Akamai (NASDAQ: AKAM) has reported its first quarter earnings for the three months ending March 31st, showing revenue of $139.3 million, an increase of 53 percent year-on-year and 11 percent sequentially. The GAAP net income was $19.2 million, a 67 percent increase year-on-year but a 7 percent decline sequentially. Its normalized net income (which excludes non-cash and non-core events) increased to $50.7 million, a 73 percent year-on-year increase and 7 percent sequential increase.
–Netli Aquisition: In February Akamai acquired Netli for $178 million in stock which impacted on 18 days of the results, adding $500,000 to revenue. Netli also brought in 45 new customers, which — along with Akamai’s gain of 89 customers — brings the total customers of the company to 2,481. The average revenue per customer for the quarter was US$19,100.
–International sales represented 22 percent of total revenue.
–Akamai expects to grow full-year revenue by 42-46 percent, to between US$610-625 million.
–From the conference call, Akamai seese a market in set-top boxes: “The world is going to expand past the personal computer to mobile devices…IP boxes that will be moving entertainment content to a big screen as opposed to a small screen…we think that the need to control content, to control the rights to who can view it, but with huge capacity, is going to grow over the next five years”.
Disclaimer: Akamai is a sponsor of PaidContent
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