Can Akamai Reach $2B Revenue in 2014

Akamai is on the fast track to reach $2B in annual revenue in 2014. Their Q3-2014 revenue was $498M and YTD revenue for three quarters ending was about $1.42B. Akamai needs $572M in the fourth quarter to reach $2B in annual revenue. I’m no financial analyst by any means, but my gut tells me Akamai closes $580M in Q4-2014 reaching $2B. The better Akamai does in its economics, the better off the CDN sector is –  since Akamai is the bell weather of the industry.

Key CDN Takeaways
  • Where does this leave Limelight Networks? There’s still hope
  • Apple building its own CDN had zero impact on Akamai just as we predicted earlier in the year
  • Akamai is growing incremental revenue at a clip of about $20M+ per quarter
  • Media Delivery is going to be a $800M+ annual business
  • Services and support is $160M+ annual business
  • With $1.6B cash on hand, Akamai is in hunting season
Key Financial Takeaways
  • YTD Annual Revenue: $1.42B
  • Cash on hand: $1.6B
  • YTD R&D:  $92.5M
  • YTD Media Delivery: $661M
  • YTD Performance & Security: $639M
  • YTD Service & Support: $126M
 Financial Metrics
Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014
Quarterly Revenue $396M $436M $454M $476M $498M
GAAP Net Income $80M $80M $73M $73M $91M
Adjusted EBITDA $173M $192M $204M $204M $213M
Cash, Equivalents… $1.2B $1.2B $1.4B $1.5B $1.6B
R&D $25M $27M $28M $32M $32.5M
Media Delivery $189M $207M $215M $216M $230M
Performance, Security $174M $192M $198M $217M $224M
Service & Support $33M $36M $41M $42M $43M
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