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Investor Relations Summit
Tuesday, February 24, 2015
WiFi Name: Hyatt Meeting
Welcome
Tom Barth, Head of Investor Relations
©2015 AKAMAI | FASTER FORWARDTM
AGENDA
Solving the Grand Challenges Tom Leighton (Chief Executive Officer & Co-Founder)
Th...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
Solving the Grand Challenges
Dr. Tom Leighton — CEO and Co-Founder
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
WILL VIDEO BREAK
THE INTERNET?
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
MULTICAST
FOR LIVE AND
ON-DEMAND
©2015 AKAMAI | FASTER FORWARDTM
LET’S SEE IT LIVE!
Santosh Rao
Senior System Software Engineer
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Speed Matters: Conversion Rate vs. Load Time
ConversionRate(%)
0-1 1-2 2-3 3-4 4-5 5-6 6-7...
©2015 AKAMAI | FASTER FORWARDTM
Speed Matters: Consumer Reaction to Slow Mobile Apps
40%20% 30%10%0%
Switch to a
competito...
©2015 AKAMAI | FASTER FORWARDTM
Akamai Makes the Web Faster
DSA: Acceleration of dynamic
sites using network optimization
...
©2015 AKAMAI | FASTER FORWARDTM
Akamai Ion is Now…
FASTER | EASIER | SMARTER
ION STANDARD & ION PREMIER
©2015 AKAMAI | FASTER FORWARDTM
Simple Front-End Optimization*
Image Compression*
Resource Domain Sharding
Advanced Offloa...
©2015 AKAMAI | FASTER FORWARDTM
Simple Front-End Optimization*
Image Compression*
Resource Domain Sharding
Advanced Offloa...
©2015 AKAMAI | FASTER FORWARDTM
Simple Front-End Optimization*
Image Compression*
Resource Domain Sharding
Advanced Offloa...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
The web must
be secure
GRAND CHALLENGE FOR SECURITY
©2015 AKAMAI | FASTER FORWARDTM
NOTHING
IS SAFE
©2015 AKAMAI | FASTER FORWARDTM
NOTHING
IS SAFE
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
©2015 AKAMAI | FASTER FORWARDTM
10/19/309/299/289/279/269/259/24
120,000+
UNIQUE ATTACK PAYLOADS
Exploit
Announced
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Traditional Solutions Are Insufficient
Sufficient Capacity
Packet Inspection
Proactive vs....
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
LET’S SEE IT LIVE!
Stuart Scholly
Senior Vice President and
General Manager, Security
(For...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
The Akamai Platform
Dr. Robert Blumofe — EVP, Platform Division
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Home
Traditional Delivery
Data center
Transit Network
ISP
ISP
ISP
Mobile
Enterprise
1 or m...
©2015 AKAMAI | FASTER FORWARDTM
Home
Problems with Traditional Delivery
Data center
ISP
$$
Mobile
Enterprise
Bad for appli...
©2015 AKAMAI | FASTER FORWARDTM
Data center
Home
The Akamai Way
Transit Network
ISP
ISP
ISP
Mobile
Enterprise
Bypass middl...
©2015 AKAMAI | FASTER FORWARDTM
ISP
ISP
ISP
Home
Solving Problems the Akamai Way
Mobile
Good for application owners
Good f...
©2015 AKAMAI | FASTER FORWARDTM
ISP
ISP
ISP
Home
Mobile
Enterprise
Data center
Transit Network
Solving Problems the Akamai...
©2015 AKAMAI | FASTER FORWARDTM
Defending Against Attacks the Traditional Way
Data center
Transit Network
ISP
ISP
ISP
©2015 AKAMAI | FASTER FORWARDTM
Defending Against Attacks the Traditional Way
Data center
Transit Network
ISP
ISP
ISP
©2015 AKAMAI | FASTER FORWARDTM
ISP
ISP
ISP
Defending Against Attacks the Akamai Way
Transit Network
Data center
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Managing Costs
2009 2014
Traffic Energy Servers
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2014 AKAMAI | FASTER FORWARDTM
10-MIN
BREAK
WiFi Name: Hyatt Meeting
©2015 AKAMAI | FASTER FORWARDTM
Product Vision & Strategy
Rick McConnell — President, Products & Development
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Responsive Web Design (a.k.a. "RWD")
•  Magento 1.9
•  RWD Skin
•  Sample Data
Desktop Mob...
©2015 AKAMAI | FASTER FORWARDTM
RWD with Ion Premier + Image Converter + Design for
Performance
•  RESS Design
•  Device
C...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
62% of configuration pushes now done by customers
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
Go-to-Market Strategy
Bob Hughes — President, Worldwide Operations
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
SALES
VOLUME
SALES
VOLUME
BY GEO
HEADQUARTERS
OR SUBSIDIARY
DIVISION
EMPLOYEES
EMPLOYEES
B...
©2015 AKAMAI | FASTER FORWARDTM
Significant Opportunity to go WIDE with New Customers
Fortune 500: Largest 500 corporation...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Services & Support Continues to Drive Installed Base Adoption
Product Adoption Revenue Gro...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
2013
2014
Strategic Carrier Partnerships
+86% Carrier Reseller Revenue Growth
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
10-MIN
BREAK
WiFi Name: Hyatt Meeting
Financial Update
Jim Benson — EVP and Chief Financial Officer
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
2012 2013 2014
($MM / % revenue)
Adjusted EBITDA
44%
43%
45% $697
$853
$615
(1)Revenue gro...
©2015 AKAMAI | FASTER FORWARDTM
2012 2013 2014
($MM / Y/Y % growth1)
Performance & Security
19%
28%
23%
$691
$879
$584
(1)...
©2015 AKAMAI | FASTER FORWARDTM
($MM / Y/Y% of growth1)
U.S. Revenue
2012 2013 2014
19%
25%
21%
$1,142
$1,432
$960
($MM / ...
©2015 AKAMAI | FASTER FORWARDTM
($MM / Y/Y% of growth1)
Direct
2012 2013 2014
19%
19%
17%
$1,249
$1,477
$1,053
($MM / Y/Y%...
©2015 AKAMAI | FASTER FORWARDTM
Third Consecutive Year of Gross Margin Expansion
Refer to the Appendix for definitions of ...
©2015 AKAMAI | FASTER FORWARDTM
12.0% 11.4% 12.6% 12.8%
12.3% 13.8%
15.3% 16.8%
3.6% 4.2%
4.8%
5.4%28%
29%
33%
35%
2011 20...
©2015 AKAMAI | FASTER FORWARDTM
12.0% 11.4% 12.6% 12.8%
12.3% 13.8%
15.3% 16.8%
3.6% 4.2%
4.8%
5.4%28%
29%
33%
35%
2011 20...
©2015 AKAMAI | FASTER FORWARDTM
Capex Profile Shifting More to R&D Innovation
10.0% 8.3% 8.0%
3.9%
4.8% 5.9%
2.0% 3.3% 3.4...
©2015 AKAMAI | FASTER FORWARDTM
0
100
200
300
400
500
600
700
2011 2012 2013 2014
Axis Title
$478
$309$324
$270
$304
$191
...
