Fourth quarter highlights
- Revenue of $928 million, up 2%
year-over-year and up 6% when adjusted for foreign exchange*
- Security and compute revenue represented 55% of total revenue
in the fourth quarter and grew 18% year-over-year and 22% when
adjusted for foreign exchange*
- GAAP EPS of $0.82, down 15%
year-over-year and down 8% when adjusted for foreign exchange*, and
non-GAAP EPS* of $1.37, down 8%
year-over-year and down 2% when adjusted for foreign exchange*
Full-year highlights
- Revenue of $3.617 billion, up 4%
year-over-year and up 8% when adjusted for foreign exchange*
- Security and compute revenue represented 54% of total revenue
in 2022 and grew 23% year-over-year and 27% when adjusted for
foreign exchange*
- GAAP EPS of $3.26, down 17%
year-over-year and down 9% when adjusted for foreign exchange*, and
non-GAAP EPS* of $5.37, down 6%
year-over-year and down 1% when adjusted for foreign exchange*
CAMBRIDGE, Mass., Feb. 14,
2023 /PRNewswire/ -- Akamai Technologies, Inc.
(NASDAQ: AKAM), the cloud company that powers and protects life
online, today reported financial results for the fourth
quarter and full-year ended December 31, 2022.
"We are pleased with our fourth quarter results which were
driven by strong seasonal traffic, the continued success of our
security solutions and the growth of our cloud computing
solutions", said Dr. Tom Leighton,
Akamai's chief executive officer. "As we look forward to 2023, we
are optimistic about our leadership position as the most widely
distributed cloud platform with leading solutions for delivery,
security and cloud computing."
Akamai delivered the following results for the fourth quarter
and full-year ended December 31, 2022:
Revenue: Revenue for the fourth quarter was
$928 million, a 2% increase over
fourth quarter 2021 revenue of $905
million and a 6% increase when adjusted for foreign
exchange.* Total revenue for 2022 was $3.617
billion compared to $3.461
billion for 2021, up 4% year-over-year and up 8% when
adjusted for foreign exchange.*
Revenue by solution:
- Security revenue for the fourth quarter was $400 million, up 10% year-over-year and up 14%
when adjusted for foreign exchange.* Security revenue for 2022 was
$1.542 billion, up 16% year-over-year
and up 20% when adjusted for foreign exchange.*
- Delivery revenue for the fourth quarter was $415 million, down 12% year-over-year and down 8%
when adjusted for foreign exchange.* Delivery revenue for 2022 was
$1.669 billion, down 11%
year-over-year and down 8% when adjusted for foreign
exchange.*
- Compute revenue for the fourth quarter was $112 million, up 61% year-over-year and up 65%
when adjusted for foreign exchange.* Compute revenue for 2022 was
$405 million, up 60% year-over-year
and up 64% when adjusted for foreign exchange.*
Revenue by geography:
- U.S. revenue for the fourth quarter was $483 million, up 1% year-over-year. U.S. revenue
for 2022 was $1.902 billion, up 4%
year-over-year.
- International revenue for the fourth quarter was $445 million, up 4% year-over-year and up 12%
when adjusted for foreign exchange.* International revenue for 2022
was $1.715 billion, up 6%
year-over-year and up 13% when adjusted for foreign exchange.*
Income from operations: GAAP income from operations for
the fourth quarter was $167 million,
a 15% decrease from fourth quarter 2021 income from operations of
$196 million. GAAP operating margin
for the fourth quarter was 18%, down 4 percentage points from the
same period last year. GAAP income from operations for 2022 was
$676 million, a 14% decrease from the
prior year's GAAP income from operations of $783 million. Full-year GAAP operating margin was
19%, down 4 percentage points from the same period last year.
Non-GAAP income from operations* for the fourth quarter was
$258 million, a 9% decrease from
fourth quarter 2021 non-GAAP income from operations of $283 million. Non-GAAP operating margin* for the
fourth quarter was 28%, down 3 percentage points from the same
period last year. Non-GAAP income from operations* for 2022 was
$1.033 billion, a 6% decrease from
the prior year's non-GAAP income from operations of $1.094 billion. Full-year non-GAAP operating
margin* was 29%, down 3 percentage points from the same period last
year.
Net income: GAAP net income for the fourth quarter was
$129 million, a 20% decrease from
fourth quarter 2021 GAAP net income of $161
million. GAAP net income for 2022 was $524 million, a 20% decrease from the prior
year's GAAP net income of $652
million.
Non-GAAP net income* for the fourth quarter was $216 million, an 11% decrease from fourth quarter
2021 non-GAAP net income of $243
million. Non-GAAP net income* for 2022 was $858 million, a 9% decrease from the prior year's
non-GAAP net income of $943
million.
EPS: GAAP EPS for the fourth quarter was $0.82 per diluted share, a 15% decrease from
fourth quarter 2021 GAAP EPS of $0.97
per diluted share and an 8% decrease when adjusted for foreign
exchange.* GAAP EPS for 2022 was $3.26 per diluted share, a 17% decrease from the
prior year's GAAP EPS of $3.93 per
diluted share and a 9% decrease when adjusted for foreign
exchange.*
Non-GAAP EPS* for the fourth quarter was $1.37 per diluted share, an 8% decrease from
fourth quarter 2021 non-GAAP EPS of $1.49 per diluted share and a 2% decrease when
adjusted for foreign exchange.* Non-GAAP EPS* for 2022 was
$5.37 per diluted share, a 6%
decrease from the prior year's non-GAAP EPS of $5.74 per diluted share and a 1% decrease when
adjusted for foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA* for the fourth quarter
was $382 million, a 5% decrease from
fourth quarter 2021 Adjusted EBITDA of $404
million. Adjusted EBITDA* for 2022 was $1.530 billion, a 2% decrease from the prior
year's Adjusted EBITDA of $1.561
billion.
Supplemental cash information: Cash from operations for
the fourth quarter was $341 million,
or 37% of revenue. Cash from operations for 2022 was $1.275 billion, or 35% of revenue. Cash, cash
equivalents and marketable securities was $1.4 billion as of December 31, 2022.
