The news is by your side.
AED
$0.27
-0%
AFN
$0.01
+0.01%
ALL
$0.01
-0.03%
AMD
$0.00
+0.01%
ANG
$0.55
+0.01%
AOA
$0.00
-0%
ARS
$0.01
+0.43%
AUD
$0.69
-0.65%
AWG
$0.56
-0%
AZN
$0.59
-0%

Akamai Reports Third Quarter 2021 Financial Results


CAMBRIDGE, Mass., Nov. 2, 2021 /PRNewswire/ — Akamai Technologies, Inc. (NASDAQ: AKAM), the world’s most trusted solution to power and protect digital experiences, today reported financial results for the third quarter ended September 30, 2021.

“Akamai delivered another excellent quarter, highlighted by the continued very strong growth of our security business, which now accounts for nearly 40% of our overall revenue,” said Dr. Tom Leighton, Akamai’s Chief Executive Officer. “We’re particularly excited about our recent acquisition of Guardicore, a market leader in helping enterprises stop the spread of ransomware.”

Akamai delivered the following financial results for the third quarter ended September 30, 2021:

Revenue: Revenue was $860 million, a 9% increase over third quarter 2020 revenue of $793 million and an 8% increase when adjusted for foreign exchange.*

Revenue by Product Group:

  • Security Technology Group revenue was $335 million, up 26% year-over-year and up 25% when adjusted for foreign exchange*
  • Edge Technology Group revenue was $526 million, flat year-over-year and down 1% when adjusted for foreign exchange*

Revenue by Geography:

  • U.S. revenue was $449 million, up 3% year-over-year
  • International revenue was $412 million, up 16% year-over-year and up 15% when adjusted for foreign exchange*

Income from operations: GAAP income from operations was $205 million, a 13% increase from third quarter 2020. GAAP operating margin for the third quarter was 24%, up 1 percentage point from the same period last year.

Non-GAAP income from operations* was $277 million, a 10% increase from third quarter 2020. Non-GAAP operating margin* for the third quarter was 32%, flat compared to the same period last year.

Net income: GAAP net income was $179 million, a 13% increase from third quarter 2020. Non-GAAP net income* was $239 million, an 11% increase from third quarter 2020.

EPS: GAAP EPS was $1.08 per diluted share, a 14% increase from third quarter 2020 and a 12% increase when adjusted for foreign exchange.* Non-GAAP EPS* was $1.45 per diluted share, an 11% increase from third quarter 2020 and a 10% increase when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA* was $396 million, a 13% increase from third quarter 2020. Adjusted EBITDA margin* for the third quarter was 46%, up 2 percentage points from the same period last year.

Supplemental cash information: Cash from operations for the third quarter of 2021 was $390 million, or 45% of revenue. Cash, cash equivalents and marketable securities was $2.8 billion as of September 30, 2021.

Share repurchases: Akamai spent $97 million in the third quarter of 2021 to repurchase 0.8 million shares of its common stock at an average price of $114.40 per share. The Company had 162 million shares of common stock outstanding as of September 30, 2021.

Share repurchase program: The Company also announces today that its Board of Directors has authorized a new, $1.8 billion share repurchase program, effective from January 1, 2022 through December 31, 2024. The new authorization is in addition to the Company’s remaining stock purchase authorization of $321 million (as of September 30, 2021), which expires at the end of 2021. The Company’s goals for the share repurchase program are to offset the dilution created by its employee equity compensation programs over time and provide the flexibility to return capital to shareholders as business and market conditions warrant, while still preserving its ability to pursue other strategic opportunities.

The timing and amount of any shares repurchased will be determined by the Company’s management based upon the evaluation of market conditions and other factors. Repurchases will be executed in the open market subject to Rule 10b-18, and may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. Other structured repurchase programs may be considered from time to time. The Company may choose to suspend, expand or discontinue the repurchase program at any time.

*

See Use of Non-GAAP Financial Measures below for definitions

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 1956828. 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 1956828. The archived webcast of this event may be accessed through the Akamai website.

About Akamai
Akamai powers and protects life online. The most innovative companies worldwide choose Akamai to secure and deliver their digital experiences – helping billions of people live, work, and play every day. With the world’s largest and most trusted edge platform, Akamai keeps apps, code, and experiences closer to users – and threats farther away. Learn more about Akamai’s security, content delivery, and edge compute products and services at www.akamai.com, blogs.akamai.com, or follow Akamai Technologies on Twitter and LinkedIn.

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands)

September 30,

2021


December 31,

2020

ASSETS




Current assets:




Cash and cash equivalents

$

1,264,590



$

352,917


Marketable securities

652,695



745,156


Accounts receivable, net

660,092



660,052


Prepaid expenses and other current assets

184,503



171,406


Total current assets

2,761,880



1,929,531


Marketable securities

835,074



1,398,802


Property and equipment, net

1,543,301



1,478,272


Operating lease right-of-use assets

821,033



793,945


Acquired intangible assets, net

203,596



234,724


Goodwill

1,680,496



1,674,371


Deferred income tax assets

136,305



106,918


Other assets

133,790



147,567


Total assets

$

8,115,475



$

7,764,130


LIABILITIES AND STOCKHOLDERS’ EQUITY




Current liabilities:




Accounts payable

$

98,305



$

118,546


Accrued expenses

376,036



380,468


Deferred revenue

83,371



76,600


Operating lease liabilities

164,559



154,801


Other current liabilities

9,169



27,755


Total current liabilities

731,440



758,170


Deferred revenue

5,355



5,262


Deferred income tax liabilities

35,333



37,458


Convertible senior notes

1,958,558



1,906,707


Operating lease liabilities

722,294



715,404


Other liabilities

80,050



89,833


Total liabilities

3,533,030



3,512,834


Total stockholders’ equity

4,582,445



4,251,296


Total liabilities and stockholders’ equity

$

8,115,475



$

7,764,130


AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME



Read More : Akamai Reports Third Quarter 2021 Financial Results

You might also like
Leave A Reply

Your email address will not be published.