©2015 AKAMAI | FASTER FORWARDTM
0
200
400
600
800
1000
1200
1400
1600
1800
2011 – 2014
Axis Title
$1,222
$1,648
(136% of F...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
2012 2013 2014
($MM / Y/Y % growth1)
Performance & Security
19%
28%
23%
$691
$879
$584
201...
©2015 AKAMAI | FASTER FORWARDTM
2012 2013 2014
($MM / Y/Y % growth1)
Performance & Security
19%
28%
23%
$691
$879
$584
201...
©2015 AKAMAI | FASTER FORWARDTM
46%45%
2014 Revenue Highlights
•  Revenue $912M
•  21% Y/Y growth(1)
•  46% of total reven...
©2015 AKAMAI | FASTER FORWARDTM
Cash GMs
Cash Opex
Adj. EBITDA
Capex
Operational FCF
2014 P&L*
72%
22%
50%
19%
31%
Y/Y Δ
*...
©2015 AKAMAI | FASTER FORWARDTM
Performance & Security Solutions (Established & Emerging)
Product Categories
Established
•...
©2015 AKAMAI | FASTER FORWARDTM
Established: Web Performance Solutions
2014 Revenue Highlights
•  Revenue: $688M
•  15% Y/...
©2015 AKAMAI | FASTER FORWARDTM
2014 Revenue Highlights
•  Revenue: $26M
•  -9% Y/Y growth(1)
•  Innovation engine
•  Fund...
©2015 AKAMAI | FASTER FORWARDTM
2014 Revenue Highlights
•  Revenue: $146M
•  191% Y/Y growth(1)
•  7% of total revenue (an...
©2015 AKAMAI | FASTER FORWARDTM
2014 Revenue Highlights
•  Revenue: $17M
•  76% Y/Y growth(1)
•  Traction in strategic car...
©2015 AKAMAI | FASTER FORWARDTM
2014 Revenue Highlights
•  Revenue: $1M
•  Cisco partnership launch (still early)
•  R&D I...
©2015 AKAMAI | FASTER FORWARDTM
Cash GMs
Cash Opex
Adj. EBITDA
Capex
Operational FCF
2014 P&L*
90%
49%
41%
17%
24%
*expres...
©2015 AKAMAI | FASTER FORWARDTM
Services & Support Solutions
9%
46%45%
2014 Revenue Highlights
•  Revenue: $173M
•  36% Y/...
©2015 AKAMAI | FASTER FORWARDTM
Cash GMs
Cash Opex
Adj. EBITDA
Capex
Operational FCF
2014 P&L*
55%
34%
21%
9%
12%
*express...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Media Delivery
Performance & Security
Services & Support
Total Akamai
2014
$M
$912
$879
$1...
©2015 AKAMAI | FASTER FORWARDTM
2010 2011 2012 2013
$5B
$4B
$3B
$2B
$1B
19%
11%
20%
20%
$5 Billion Goal
Annual Revenue
201...
©2015 AKAMAI | FASTER FORWARDTM
2010 2011 2012 2013
$5B
$4B
$3B
$2B
$1B
19%
11%
20%
20%
$5 Billion Goal
Annual Revenue
201...
©2015 AKAMAI | FASTER FORWARDTM
2010 2011 2012 2013
$5B
$4B
$3B
$2B
$1B
19%
11%
20%
20%
$5 Billion Goal
Annual Revenue
201...
©2015 AKAMAI | FASTER FORWARDTM
Akamai Financial Model:
A Blend of Businesses at Differing Levels of Maturity & Scale
Expr...
©2015 AKAMAI | FASTER FORWARDTM
SUMMARY
Akamai is poised to capitalize on significant megatrends
The fundamentals of the b...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity f...
©2015 AKAMAI | FASTER FORWARDTM 168
LUNCH
WiFi Name: Hyatt Meeting
Investor Relations Summit
Tuesday, February 24, 2015
WiFi Name: Hyatt Meeting
Reconciliation of Non-GAAP
Metrics and Definitions
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
©2015 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center ...
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2015 akamai ir_summit_show_file_v6_unanimated

  1. 1. Investor Relations Summit Tuesday, February 24, 2015 WiFi Name: Hyatt Meeting
  2. 2. Welcome Tom Barth, Head of Investor Relations
  3. 3. ©2015 AKAMAI | FASTER FORWARDTM AGENDA Solving the Grand Challenges Tom Leighton (Chief Executive Officer & Co-Founder) The Akamai Platform Robert Blumofe (EVP, Platform Division) Q&A Break Product Strategy & Vision Rick McConnell (President, Products & Development) Go-to-Market Strategy Bob Hughes (President, Worldwide Operations) Break Financial Update Jim Benson (EVP & Chief Financial Officer) Q&A Lunch
  4. 4. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. This presentation and webcast include information about Akamai’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including estimates about future revenues and market developments. Actual results may differ materially from those indicated by these forward-looking statements… as a result of various important factors including, but not limited to… •  Failure to maintain the prices we currently charge for our solution and services; •  Inability to effectively compete with existing companies and new entrants in the markets in which we operate; •  Unexpected network and service interruptions that cause loss of revenues, increased expenses or diversion of resources; •  Failure to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; •  Changes in relationships with our network providers that increase our operating expenses; •  Failure of new solutions and services we offer to operate as expected or to gain widespread market acceptance; •  Delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities; and •  Other factors that are discussed in our annual report, on Form 10-K, our quarterly reports on Form 10-Q, and other documents periodically filed with the SEC. •  In addition, any forward-looking statements represent our views as of February 24, 2015 and should not be relied upon as representing our views as of any subsequent date. While we may elect to update forward- looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views change. •  Finally, during this presentation we will be referring to non-GAAP financial measures such as Adjusted EBITDA. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation between non-GAAP and the most directly comparable GAAP financial measures appears in the News and Publications portion of the Investor Relations section of our Web site. Safe Harbor Statement
  5. 5. Solving the Grand Challenges Dr. Tom Leighton — CEO and Co-Founder
  6. 6. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. The Internet of Things… The Internet of Everything… The Hyperconnected World…
  7. 7. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Everyone and everything is getting connected.
  8. 8. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. BILLIONS OF PEOPLE TENS OF BILLIONS OF DEVICES COUNTLESS PETABYTES OF DATA
  9. 9. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. ENORMOUS EXPECTATIONS
  10. 10. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Fast, affordable IP access in the workplace and branch office The ultimate in video quality over IP at scale The web must be secure Instant web performance for any device, anywhere GRAND CHALLENGES
  11. 11. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. GRAND CHALLENGE FOR MEDIA The ultimate in video quality over IP at scale
  12. 12. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. What a Difference a Few Years Makes… 63% CAGR 29PETABYTES IN 2010 FIFA World Cup 222PETABYTES IN 2014 12PETABYTES IN 2010 Winter Olympics 81PETABYTES IN 2014
  13. 13. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. 12,000 8,000 6,000 4,000 2,000 10,000 2000 2002 2004 2006 2008 2010 2012 2014 0 10 20 30 PeakTbps >26 Tbps >60% CAGR Traffic Growth on Akamai’s Platform
  14. 14. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. 12,000 8,000 6,000 4,000 2,000 10,000 2000 2002 2004 2006 2008 2010 2012 2014 0 10 20 30 PeakTbps >26 Tbps >60% CAGR Traffic Growth on Akamai’s Platform FUTURE DEMAND 2.5B Primetime Viewers x 10 Mbps ~25,000 Tbps
  15. 15. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. 12,000 8,000 6,000 4,000 2,000 10,000 2000 2002 2004 2006 2008 2010 2012 2014 0 10 20 30 PeakTbps ~2020 Traffic Growth on Akamai’s Platform
  16. 16. ©2015 AKAMAI | FASTER FORWARDTM WILL VIDEO BREAK THE INTERNET?
