A Great Q2 for Akamai

July 25th, 2012 by · Leave a Comment

Akamai (NASDAQ:AKAM, news, filings) shrugged off any macro-economic headwinds even more convincingly than Equinix today, posting both revenues and earnings per share above both guidance and analyst expectations.  New guidance for Q2 was similarly positive, and the stock traded up 17% after hours in response.  Here’s a quick tabluar summary in context:

$ in millions Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
(guidance)
Revenue 277.0 281.9 323.4 319.4  331.3 332-342
COS  89.6  93.3 102.5 102.6  107.5
SG&A+R&D  109.8  118.8 132.8 140.4  139.4
Gross Margin 67.7% 66.9% 68.3% 67.8% 67.6%  67-68%
Adj.  EPS 0.35 0.34 0.45 0.41 0.43 0.40-0.42

Looking deeper at the verticals, the biggest sequential boost came from the public sector with 18% growth over Q1.  But the only decliner was eCommerce (down 1%) due to normal seasonality.  Currency headwinds took a $1.5M bite out of total revenues sequentially, else they’d have been even higher.

Over the past couple of years, Akamai has had some trouble maintaining the momentum it used to find so easy in the early years.  But lately they do seem to have done well moving up the food chain into more managed services while maintaining a dominant position in the more commoditized CDN side of the business.

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: Cloud Computing · Content Distribution · Financials

Discuss this Post


Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.





  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar