Fast, Intelligent and Secure at the Edge

Press Release Details

Akamai Reports Second Quarter 2020 Financial Results

July 28, 2020 at 4:01 PM EDT
Second quarter revenue of $795 million, up 13% year-over-year and up 14% when adjusted for foreign exchange*
 
Cloud Security Solutions revenue grew 27% year-over-year and 28% when adjusted for foreign exchange*
 
GAAP EPS of $0.98, up 42% year-over-year, and non-GAAP EPS* of $1.38, up 29% year-over-year

CAMBRIDGE, Mass., July 28, 2020 /PRNewswire/ -- Akamai (NASDAQ: AKAM), the intelligent edge platform for securing and delivering digital experiences, today reported financial results for the second quarter ended June 30, 2020.

"Akamai's outstanding top and bottom line results in the second quarter were powered by the strong growth of our Security and Media solutions and our continued operational excellence," said Dr. Tom Leighton, Akamai's chief executive officer.  "Amidst the ongoing humanitarian crisis associated with COVID-19, we are proud to be supporting our customers – and billions of internet users – with exceptional services when they need them most."

Akamai delivered the following financial results for the second quarter ended June 30, 2020:

Revenue: Revenue was $795 million, a 13% increase over second quarter 2019 revenue of $705 million and a 14% increase when adjusted for foreign exchange.*

Revenue by Division(1):

  • Web Division revenue was $404 million, up 7% year-over-year and up 8% when adjusted for foreign exchange*
  • Media and Carrier Division revenue was $390 million, up 19% year-over-year and up 20% when adjusted for foreign exchange*

Revenue from Cloud Security Solutions(2):

  • Cloud Security Solutions revenue was $259 million, up 27% year-over-year and up 28% when adjusted for foreign exchange*

Revenue from Internet Platform Customers(3):

  • Revenue from Internet Platform Customers was $51 million, up 10% year-over-year and when adjusted for foreign exchange*
  • Revenue excluding Internet Platform Customers was $744 million, up 13% year-over-year and up 14% when adjusted for foreign exchange*

Revenue by Geography:

  • U.S. revenue was $444 million, up 6% year-over-year
  • International revenue was $351 million, up 22% year-over-year and up 24% when adjusted for foreign exchange*

Income from operations: GAAP income from operations was $190 million, a 40% increase from second quarter 2019. GAAP operating margin for the second quarter was 24%, up 5 percentage points from the same period last year.

Non-GAAP income from operations* was $258 million, a 26% increase from second quarter 2019. Non-GAAP operating margin* for the second quarter was 32%, up 3 percentage points from the same period last year.

Net income: GAAP net income was $162 million, a 42% increase from second quarter 2019. Non-GAAP net income* was $227 million, a 29% increase from second quarter 2019.

EPS: GAAP EPS was $0.98 per diluted share, a 42% increase from second quarter 2019 and a 44% increase when adjusted for foreign exchange.* Non-GAAP EPS was $1.38 per diluted share, a 29% increase from second quarter 2019 and a 30% increase when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA was $355 million, a 21% increase from second quarter 2019. Adjusted EBITDA margin* for the second quarter was 45%, up 3 percentage points from the same period last year.

Supplemental cash information: Cash from operations for the second quarter of 2020 was $299 million, or 38% of revenue. Cash, cash equivalents and marketable securities was $2.4 billion as of June 30, 2020.

Share repurchases: Akamai spent $27 million in the second quarter of 2020 to repurchase 0.3 million shares of its common stock at an average price of $100.64 per share. The Company had 163 million shares of common stock outstanding as of June 30, 2020.

See Use of Non-GAAP Financial Measures below for definitions

(1)

Revenue by Division – A customer-focused reporting view that reflects revenue from customers that are managed by the division

(2)

Revenue from Cloud Security Solutions – A product-focused reporting view that reflects revenue from Cloud Security Solutions separately from all other solution categories

(3)

Revenue from Internet Platform Customers – Revenue from large Internet platform companies: Amazon, Apple, Facebook, Google, Microsoft and Netflix

Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-844-578-9671 (or 1-508-637-5655 for international calls) and using passcode 2481329. A live webcast of the call may be accessed at www.akamai.com in the Investor section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-855-859-2056 (or 1-404-537-3406 for international calls) and using passcode 2481329. The archived webcast of this event may be accessed through the Akamai website.