  17. 17. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Scalability Challenge
  18. 18. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Last Mile Has Enormous Capacity
  19. 19. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Last Mile Has Enormous Capacity 400M Lines 10,000 Tbps X 25 Mbps
  20. 20. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Problem is at the Core Cloud Data Centers
  21. 21. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Problem is at the Core Cloud Data Centers 100 Major Networks 500 Tbps X 5 Tbps
  22. 22. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Problem is at the Core Cloud Data Centers 500 Tbps 25,000 Tbps 2% of what we need! =
  23. 23. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Akamai’s Edge Strategy Today: Inside Over 1,300 Networks Akamai Servers
  24. 24. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Extending the Akamai Edge: Moving Into Devices
  25. 25. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Extending the Akamai Edge: Moving Into Devices >30M NETSESSION CLIENTS >100M ADAPTIVE MEDIA PLAYERS
  26. 26. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. THE FUTURE: Further Extending the Akamai Edge: Moving Into Homes
  27. 27. ©2015 AKAMAI | FASTER FORWARDTM MULTICAST FOR LIVE AND ON-DEMAND
  28. 28. ©2015 AKAMAI | FASTER FORWARDTM LET’S SEE IT LIVE! Santosh Rao Senior System Software Engineer
  29. 29. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. GRAND CHALLENGE FOR PERFORMANCE Instant web performance for any device, anywhere
  30. 30. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Web Pages Are Slowing Down! Typical Page Size Typical # of Objects Mobile Penetration Avg. Page Load Time (Sec.) 1,622 Kb 112 30% 10.7 1,081 Kb 101 19% 7.2 20142013 788 Kb 88 9% 6.6 2012 Source: httparchive.org, Akamai, Radware
  31. 31. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. And It’s Getting Even Slower! 3rd Party Content Chatty Protocols Cellular Congestion Complex Experiences Heavier Content •  # of 3rd party domains up 56% in 2 years •  JavaScript transfer size up 40% in 2 years •  More round trips = more wait time •  Demand is far outstripping growth in capacity
  32. 32. ©2015 AKAMAI | FASTER FORWARDTM Speed Matters: Conversion Rate vs. Load Time ConversionRate(%) 0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11+ Population Conversion Rate (%) Page Load Time (Sec) Page Performance & Site Conversion – Feb 2012
  33. 33. ©2015 AKAMAI | FASTER FORWARDTM Speed Matters: Consumer Reaction to Slow Mobile Apps 40%20% 30%10%0% Switch to a competitor’s app 34% Less likely to purchase 31% Negative brand perception 24% Source: Forrester
  34. 34. ©2015 AKAMAI | FASTER FORWARDTM Akamai Makes the Web Faster DSA: Acceleration of dynamic sites using network optimization DSD: Caching of static objects for offload & availability; some performance gain Ion: Optimized performance for any device, any user, anywhere
  35. 35. ©2015 AKAMAI | FASTER FORWARDTM Akamai Ion is Now… FASTER | EASIER | SMARTER ION STANDARD & ION PREMIER
  36. 36. ©2015 AKAMAI | FASTER FORWARDTM Simple Front-End Optimization* Image Compression* Resource Domain Sharding Advanced Offload* Mobile Detect and Redirect Device Characteristics Content Targeting Real User Monitoring * Introduced or enhanced in 2014 Ion Standard Includes the caching from DSD, all the acceleration from DSA and more, with a focus on situational awareness
  37. 37. ©2015 AKAMAI | FASTER FORWARDTM Simple Front-End Optimization* Image Compression* Resource Domain Sharding Advanced Offload* Mobile Detect and Redirect Device Characteristics Content Targeting Real User Monitoring Advanced Front-End Optimization* Advanced Cellular Optimizations* Enhanced Large File Downloads* DNS, Page & Resource Prefetching Origin Health Reporting* Fast DNS* Image Placeholders EdgeStart SHUTR * Introduced or enhanced in 2014 Ion Premier Includes the caching from DSD, all the acceleration from DSA and more, with a focus on situational awareness +
  38. 38. ©2015 AKAMAI | FASTER FORWARDTM Simple Front-End Optimization* Image Compression* Resource Domain Sharding Advanced Offload* Mobile Detect and Redirect Device Characteristics Content Targeting Real User Monitoring Advanced Front-End Optimization* Advanced Cellular Optimizations* Enhanced Large File Downloads* DNS, Page & Resource Prefetching Origin Health Reporting* Fast DNS* Image Placeholders EdgeStart SHUTR * Introduced or enhanced in 2014 Mobile-Focused Features Includes the caching from DSD, all the acceleration from DSA and more, with a focus on situational awareness +
  39. 39. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Improved Performance Over DSA 15-60% Faster with Ion Standard 20-95% Faster with Ion Premier 0% 20% 80% 40% 60% 100% 120% MedianRange Performance Over DSA Ion Standard Ion Premier
  40. 40. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Cellular Case Study (eCommerce) 35% Faster than DSA with Ion Standard Ion Standard DSA 4.8 6.5 5 Cellular Transaction Time (Seconds) 842 310 6 7
  41. 41. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. 3-Step Transaction Over Cellular — Ion Standard vs. DSA 4.5X More users under 15 seconds with Ion Standard over DSA 0% 5% 10% 15% 20% 25% 30% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Seconds PercentageofUsers 151263 9 30272118 24 33 48453936 42
  42. 42. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Cellular Case Study (Retail) 108% Faster than DSA with Ion Premier Ion Premier DSA 5.6 11.6 10 Cellular Transaction Time (Seconds) — RUM Data 1284 620
  43. 43. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Akamai vs. the Competition: Ion is… Competitor 1 Origins: NA, APAC FASTER 71–148% Competitor 2 Origins: NA, EU FASTER 30–110% Competitor 3 Origins: NA FASTER 49–65% Competitor 4 Origins: EU, APAC FASTER 41–91% more users under 2 seconds with Akamai Ion Premier (cellular)46X
  44. 44. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Case Study: Blue Triangle Technologies Clothing Retailer Specialty Apparel Store in annual revenue gained by using Akamai Ion Major Sporting Goods $15.6M in annual revenue gained by using Akamai Ion $3M increase in conversion rates by using Akamai DSA 26%
  45. 45. ©2015 AKAMAI | FASTER FORWARDTM The web must be secure GRAND CHALLENGE FOR SECURITY
  46. 46. ©2015 AKAMAI | FASTER FORWARDTM NOTHING IS SAFE
  47. 47. ©2015 AKAMAI | FASTER FORWARDTM NOTHING IS SAFE
  48. 48. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.
