Akamai Q4 2009 and FY 2009 Financial Results

Fourth quarter revenue grew to $238.3 million

CAMBRIDGE, Mass. -- February 3, 2010 -- Akamai Technologies, Inc. (NASDAQ: AKAM), the leader in powering video, dynamic transactions and enterprise applications online, today reported financial results for the fourth quarter and full-year ended December 31, 2009.

Revenue for the fourth quarter 2009 was $238.3 million, a 15 percent increase over third quarter revenue of $206.5 million, and a 12 percent increase over fourth quarter 2008 revenue of $212.6 million. Total revenue for 2009 was $859.8 million, a 9 percent increase over 2008 revenue of $790.9 million.

"We were very pleased with how our business performed in 2009, capping a solid year with a return to double-digit revenue growth in the fourth quarter," said Paul Sagan, president and CEO of Akamai. "For the year, we grew revenue, improved our cash gross margins, and generated over $400 million of cash from operations in a tough economic environment. We believe these results provide us with strong momentum coming into 2010, and position Akamai for the next wave of growth on the Internet."

Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the fourth quarter of 2009 was $40.1 million, or $0.21 per diluted share. Full-year GAAP net income for 2009 was $145.9 million, or $0.78 per diluted share.

The Company generated normalized net income* of $85.4 million, or $0.46 per diluted share, in the fourth quarter of 2009, a 21 percent increase over prior quarter normalized net income of $70.8 million, or $0.38 per diluted share. Full-year normalized net income grew 1 percent year-over-year to $312.0 million, or $1.67 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)

Adjusted EBITDA* for the fourth quarter of 2009 was $111.6 million, up from $95.9 million in the prior quarter, and $100.3 million in the fourth quarter of 2008. Adjusted EBITDA margin for the fourth quarter was 47 percent, consistent with the same period last year. For the full year, adjusted EBITDA was $405.2 million, up from $370.8 million in 2008. Full-year adjusted EBITDA margin remained at 47 percent, consistent with 2008. (*See Use of Non-GAAP Financial Measures below for definitions.)

Full-year cash from operations was $424.4 million, or 49 percent of revenue, up 24 percent over the prior year. At year-end, the Company had over $1 billion of cash, cash equivalents and marketable securities.

During the fourth quarter of 2009, the Company repurchased approximately 646 thousand shares of common stock for $15.1 million at an average price of $23.34 per share. For the full-year, the Company repurchased approximately 3.3 million shares of common stock for $66.3 million at an average price of $19.93 per share.

The Company had approximately 171.2 million shares of common stock outstanding as of December 31, 2009.

The number of customers under recurring service contracts at the end of the fourth quarter increased by 91 to a record 3,122, a 9 percent increase year-over-year.

Sales through resellers and sales outside the United States accounted for 19 percent and 28 percent, respectively, of revenue for the fourth quarter 2009.

Source: Akamai