About Akamai
Akamai secures and delivers digital experiences for the world's largest companies. Akamai's intelligent edge platform surrounds everything, from the enterprise to the cloud, so customers and their businesses can be fast, smart and secure. Top brands globally rely on Akamai to help them realize competitive advantage through agile solutions that extend the power of their multi-cloud architectures. Akamai keeps decisions, apps and experiences closer to users than anyone – and attacks and threats far away. Akamai's portfolio of edge security, web and mobile performance, enterprise access and video delivery solutions is supported by unmatched customer service, analytics and 24/7/365 monitoring. To learn why the world's top brands trust Akamai, visit www.akamai.com, blogs.akamai.com, or @Akamai on Twitter.

 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands)

June 30,

2020


December 31,

2019

ASSETS




Current assets:




Cash and cash equivalents

$

572,288



$

393,745


Marketable securities

800,321



1,143,249


Accounts receivable, net

644,659



551,943


Prepaid expenses and other current assets

175,731



142,676


Total current assets

2,192,999



2,231,613


Marketable securities

1,018,835



835,384


Property and equipment, net

1,281,392



1,152,153


Operating lease right-of-use assets

736,465



758,450


Acquired intangible assets, net

194,951



179,431


Goodwill

1,595,304



1,600,265


Deferred income tax assets

61,310



76,528


Other assets

143,542



173,062


Total assets

$

7,224,798



$

7,006,886


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

153,958



$

138,946


Accrued expenses

263,646



334,861


Deferred revenue

93,648



71,223


Operating lease liabilities

138,478



139,463


Other current liabilities

7,692



8,843


Total current liabilities

657,422



693,336


Deferred revenue

4,536



4,368


Deferred income tax liabilities

29,556



29,187


Convertible senior notes

1,872,937



1,839,791


Operating lease liabilities

673,678



692,181


Other liabilities

82,374



90,065


Total liabilities

3,320,503



3,348,928


Total stockholders' equity

3,904,295



3,657,958


Total liabilities and stockholders' equity

$

7,224,798



$

7,006,886


 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME



Three Months Ended


Six Months Ended

(in thousands, except per share data)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Revenue

$

794,715



$

764,302



$

705,074



$

1,559,017



$

1,411,582


Costs and operating expenses:










Cost of revenue(1) (2)

276,804



268,582



242,193



545,386



482,936


Research and development(1)

64,090



71,224



61,439



135,314



127,580


Sales and marketing(1)

123,469



123,786



135,106



247,255



261,382


General and administrative(1) (2)

129,709



127,361



120,116



257,070



242,951


Amortization of acquired intangible assets

10,381



10,434



9,648



20,815



19,247


Restructuring (benefit) charge

(167)



10,585



790



10,418



7,179


Total costs and operating expenses

604,286



611,972



569,292



1,216,258



1,141,275


Income from operations

190,429



152,330



135,782



342,759



270,307


Interest income

9,502



7,043



6,410



16,545



15,045


Interest expense

(17,249)



(17,205)



(8,446)



(34,454)



(20,562)


Other expense, net

(1,603)



(4,108)



(578)



(5,711)



(67)


Income before provision for income taxes

181,079



138,060



133,168



319,139



264,723


Provision for income taxes

(18,671)



(14,292)



(19,253)



(32,963)



(43,678)


Loss from equity method investment

(493)



(622)





(1,115)




Net income

$

161,915



$

123,146



$

113,915



$

285,061



$

221,045












Net income per share:










Basic

$

1.00



$

0.76



$

0.70



$

1.76



$

1.35


Diluted

$

0.98



$

0.75



$

0.69



$

1.74



$

1.34












Shares used in per share calculations:










Basic

162,413



161,992



163,407



162,203



163,322


Diluted

164,768



163,684



165,019



164,226



164,903



(1)

Includes stock-based compensation (see supplemental table for figures)

(2)

Includes depreciation and amortization (see supplemental table for figures)

 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Cash flows from operating activities:










Net income

$

161,915



$

123,146



$

113,915



$

285,061



$

221,045


Adjustments to reconcile net income to net cash provided by operating activities:










Depreciation and amortization

115,580



116,208



106,065



231,788



214,270


Stock-based compensation

49,191



47,493



48,142



96,684



93,447


Provision (benefit) for deferred income taxes

14,282



(2,888)



15,626



11,394



24,608


Amortization of debt discount and issuance costs

15,677



15,633



8,010



31,310



19,628


Other non-cash reconciling items, net

2,752



12,052



1,301



14,804



1,180


Changes in operating assets and liabilities, net of effects of acquisitions:










Accounts receivable

(31,633)



(73,913)



5,639



(105,546)



(38,127)


Prepaid expenses and other current assets

455



(10,434)



(10,258)



(9,979)



(23,287)


Accounts payable and accrued expenses

(19,944)



(27,458)



32,577



(47,402)



(52,789)


Deferred revenue

(5,647)



