CAMBRIDGE, Mass. April 24, 2013 Akamai Technologies, Inc. (NASDAQ: AKAM), the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere, today reported financial results for the first quarter ended March 31, 2013. Revenue for the first quarter of 2013 was $368 million, a 15 percent increase over first quarter 2012 revenue of $319 million, or up 18 percent adjusted for the Advertising Decision Solutions (ADS) divestiture*.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the first quarter of 2013 was $71 million, or $0.39 per diluted share, a 5 percent increase over the prior quarter's GAAP net income of $68 million, or $0.38 per diluted share, and a 65 percent increase over first quarter 2012 GAAP net income of $43 million, or $0.24 per diluted share.
The Company generated non-GAAP net income* of $93 million, or $0.51 per diluted share, in the first quarter of 2013, a 4 percent increase over the prior quarter's non-GAAP net income of $90 million, or $0.50 per diluted share, and a 43 percent increase over first quarter 2012 non-GAAP net income of $65 million, or $0.36 per diluted share.
Both GAAP and non-GAAP net income results include a $15 million, or $0.08 per diluted share, benefit from the retroactive reinstatement of the 2012 federal R&D tax credit and change in our depreciation methodology effective on January 1, 2013.
"We are very pleased with our first quarter results, delivering better than expected revenue growth and EPS expansion," said Tom Leighton, CEO of Akamai. "We saw strong acceleration in our media delivery solutions, made further traction in our management of network costs, and continued our investments to capitalize on what we see as the opportunities and megatrends shaping online business: cloud, mobile, video and security."
Adjusted EBITDA* for the first quarter of 2013 was $166 million, down from $173 million in the prior quarter, and up from $143 million in the first quarter of 2012. Adjusted EBITDA margin* for the first quarter of 2013 was 45 percent, down a point from the prior quarter and consistent with the same period last year.
Cash from operations for the first quarter of 2013 was $103 million, or 28 percent of revenue, down a point from the same period last year. At the end of the first quarter of 2013, the Company had over $1 billion of cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 20 percent and 30 percent, respectively, of revenue for the first quarter of 2013.
Share Repurchase Program
During the first quarter of 2013, under a share repurchase program that was extended by the Board of Directors in February 2013, the Company spent approximately $40 million repurchasing 1.1 million shares of its common stock, at an average price of $36.79 per share. The Company has $119 million remaining on its current authorization, which runs through January 31, 2014.
The Company had approximately 178 million shares of common stock outstanding as of March 31, 2013.
(*See Use of Non-GAAP Financial Measures below for definitions.)