Share repurchases: The Company spent $178 million in the fourth quarter of 2022 to
repurchase 2.1 million shares of its common stock at an average
price of $86.50 per share. For the
full-year 2022, the Company spent $608
million to repurchase 6.4 million shares of its common stock
at an average price of $94.96 per
share. The Company had 156 million shares of common stock
outstanding as of December 31, 2022.
* 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
1-833-634-5020 (or 1-412-902-4238 for international calls) and
using passcode Akamai Technologies call. A live webcast of the call
may be accessed at www.akamai.com in the Investor Relations
section. In addition, a replay of the call will be available for
two weeks following the conference by calling 1-877-344-7529 (or
1-412-317-0088 for international calls) and using passcode 7241694.
The archived webcast of this event may be accessed through the
Akamai website.
About Akamai
Akamai powers and protects life online. Leading companies
worldwide choose Akamai to build, deliver, and secure their digital
experiences – helping billions of people live, work, and play every
day. Akamai Connected Cloud, a massively distributed edge and cloud
platform, puts apps and experiences closer to users and keeps
threats farther away. Learn more about Akamai's cloud computing,
security, and content delivery solutions at akamai.com and
akamai.com/blog, or follow Akamai Technologies on Twitter and
LinkedIn.
AKAMAI TECHNOLOGIES,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands)
|
December 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
542,337
|
|
$
536,725
|
Marketable
securities
|
562,979
|
|
541,470
|
Accounts receivable,
net
|
679,206
|
|
675,926
|
Prepaid expenses and
other current assets
|
185,040
|
|
166,313
|
Total current
assets
|
1,969,562
|
|
1,920,434
|
Marketable
securities
|
320,531
|
|
1,088,048
|
Property and equipment,
net
|
1,540,182
|
|
1,534,329
|
Operating lease
right-of-use assets
|
813,372
|
|
815,754
|
Acquired intangible
assets, net
|
441,716
|
|
313,225
|
Goodwill
|
2,763,838
|
|
2,156,254
|
Deferred income tax
assets
|
337,677
|
|
168,342
|
Other assets
|
116,522
|
|
142,287
|
Total
assets
|
$ 8,303,400
|
|
$ 8,138,673
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
145,420
|
|
$
109,928
|
Accrued
expenses
|
367,017
|
|
411,590
|
Deferred
revenue
|
105,109
|
|
86,517
|
Operating lease
liabilities
|
196,094
|
|
175,683
|
Other current
liabilities
|
5,228
|
|
6,623
|
Total current
liabilities
|
818,868
|
|
790,341
|
Deferred
revenue
|
22,117
|
|
25,342
|
Deferred income tax
liabilities
|
18,400
|
|
40,974
|
Convertible senior
notes
|
2,285,258
|
|
1,976,167
|
Operating lease
liabilities
|
693,265
|
|
707,087
|
Other
liabilities
|
105,305
|
|
68,748
|
Total
liabilities
|
3,943,213
|
|
3,608,659
|
Total stockholders'
equity
|
4,360,187
|
|
4,530,014
|
Total liabilities and
stockholders' equity
|
$ 8,303,400
|
|
$ 8,138,673
|
AKAMAI TECHNOLOGIES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in thousands,
except per share data)
|
December 31,
2022
|
|
September 30,
2022 (3)
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Revenue
|
$
927,779
|
|
$
881,896
|
|
$
905,358
|
|
$ 3,616,654
|
|
$ 3,461,223
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue
(1) (2)
|
357,968
|
|
346,450
|
|
325,403
|
|
1,383,819
|
|
1,268,956
|
Research and
development (1)
|
105,382
|
|
94,047
|
|
93,173
|
|
391,434
|
|
335,372
|
Sales and marketing
(1)
|
129,090
|
|
123,935
|
|
125,205
|
|
502,409
|
|
461,967
|
General and
administrative (1) (2)
|
150,300
|
|
139,425
|
|
147,749
|
|
584,206
|
|
553,024
|
Amortization of
acquired intangible
assets
|
16,993
|
|
17,374
|
|
12,573
|
|
64,983
|
|
48,019
|
Restructuring
charge
|
571
|
|
227
|
|
5,170
|
|
13,529
|
|
10,737
|
Total costs and
operating expenses
|
760,304
|
|
721,458
|
|
709,273
|
|
2,940,380
|
|
2,678,075
|
Income from
operations
|
167,475
|
|
160,438
|
|
196,085
|
|
676,274
|
|
783,148
|
Interest and
marketable securities
income, net
|
5,018
|
|
782
|
|
3,434
|
|
3,258
|
|
15,620
|
Interest
expense
|
(2,684)
|
|
(2,785)
|
|
(18,317)
|
|
(11,096)
|
|
(72,332)
|
Other (expense)
income, net
|
(1,409)
|
|
(275)
|
|
(222)
|
|
(10,433)
|
|
1,785
|
Income before provision
for income taxes
|
168,400
|
|
158,160
|
|
180,980
|
|
658,003
|
|
728,221
|
Provision for income
taxes
|
(39,638)
|
|
(34,466)
|
|
(19,016)
|
|
(126,696)
|
|
(62,571)
|
Loss from equity
method investment
|
—
|
|
—
|
|
(1,430)
|
|
(7,635)
|
|
(14,008)
|
Net income
|
$
128,762
|
|
$
123,694
|
|
$
160,534
|
|
$
523,672
|
|
$
651,642
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.82
|
|
$
0.78
|
|
$
0.99
|
|
$
3.29
|
|
$
4.01
|
Diluted
|
$
0.82
|
|
$
0.78
|
|
$
0.97
|
|
$
3.26
|
|
$
3.93
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
|
Basic
|
157,109
|
|
158,715
|
|
161,757
|
|
159,089
|
|
162,665
|
Diluted
|
157,451
|
|
159,068
|
|
164,947
|
|
160,467
|
|
165,804
|
|
|
(1)
|
Includes stock-based
compensation (see supplemental table for figures)
|
(2)
|
Includes depreciation
and amortization (see supplemental table for figures)
|
(3)
|
Provision for income
taxes, net income and basic and diluted net income per share for
the three months ended September 30, 2022 have been revised to
reflect the correction of a misstatement of provision for income
taxes related to an intercompany sale of intellectual property that
occurred in 2022. Management is also continuing to assess the
impact of this matter on the Company's internal control over
financial reporting.