26,989



(1,313)



21,342



27,973


Other current liabilities

(2,043)



928



(9,266)



(1,115)



(18,739)


Other non-current assets and liabilities

(1,894)



(4,513)



7,491



(6,407)



9,570


Net cash provided by operating activities

298,691



223,243



317,929



521,934



478,779


Cash flows from investing activities:










Cash received (paid) for business acquisitions, net of cash acquired



106



55



106



(121,409)


Cash paid for asset acquisition



(36,376)





(36,376)




Cash received (paid) for equity method investment





4,205





(36,008)


Purchases of property and equipment and capitalization of internal-use software development costs

(120,239)



(215,429)



(133,349)



(335,668)



(275,778)


Purchases of short- and long-term marketable securities

(452,737)



(389,779)



(381,133)



(842,516)



(391,758)


Proceeds from sales and maturities of short- and long-term marketable securities

483,184



530,816



101,493



1,014,000



649,530


Other non-current assets and liabilities

155



(76)



(698)



79



2,237


Net cash used in investing activities

(89,637)



(110,738)



(409,427)



(200,375)



(173,186)


 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Cash flows from financing activities:










Repayment of convertible senior notes









(690,000)


Proceeds from the issuance of common stock under stock plans

10,259



19,546



8,998



29,805



28,772


Employee taxes paid related to net share settlement of stock-based awards

(13,095)



(50,835)



(11,317)



(63,930)



(49,956)


Repurchases of common stock

(27,330)



(80,550)



(81,375)



(107,880)



(116,247)


Other non-current assets and liabilities









(1,558)


Net cash used in financing activities

(30,166)



(111,839)



(83,694)



(142,005)



(828,989)


Effects of exchange rate changes on cash, cash equivalents and restricted cash

8,155



(8,983)



1,077



(828)



2,678


Net increase (decrease) in cash, cash equivalents and restricted cash

187,043



(8,317)



(174,115)



178,726



(520,718)


Cash, cash equivalents and restricted cash at beginning of period

385,829



394,146



690,384



394,146



1,036,987


Cash, cash equivalents and restricted cash at end of period

$

572,872



$

385,829



$

516,269



$

572,872



$

516,269






















 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY DIVISION



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,
2020


June 30,

2019 (1)


June 30,

2020


June 30,

2019 (1)

Web Division

$

404,342



$

405,995



$

377,558



$

810,337



$

751,760


Media and Carrier Division

390,373



358,307



327,516



748,680



659,822


Total revenue

$

794,715



$

764,302



$

705,074



$

1,559,017



$

1,411,582


Revenue growth rates year-over-year:










Web Division

7

%


8

%


8

%


8

%


7

%

Media and Carrier Division

19



8



5



13



5


Total revenue

13

%


8

%


6

%


10

%


6

%

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(2):










Web Division

8

%


10

%


10

%


9

%


9

%

Media and Carrier Division

20



9



6



14



7


Total revenue

14

%


9

%


8

%


11

%


8

%

 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE FROM CLOUD SECURITY SOLUTIONS



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Cloud Security Solutions

$

259,316



$

240,300



$

204,811



$

499,616



$

394,904


CDN and other solutions

535,399



524,002



500,263



1,059,401



1,016,678


Total revenue

$

794,715



$

764,302



$

705,074



$

1,559,017



$

1,411,582












Revenue growth rates year-over-year:










Cloud Security Solutions

27

%


26

%


32

%


27

%


29

%

CDN and other solutions

7



1



(1)



4



(1)


Total revenue

13

%


8

%


6

%


10

%


6

%

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(2):










Cloud Security Solutions

28

%


28

%


34

%


28

%


32

%

CDN and other solutions

8



2





5



1


Total revenue

14

%


9

%


8

%


11

%


8

%



(1)

As of January 1, 2020, Akamai reassigned some of its customers between the Media and Carrier Division and the Web Division and revised historical results in order to reflect the most recent categorization and to provide a comparable view for all periods presented. As the purchasing patterns and required account expertise of customers change over time, Akamai may reassign a customer's division from one to another.

(2)

See Use of Non-GAAP Financial Measures below for a definition

 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE FROM INTERNET PLATFORM CUSTOMERS



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Revenue from Internet Platform Customers

$

50,752



$

44,702



$

46,259



$

95,454



$

93,345


Revenue excluding Internet Platform Customers

743,963



719,600



658,815



1,463,563



1,318,237


Total revenue

$

794,715



$

764,302



$

705,074



$

1,559,017



$

1,411,582


Revenue growth rates year-over-year:










Revenue from Internet Platform Customers

10

%


(5)

%


5

%


2

%


6

%

Revenue excluding Internet Platform Customers

13



9



6



11



6


Total revenue

13

%


8

%


6

%


10

%


6

%

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(1):










Revenue from Internet Platform Customers

10

%


(5)

%


5

%


2

%


6

%

Revenue excluding Internet Platform Customers

14



10



8



12



8


Total revenue

14

%


9

%


8

%


11

%


8

%

 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY GEOGRAPHY



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

U.S.

