Akamai’s revenues rose 8% YoY
On February 9, 2016, Akamai Technologies (AKAM) announced its 4Q15 results. It reported revenues of $579 million, an increase of 8% YoY (year-over-year). GAAP (generally accepted accounting principles) EPS (earnings per share) fell 9% YoY to $0.49. Non-GAAP EPS rose 3% YoY to $0.72 in 4Q15. A strong US dollar (UUP) impacted Akamai’s revenues in 4Q15 and full year 2015.
When adjusted for foreign exchange fluctuations, 4Q15 revenues rose 11% YoY, GAAP EPS fell 5% YoY, and non-GAAP EPS rose 5% YoY.
Full year highlights
For full year 2015, Akamai’s revenues were $2.2 billion, an increase of 12% YoY. GAAP EPS fell 3% to $1.78 per diluted share, whereas non-GAAP EPS fell 2% YoY to $2.52 per diluted share in calendar 2015.
When adjusted for foreign exchange fluctuations, revenues rose 16% YoY, GAAP EPS rose 2%, and non-GAAP EPS rose 6% YoY in calendar 2015.
Akamai beat analysts’ revenue estimate of $568.7 million and EPS estimate of $0.62 in 4Q15.
“Akamai’s solid fourth quarter performance capped off an excellent year on both the top and bottom lines,” said Dr. Tom Leighton, CEO (chief executive officer) of Akamai. “Revenue achievement in the quarter was driven by a robust online holiday shopping season, as well as continued rapid growth of our Cloud Security Solutions. Our Security business grew 50% year-over-year in constant currency and has now achieved an annualized run rate of nearly $300 million.”
Akamai is a global leader in Content Delivery Network (or CDN) and has a market cap of $6.7 billion. Its peer companies include VeriSign (VRSN), Red Hat (RHT), and Level 3 Communications (LVLT), with market caps of $7.7 billion, 10.9 billion, and 14.3 billion, respectively.