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 |