|
AKAMAI TECHNOLOGIES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September
30, 2022 (1)
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
$
128,762
|
|
$
123,694
|
|
$
160,534
|
|
$
523,672
|
|
$
651,642
|
Adjustments to
reconcile net income to
net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
148,570
|
|
150,985
|
|
141,699
|
|
592,754
|
|
550,632
|
Stock-based
compensation
|
58,374
|
|
50,702
|
|
48,955
|
|
217,185
|
|
202,759
|
Benefit for deferred
income taxes
|
(22,368)
|
|
(6,623)
|
|
(17,459)
|
|
(104,971)
|
|
(47,794)
|
Amortization of debt
discount and
issuance costs
|
1,099
|
|
1,086
|
|
16,741
|
|
4,395
|
|
66,025
|
Loss on
investments
|
—
|
|
—
|
|
1,430
|
|
15,895
|
|
10,328
|
Other non-cash
reconciling items,
net
|
5,969
|
|
2,451
|
|
8,378
|
|
31,063
|
|
11,495
|
Changes in operating
assets and
liabilities, net of effects of
acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(48,063)
|
|
30,796
|
|
(8,871)
|
|
(21,214)
|
|
(24,096)
|
Prepaid expenses and
other
current assets
|
22,746
|
|
(4,739)
|
|
19,133
|
|
(20,125)
|
|
4,034
|
Accounts payable and
accrued
expenses
|
38,228
|
|
(4,752)
|
|
47,786
|
|
(26,499)
|
|
31,523
|
Deferred
revenue
|
(6,790)
|
|
(2,675)
|
|
(11,128)
|
|
16,713
|
|
(2,865)
|
Other current
liabilities
|
(1,510)
|
|
2,093
|
|
(2,446)
|
|
(5,318)
|
|
(20,404)
|
Other non-current
assets and
liabilities
|
16,481
|
|
26,278
|
|
(17,852)
|
|
51,126
|
|
(28,716)
|
Net cash provided
by
operating activities
|
341,498
|
|
369,296
|
|
386,900
|
|
1,274,676
|
|
1,404,563
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Cash received (paid)
for acquisitions,
net of cash acquired
|
—
|
|
8
|
|
(583,187)
|
|
(872,091)
|
|
(598,825)
|
Purchases of property
and equipment
and capitalization of internal-use
software development costs
|
(110,788)
|
|
(97,988)
|
|
(109,695)
|
|
(458,302)
|
|
(545,230)
|
Purchases of short-
and long-term
marketable securities
|
(17,975)
|
|
—
|
|
(320,872)
|
|
(17,975)
|
|
(932,604)
|
Proceeds from sales,
maturities and
redemptions of short- and long-term
marketable securities
|
36,225
|
|
2,248
|
|
172,457
|
|
732,180
|
|
1,434,082
|
Other, net
|
(2,119)
|
|
203
|
|
(2,657)
|
|
(6,122)
|
|
(4,322)
|
Net cash used in
investing
activities
|
(94,657)
|
|
(95,529)
|
|
(843,954)
|
|
(622,310)
|
|
(646,899)
|
AKAMAI TECHNOLOGIES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September 30,
2022 (1)
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Repayments under
revolving credit
facility, net
|
—
|
|
(75,000)
|
|
—
|
|
—
|
|
—
|
Proceeds from the
issuance of common
stock under stock plans
|
10,473
|
|
16,844
|
|
12,690
|
|
56,462
|
|
59,632
|
Employee taxes paid
related to net share
settlement of stock-based awards
|
(10,580)
|
|
(8,514)
|
|
(10,917)
|
|
(82,236)
|
|
(99,112)
|
Repurchases of common
stock
|
(177,741)
|
|
(162,627)
|
|
(270,998)
|
|
(608,010)
|
|
(522,255)
|
Other, net
|
(112)
|
|
(177)
|
|
—
|
|
(393)
|
|
(268)
|
Net cash used in
financing
activities
|
(177,960)
|
|
(229,474)
|
|
(269,225)
|
|
(634,177)
|
|
(562,003)
|
Effects of exchange
rate changes on cash,
cash equivalents and restricted cash
|
14,319
|
|
(11,977)
|
|
(2,148)
|
|
(12,918)
|
|
(11,376)
|
Net increase (decrease)
in cash, cash
equivalents and restricted cash
|
83,200
|
|
32,316
|
|
(728,427)
|
|
5,271
|
|
184,285
|
Cash, cash equivalents
and restricted cash
at beginning of period
|
459,822
|
|
427,506
|
|
1,266,178
|
|
537,751
|
|
353,466
|
Cash, cash equivalents
and restricted cash
at end of period
|
$
543,022
|
|
$
459,822
|
|
$
537,751
|
|
$
543,022
|
|
$
537,751
|
|
|
(1)
|
Net income and benefit
for deferred income taxes for the three months ended September 30,
2022 have been revised to reflect the correction of a misstatement
of provision for income taxes related to an intercompany sale of
intellectual property that occurred in 2022. Management is also
continuing to assess the impact of this matter on the Company's
internal control over financial reporting.
|
AKAMAI TECHNOLOGIES,
INC.
