Facebook, Amazon, and Akamai Drove SKYY at End of October
Business segments
As we stated in part four of this series, Akamai’s (AKAM) revenue rose 11% YoY (year-over-year) from $498 million in 3Q14 to $551 million in 3Q15. The revenue rose 15% YoY if it’s adjusted for foreign exchange. In comparison, the revenue for peer companies Salesforce (CRM) and Red Hat (RHT) rose 24.0% and 13.4%, respectively, in 2Q15.
The firm’s Media Delivery Solutions segment saw revenue of $245 million. The revenue rose 5% YoY and 10% YoY when adjusted for foreign exchange. Akamai’s Performance and Security Solutions segment saw revenue of $263 million. It rose 15% YoY and 18% YoY when adjusted for foreign exchange. The cloud security solutions subsegment is part of the Performance and Security Solutions segment. It saw a YoY (year-over-year) rise of 39% with revenues of $65 million. In contrast, the Services and Support Solutions segment saw revenue of $43 million in 3Q15. It rose 19% YoY and 24% when adjusted for foreign exchange.
Revenue by geography
The revenue generated from the US was $401 million in 3Q15, a 10% rise YoY compared to 3Q14. In contrast, the revenue generated from international markets was $150 million, a 12% rise over 3Q14 and a 27% rise when adjusted for foreign exchange.
The adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for 3Q15 was $222 million, compared to $213 million in 3Q14. The adjusted EBITDA margin for 3Q15 was 40%, compared to 43% in 3Q14. The cash from operations stood at $183 million in 3Q15, or 33%, of revenues. In contrast, cash, cash equivalents, and marketable securities at the end of 3Q15 were $1.5 billion. Akamai spent $76 million to repurchase 1.1 million shares of common stock at an average price of $72.02 per share.
Akamai is a part of the SPDR S&P 500 ETF Trust (SPY) and the First Trust Dow Jones Internet IndexSM Fund (FDN). It accounts for 0.07% and 2.7% of the ETFs, respectively.
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