelligent edge platform for securing and delivering digital experiences, today reported financial results for the first quarter ended March 31, 2020.

"During these unprecedented times, I am very proud of how Akamai employees continue to support our customers, our communities, and each other, and my heart goes out to those most deeply impacted by the COVID-19 crisis," said Dr. Tom Leighton, CEO of Akamai. "We achieved excellent results in the first quarter driven by continued strength in our security solutions and stronger than expected traffic growth. Akamai's Intelligent Edge Platform is uniquely positioned to help the Internet scale quickly and is a lifeline for organizations and people around the globe during this challenging time."

Akamai delivered the following financial results for the first quarter ended March 31, 2020:

Revenue: Revenue was $764 million, an 8% increase over first quarter 2019 revenue of $707 million and a 9% increase when adjusted for foreign exchange.*

Revenue by Division(1):

• Web Division revenue was $406 million, up 8% year-over-year and up 10% when adjusted for foreign exchange*
• Media and Carrier Division revenue was $358 million, up 8% year-over-year and up 9% when adjusted for foreign exchange*

Revenue from Cloud Security Solutions(2):

• Cloud Security Solutions revenue was $240 million, up 26% year-over-year and up 28% when adjusted for foreign exchange*

Revenue from Internet Platform Customers(3):

• Revenue from Internet Platform Customers was $45 million, down 5% year-over-year and when adjusted for foreign exchange*
• Revenue excluding Internet Platform Customers was $720 million, up 9% year-over-year and up 10% when adjusted for foreign exchange*

Revenue by Geography:

• U.S. revenue was $429 million, up 3% year-over-year
• International revenue was $335 million, up 16% year-over-year and up 19% when adjusted for foreign exchange*

Income from operations: GAAP income from operations was $152 million, a 13% increase from first quarter 2019. GAAP operating margin for the first quarter was 20%, up 1 percentage point from the same period last year.

Non-GAAP income from operations* was $230 million, a 9% increase from first quarter 2019. Non-GAAP operating margin* for the first quarter was 30%, consistent with the same period last year.

Net income: GAAP net income was $123 million, a 15% increase from first quarter 2019. Non-GAAP net income* was $196 million, an 8% increase from first quarter 2019.

EPS: GAAP EPS was $0.75 per diluted share, a 15% increase from first quarter 2019 and a 19% increase when adjusted for foreign exchange.* Non-GAAP EPS was $1.20 per diluted share, a 9% increase from first quarter 2019 and an 11% increase when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA was $327 million, a 9% increase from first quarter 2019. Adjusted EBITDA margin* for the first quarter was 43%, up 1 percentage point from the same period last year.

Supplemental cash information: Cash from operations for the first quarter of 2020 was $223 million, or 29% of revenue. Cash, cash equivalents and marketable securities was $2.2 billion as of March 31, 2020.

Share repurchases: Akamai spent $81 million in the first quarter of 2020 to repurchase 0.9 million shares of its common stock at an average price of $92.45 per share. The Company had 162 million shares of common stock outstanding as of March 31, 2020.

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 9227959. 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 9227959. The archived webcast of this event may be accessed through the Akamai website.