SUPPLEMENTAL REVENUE
DATA – REVENUE BY SOLUTION (1)
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Security
|
$ 400,201
|
|
$ 379,509
|
|
$ 364,840
|
|
$
1,541,941
|
|
$
1,334,836
|
Delivery
|
415,183
|
|
393,248
|
|
470,767
|
|
1,669,257
|
|
1,873,243
|
Compute
|
112,395
|
|
109,139
|
|
69,751
|
|
405,456
|
|
253,144
|
Total
revenue
|
$ 927,779
|
|
$ 881,896
|
|
$ 905,358
|
|
$
3,616,654
|
|
$
3,461,223
|
Revenue growth rates
year-over-year:
|
|
|
|
|
|
|
|
|
|
Security
|
10 %
|
|
13 %
|
|
23 %
|
|
16 %
|
|
26 %
|
Delivery
|
(12)
|
|
(15)
|
|
(5)
|
|
(11)
|
|
(3)
|
Compute
|
61
|
|
72
|
|
23
|
|
60
|
|
22
|
Total
revenue
|
2 %
|
|
3 %
|
|
7 %
|
|
4 %
|
|
8 %
|
Revenue growth rates
year-over-year,
adjusted for the impact of foreign
exchange rates (2):
|
|
|
|
|
|
|
|
|
|
Security
|
14 %
|
|
19 %
|
|
25 %
|
|
20 %
|
|
25 %
|
Delivery
|
(8)
|
|
(11)
|
|
(3)
|
|
(8)
|
|
(4)
|
Compute
|
65
|
|
77
|
|
24
|
|
64
|
|
21
|
Total
revenue
|
6 %
|
|
7 %
|
|
8 %
|
|
8 %
|
|
7 %
|
AKAMAI TECHNOLOGIES,
INC.
SUPPLEMENTAL REVENUE
DATA – REVENUE BY GEOGRAPHY
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
U.S.
|
$ 482,803
|
|
$ 461,087
|
|
$ 475,983
|
|
$
1,902,051
|
|
$
1,837,508
|
International
|
444,976
|
|
420,809
|
|
429,375
|
|
1,714,603
|
|
1,623,715
|
Total
revenue
|
$ 927,779
|
|
$ 881,896
|
|
$ 905,358
|
|
$
3,616,654
|
|
$
3,461,223
|
Revenue growth rates
year-over-year:
|
|
|
|
|
|
|
|
|
|
U.S.
|
1 %
|
|
3 %
|
|
2 %
|
|
4 %
|
|
3 %
|
International
|
4
|
|
2
|
|
13
|
|
6
|
|
14
|
Total
revenue
|
2 %
|
|
3 %
|
|
7 %
|
|
4 %
|
|
8 %
|
Revenue growth rates
year-over-year,
adjusted for the impact of foreign
exchange rates (2):
|
|
|
|
|
|
|
|
|
|
U.S.
|
1 %
|
|
3 %
|
|
2 %
|
|
4 %
|
|
3 %
|
International
|
12
|
|
12
|
|
16
|
|
13
|
|
12
|
Total
revenue
|
6 %
|
|
7 %
|
|
8 %
|
|
8 %
|
|
7 %
|
|
|
(1)
|
Prior to January 1,
2022, revenue by solution was reported by product group: Security
Technology Group and Edge Technology Group. Revenue from security
solutions was previously presented as Security Technology Group
revenue. Revenue from delivery and compute solutions was previously
presented as Edge Technology Group revenue. The periods presented
prior to January 1, 2022 have been revised to reflect this new
presentation.
|
(2)
|
See Use of Non-GAAP
Financial Measures below for a definition
|
AKAMAI TECHNOLOGIES,
INC.
SUPPLEMENTAL
OPERATING EXPENSE DATA
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
General and
administrative expenses:
|
|
|
|
|
|
|
|
|
|
Payroll and related
costs
|
$
53,769
|
|
$
53,712
|
|
$
59,015
|
|
$ 213,772
|
|
$ 223,238
|
Stock-based
compensation
|
16,210
|
|
13,392
|
|
15,861
|
|
62,926
|
|
63,324
|
Depreciation and
amortization
|
17,442
|
|
18,682
|
|
19,987
|
|
74,225
|
|
81,934
|
Facilities-related
costs
|
23,981
|
|
26,093
|
|
25,521
|
|
103,473
|
|
100,769
|
Provision (benefit) for
doubtful accounts
|
4,046
|
|
1,179
|
|
(223)
|
|
7,042
|
|
763
|
Acquisition-related
costs
|
2,767
|
|
2,890
|
|
11,797
|
|
19,071
|
|
13,317
|
Software and related
service costs
|
13,445
|
|
12,368
|
|
11,070
|
|
50,320
|
|
40,861
|
Other
expenses
|
18,640
|
|
11,109
|
|
4,721
|
|
53,377
|
|
28,818
|
Total general and
administrative
expenses
|
$ 150,300
|
|
$ 139,425
|
|
$ 147,749
|
|
$ 584,206
|
|
$ 553,024
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses–
functional (1):
|
|
|
|
|
|
|
|
|
|
Global
functions
|
$
56,545
|
|
$
49,553
|
|
$
53,605
|
|
$ 212,674
|
|
$ 212,456
|
As a percentage of
revenue
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
Infrastructure
|
86,942
|
|
85,803
|
|
82,565
|
|
345,391
|
|
326,480
|
As a percentage of
revenue
|
9 %
|
|
10 %
|
|
9 %
|
|
10 %
|
|
9 %
|
Other
|
6,813
|
|
4,069
|
|
11,579
|
|
26,141
|
|
14,088
|
Total general and
administrative
expenses
|
$ 150,300
|
|
$ 139,425
|
|
$ 147,749
|
|
$ 584,206
|
|
$ 553,024
|
As a percentage of
revenue
|
16 %
|
|
16 %
|
|
16 %
|
|
16 %
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
7,750
|
|
$
7,237
|
|
$
6,435
|
|
$
28,354
|
|
$
27,143
|
Research and
development
|
21,778
|
|
18,698
|
|
15,315
|
|
78,116
|
|
65,950
|
Sales and
marketing
|
12,636
|
|
11,375
|
|
11,344
|
|
47,789
|
|
46,342
|
General and
administrative
|
16,210
|
|
13,392
|
|
15,861
|
|
62,926
|
|
63,324
|
Total stock-based
compensation
|
$
58,374
|
|
$
50,702
|
|
$
48,955
|
|
$ 217,185
|
|
$ 202,759
|
|
|
(1)
|
Global functions
expense includes payroll, stock-based compensation and other
employee-related costs for administrative functions, including
finance, purchasing, order entry, human resources, legal,
information technology and executive personnel, as well as
third-party professional service fees. Infrastructure expense
includes payroll, stock-based compensation and other
employee-related costs for our network infrastructure functions, as
well as facility rent expense, depreciation and amortization of
facility and IT-related assets, software and related service costs,
business insurance and taxes. Our network infrastructure function
is responsible for network planning, sourcing, architecture
evaluation and platform security. Other expense includes
acquisition-related costs and provision for doubtful
accounts.
|
AKAMAI TECHNOLOGIES,
INC.
