Wed, Jul. 27, 3:00 PM
Wed, Jul. 27, 12:44 PM
Wed, Jul. 27, 12:13 PM
- Akamai (AKAM -15.9%) is sinking on concerns the buyers of its services are focusing on their own in-house solutions instead of sourcing externally.
- Apple, Amazon, Google, Facebook, Microsoft and Netflix are the company's six largest technology customers, making up 11% of Akamai's Q2 revenue (-18% Y/Y).
- From Akamai's CEO Frank Thomson Leighton on yesterday's conference call: "As we discussed on past calls, our overall revenue growth rate is unusually low this year, because of the do-it-yourself, or DIY, efforts of two of our largest customers. As these customers deliver more of their content themselves, it has meant less revenue for Akamai. In Q2, these two customers accounted for a little over 5% of our total revenue, down from 12% in Q2 of last year."
- Shares started to decline in after hours trading yesterday on the release of the company's Q2 report.
Wed, Jul. 27, 9:23 AM
Tue, Jul. 26, 5:36 PM
Tue, Jul. 26, 4:26 PM
- Akamai Technologies (NASDAQ:AKAM) has slid 6.6% after hours following Q2 earnings where it missed narrowly on revenues but grew EPS 11% even accounting for currency headwinds.
- EBITDA was $231M, up 8% and beating an expected $229.1M.
- Business is being managed in a new division structure as of Q2. Revenue by division: Media Division, $288M (down 2%); Web Division, $271M (up 15%); Enterprise and Carrier Division, $12M (up 22%).
- Revenue by solution category: Performance and Security Solutions, $327M (up 16%); Cloud Security Solutions, $87M (up 42%); Media Delivery Solutions, $197M (down 9%); Services and Support Solutions, $48M (up 18%).
- Cash from operations was $243M (42% of revenue); cash and equivalents came to $1.6B at quarter's end.
- Conference call to come at 4:30 p.m.
- Press Release
Fri, Jul. 1, 3:15 PM
- Akamai (AKAM -0.9%) has confirmed it prevailed with a $51M judgment in its long-running dispute against Limelight Networks (LLNW +4.8%) over the '703 patents.
- That amount reflects damages awarded in 2008 by a jury along with interest. A separate case scheduled for trial in January involves another from the same patent family and seeks additional damages for post-2008 infringement.
- "We are extremely pleased after ten years of litigation to have a final judgment entered in Akamai's favor that recognizes Limelight's infringement and the harm it caused," said Aaron Ahola, Akamai's deputy general counsel.
- Limelight claimed a victory of sorts as well, saying it has been allocating "precious resources" to avoid a permanent injunction and back up its belief that damages would be less than requested. The company will reclaim about $12M of a $63M letter of credit held for losses, and take a charge in Q2 for the full $51M damages.
Tue, Apr. 26, 4:28 PM
- Akamai (NASDAQ:AKAM) has slipped 1.5% after hours despite a beat on top and bottom lines in its Q1 results.
- EBITDA of $234M was up 5% sequentially and beat an expected $228.4M. Non-GAAP income from operations grew 1% sequentially, to $164M (operating margin of 29%, down 2 percentage points Y/Y).
- Revenue by segment: Performance and Security Solutions, $316M (up 16%); Media Delivery Solutions, $206M (down 4%); Services and Support Solutions, $46M (up 16%). In Performance and Security Solutions, Cloud Security Solutions revenue was $81M (up 46%).
- International results showed stronger gains by geo (up 24% to $170M, vs. U.S. gains of 2% to $397M).
- Conference call to come at 4:30 p.m. ET.
- Press Release
Wed, Feb. 10, 12:42 PM
Wed, Feb. 10, 9:15 AM
Tue, Feb. 9, 6:00 PM
- Akamai (NASDAQ:AKAM) has guided on its Q4 earnings call for Q1 revenue of $554M-$570M and EPS of $0.61-$0.64 vs. a consensus of $567.1M and $0.61. The outlook appears to be better than feared in light of the Q4 guidance given in October.
- The CDN owner also forecast its two biggest media delivery customers (Apple is likely one of them, Microsoft could be another) would drop to 6% of revenue from 13%.
- Shares are now up to $45.89 after hours.
- Akamai's Q4 beat, details/reorg/$1B buyback
Tue, Feb. 9, 5:34 PM
Tue, Feb. 9, 4:06 PM
- Akamai (NASDAQ:AKAM): Q4 EPS of $0.72 beats by $0.10.
- Revenue of $579.16M (+8.0% Y/Y) beats by $10.44M.
- Shares +11%.
Mon, Jan. 11, 2:55 PM
- KeyBanc has cut its Akamai (NASDAQ:AKAM) target by $11 to $75, while reiterating an Overweight rating.
- Like others on the sell-side, KeyBanc is worried about slumping media delivery revenue (responsible for Akamai's light Q4 guidance). "While e-commerce [traffic] improved quarter over quarter [in Q4] and produced solid year over year growth, the media traffic rate continued to weaken," Efforts by media delivery clients such as Apple and Microsoft to move more traffic to in-house CDNs is generally considered responsible for the decline.
- Shares have made new 52-week lows. They trade for 17x a 2016 EPS consensus of $2.66. Q4 results arrive on Feb. 9.
Nov. 23, 2015, 10:00 AM
- Limelight (LLNW -2.4%) will ask the Supreme Court to review a recent appeals court (CAFC) ruling declaring the company guilty of directly infringing a CDN patent owned by bigger rival Akamai (NASDAQ:AKAM).
- The S.C., which only hears a tiny % of appealed cases, previously ruled (in a decision applauded by many tech companies) Limelight couldn't be held liable for inducing infringement of the Akamai patent by its users. However, the CAFC later ruled Limelight's control over its users makes it guilty of direct infringement.
- CEO Bob Lento: "We strongly disagree with the unduly broad standard for direct infringement created by the August 13, 2015 en banc opinion by the Federal Circuit. We are hopeful that the Supreme Court will address this erroneous decision." Limelight is down 50% from the Aug. 12 close, and 20% since the CAFC rejected an appeal of its decision on Nov. 16.
Nov. 20, 2015, 8:10 AM
- Goldman has downgraded Akamai (NASDAQ:AKAM) to Sell, and cut its target by $10 to $52.
- The move comes less than a month after shares nosedived due to the soft Q4 guidance (blamed on weakness at large media accounts) provided with a Q3 beat. SA author/streaming analyst Dan Rayburn thinks the guidance is due to Apple, Microsoft, and Facebook moving more of their CDN traffic to in-house networks.
- Shares have fallen to $57.73 premarket. The 52-week low (set in February) is $56.85.
- Yesterday: Akamai strikes cloud CDN interconnect deal with Google
- Update (10:39AM ET): More details here. Goldman's Heather Bellini: "We view Street forecasts for 2016 as too high, as media delivery revenues take longer to materially snap back due to (1) large customers slowly bringing CDN in-house, (2) re emergence of more aggressive competition and (3) a focus on reducing software download sizes. As such, we see these headwinds persisting for longer than consensus is expecting." Akamai is now down 5.6%.
Akamai Technologies, Inc. provides cloud services for delivering, optimizing and securing online content and business applications. It provides its services to improve the delivery of content and applications over the Internet. The company's solutions include delivery of conventional content on... More
Industry: Internet Software & Services
Country: United States
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