Akamai's Need for Speed: Fool by Numbers

On Feb. 8, Akamai Technologies (Nasdaq: AKAM  ) released Q4 2005 earnings for the period ended Dec. 31, 2005.

  • The Speedera acquisition continues to have an impact. Both sales and EPS beat estimates, and full-year revenue growth guidance was raised from 25% to 27%-30%.
  • Accounts receivable outpaced sales for the third straight quarter. This ought to be a warning sign, yet every time Akamai does it, both top- and bottom-line growth accelerate. It's worth keeping an eye on nonetheless.
  • Akamai is still acquiring customers hand over fist. The company added 80 new recurring contracts during Q4 and 600 during the year, of which Speedera was responsible for roughly half.

(Figures in thousands, except per-share data)
Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

% Change

Sales

$78,900

$82,657

$57,576

+43.6%

Net Profit

--

$25,759

$13,391

+92.4%

EPS

$0.15

$0.16

$0.10

+60.0%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2005

Q4 2004

Change

Gross Margin

80.54%

80.59%

-0.05%

Op. Margin

25.48%

25.30%

+0.18%

Net Margin

31.16%

23.26%

+7.91%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash + ST Invest.

$292,408

$70,630

+314.0%

Inventory

--

--

N/A

Accounts Rec.

$52,162

$30,333

+72.0%



Liabilities

Q4 2005 Q4 2004

% Change

Long-Term Debt

$200,000

$256,614

-22.1%

Accounts Pay.

$54,471

$42,446

+28.3%



Cash Flow Highlights

Q4 2005

Q4 2004

% Change

Cash From Ops.

$27,673

$15,575

+77.7%

Capital Expend.

$8,105

$7,138

+13.5%

Free Cash Flow

$19,568

$8,437

+131.9%



Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

Fool contributorTim Beyersowns shares of Akamai, which is aMotley Fool Rule Breakerspick. You can find out what else is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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