OTHER SUPPLEMENTAL
DATA
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in thousands,
except end of period statistics)
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
Network-related
depreciation
|
$
65,265
|
|
$
65,984
|
|
$
60,748
|
|
$
259,359
|
|
$
226,384
|
Capitalized
internal-use software
development amortization
|
41,816
|
|
41,687
|
|
40,502
|
|
165,330
|
|
161,094
|
Other depreciation and
amortization
|
16,974
|
|
18,180
|
|
19,399
|
|
72,220
|
|
79,570
|
Depreciation of
property and equipment
|
124,055
|
|
125,851
|
|
120,649
|
|
496,909
|
|
467,048
|
Capitalized stock-based
compensation
amortization (1)
|
7,407
|
|
7,642
|
|
7,645
|
|
30,400
|
|
32,136
|
Capitalized interest
expense
amortization
(1)
|
115
|
|
118
|
|
832
|
|
462
|
|
3,429
|
Amortization of
acquired intangible assets
|
16,993
|
|
17,374
|
|
12,573
|
|
64,983
|
|
48,019
|
Total depreciation and
amortization
|
$
148,570
|
|
$
150,985
|
|
$
141,699
|
|
$
592,754
|
|
$
550,632
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures, excluding stock-
based compensation and interest
expense (2) (3):
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
$
93,547
|
|
$
62,063
|
|
$
61,490
|
|
$
275,578
|
|
$
313,830
|
Capitalized
internal-use software
development costs
|
50,956
|
|
48,665
|
|
55,002
|
|
199,894
|
|
219,702
|
Total capital
expenditures, excluding
stock-based compensation and interest
expense
|
$
144,503
|
|
$
110,728
|
|
$
116,492
|
|
$
475,472
|
|
$
533,532
|
|
|
|
|
|
|
|
|
|
|
End of period
statistics:
|
|
|
|
|
|
|
|
|
|
Number of
employees
|
9,811
|
|
9,631
|
|
8,780
|
|
|
|
|
|
|
(1)
|
Amortization of
capitalized stock-based compensation and interest expense in this
table excludes amortization of capitalized stock-based compensation
and interest expense capitalized as part of the implementation of
cloud-computing arrangements and contract fulfillment costs.
However, the amounts are included in our total amortization of
capitalized stock-based compensation and interest expense that is
excluded from our non-GAAP measures (see reconciliations of GAAP to
non-GAAP measures).
|
(2)
|
Capital expenditures
presented in this table are reported on an accrual basis, which
differs from the cash-basis presentation in the statements of cash
flows. The primary difference between the two is the change in
purchases of property and equipment and capitalization of
internal-use software development costs accrued for, but not paid,
at period end versus prior periods.
|
(3)
|
See Use of Non-GAAP
Financial Measures below for a definition.
|
AKAMAI TECHNOLOGIES,
INC.
RECONCILIATION OF
GAAP TO NON-GAAP INCOME FROM OPERATIONS AND NET
INCOME
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September 30,
2022 (1)
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Income from
operations
|
$ 167,475
|
|
$ 160,438
|
|
$ 196,085
|
|
$ 676,274
|
|
$ 783,148
|
GAAP operating
margin
|
18 %
|
|
18 %
|
|
22 %
|
|
19 %
|
|
23 %
|
Amortization of
acquired intangible
assets
|
16,993
|
|
17,374
|
|
12,573
|
|
64,983
|
|
48,019
|
Stock-based
compensation
|
58,374
|
|
50,702
|
|
48,955
|
|
217,185
|
|
202,759
|
Amortization of
capitalized stock-based
compensation and capitalized interest
expense
|
7,786
|
|
7,967
|
|
8,641
|
|
31,768
|
|
35,894
|
Restructuring
charge
|
571
|
|
227
|
|
5,170
|
|
13,529
|
|
10,737
|
Acquisition-related
costs
|
6,439
|
|
5,896
|
|
11,797
|
|
29,049
|
|
13,317
|
Operating
adjustments
|
90,163
|
|
82,166
|
|
87,136
|
|
356,514
|
|
310,726
|
Non-GAAP income from
operations
|
$ 257,638
|
|
$ 242,604
|
|
$ 283,221
|
|
$
1,032,788
|
|
$
1,093,874
|
Non-GAAP operating
margin
|
28 %
|
|
28 %
|
|
31 %
|
|
29 %
|
|
32 %
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 128,762
|
|
$ 123,694
|
|
$ 160,534
|
|
$ 523,672
|
|
$ 651,642
|
Operating adjustments
(from above)
|
90,163
|
|
82,166
|
|
87,136
|
|
356,514
|
|
310,726
|
Amortization of debt
discount and
issuance costs
|
1,099
|
|
1,086
|
|
16,741
|
|
4,395
|
|
66,025
|
Loss (gain) on
investments
|
—
|
|
—
|
|
—
|
|
8,260
|
|
(3,680)
|
Loss from equity
method investment
|
—
|
|
—
|
|
1,430
|
|
7,635
|
|
14,008
|
Income tax effect of
above non-GAAP
adjustments and certain discrete tax
items
|
(3,579)
|
|
(6,922)
|
|
(22,790)
|
|
(42,768)
|
|
(96,164)
|
Non-GAAP net
income
|
$ 216,445
|
|
$ 200,024
|
|
$ 243,051
|
|
$ 857,708
|
|
$ 942,557
|
|
|
(1)
|
Net income and income
tax effect of above non-GAAP adjustments and certain discrete tax
items for the three months ended September 30, 2022 have been
revised to reflect the correction of a misstatement of provision
for income taxes related to an intercompany sale of intellectual
property that occurred in 2022. Management is also continuing to
assess the impact of this matter on the Company's internal control
over financial reporting.
|
AKAMAI TECHNOLOGIES,
INC.