  49. 49. ©2015 AKAMAI | FASTER FORWARDTM
  50. 50. ©2015 AKAMAI | FASTER FORWARDTM 10/19/309/299/289/279/269/259/24 120,000+ UNIQUE ATTACK PAYLOADS Exploit Announced
  51. 51. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Major Attacks on Akamai Customers Typical Attack Size 10s of Gbps Attacks are originating from all geographies and are moving between geographies during the attack Large Attack Size 100s of Gbps 14 230 510 NumberofAttacks 2009 2010 2011 2012 800 600 400 200 0 768 2013 1153 1,000 1,200 2014 12741,300
  52. 52. ©2015 AKAMAI | FASTER FORWARDTM Traditional Solutions Are Insufficient Sufficient Capacity Packet Inspection Proactive vs. Reactive Maintain Performance Data Center Level Defense Data Center Devices Carrier Filtering +
  53. 53. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000
  54. 54. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender
  55. 55. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender
  56. 56. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender
  57. 57. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender
  58. 58. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender
  59. 59. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender
  60. 60. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. + The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender + PROLEXIC
  61. 61. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. + The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender + PROLEXIC COVERED
  62. 62. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. + The Akamai Solution (Cloud) Data Centers End User 1 10 100 10000 Origin Traffic 1000 Akamai Traffic 1 10 100 10000 1000 – Kona Site Defender + PROLEXIC COVERED
  63. 63. ©2015 AKAMAI | FASTER FORWARDTM LET’S SEE IT LIVE! Stuart Scholly Senior Vice President and General Manager, Security (Former President, Prolexic) Patrick Sullivan Service Line Manager
  64. 64. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. GRAND CHALLENGE FOR ENTERPRISE Fast, affordable IP access in the workplace and branch office
  65. 65. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. LONG DISTANCE Between branch and web applications Internet WAN (MPLS/VPN) “The Trombone Effect” for MPLS & VPN Branches Enterprise Data Center Remote Branch Cloud Provider Branch Networks are SLOW 3rd Party Web Sites
  66. 66. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. 10-100X increase in capacity needed video, virtual desktops, collaboration tools, digital displays, backup/ archiving, catalogue and software downloads, web apps, PowerPoint Branch Networks are OVERLOADED Internet WAN (MPLS/VPN) “The Trombone Effect” for MPLS & VPN Branches Enterprise Data Center Remote Branch Cloud Provider3rd Party Web Sites
  67. 67. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Akamai is Moving into the Branch Akamai Functionality: And everything else the Akamai Intelligent Platform™ does! •  De-Deduplication •  Local Caching •  Prepositioning of Content •  Intelligent Routing •  App Acceleration WAN (MPLS/VPN) Enterprise Data Center Remote Branch Cloud Provider3rd Party Web Sites
  68. 68. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. WAN (MPLS/VPN) Enterprise Data Center Remote Branch Cloud Provider3rd Party Web Sites Akamai is Moving into the Branch • Akamai optimizes bandwidth & speeds up applications on the enterprise WAN • Akamai optimizes bandwidth & speeds up applications in the cloud • Akamai offloads the WAN for bandwidth-intensive applications • Akamai adds quality of service to the enterprise cloud network • Akamai provides security for the enterprise cloud network Traffic Prioritization (QoS) Security
  69. 69. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. WAN (MPLS/VPN) Enterprise Data Center Remote Branch Cloud Provider3rd Party Web Sites Akamai is Moving into the Branch • Akamai optimizes bandwidth & speeds up applications on the enterprise WAN • Akamai optimizes bandwidth & speeds up applications in the cloud • Akamai offloads the WAN for bandwidth-intensive applications • Akamai adds quality of service to the enterprise cloud network • Akamai provides security for the enterprise cloud network Traffic Prioritization (QoS) Security (Cisco with Akamai Connect)
  70. 70. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Akamai Connect Speeds Performance Performance Improvement for Corporate Applications and Websites for a Luxury Retailer 6-7XFASTER IN NEW YORK 2-3XFASTER IN PARIS* *The origin for this retailer is located in Paris
  71. 71. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Akamai Connect is just the beginning…
  72. 72. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Fast, affordable IP access in the workplace and branch office The ultimate in video quality over IP at scale The web must be secure Instant web performance for any device, anywhere GRAND CHALLENGES
  73. 73. The Akamai Platform Dr. Robert Blumofe — EVP, Platform Division
  74. 74. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Fast, affordable IP access in the workplace and branch office The ultimate in video quality over IP at scale The web must be secure Instant web performance for any device, anywhere GRAND CHALLENGES
  75. 75. ©2015 AKAMAI | FASTER FORWARDTM Home Traditional Delivery Data center Transit Network ISP ISP ISP Mobile Enterprise 1 or more data centers Connect to 1 or more transit providers Connect directly or indirectly to a myriad of ISPs
  76. 76. ©2015 AKAMAI | FASTER FORWARDTM Home Problems with Traditional Delivery Data center ISP $$ Mobile Enterprise Bad for application owners Bad for users Bad for ISPs Transit Network ISP ISPX $$ $$
  77. 77. ©2015 AKAMAI | FASTER FORWARDTM Data center Home The Akamai Way Transit Network ISP ISP ISP Mobile Enterprise Bypass middle mile Directly deployed in a myriad of ISPs
  78. 78. ©2015 AKAMAI | FASTER FORWARDTM ISP ISP ISP Home Solving Problems the Akamai Way Mobile Good for application owners Good for users Good for ISPs Transit Network Enterprise $$ Data center
  79. 79. ©2015 AKAMAI | FASTER FORWARDTM ISP ISP ISP Home Mobile Enterprise Data center Transit Network Solving Problems the Akamai Way
  80. 80. ©2015 AKAMAI | FASTER FORWARDTM Defending Against Attacks the Traditional Way Data center Transit Network ISP ISP ISP
  81. 81. ©2015 AKAMAI | FASTER FORWARDTM Defending Against Attacks the Traditional Way Data center Transit Network ISP ISP ISP
  82. 82. ©2015 AKAMAI | FASTER FORWARDTM ISP ISP ISP Defending Against Attacks the Akamai Way Transit Network Data center
  83. 83. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Global Platform with Enormous Scale 2014 1,300+Networks 100+Countries 90 1,200 2013 2,700+Locations 2,300
  84. 84. ©2015 AKAMAI | FASTER FORWARDTM Managing Costs 2009 2014 Traffic Energy Servers
  85. 85. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Traffic Servers Ports Racks Energy Server CapEx Colo COGS Energy COGS Bandwidth COGS Drivers of Cost
  86. 86. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Every line is an OPPORTUNITY for optimization.
