Akamai Technologies Inc AKAM
Q4 2011 Earnings Call Transcript

Transcript Call Date 02/08/2012

Operator: Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2011 Akamai Technologies Earnings Conference Call. My name is Derrick and I'll be your operator for today. At this time, all participants are in a listen-only mode. We will facilitate a question-and-answer session at the end of the conference.

At this time, I would now like to turn the call over to Ms. Natalie Temple, Investor Relations. Please proceed.

Natalie Temple - Manager, IR: Good afternoon and thank you for joining Akamai's investor conference call to discuss our Fourth Quarter and Full Year 2011 Financial Results. Speaking today will be Paul Sagan, Akamai's President and Chief Executive Officer; J.D. Sherman, Akamai's Chief Financial Officer and Jim Benson, Senior Vice President of Finance.

Before we get started, please note that today's comments include forward-looking statements, including statements regarding revenue and earnings guidance. These forward-looking statements are subject to risks and uncertainties and involve a number of factors that could cause actual results to differ materially from those expressed or implied by such statements.

Additional information concerning these factors is contained in Akamai's filings with the SEC, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements included in this call represent the Company's view on February 8, 2012. Akamai disclaims any obligation to update these statements to reflect future events or circumstances.

As a reminder, we will be referring to some non-GAAP financial metrics during today's call. A detailed reconciliation of GAAP and non-GAAP metrics can be found under the news and events portion of the Investor Relations section of our website.

Now, let me turn the call over to Paul.

Paul Sagan - President and CEO: Thanks, Natalie, and thank you all for joining us today. Akamai posted record revenue with our largest quarter-over-quarter revenue growth ever. Financial highlights for the fourth quarter include revenue of $324 million, a 14% year-over-year increase and 15% increase over the third quarter of 2011 and normalized EPS of $0.45 up 13% from Q4 of last year and up 32% sequentially. For the full year we grew revenue to $1.16 billion, up 13%.

We generated normalized EPS of $1.52 an increase of 6% over 2010 and we continue to generate strong cash flow with full year cash from operations of more than $450 million, I'll be back with some additional comments on what we're seeing in the market I'll also have a few comments about our new product rollouts in 2012 and the plan transition we announced today in the role of CFO with Jim Benson taking over from J.D. Sherman after we close the books on 2011.

But first J.D. and Jim are going to review our 2011 results in detail and look ahead to the start of 2012. J. D.?

J.D. Sherman - CFO: Thanks, Paul. We had Q4 revenue of $324 million, up 14% year-over-year and up $42 million or 15% sequentially. We exceeded the high-end of our guidance with solid growth across the board. Our commerce vertical increased 20% compared to last year and 25% sequentially, driven by a significant increase in online shopping activity. We typically experienced strong online retail and advertising seasons in Q4, but this was the best holiday season in company history.

Read our Earnings Call Transcript disclaimer.
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