RECONCILIATION OF
GAAP TO NON-GAAP NET INCOME PER DILUTED SHARE
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in thousands,
except per share data)
|
December 31,
2022
|
|
September 30,
2022 (1)
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
GAAP net income per
diluted share
|
$
0.82
|
|
$
0.78
|
|
$
0.97
|
|
$
3.26
|
|
$
3.93
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangible
assets
|
0.11
|
|
0.11
|
|
0.08
|
|
0.40
|
|
0.29
|
Stock-based
compensation
|
0.37
|
|
0.32
|
|
0.30
|
|
1.35
|
|
1.22
|
Amortization of
capitalized stock-based
compensation and capitalized interest
expense
|
0.05
|
|
0.05
|
|
0.05
|
|
0.20
|
|
0.22
|
Restructuring
charge
|
—
|
|
—
|
|
0.03
|
|
0.08
|
|
0.06
|
Acquisition-related
costs
|
0.04
|
|
0.04
|
|
0.07
|
|
0.18
|
|
0.08
|
Amortization of debt
discount and
issuance costs
|
0.01
|
|
0.01
|
|
0.10
|
|
0.03
|
|
0.40
|
Loss (gain) on
investments
|
—
|
|
—
|
|
—
|
|
0.05
|
|
(0.02)
|
Loss from equity
method investment
|
—
|
|
—
|
|
0.01
|
|
0.05
|
|
0.08
|
Income tax effect of
above non-GAAP
adjustments and certain discrete tax
items
|
(0.02)
|
|
(0.04)
|
|
(0.14)
|
|
(0.27)
|
|
(0.58)
|
Adjustment for shares
(2)
|
—
|
|
—
|
|
0.02
|
|
0.02
|
|
0.06
|
Non-GAAP net income per
diluted share
|
$
1.37
|
|
$
1.26
|
|
$
1.49
|
|
$
5.37
|
|
$
5.74
|
|
|
|
|
|
|
|
|
|
|
Shares used in GAAP per
diluted share
calculations
|
157,451
|
|
159,068
|
|
164,947
|
|
160,467
|
|
165,804
|
Impact of benefit from
note hedge
transactions (2)
|
—
|
|
—
|
|
(1,636)
|
|
(720)
|
|
(1,600)
|
Shares used in non-GAAP
per diluted
share calculations (2)
|
157,451
|
|
159,068
|
|
163,311
|
|
159,747
|
|
164,204
|
|
|
(1)
|
GAAP net income per
diluted share and per share adjustment for income tax effect of
above non-GAAP adjustments and certain discrete tax items for the
three months ended September 30, 2022 have been revised to reflect
the correction of a misstatement of provision for income taxes
related to an intercompany sale of intellectual property that
occurred in 2022. Management is also continuing to assess the
impact of this matter on the Company's internal control over
financial reporting.
|
(2)
|
Shares used in non-GAAP
per diluted share calculations have been adjusted for the year
ended December 31, 2022 and for the three months and year ended
December 31, 2021 for the benefit of Akamai's note hedge
transactions. During these periods, Akamai's average stock price
was in excess of $95.10, which is the initial conversion price of
Akamai's convertible senior notes due in 2025. See Use of Non-GAAP
Financial Measures below for further definition.
|
AKAMAI TECHNOLOGIES,
INC.
RECONCILIATION OF
GAAP NET INCOME TO ADJUSTED EBITDA
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2022
|
|
September 30,
2022 (1)
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Net income
|
$ 128,762
|
|
$ 123,694
|
|
$ 160,534
|
|
$ 523,672
|
|
$ 651,642
|
Net income
margin
|
14 %
|
|
14 %
|
|
18 %
|
|
14 %
|
|
19 %
|
Interest and
marketable securities
income, net
|
(5,018)
|
|
(782)
|
|
(3,434)
|
|
(3,258)
|
|
(15,620)
|
Provision for income
taxes
|
39,638
|
|
34,466
|
|
19,016
|
|
126,696
|
|
62,571
|
Depreciation and
amortization
|
124,055
|
|
125,851
|
|
120,649
|
|
496,909
|
|
467,048
|
Amortization of
capitalized stock-based
compensation and capitalized interest
expense
|
7,786
|
|
7,967
|
|
8,641
|
|
31,768
|
|
35,894
|
Amortization of
acquired intangible
assets
|
16,993
|
|
17,374
|
|
12,573
|
|
64,983
|
|
48,019
|
Stock-based
compensation
|
58,374
|
|
50,702
|
|
48,955
|
|
217,185
|
|
202,759
|
Restructuring
charge
|
571
|
|
227
|
|
5,170
|
|
13,529
|
|
10,737
|
Acquisition-related
costs
|
6,439
|
|
5,896
|
|
11,797
|
|
29,049
|
|
13,317
|
Interest
expense
|
2,684
|
|
2,785
|
|
18,317
|
|
11,096
|
|
72,332
|
Loss (gain) on
investments
|
—
|
|
—
|
|
—
|
|
8,260
|
|
(3,680)
|
Loss from equity
method investment
|
—
|
|
—
|
|
1,430
|
|
7,635
|
|
14,008
|
Other expense,
net
|
1,409
|
|
275
|
|
222
|
|
2,173
|
|
1,895
|
Adjusted
EBITDA
|
$ 381,693
|
|
$ 368,455
|
|
$ 403,870
|
|
$
1,529,697
|
|
$
1,560,922
|
Adjusted EBITDA
margin
|
41 %
|
|
42 %
|
|
45 %
|
|
42 %
|
|
45 %
|
|
|
(1)
|
Net income, net income
margin and provision for income taxes for the three months ended
September 30, 2022 have been revised to reflect the correction of a
misstatement of provision for income taxes related to an
intercompany sale of intellectual property that occurred in 2022.
Management is also continuing to assess the impact of this matter
on the Company's internal control over financial
reporting.
|
Use of Non-GAAP Financial Measures
In addition to providing financial measurements based on
generally accepted accounting principles in the United States of America (GAAP), Akamai
provides additional financial metrics that are not prepared in
accordance with GAAP (non-GAAP financial measures). Management uses
non-GAAP financial measures to understand and compare
operating results across accounting periods, for financial and
operational decision making, for planning and forecasting purposes,
to measure executive compensation and to evaluate Akamai's
financial performance. These non-GAAP financial measures are
non-GAAP income from operations, non-GAAP operating margin,
non-GAAP net income, non-GAAP net income per diluted share,
Adjusted EBITDA, Adjusted EBITDA margin, capital expenditures and
impact of foreign currency exchange rates, as discussed below.