  87. 87. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Server CapEx Colo COGS Energy COGS Bandwidth COGS Traffic Servers Ports Racks Energy Opportunities for Optimization Colo migration Metered power buying Server CapEx Colo COGS Energy COGS Bandwidth COGS Servers Ports Racks Energy Vendor management ISP partnerships Port optimization Deployment optimization Power optimization Hardware and software optimization Port optimization
  88. 88. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Transit Network Traditional Traffic Redirection Via BGP Course-grain decisions Slow to change Little control Data center Data center
  89. 89. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Transit Network Akamai Traffic Redirection Via Mapper Fine-grain decisions Rapid response Highly controllable Data center Data center
  90. 90. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Traffic Redirection the Akamai Way • Understands latency and loss • Monitors capacity • Gracefully deals with down nodes or links • Highly flexible and extendable • Can prioritize different traffic types • Is aware of contractual details
  91. 91. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Why is this so Hard to Replicate? •  Deep network relationships •  Hardware efficiency •  Software innovation •  Global request routing, failover, load balancing •  Global system management •  Multiple use cases
  92. 92. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. SUMMARY A global platform with enormous scale Opportunity for continued cost savings through optimization Distributed architecture provides competitive advantage
  93. 93. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. QUESTIONS? Please raise your hand & wait for microphone
  94. 94. ©2014 AKAMAI | FASTER FORWARDTM 10-MIN BREAK WiFi Name: Hyatt Meeting
  95. 95. ©2015 AKAMAI | FASTER FORWARDTM Product Vision & Strategy Rick McConnell — President, Products & Development
  96. 96. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Ion Standard & Cloudlets Akamai Connect Growth in Traffic 2014 YEAR IN REVIEW Emerging Mobile BU Integrated Prolexic New Carrier Partnerships
  97. 97. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. OUR VISION To transform experiences in a hyperconnected world
  98. 98. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. GLOBALIZATION Akamai Everywhere SIMPLIFICATION It’s Your Akamai INNOVATION Any Experience, Any Device, Anywhere Carrier & Mobile Networks Inside the Enterprise & Home On & In the Device Luna User Experience Property Manager Open APIs Instant to Any Device Media Quality at Scale Cloud Security & Networking
  99. 99. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Globalization Development Centers Of Excellence Cambridge, MA Westford, MA Web, Media, Cloud Networking, Security, Carrier, Portal Ottawa, Canada Web Santa Clara, CA San Francisco, CA Web, Media, Cloud Networking, Security, Portal San Diego, CA Pasadena, CA Media Fort Lauderdale, FL Security Israel Web, Security, Cloud Networking India Cloud Networking, Media, Portal, Security Prague Media Poland Portal DEVELOPER HEADCOUNT INCREASED BY 30%
  100. 100. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Carriers | Enterprises | Homes | Devices Extending the Akamai Edge
  101. 101. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Simplified Product Catalog Simpler for Partners: NAP 2.0 Easier to Sell, Price, Bundle Simplification 70%+REDUCTION IN SKUS
  102. 102. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. SERVICES & SUPPORT LUNA + {OPEN} Innovation4 – IDC 5 – Doyle Research 6 – Frost & Sullivan1 – 451Group 2 – ABR Research 3 – Gartner WEB PERFORMANCE SOLUTIONS CLOUD SECURITY SOLUTIONS MEDIA DELIVERY SOLUTIONS CLOUD NETWORKING SOLUTIONS NETWORK OPERATOR SOLUTIONS 2015: +$4B TAM1, 2 2015: +$3B TAM4 2015: +$3B TAM3 2015: +$2B TAM3,5 2015: +$1B TAM2,6
  103. 103. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Accelerating to Instant: Fastest over Desktop Broadband Fastest over Cellular Fastest over Tablet Wifi Beyond Performance: Web Performance Open APIs Products: Cloudlets & Image Management
  104. 104. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Ion Premier Maximum Performance Ion Standard Industry Leading Performance DSA Dynamic Acceleration Performance Driven Price Driven China CDN (Now) Cloudlets (New) Saas Provider Option (New) Image Management (Q3) Web Performance
  105. 105. ©2015 AKAMAI | FASTER FORWARDTM Responsive Web Design (a.k.a. "RWD") •  Magento 1.9 •  RWD Skin •  Sample Data Desktop Mobile (LTE)
  106. 106. ©2015 AKAMAI | FASTER FORWARDTM RWD with Ion Premier + Image Converter + Design for Performance •  RESS Design •  Device Characteristics •  Image Converter •  FEO Premier •  Fast DNS •  Adaptive Image Compression •  Dynamic Page Caching 73% improvement Origin: 6.7s 80% improvement Origin: 9.0s
  107. 107. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. COMPREHENSIVE SECURITY Kona + Prolexic People + Products THREAT INTELLIGENCE Client Reputation Bot Management Cloud Security
  108. 108. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Kona Site Defender (Managed) Integrated DDoS & WAF Kona Site Defender (Self-Service) Integrated DDoS & WAF Kona DDoS Defender DDoS, some managed Price Driven Prolexic Routed DDoS, fully managed multi-protocol Client Reputation (Q1) Private Origin (H2) Bot Management (H2) Cloud Security
  109. 109. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Number of DDoS Attacks PROTECTED 2010 2011 2012 2013 2014 991 Average: 13 Gbps Max: 320 Gbps 1317 2002 2936 4316 Add Client Reputation TO PROTECT AGAINST REPEAT ATTACKERS
  110. 110. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. QUALITY AT SCALE Delivering the highest quality Economies of scale Distributed cloud storage SIMPLICITY OF WORKFLOW Live and on demand media services One asset, all devices QoS and audience analytics Media Delivery
  111. 111. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Media AnalyticsNetStorage ANALYZE Media Services Live & On-Demand STORE DELIVERPREPARE Adaptive Media Delivery – video Download Delivery – software Object Delivery – small objects Dynamic Site Delivery – web sites Media Delivery
  112. 112. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Today’s Peak is Tomorrow’s Normal 8X MORE TRAFFIC THAN WORLD CUP 2010 HUGE AUDIENCES 5.3 million unique online viewers for Belgium/USA in the USA ALONE HIGH ENGAGEMENT 47.8 average online minutes viewed for Germany vs Portugal on WatchESPN 220PB
  113. 113. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. BRANCH OF TODAY WAN performance and offload Integrated solution BRANCH OF THE FUTURE Akamai for WAN transport Next Generation Enterprise Network Cisco Intelligent WAN with Akamai Connect Cloud Networking
  114. 114. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Optimize Network Traffic, Enable New Revenue Streams & Control Costs Akamai Interconnect Managed Operator CDN suite to deploy a highly scalable, turnkey CDN Aura Managed CDN Licensed suite of Operator CDN solutions to enable next generation IP video services delivered to any device Aura Licensed CDN Akamai Platform Network Operator: Carrier Products
  115. 115. ©2015 AKAMAI | FASTER FORWARDTM 62% of configuration pushes now done by customers
