Research Desk Line-up: VeriSign Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Akamai Technologies, Inc. (NASDAQ: AKAM) ("Akamai"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AKAM, following the Company's release of its third quarter fiscal 2017 financial results on October 24, 2017. The cloud services provider reported a 6% growth in revenue. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected VeriSign, Inc. (NASDAQ: VRSN) for due-diligence and potential coverage as the Company reported on October 26, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on VeriSign when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AKAM; also brushing on VRSN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=AKAM

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Earnings Reviewed

For the three months ended September 30, 2017, Akamai's revenue jumped 6% to $621 million over Q3 2016 revenue of $584 million. The Company's revenue surpassed analysts' estimates of $610.3 million.

For Q3 2017, Akamai's GAAP income from operations totaled $85.88 million, down 23% compared to income from operations of $111.77 million. The Company's GAAP operating margin for the reported quarter was 14%, down 5% from the same period last year. During Q3 2017, Akamai's non-GAAP income from operations was $142 million and non-GAAP operating margin for the reported quarter was 23%, down 5% from the year-earlier same quarter.

Akamai reported GAAP net income of $60.51 million, or $0.35 per diluted share, for Q3 2017 compared to net income of $76.00 million or $0.43 per diluted share, in Q3 2016. The Company's non-GAAP net income was $107 million, reflecting an 11% decrease on a y-o-y basis, while non-GAAP EPS was $0.62 per diluted share, down 9% on a y-o-y basis and an 8% decrease when adjusted for foreign exchange. Akamai's y-o-y non-GAAP EPS growth rate, when adjusted for both foreign exchange and the dilutive impact of the Company's acquisition of Soasta, Inc., was a drop of 5%. The Company's earnings exceeded Wall Street's expectations of $0.59 per share.

During Q3 2017, Akamai's adjusted EBITDA was $225.77 million, reflecting a 5% decline when compared to Q3 2016 adjusted EBITTDA of $238.12 million. The Company's adjusted EBITDA margin for the reported quarter was 36% versus 41% in the prior year's same quarter.

Akamai's Segment Results

Revenue by Web Division - During Q3 2017, the Web Division's revenue surged 17% to $327.93 million compared to revenue of $288.10 million in Q3 2016. The Company's Media Division revenue was $273.41 million for the reported quarter, down 1% against $276.21 million in the prior year's comparable quarter, and up 3% excluding the impact of the large Internet platform customers. Akamai's Enterprise and Carrier Division revenue grew 2% to $20.06 million versus revenue of $19.76 million in Q3 2016.

Revenue by Solution Category - For Q3 2017, the Performance and Security Solutions revenue advanced 19% to $381.46 million compared to revenue of $345.12 million in Q3 2016. The Company's Cloud Security Solutions revenue, a component of Performance and Security, surged 27% to $121 million.

Akamai's Media Delivery Solutions revenue totaled $182.75 million versus revenue of $188.08 million in the year-ago comparable period. The Company's Services and Support Solutions revenue grew 17% to $57.19 million on a y-o-y basis.

Revenue from Internet Platform Customers - During Q3 2017, the Company's revenue, excluding Internet Platform Customers, totaled $570.83 million, up 9% compared to revenue of $526.05 million in Q3 2016. The Company's revenue from Internet Platform Customers was $50.57 million, down 13% y-o-y compared to revenue of $58.01 million in the prior year's corresponding quarter.

Cash Matters

Akamai's cash, cash equivalents, and marketable securities as of September 30, 2017, was $1.4 billion. The Company generated cash from operations of $236.29 million compared to cash generated from operating activities of $251.85 million in the year-ago same period.

During Q3 2017, Akamai spent $129 million to repurchase 2.7 million shares of its common stock at an average price of $47.75 per share. The Company had approximately 170 million shares of common stock outstanding as of September 30, 2017.

Stock Performance

On Friday, November 03, 2017, the stock closed the trading session at $53.01, rising 1.38% from its previous closing price of $52.29. A total volume of 1.61 million shares have exchanged hands. Akamai Technologies' stock price rallied 4.39% in the last one month, 12.05% in the past three months, and 5.66% in the previous six months. The stock is trading at a PE ratio of 31.72 and currently has a market cap of $8.96 billion.

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