Management believes that these non-GAAP financial measures
reflect Akamai's ongoing business in a manner that allows for
meaningful comparisons and analysis of trends in the business, as
they facilitate comparison of financial results across accounting
periods and to those of our peer companies. Management also
believes that these non-GAAP financial measures enable investors to
evaluate Akamai's operating results and future prospects in the
same manner as management. These non-GAAP financial measures may
exclude expenses and gains that may be unusual in nature,
infrequent or not reflective of Akamai's ongoing operating
results.
The non-GAAP financial measures do not replace the presentation
of Akamai's GAAP financial results and should only be used as a
supplement to, not as a substitute for, Akamai's financial results
presented in accordance with GAAP. Akamai has provided a
reconciliation of each non-GAAP financial measure used in its
financial reporting and investor presentations to the most directly
comparable GAAP financial measure. This reconciliation captioned
"Reconciliation of GAAP to Non-GAAP Financial Measures" can be
found on the Investor Relations section of Akamai's website.
The non-GAAP adjustments, and Akamai's basis for excluding them
from non-GAAP financial measures, are outlined below:
- Amortization of acquired intangible assets – Akamai has
incurred amortization of intangible assets, included in its GAAP
financial statements, related to various acquisitions Akamai has
made. The amount of an acquisition's purchase price allocated to
intangible assets and term of its related amortization can vary
significantly and is unique to each acquisition; therefore, Akamai
excludes amortization of acquired intangible assets from its
non-GAAP financial measures to provide investors with a consistent
basis for comparing pre- and post-acquisition operating
results.
- Stock-based compensation and amortization of capitalized
stock-based compensation – Although stock-based compensation is
an important aspect of the compensation paid to Akamai's employees,
the grant date fair value varies based on the stock price at the
time of grant, varying valuation methodologies, subjective
assumptions and the variety of award types. This makes the
comparison of Akamai's current financial results to previous and
future periods difficult to interpret; therefore, Akamai believes
it is useful to exclude stock-based compensation and amortization
of capitalized stock-based compensation from its non-GAAP financial
measures in order to highlight the performance of Akamai's core
business and to be consistent with the way many investors evaluate
its performance and compare its operating results to peer
companies.
- Acquisition-related costs – Acquisition-related costs
include transaction fees, advisory fees, due diligence costs and
other direct costs associated with strategic activities, as well as
certain additional compensation costs payable to employees acquired
from the Linode acquisition if employed for a certain period of
time. The additional compensation cost was initiated by and
determined by the seller, and is in addition to normal levels of
compensation, including retention programs, offered by Akamai.
Acquisition-related costs are impacted by the timing and size of
the acquisitions, and Akamai excludes acquisition-related costs
from its non-GAAP financial measures to provide a useful comparison
of operating results to prior periods and to peer companies because
such amounts vary significantly based on the magnitude of the
acquisition transactions and do not reflect Akamai's core
operations.
- Restructuring charge – Akamai has incurred restructuring
charges from programs that have significantly changed either the
scope of the business undertaken by the Company or the manner in
which that business is conducted. These charges include severance
and related expenses for workforce reductions, impairments of
long-lived assets that will no longer be used in operations
(including right-of-use assets, other facility-related property and
equipment and internal-use software) and termination fees for any
contracts cancelled as part of these programs. Akamai excludes
these items from its non-GAAP financial measures when evaluating
its continuing business performance as such items vary
significantly based on the magnitude of the restructuring action
and do not reflect expected future operating expenses. In addition,
these charges do not necessarily provide meaningful insight into
the fundamentals of current or past operations of its
business.
- Amortization of debt discount and issuance costs and
amortization of capitalized interest expense – In August 2019, Akamai issued $1,150 million of convertible senior notes due
2027 with a coupon interest rate of 0.375%. In May 2018, Akamai issued $1,150 million of convertible senior notes due
2025 with a coupon interest rate of 0.125%. The imputed interest
rates of these convertible senior notes were 3.10% and 4.26%,
respectively. This is a result of the debt discounts recorded for
the conversion features that, prior to January 1, 2022, were required to be separately
accounted for as equity under GAAP, thereby reducing the carrying
values of the convertible debt instruments. The debt discounts were
amortized as interest expense. On January 1,
2022, Akamai adopted the new guidance for accounting for
convertible instruments. This new guidance eliminated separate
accounting for the equity portion, and thus the amortization of the
debt discount that was recorded as interest expense. Prior to
January 1, 2022, Akamai excluded this
non-cash interest expense from its non-GAAP results because it was
not representative of ongoing operating performance. After
January 1, 2022, this interest
expense is no longer included in or excluded from GAAP or non-GAAP
results. Additionally, the issuance costs of the convertible senior
notes are amortized to interest expense and are also excluded from
Akamai's non-GAAP results because management believes the non-cash
amortization expense is not representative of ongoing operating
performance.
- Gains and losses on investments – Akamai has recorded
gains and losses from the disposition, changes to fair value and
impairment of certain investments. Akamai believes excluding these
amounts from its non-GAAP financial measures is useful to investors
as the types of events giving rise to these gains and losses are
not representative of Akamai's core business operations and ongoing
operating performance.
- Income and losses from equity method investment – Akamai
records income or losses on its share of earnings and losses from
its equity method investment. Akamai excludes such income and
losses because it does not have direct control over the operations
of the investment and the related income and losses are not
representative of its core business operations.
- Income tax effect of non-GAAP adjustments and certain
discrete tax items – The non-GAAP adjustments described above
are reported on a pre-tax basis. The income tax effect of non-GAAP
adjustments is the difference between GAAP and non-GAAP income tax
expense. Non-GAAP income tax expense is computed on non-GAAP
pre-tax income (GAAP pre-tax income adjusted for non-GAAP
adjustments) and excludes certain discrete tax items (such as
recording or releasing of valuation allowances), if any. Akamai
believes that applying the non-GAAP adjustments and their related
income tax effect allows Akamai to highlight income attributable to
its core operations.