  116. 116. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. SUMMARY Leveraging core businesses, while expanding to adjacencies Investments driven by major secular trends Driving innovation throughout the portfolio Expanding our platform for self-service and enablement
  117. 117. Go-to-Market Strategy Bob Hughes — President, Worldwide Operations
  118. 118. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. PRODUCTS Upsell installed base & new customers MARKETS New verticals & global expansion SALES CAPACITY Direct & indirect 2014 CORE GROWTH DRIVERS
  119. 119. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Achieved hiring plan New rep & partner productivity improving Over delivered on revenue plan Strong growth across all solution categories/geographies 2014 RESULTS
  120. 120. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. PRODUCTS Significant opportunity to go deep & wide MARKETS Focus on target verticals & global expansion SALES CAPACITY Continued investment in direct, indirect, enablement & specialization 2015 CORE GROWTH DRIVERS
  121. 121. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Drivers of Revenue Growth Right customers, maximize share of traffic media delivery Traffic Upsell installed base & penetrate new customers performance & security Transactions Direct, Indirect, Specialization Sales Capacity SERVICES & SUPPORT
  122. 122. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Supporting Investments in Sales Enablement Onboarding/product training Partner enablement Sales specialists Forecasting tools Marketing automation Supporting GTM resources Intelligent territory assignment
  123. 123. ©2015 AKAMAI | FASTER FORWARDTM SALES VOLUME SALES VOLUME BY GEO HEADQUARTERS OR SUBSIDIARY DIVISION EMPLOYEES EMPLOYEES BY GEO INDUSTRY AKAMAI NETWORK TRAFFIC PRIVATE OR PUBLIC 33,000 COMPANIES TO GO AFTER GLOBALLY
  124. 124. ©2015 AKAMAI | FASTER FORWARDTM Significant Opportunity to go WIDE with New Customers Fortune 500: Largest 500 corporations in the U.S. by revenue (2014) Fortune Global 1000: Largest 1000 global corporations by revenue (2014) of Fortune 500 (U.S.) are customers today 48% of Fortune Global 1000 are customers today 38%
  125. 125. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Significant Opportunity to go DEEP within the Install Base buy only 1 solution 44% buy security 30% buy services 27%
  126. 126. ©2015 AKAMAI | FASTER FORWARDTM Services & Support Continues to Drive Installed Base Adoption Product Adoption Revenue Growth reduced churn rate Customer Loyalty 50%higher MRR 2.4xmore likely to upgrade 1.5x
  127. 127. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Leveraging Over 400 Partners to Extend Global Footprint Performance Partners Media Partners Tech./OEM Partners Carrier Partners global regional
  128. 128. ©2015 AKAMAI | FASTER FORWARDTM 2013 2014 Strategic Carrier Partnerships +86% Carrier Reseller Revenue Growth
  129. 129. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. customers spending over $1M annually 359
  130. 130. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. SUMMARY Continued focus on deep & wide Secular trends in our favor Portfolio provides a complete solution
  131. 131. ©2015 AKAMAI | FASTER FORWARDTM 10-MIN BREAK WiFi Name: Hyatt Meeting
  132. 132. Financial Update Jim Benson — EVP and Chief Financial Officer
  133. 133. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. 2014 Year In Review Solution Category Review Looking Forward AGENDA
  134. 134. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. 2014 Year In Review Solution Category Review Looking Forward AGENDA
  135. 135. ©2015 AKAMAI | FASTER FORWARDTM 2012 2013 2014 ($MM / % revenue) Adjusted EBITDA 44% 43% 45% $697 $853 $615 (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business. Refer to the Appendix for definitions of our non-GAAP metrics and a reconciliation to the closest GAAP metric. 2012 2013 2014 ($MM / Y/Y % growth1) Revenue 20% 25% 20% $1,578 $1,964 $1,374 2012 2013 2014 ($MM / % revenue) Operational Free Cash Flow 28% 26% 29% $439 $513 $395 2014: Another Year of Strong Operational Execution
  136. 136. ©2015 AKAMAI | FASTER FORWARDTM 2012 2013 2014 ($MM / Y/Y % growth1) Performance & Security 19% 28% 23% $691 $879 $584 (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business. Continued Strong Revenue Growth Across All Solutions 2012 2013 2014 ($MM / Y/Y % growth1) Services & Support 38% 36% 37% $128 $173 $94 2012 2013 2014 ($MM / Y/Y % growth1) Media Delivery 17% 21% 17% $757 $912 $653
  137. 137. ©2015 AKAMAI | FASTER FORWARDTM ($MM / Y/Y% of growth1) U.S. Revenue 2012 2013 2014 19% 25% 21% $1,142 $1,432 $960 ($MM / Y/Y% of growth1) International Revenue 2012 2013 2014 22% 25% 21% $252 $304 $216 32% Y/Y APJ 20% Y/Y EMEA $181 $228 $153 Continued Strong Revenue Growth Across All Theaters (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.
  138. 138. ©2015 AKAMAI | FASTER FORWARDTM ($MM / Y/Y% of growth1) Direct 2012 2013 2014 19% 19% 17% $1,249 $1,477 $1,053 ($MM / Y/Y% of growth1) Indirect 2012 2013 2014 19% 49% 26% $327 $487 $277 Continued Strong Revenue Growth Across All Channels (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.
  139. 139. ©2015 AKAMAI | FASTER FORWARDTM Third Consecutive Year of Gross Margin Expansion Refer to the Appendix for definitions of our non-GAAP metrics and a reconciliation to the closest GAAP metric. Continued Network Scaling Through: •  Hardware optimization •  Software innovation •  Deeper network relationships 2011 73.2% 2012 74.1% 2013 76.9% 2014 78.4% Cash Gross Margins (% of Revenue)
  140. 140. ©2015 AKAMAI | FASTER FORWARDTM 12.0% 11.4% 12.6% 12.8% 12.3% 13.8% 15.3% 16.8% 3.6% 4.2% 4.8% 5.4%28% 29% 33% 35% 2011 2012 2013 2014 %ofRevenue R&D S&M G&A Operating Expense Evolution 9.2%7.8%7.0%GROSS R&D 10.0% Disciplined Investments to Drive Growth and Scale Refer to the Appendix for definitions of our non-GAAP metrics and a reconciliation to the closest GAAP metric. Amounts may not add due to rounding. 2015 Investment Areas •  Sales capacity & GTM support •  Service & support staffing •  Engineering innovation •  Network efficiency scaling
  141. 141. ©2015 AKAMAI | FASTER FORWARDTM 12.0% 11.4% 12.6% 12.8% 12.3% 13.8% 15.3% 16.8% 3.6% 4.2% 4.8% 5.4%28% 29% 33% 35% 2011 2012 2013 2014 %ofRevenue R&D S&M G&A Operating Expense Evolution 9.2%7.8%7.0%GROSS R&D 10.0% Disciplined Investments to Drive Growth and Scale 4.9% 7.7% 4.5% 6.9% Infrastructure Global Functions 5.0% 7.8% 4.8% 7.3% Refer to the Appendix for definitions of our non-GAAP metrics and a reconciliation to the closest GAAP metric. Amounts may not add due to rounding. 2015 Investment Areas •  Sales capacity & GTM support •  Service & support staffing •  Engineering innovation •  Network efficiency scaling •  Infrastructure scaling
  142. 142. ©2015 AKAMAI | FASTER FORWARDTM Capex Profile Shifting More to R&D Innovation 10.0% 8.3% 8.0% 3.9% 4.8% 5.9% 2.0% 3.3% 3.4% 16% 16% 17% 2012 2013 2014 %ofRevenue Capital Expenditure Evolution Facilities/IT/Other Capitalized Software Development Network 2015 Capex Drivers: •  Capitalized software •  R&D hiring •  Accelerating innovation pipeline •  Real estate build-out •  IT infrastructure Refer to the Appendix for definitions of our non-GAAP metrics and a reconciliation to the closest GAAP metric. Amounts may not add due to rounding.
