Akamai announces record 2013 finaicial results

BANGALORE, INDIA: Akamai Technologies, Inc., the leading provider of cloud services for delivering, optimizing and securing online content and business applications, today reported financial results for the fourth quarter and full-year ended December 31, 2013. Revenue for the fourth quarter of 2013 was $436 million, a 15 per cent increase over fourth quarter 2012 revenue of $378 million, or up 20 per cent adjusted for the Advertising Decision Solutions (ADS) divestiture.

Total revenue for 2013 was $1,578 million, a 15 per cent increase over 2012 revenue of $1,374 million, or up 18 per cent adjusted for the ADS divestiture.

Tom Leighton, CEO of Akamai said: "We were extremely pleased with how the business performed in the fourth quarter and throughout 2013, with strong growth across all our solution offerings and geographies. We achieved gross margin expansion through continued improvements in network efficiencies while at the same time invested in growth drivers intended to enable us to take advantage of the significant opportunities in front of us. As we enter 2014, Akamai's focus is clear, and we believe we are well positioned to meet the needs of our customers and prospects as they embrace the hyperconnected world."

Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the fourth quarter of 2013 was $80 million, or $0.44 per diluted share, relatively flat from the prior quarter's GAAP net income and net income per diluted share, and an 18 per cent increase over fourth quarter 2012 GAAP net income of $68 million, or $0.38 per diluted share. Full-year GAAP net income for 2013 was $293 million, or $1.61 per diluted share, a 44 per cent increase from 2012 GAAP net income of $204 million, or $1.12 per diluted share.

The Company generated non-GAAP net income* of $100 million, or $0.55 per diluted share, in the fourth quarter of 2013, an 11 per cent increase from the prior quarter's non-GAAP net income of $90 million, or $0.50 per diluted share, and an 11 per cent increase over fourth quarter 2012 non-GAAP net income of $90 million, or $0.50 per diluted share. Full-year non-GAAP net income* was $367 million, or $2.02 per diluted share, a 26 per cent increase over 2012 non-GAAP net income of $291 million or $1.60 per diluted share.

GAAP and non-GAAP net income results for the fourth quarter of 2013 include a $6 million, or $0.03 per diluted share, benefit from the previously-announced change in depreciation methodology effective on January 1, 2013. The full-year 2013 GAAP and non-GAAP results include a $34 million, or $0.18 per diluted share, benefit from the depreciation change.

Adjusted EBITDA for the fourth quarter of 2013 was $192 million, an increase from the prior quarter's Adjusted EBITDA of $173 million, and also up from $173 million in the fourth quarter of 2012. Adjusted EBITDA margin* for the fourth quarter of 2013 was 44 per cent , consistent with the prior quarter and down 2 points from the same period last year. Adjusted EBITDA* for the full-year 2013 was $697 million, an increase from the prior year's Adjusted EBITDA* of $615 million. Full-year adjusted EBITDA margin* in 2013 was 44 per cent , down a point from the prior year.

Cash from operations for the fourth quarter of 2013 was $172 million, or 39 per cent of revenue, and for the full year was $564 million, or 36 per cent of revenue. At the end of the fourth quarter of 2013, the Company had $1.2 billion of cash, cash equivalents and marketable securities.

Sales through resellers and sales outside the United States accounted for 21 per cent and 29 per cent , respectively, of revenue for the fourth quarter of 2013.

Share Repurchase Program

During the fourth quarter of 2013, under the share repurchase program authorized by the Board of Directors in October 2013, the Company spent $48 million to repurchase 1.1 million shares of its common stock, at an average price of $45.19 per share. During 2013, the Company spent $160 million to repurchase 3.9 million shares of its common stock, at an average price of $41.16 per share.

The Company had approximately 179 million shares of common stock outstanding as of December 31, 2013.