Akamai’s Growth is the Average Growth for the CDN Industry

Akamai just reported earnings for Q1 of 2014, and they hit a grand slam in revenue growth. They grew revenues to $454M, which is 23% better than Q1 of 2013. Analyst peg the average industry growth for the CDN sector at 11% to 15% annually, depending on the analyst. However, since Akamai is the barometer and benchmark for the entire CDN industry, Akamai’s quarterly growth is the industry average quarterly growth for the CDN industry. CDNs that are growing more than 23% + are growing faster the CDN industry average. Based on Akamai’s performance for Q1, I believe they will reach $2B for 2014. Next up is Limelight Networks. The pressure is on.

 Results of Q1 of 2014

  • Q1 Revenues increased to $454M from $368M recorded in Q1 of 2013, representing 23% growth
  • GAAP net income was $73M
  • Cash from operations was $89M
  • Prolexic added $7M in the first quarter
  • Media revenue rose 19%
  • Akamai completed $370M acquisition of Prolexic
  • Akamai has no debt
  • Akamai recorded strong growth in software downloads and online gaming
  • Revenue from short term live events grew at a fast clip