  143. 143. ©2015 AKAMAI | FASTER FORWARDTM 0 100 200 300 400 500 600 700 2011 2012 2013 2014 Axis Title $478 $309$324 $270 $304 $191 $339 $655 Generating Cash and Strategically Deploying Free Cash Flow $MM Refer to the Appendix for definitions of our non-GAAP metrics. Free Cash Flow Share Buyback M&A
  144. 144. ©2015 AKAMAI | FASTER FORWARDTM 0 200 400 600 800 1000 1200 1400 1600 1800 2011 – 2014 Axis Title $1,222 $1,648 (136% of FCF) Generating Cash and Strategically Deploying Free Cash Flow Disciplined Capital Allocation: •  Ongoing share buyback •  Strategic M&A $MM Refer to the Appendix for definitions of our non-GAAP metrics. Free Cash Flow Share Buyback M&A
  145. 145. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. AGENDA 2014 Year In Review Solution Category Review Looking Forward
  146. 146. ©2015 AKAMAI | FASTER FORWARDTM 2012 2013 2014 ($MM / Y/Y % growth1) Performance & Security 19% 28% 23% $691 $879 $584 2012 2013 2014 ($MM / Y/Y % growth1) Services & Support 38% 36% 37% $128 $173 $94 2012 2013 2014 ($MM / Y/Y % growth1) Media Delivery 17% 21% 17% $757 $912 $653 9% 46%45% Services & SupportPerformance & SecurityMedia Delivery 9% 46%45% Services & SupportPerformance & SecurityMedia Delivery Akamai Solution Portfolio Review
  147. 147. ©2015 AKAMAI | FASTER FORWARDTM 2012 2013 2014 ($MM / Y/Y % growth1) Performance & Security 19% 28% 23% $691 $879 $584 2012 2013 2014 ($MM / Y/Y % growth1) Services & Support 38% 36% 37% $128 $173 $94 2012 2013 2014 ($MM / Y/Y % growth1) Media Delivery 17% 21% 17% $757 $912 $653 9% 46%45% Services & SupportPerformance & SecurityMedia Delivery 9% 46%45% Services & SupportPerformance & SecurityMedia Delivery Akamai Solution Portfolio Review Performance & Security Established •  Web Performance •  Custom Government Emerging •  Cloud Security •  Network Operator •  Cloud Networking Services & Support •  Support Services •  Professional Services Media Delivery Delivery •  Video, Software, Site Workflow •  Media Services
  148. 148. ©2015 AKAMAI | FASTER FORWARDTM 46%45% 2014 Revenue Highlights •  Revenue $912M •  21% Y/Y growth(1) •  46% of total revenue •  Strong traffic growth (accelerating through the year) •  Especially among largest, most strategic customers •  Pricing environment remains highly competitive •  Price declines within historic norms •  ARPU ~$22K (up from $19K) 2015 Business Drivers •  Online adoption of video, social media, gaming & software downloads •  Cost reduction, quality, reliability & scale Services & Support Performance & Security Media Delivery Performance & Security Services & SupportMedia Delivery (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. 9% Media Delivery Solutions
  149. 149. ©2015 AKAMAI | FASTER FORWARDTM Cash GMs Cash Opex Adj. EBITDA Capex Operational FCF 2014 P&L* 72% 22% 50% 19% 31% Y/Y Δ *expressed as % of revenue (estimated) Performance & Security Services & SupportMedia Delivery Investment Areas: •  Scale, quality, reliability, cost, end-to-end workflow •  Next generation delivery platform % of Total Revenue: 46%2014 Revenue: $912M Y/Y Growth: 21%(1) Target Model Low 70s Low 20s High 40s High Teens High 20s / Low 30s Refer to the Appendix for definitions of our non-GAAP metrics. (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. Financial Model Update: Media Delivery Solutions
  150. 150. ©2015 AKAMAI | FASTER FORWARDTM Performance & Security Solutions (Established & Emerging) Product Categories Established •  Web Performance •  Custom Government Emerging •  Cloud Security •  Network Operator •  Cloud Networking 46% Services & Support Performance & Security Media Delivery Performance & Security Services & SupportMedia Delivery 37% Emerging Established 8% 9%
  151. 151. ©2015 AKAMAI | FASTER FORWARDTM Established: Web Performance Solutions 2014 Revenue Highlights •  Revenue: $688M •  15% Y/Y growth(1) •  36% of total revenue •  Base penetration: 51% of total customers •  Multi-product penetration: 17% •  ARPU ~$22K (up from $20K) 2015 Business Drivers •  Cloud computing and eCommerce megatrends •  Mobile adoption 46%44% Services & Support Performance & Security Media Delivery Performance & Security Services & SupportMedia Delivery 37% Established 9% (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. 8%
  152. 152. ©2015 AKAMAI | FASTER FORWARDTM 2014 Revenue Highlights •  Revenue: $26M •  -9% Y/Y growth(1) •  Innovation engine •  Funded new product development 2015 Business Drivers •  Government needs to solve challenges for: •  Performance •  Security •  Scalability Performance & Security Services & SupportMedia Delivery (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. Established: Custom Government Solutions 46%44% Services & Support Performance & Security Media Delivery 37% Established 9% 8%
  153. 153. ©2015 AKAMAI | FASTER FORWARDTM 2014 Revenue Highlights •  Revenue: $146M •  191% Y/Y growth(1) •  7% of total revenue (and growing) •  Fastest growing solution in Akamai •  Base penetration: 30% of total customers •  ARPU ~$10K (up from $7K) •  KSD and Prolexic ARPU ~$13K 2015 Business Drivers •  Data and assets moving to the cloud •  Attack frequency & sophistication •  Enhanced portfolio & capabilities Performance & Security Services & SupportMedia Delivery (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. 46% Services & Support Performance & Security Media Delivery 37% Established Emerging 9% Emerging: Cloud Security Solutions 8%
  154. 154. ©2015 AKAMAI | FASTER FORWARDTM 2014 Revenue Highlights •  Revenue: $17M •  76% Y/Y growth(1) •  Traction in strategic carrier partnerships: •  Deeper network deployments •  Improved carrier quality & costs •  Akamai cost savings •  Fastest growing reseller channel (86% Y/Y) •  Managed and licensed software sale 2015 Business Drivers •  Carrier efforts to reduce cost & monetize traffic •  Migration of video to IP Performance & Security Services & SupportMedia Delivery (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. Emerging: Network Operator Solutions 46% Services & Support Performance & Security Media Delivery 37% Established Emerging 9%8%
  155. 155. ©2015 AKAMAI | FASTER FORWARDTM 2014 Revenue Highlights •  Revenue: $1M •  Cisco partnership launch (still early) •  R&D Innovation •  Significant performance improvements 2015 Business Drivers •  SaaS and IaaS breaking traditional networks •  Lack of bandwidth to the branch inhibits innovation •  Current network cost prohibits growth •  Agile IT requires and agile network Performance & Security Services & SupportMedia Delivery Emerging: Cloud Networking Solutions 46% Services & Support Performance & Security Media Delivery 37% Established Emerging 9%8%
  156. 156. ©2015 AKAMAI | FASTER FORWARDTM Cash GMs Cash Opex Adj. EBITDA Capex Operational FCF 2014 P&L* 90% 49% 41% 17% 24% *expressed as % of revenue (estimated) Y/Y Δ Financial Model Update: Performance & Security Solutions Investment Areas: •  Sales capacity & enablement •  Channels/strategic partnerships •  R&D Innovation (established & emerging) % of Total Revenue: 45%2014 Revenue: $879M Y/Y Growth: 28%(1) *Excludes ADS Target Model (at scale) High 80s Mid 40s Mid 40s Low Teens Low 30s Performance & Security Services & SupportMedia Delivery Refer to the Appendix for definitions of our non-GAAP metrics. (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes.
