Upcoming AWS Coverage on Yandex Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 13, 2017 / Active Wall St. announces its post-earnings coverage on Akamai Technologies, Inc. (NASDAQ: AKAM). The Company posted its fourth quarter and fiscal 2016 financial results on February 07, 2017. The provider of content delivery services and data protection tools surpassed markets top- and bottom-line estimates. Register with us now for your free membership at:

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One of Akamai Technologies' competitors within the Internet Information Providers space, Yandex N.V. (NASDAQ: YNDX), announced on January 24, 2017, it will report its financial results for Q4 and full year ended December 31, 2016, on Thursday, February 16, 2017. On that day, management will hold a conference call and webcast at 8:00 a.m. ET to review and discuss the Company's results. AWS will be initiating a research report on Yandex in the coming days.

Today, AWS is promoting its earnings coverage on AKAM; touching on YNDX. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended December 31, 2016, Akamai reported revenue of $616 million, a 6% increase over Q4 2015 revenue of $579 million, and up 7% on a currency neutral basis. The Company's revenue surpassed analysts' consensus of $605.7 million. For FY16, Akamai's total revenue was $2.34 billion, a 6% increase over FY15 revenue of $2.197 billion and a 7% increase when adjusted for foreign exchange.

For Q4 2016, Akamai's GAAP income from operations was $124 million, up 1% compared to Q4 2015 GAAP income from operations of $123 million. The Company's GAAP operating margin for the reported quarter came in at 20%, down 1% on a y-o-y basis. Akamai's non-GAAP income from operations was $174 million for Q4 2016, up 3% from non-GAAP income from operations of $168 million in Q4 2015. The Company's non-GAAP operating margin for the reported quarter declined 1% on a y-o-y basis to 28%.

For Q4 2016, Akamai reported GAAP net income of $92 million, a 4% increase from Q4 2015 GAAP net income of $88 million. GAAP EPS was $0.52 per diluted share for the reported quarter up 6% compared to GAAP EPS of $0.49 for Q4 2015. Akamai's FY16 net income was $316 million, down 2% compared to GAAP net income of $321 million for FY15. The Company's non-GAAP net income for Q4 2016 was $126 million, a 2% decrease over Q4 2015 non-GAAP net income of $129 million. Akamai's non-GAAP EPS was $0.72 per diluted share for the reported quarter, consistent with the year earlier quarter non-GAAP EPS of $0.72. The Company's earnings numbers surpassed Wall Street's estimates of $0.68 per share.

For Q4 2016, Akamai's adjusted EBITDA totaled $247 million, up 4% compared to Q4 2015 adjusted EBITDA of $238 million. The Company's adjusted EBITDA margin for the reported quarter was 40%, down 1% from the same period last year.

Revenue Analysis

Revenue by Solution Category: Akamai's Performance and Security Solutions revenue for Q4 2016 was $367 million, up 17% on a y-o-y basis, on FX neutral basis. Cloud Security Solutions revenue (a component of Performance and Security Solutions revenue) was $102 million for Q4 2016, up 41% y-o-y when adjusted for foreign exchange. Akamai's Media Delivery Solutions revenue declined 10% on a y-o-y basis to $196 million. The Company's Service and Support Solutions revenue for the reported quarter was $53 million, up 14% y-o-y.

Revenue by Geography: Akamai's US revenue was $424 million for Q4 2016, a 2% increase over Q4 2015 revenue. The Company's revenue for FY16 totaled US $1.620 billion, up 1% on a y-o-y basis. Akamai's International revenue was $193 million for Q4 2016, up 18% on a y-o-y basis, or a 19% increase, when adjusted for foreign exchange. International revenue for FY16 was $720 million, a 21% increase over FY15 revenue and a 22% increase when adjusted for foreign exchange.

Customer Revenue by Division: For Q4 2016, Akamai's Media Division reported revenue of $301 million, down 1% y-o-y, flat when adjusted for foreign exchange. The Company's Web Division revenue for the reported quarter was $300 million, up 13% on a y-o-y basis an up 14% when adjusted for foreign exchange. During Q4 2016, Akamai's Enterprise and Carrier Division's revenue surged 26% to $15 million.

Revenue from Internet Platform Customers: Revenue from Internet Platform Customers for Q4 2016 was $58 million, down 36% y-o-y. Revenue excluding Internet Platform Customers for the reported quarter was $558 million, up 14% y-o-y and up 15% when adjusted for foreign exchange.

Cash Flow & Balance Sheet

Akamai's cash flows from operating activities for Q4 2016 were $182 million, or 30% of revenue. For the full-year 2016, cash flows from operating activities were $866 million, or 37% of revenue. The Company's cash, cash equivalents, and marketable securities were $1.6 billion at December 31, 2016.

During Q4 2016, Akamai spent $79 million to repurchase 1.3 million shares of its common stock at an average price of $61.68 per share. For FY16, the Company spent $374 million to repurchase 7.0 million shares of its common stock at an average price of $53.28 per share. The Company had approximately 173 million shares of common stock outstanding as of December 31, 2016.

Stock Performance

Akamai Technologies' share price finished last Friday's trading session at $63.95, marginally up 0.16%. A total volume of 2.51 million shares exchanged hands, which was higher than the 3 months average volume of 1.88 million shares. The stock has surged 24.39% and 30.14% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 36.25.

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SOURCE: Active Wall Street