Akamai Turns In a Powerful Q1

April 24th, 2013 by · 3 Comments

Akamai followed up a weak fourth quarter with a stronger than expected first quarter performance.  The cloud CDN provider checked in with revenues substantially above both guidance and estimates, and matched their forecast for non-GAAP earnings per share while the street was just looking for $0.46.  Here are their numbers in some context:

$ in millions Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

(guidance)

Revenue 319.4  331.3 345.3 377.9 368.0 368-378
COS 102.6  107.5  110.0 111.9 120.4
SG&A+R&D 140.4  139.4  149.7 164.4 140.0
Gross Margin % 67.8% 67.6%  68.1% 70.4% 67.2%
Adj.  EPS 0.41 0.43 0.43 0.54 0.51 0.44-0.46

Guidance for the second quarter was also higher than expected on the top line.  Some of the extra revenue apparently comes from the delayed winding down of a large video customer.  Akamai last quarter said that some of its social media video traffic wasn't economical and it would wind that down, and the market did not respond well.  The effects have been more muted, however, and thus the stock price is recovering what it lost after hours.

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