$

443,668



$

428,930



$

416,859



$

872,598



$

835,059


International

351,047



335,372



288,215



686,419



576,523


Total revenue

$

794,715



$

764,302



$

705,074



$

1,559,017



$

1,411,582


Revenue growth rates year-over-year:










U.S.

6

%


3

%


1

%


4

%


%

International

22



16



15



19



16


Total revenue

13

%


8

%


6

%


10

%


6

%

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates(1):










U.S.

6

%


3

%


1

%


4

%


%

International

24



19



20



22



22


Total revenue

14

%


9

%


8

%


11

%


8

%



(1)

See Use of Non-GAAP Financial Measures below for a definition

 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL OPERATING EXPENSE DATA



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

General and administrative expenses:










Payroll and related costs

$

49,475



$

48,599



$

47,705



$

98,074



$

97,356


Stock-based compensation

15,377



13,957



14,565



29,334



27,193


Depreciation and amortization

20,654



20,465



18,778



41,119



37,151


Facilities-related costs

23,898



24,672



21,042



48,570



42,065


Provision for doubtful accounts

2,893



2,199



915



5,092



1,715


Acquisition-related costs

62



76



524



138



975


Legal settlements

275







275




License of patent





(4,452)





(8,855)


Professional fees and other expenses

17,075



17,393



21,039



34,468



45,351


Total general and administrative expenses

$

129,709



$

127,361



$

120,116



$

257,070



$

242,951












General and administrative expenses–functional(1):










Global functions

$

46,818



$

47,866



$

49,462



$

94,684



$

98,930


As a percentage of revenue

6

%


6

%


7

%


6

%


7

%

Infrastructure

79,677



77,220



72,332



156,897



144,659


As a percentage of revenue

10

%


10

%


10

%


10

%


10

%

Other

3,214



2,275



(1,678)



5,489



(638)


Total general and administrative expenses

$

129,709



$

127,361



$

120,116



$

257,070



$

242,951


As a percentage of revenue

16

%


17

%


17

%


16

%


17

%











Stock-based compensation:










Cost of revenue

$

6,254



$

5,736



$

5,793



$

11,990



$

11,362


Research and development

11,549



12,065



12,044



23,614



24,101


Sales and marketing

16,011



15,735



15,740



31,746



30,791


General and administrative

15,377



13,957



14,565



29,334



27,193


Total stock-based compensation

$

49,191



$

47,493



$

48,142



$

96,684



$

93,447




(1)

Global functions expense includes payroll, stock-based compensation and other employee-related costs for administrative functions, including finance, purchasing, order entry, human resources, legal, information technology and executive personnel, as well as third-party professional service fees. Infrastructure expense includes payroll, stock-based compensation and other employee-related costs for our network infrastructure functions, as well as facility rent expense, depreciation and amortization of facility and IT-related assets, software and software-related costs, business insurance and taxes. Our network infrastructure function is responsible for network planning, sourcing, architecture evaluation and platform security. Other expense includes acquisition-related costs, allowance for doubtful accounts, the license of a patent, legal settlements and transformation costs.

 

AKAMAI TECHNOLOGIES, INC.

OTHER SUPPLEMENTAL DATA



Three Months Ended


Six Months Ended

(in thousands, except end of period statistics)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Depreciation and amortization:










Network-related depreciation

$

38,806



$

36,397



$

29,394



$

75,203



$

59,562


Capitalized internal-use software development amortization

38,164



40,769



40,640



78,933



81,897


Other depreciation and amortization

20,193



20,019



18,333



40,212



36,281


Depreciation of property and equipment

97,163



97,185



88,367



194,348



177,740


Capitalized stock-based compensation amortization(1)

7,185



7,631



7,271



14,816



15,366


Capitalized interest expense amortization(1)

851



958



779



1,809



1,917


Amortization of acquired intangible assets

10,381



10,434



9,648



20,815



19,247


Total depreciation and amortization

$

115,580



$

116,208



$

106,065



$

231,788



$

214,270












Capital expenditures, excluding stock-based compensation and interest expense(2)(3):










Purchases of property and equipment

$

142,310



$

84,799



$

99,614



$

227,109



$

179,949


Capitalized internal-use software development costs

53,692



50,909



52,955



104,601



102,440


Total capital expenditures, excluding stock-based compensation and interest expense

$

196,002



$

135,708



$

152,569



$

331,710



$

282,389












End of period statistics:










Number of employees

7,951



7,742



7,434








(1)

Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized as part of the implementation of cloud-computing arrangements. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).