Akamai's definitions of its non-GAAP financial measures are
outlined below:
Non-GAAP income from operations – GAAP income
from operations adjusted for the following items: amortization of
acquired intangible assets; stock-based compensation; amortization
of capitalized stock-based compensation; amortization of
capitalized interest expense; acquisition-related costs;
restructuring charges; and other non-recurring or unusual items
that may arise from time to time.
Non-GAAP operating margin – Non-GAAP income from
operations stated as a percentage of revenue.
Non-GAAP net income – GAAP net income adjusted
for the following tax-affected items: amortization of acquired
intangible assets; stock-based compensation; amortization of
capitalized stock-based compensation; acquisition-related costs;
restructuring charges; amortization of debt discount and issuance
costs; amortization of capitalized interest expense; certain gains
and losses on investments; income and losses from equity method
investment; and other non-recurring or unusual items that may arise
from time to time.
Non-GAAP net income per diluted share – Non-GAAP net
income divided by weighted average diluted common shares
outstanding. Diluted weighted average shares outstanding are
adjusted in non-GAAP per share calculations for the shares that
would be delivered to Akamai pursuant to the note hedge
transactions entered into in connection with the issuances of
$1,150 million of convertible senior
notes due 2027 and 2025, respectively. Under GAAP, shares delivered
under hedge transactions are not considered offsetting shares in
the fully-diluted share calculation until they are delivered.
However, the Company would receive a benefit from the note hedge
transactions and would not allow the dilution to occur, so
management believes that adjusting for this benefit provides a
meaningful view of operating performance. With respect to the
convertible senior notes due in each of 2027 and 2025, unless
Akamai's weighted average stock price is greater than $116.18 and $95.10,
respectively, the initial conversion price, there will be no
difference between GAAP and non-GAAP diluted weighted average
common shares outstanding.
Adjusted EBITDA – GAAP net income excluding the
following items: interest and marketable securities income and
losses; income taxes; depreciation and amortization of tangible and
intangible assets; stock-based compensation; amortization of
capitalized stock-based compensation; acquisition-related costs;
restructuring charges; foreign exchange gains and losses; interest
expense; amortization of capitalized interest expense; certain
gains and losses on investments; income and losses on equity method
investment; and other non-recurring or unusual items that may arise
from time to time.
Adjusted EBITDA margin – Adjusted EBITDA stated as a
percentage of revenue.
Capital expenditures, or capex, excluding stock-based
compensation and interest expense – Purchases of property
and equipment and capitalization of internal-use software
development costs presented on an accrual basis, which differs from
the cash-basis presentation included in the statements of cash
flows. The primary difference between the two is the change in
purchases of property and equipment and capitalization of
internal-use software development costs accrued for, but not paid,
at period end versus prior periods.
Impact of foreign currency exchange rate – Revenue
and earnings from international operations have historically been
an important contributor to Akamai's financial results.
Consequently, Akamai's financial results have been impacted, and
management expects they will continue to be impacted, by
fluctuations in foreign currency exchange rates. For example, when
the local currencies of our foreign subsidiaries weaken, our
consolidated results stated in U.S. dollars are negatively
impacted.
Because exchange rates are a meaningful factor in understanding
period-to-period comparisons, management believes the presentation
of the impact of foreign currency exchange rates on revenue and
earnings enhances the understanding of our financial results and
evaluation of performance in comparison to prior periods. The
dollar impact of changes in foreign currency exchange rates
presented is calculated by translating current period results using
monthly average foreign currency exchange rates from the
comparative period and comparing them to the reported amount. The
percentage change at constant currency presented is calculated by
comparing the prior period amounts as reported and the current
period amounts translated using the same monthly average foreign
currency exchange rates from the comparative period.
Akamai Statement Under the Private Securities Litigation
Reform Act
This release and/or our quarterly earnings conference call
scheduled for later today contain statements that are not
statements of historical fact and constitute forward-looking
statements for purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995, including, but
not limited to, statements about expected future financial
performance, expectations, plans and prospects of Akamai. Actual
results may differ materially from those indicated by these
forward-looking statements as a result of various important factors
including, but not limited to, inability to continue to generate
cash at the same level as prior years; failure of our investments
in innovation to generate solutions that are accepted in the
market; inability to increase our revenue at the same rate as in
the past and keep our expenses from increasing at a greater rate
than our revenues; effects of competition, including pricing
pressure and changing business models; impact of macroeconomic
trends, including economic uncertainty, the effects of inflation,
increasing interest rates, foreign currency exchange rate
fluctuations, securities market volatility and monetary supply
fluctuations; conditions and uncertainties in the geopolitical
environment, including sanctions and disruptions resulting from the
ongoing war in Ukraine; continuing
supply chain and logistics costs, constraints, changes or
disruptions; defects or disruptions in our products or IT systems,
including cyber-attacks, data breaches or malware; failure to
realize the expected benefits of any of our acquisitions or
reorganizations; changes to economic, political and regulatory
conditions in the United States
and internationally; our ability to attract and retain key
personnel; impact of the ongoing COVID-19 pandemic; delay in
developing or failure to develop new service offerings or
functionalities, and if developed, lack of market acceptance of
such service offerings and functionalities or failure of such
solutions to operate as expected, and other factors that are
discussed in our Annual Report on Form 10-K, quarterly reports on
Form 10-Q, and other documents periodically filed with the SEC.
In addition, the statements in this press release and on our
quarterly earnings conference call represent Akamai's expectations
and beliefs as of the date of this press release. Akamai
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. However, while Akamai may elect
to update these forward-looking statements at some point in the
future, it specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Akamai's expectations or beliefs as of any date
subsequent to the date of this press release.
Contacts:
|
Gina Sorice
|
|
Tom Barth
|
Media
Relations
|
|
Investor
Relations
|
Akamai
Technologies
|
|
Akamai
Technologies
|
646-320-4107
|
|
617-274-7130
|
gsorice@akamai.com
|
|
tbarth@akamai.com
|
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SOURCE Akamai Technologies, Inc.