Akamai Technologies Inc AKAM
Q4 2012 Earnings Call Transcript

Transcript Call Date 02/06/2013

Operator: Good day, ladies and gentlemen and welcome to the Fourth Quarter 2012 Akamai Technologies Earnings Conference Call. My name is Darcell en and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

I would now like to turn the conference over to your host for today, Ms. Natalie Temple. 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 2012 financial results. Speaking today will be Tom Leighton, Akamai's Chief Executive Officer and Jim Benson, Akamai's Chief Financial Officer.

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 6, 2013. 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 Tom.

Dr. Tom Leighton - CEO: Thanks Natalie, and thank you all for joining us today. I am delighted to be speaking to you as Akamai's new CEO, and I'd like to begin by thanking Paul Sagan for his leadership and many contributions to the success of Akamai during the past 14 years. The transition has been going well and I look forward to continuing to work closely with Paul in his new role as Executive Vice-Chair of the Board.

Now on to our results. Akamai posted record revenue and record earnings in Q4, and our strong results in the quarter capped off a full year of excellent performance in 2012. Fourth quarter revenue was $378 million, a 17% year-over-year increase and a 9% increase over the third quarter of 2012. As you know, our fourth quarter revenue can vary depending on the strength of our e-commerce holiday traffic which was strong this year, but not as strong as the record levels we saw last year.

Normalized EPS for the fourth quarter was $0.54, of which, $0.04 was from a favorable change in tax rates which Jim will discuss further in a few minutes. Without the tax change, normalized EPS would have been $0.50, up 11% from Q4 of last year and up 16% sequentially. For the full year, we grew revenue to over $1.37 billion, up 19% over 2011. We generated normalized EPS of $1.81, also an increase of 19% over 2011. And we continue to generate strong cash flow, with full year cash from operations of $530 million.

Read our Earnings Call Transcript disclaimer.
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