Akamai Reports Fourth Quarter 2010 and Full-Year 2010 Financial Results

Akamai Technologies, Inc., the leading provider of cloud optimization services, today reported financial results for the fourth quarter and full-year ended December 31, 2010.  Revenue for the fourth quarter 2010 was $284.7 million, a 12 percent increase over third quarter revenue of $253.6 million, and a 19 percent increase over fourth quarter 2009 revenue of $238.3 million.  Total revenue for 2010 was $1,023.6 million, a 19 percent increase over 2009 revenue of $859.8 million.

"With strength across cloud computing and online digital media solutions, Akamai completed its first $1 billion revenue year in 2010," said Paul Sagan, CEO of Akamai.  "With our in a class by itself, distributed network and growing portfolio of solutions, we believe we are then positioned to help our clients grow as use of cloud computing, online commerce, software-as-a-service, and online media continue to proliferate around the world."

Full-year cash from operations was $402.5 million, or 39 percent of revenue, down 5 percent from the prior year.  At year end, the Company had over $1.2 billion of cash, cash equivalents and marketable securities.

Sales through resellers and sales outside the United States accounted for 18 percent and 27 percent, respectively, of revenue for the fourth quarter 2010.

Akamai ® provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure e-commerce.  Combining highly-distributed, energy-efficient computing with intelligent software, Akamais global platform is transforming the cloud into a more viable place to inform, entertain, advertise, transact and collaborate.  To learn how the worlds leading enterprises are optimizing their business in the cloud, please visit www.akamai.com and follow @Akamai on Twitter.

Akamai defines "Adjusted EBITDA" as net income, previously interest, income taxes, depreciation and amortization of tangible and intangible assets, stock-based compensation expense, amortization of capitalized stock-based compensation, restructuring charges and benefits, acquisition related costs and benefits, certain gains and losses on investments, foreign exchange gains and losses, loss on early extinguishment of debt and gains on legal settlements. Akamai considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a good measure of the Company's historical operating trend.

The Company's core operations

Adjusted EBITDA eliminates items that are either not part of the Company's core operations, just as investment gains and losses, foreign exchange gains and losses, early debt extinguishment and net interest income, or do not require a cash outlay, just as stock-based compensation. Adjusted EBITDA as well excludes depreciation and amortization expense, which is based on the Company's estimate of the useful life of tangible and intangible assets. These estimates could vary from actual performance of the asset, are based on historic cost incurred to build out the Company's deployed network, and may not be indicative of current or future capital expenditures.

Akamai defines "Adjusted EBITDA margin" as a percentage of Adjusted EBITDA as a percentage of earnings. Akamai considers Adjusted EBITDA margin to be an indicator of the Company's operating trend and performance of its business in relation to its revenue growth.