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Akamai Technologies Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: AKAM

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 as of July 25, 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 L. Sagan

Thanks, Natalie, and thank you, all, for joining us today. Akamai performed extremely well in the second quarter across all of our key financial metrics. We delivered record revenue of $331 million, up 20% from the same period last year and our third consecutive quarter of accelerating year-over-year growth.

We grew the bottom line even faster than revenue in the quarter, generating normalized EPS of $0.43 per diluted share, up 23% from Q2 of last year. We had another very strong quarter of cash flow generation, with $150 million of cash from operations. This cash generation puts us back over $1 billion in cash and equivalents, even after completing 2 significant acquisitions earlier this year.

We continue to see strong demand across all of our key verticals and markets, importantly with more applications and transactions moving to the Internet. Sales of our cloud infrastructure solution accelerated 22% on a year-over-year basis. Revenue, profit and cash flow performance in the first 6 months of the year all set records for Akamai.

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