(2)

Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end.

(3)

See Use of Non-GAAP Financial Measures below for a definition

 

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS AND NET INCOME



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Income from operations

$

190,429



$

152,330



$

135,782



$

342,759



$

270,307


GAAP operating margin

24

%


20

%


19

%


22

%


19

%

Amortization of acquired intangible assets

10,381



10,434



9,648



20,815



19,247


Stock-based compensation

49,191



47,493



48,142



96,684



93,447


Amortization of capitalized stock-based compensation and capitalized interest expense

8,038



8,589



8,050



16,627



17,283


Restructuring (benefit) charge

(167)



10,585



790



10,418



7,179


Acquisition-related costs

62



76



524



138



975


Legal settlements

275







275




Transformation costs





1,336





5,527


Operating adjustments

67,780



77,177



68,490



144,957



143,658


Non-GAAP income from operations

$

258,209



$

229,507



$

204,272



$

487,716



$

413,965


Non-GAAP operating margin

32

%


30

%


29

%


31

%


29

%











Net income

$

161,915



$

123,146



$

113,915



$

285,061



$

221,045


Operating adjustments (from above)

67,780



77,177



68,490



144,957



143,658


Amortization of debt discount and issuance costs

15,677



15,633



8,010



31,310



19,628


Loss (gain) on investments





250





(440)


Loss from equity method investment

493



622





1,115




Income tax-effect of above non-GAAP adjustments and certain discrete tax items

(19,347)



(20,445)



(14,454)



(39,792)



(26,758)


Non-GAAP net income

$

226,518



$

196,133



$

176,211



$

422,651



$

357,133


 

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER DILUTED SHARE



Three Months Ended


Six Months Ended

(in thousands, except per share data)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

GAAP net income per diluted share

$

0.98



$

0.75



$

0.69



$

1.74



$

1.34


Adjustments to net income:










Amortization of acquired intangible assets

0.06



0.06



0.06



0.13



0.12


Stock-based compensation

0.30



0.29



0.29



0.59



0.57


Amortization of capitalized stock-based compensation and capitalized interest expense

0.05



0.05



0.05



0.10



0.10


Restructuring (benefit) charge



0.06





0.06



0.04


Acquisition-related costs









0.01


Legal settlements










Transformation costs





0.01





0.03


Amortization of debt discount and issuance costs

0.10



0.10



0.05



0.19



0.12


Loss (gain) on investments










Loss from equity method investment







0.01




Income tax effect of above non-GAAP adjustments and certain discrete tax items

(0.12)



(0.12)



(0.09)



(0.24)



(0.16)


Adjustment for shares(1)

0.01







0.01




Non-GAAP net income per diluted share

$

1.38



$

1.20



$

1.07



$

2.58



$

2.17












Shares used in GAAP diluted per share calculations

164,768



163,684



165,019



164,226



164,903


Impact of benefit from note hedge transactions(1)

(653)







(326)




Shares used in non-GAAP diluted per share calculations(1)

164,115



163,684



165,019



163,900



164,903




(1)

Shares used in non-GAAP diluted per share calculations have been adjusted for the three and six months ended June 30, 2020, for the benefit of Akamai's note hedge transactions.  During the three months ended June 30, 2020, Akamai's average stock price was in excess of $95.10, which is the initial conversion price of Akamai's convertible senior notes due in 2025.  See Use of Non-GAAP Financial Measures below for further definition.

 

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA



Three Months Ended


Six Months Ended

(in thousands)

June 30,

2020


March 31,

2020


June 30,

2019


June 30,

2020


June 30,

2019

Net income

$

161,915



$

123,146



$

113,915



$

285,061



$

221,045


Interest income

(9,502)



(7,043)



(6,410)



(16,545)



(15,045)


Provision for income taxes

18,671



14,292



19,253



32,963



43,678


Depreciation and amortization

97,163



97,185



88,367



194,348



177,740


Amortization of capitalized stock-based compensation and capitalized interest expense

8,038



8,589



8,050



16,627



17,283


Amortization of acquired intangible assets

10,381



10,434



9,648



20,815



19,247


Stock-based compensation

49,191



47,493



48,142



96,684



93,447


Restructuring (benefit) charge

(167)



10,585



790



10,418



7,179


Acquisition-related costs

62



76



524



138



975