  157. 157. ©2015 AKAMAI | FASTER FORWARDTM Services & Support Solutions 9% 46%45% 2014 Revenue Highlights •  Revenue: $173M •  36% Y/Y growth(1) •  9% of total revenue •  Base penetration*: 27% of total customers •  New customer attach rate: 31% •  ARPU ~$8K (consistent with 2013) 2015 Business Drivers •  Enabling customers to better leverage Akamai core services •  Customers looking to Akamai for technical expertise Performance & Security Services & SupportMedia Delivery Services & Support Performance & Security Media Delivery (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes. *Customers purchasing a monthly recurring revenue contract (excludes one-time integration fees).
  158. 158. ©2015 AKAMAI | FASTER FORWARDTM Cash GMs Cash Opex Adj. EBITDA Capex Operational FCF 2014 P&L* 55% 34% 21% 9% 12% *expressed as % of revenue (estimated) Y/Y Δ Financial Model Update: Services & Support Solutions Investment Areas: • Service delivery capacity • Innovation to drive efficiency & channel enablement • Self-service tools % of Total Revenue: 9%2014 Revenue: $173M Y/Y Growth: 36%(1) *Excludes ADS Target Model Low / Mid 50s Low 30s Low 20s Single Digits Mid-Teens Performance & Security Services & SupportMedia Delivery Refer to the Appendix for definitions of our non-GAAP metrics. (1)Revenue growth rates exclude the impact of foreign currency exchange rate changes.
  159. 159. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. 2014 Year In Review Solution Category Review Looking Forward AGENDA
  160. 160. ©2015 AKAMAI | FASTER FORWARDTM Media Delivery Performance & Security Services & Support Total Akamai 2014 $M $912 $879 $173 $1,964 2014 Y/Y%* 21% 28% 36% 25% AS REPORTED A reconciliation of as-reported by solution category is available on the IR section of our website. Amounts may not add due to rounding. *Revenue growth rates exclude the impact of foreign currency exchange rate changes. Product-Specific Services Shift $6 $21 ($27) $0 + + – 2014 $M $917 $901 $146 $1,964 AS REVISED = = = 2014 Y/Y%* 21% 29% 25% 25% Housekeeping: 2015 Revenue Reporting Adjustments (Product-Specific Services)
  161. 161. ©2015 AKAMAI | FASTER FORWARDTM 2010 2011 2012 2013 $5B $4B $3B $2B $1B 19% 11% 20% 20% $5 Billion Goal Annual Revenue 2014 2015 2016 2017 2018 2019 2020 25% Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.
  162. 162. ©2015 AKAMAI | FASTER FORWARDTM 2010 2011 2012 2013 $5B $4B $3B $2B $1B 19% 11% 20% 20% $5 Billion Goal Annual Revenue 2014 2015 2016 2017 2018 2019 2020 International & Channel Expansion Multiple Growth Levers Continued Investment in S&M and R&D Media Volumes Execution with Emerging Businesses Continued Traction in Performance & Security Strategic M&A 25% Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.
  163. 163. ©2015 AKAMAI | FASTER FORWARDTM 2010 2011 2012 2013 $5B $4B $3B $2B $1B 19% 11% 20% 20% $5 Billion Goal Annual Revenue 2014 2015 2016 2017 2018 2019 2020 International & Channel Expansion Multiple Growth Levers Continued Investment in S&M and R&D Media Volumes Execution with Emerging Businesses Continued Traction in Performance & Security Strategic M&A 25% Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.
  164. 164. ©2015 AKAMAI | FASTER FORWARDTM Akamai Financial Model: A Blend of Businesses at Differing Levels of Maturity & Scale Expressed as a percentage of revenue, except for Non-GAAP Tax Rate, which is expressed as a percentage of non-GAAP pre-tax income. Refer to the Appendix for definitions of our non-GAAP metrics. Company Model Cash Gross Margin Cash Opex Adj. EBITDA Capex Operational FCF Non-GAAP Tax Rate 77 – 79% 36 – 37% 40 – 43% 16 – 18% 22 – 27% 29 – 32%
  165. 165. ©2015 AKAMAI | FASTER FORWARDTM SUMMARY Akamai is poised to capitalize on significant megatrends The fundamentals of the business remain strong Established and Emerging solutions have demonstrated traction Current/planned investments focused on growth & scale Continuing the strategy outlined in 2013/2014
  166. 166. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. THANK YOU!
  167. 167. ©2015 AKAMAI | FASTER FORWARDTM Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. QUESTIONS? Please raise your hand & wait for microphone
  168. 168. ©2015 AKAMAI | FASTER FORWARDTM 168 LUNCH WiFi Name: Hyatt Meeting
  169. 169. Investor Relations Summit Tuesday, February 24, 2015 WiFi Name: Hyatt Meeting
  170. 170. Reconciliation of Non-GAAP Metrics and Definitions
  171. 171. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. •  Adjusted EBITDA – GAAP net income excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; restructuring charges; acquisition-related costs; certain gains and losses on investments; benefit from adoption of software development activities, gains and other activity related to divestiture of a business; foreign exchange gains and losses; loss on early extinguishment of debt, amortization of debt discount and issuance costs; amortization of capitalized interest expense; gains and losses on legal settlements and other non-recurring or unusual items that may arise from time to time. •  Adjusted EBITDA margin – Adjusted EBITDA stated as a percentage of revenue. •  Capital expenditures – Purchases of property and equipment, capitalization of internal-use software development costs, capitalization of stock-based compensation and capitalization of interest expense. •  Cash cost of revenue – GAAP cost of revenue, excluding stock-based compensation and depreciation and amortization. •  Cash operating expenses – GAAP operating expenses (consisting of research and development, sales and marketing, general and administrative, amortization of acquired intangible assets and restructuring charges), excluding stock-based compensation, amortization of acquired intangible assets, depreciation and amortization, restructuring charges, acquisition-related costs, legal settlements, benefit from adoption of software development activities and gains from other activity related to divestiture of a business. •  Free cash flow – Cash flows from operations less purchases of property and equipment and capitalization of internal-use software development costs included in the statement of cash flows. •  Cash gross margin – Revenue less cash cost of revenue. •  Cash gross profit – Revenue less GAAP cost of revenue, excluding stock-based compensation and depreciation and amortization, as a percentage of revenue. cash cost of revenue. •  Cash operating expenses – GAAP operating expenses (consisting of research and development, sales and marketing, general and administrative, amortization of acquired intangible assets, depreciation and amortization, and restructuring charges), excluding stock-based compensation, amortization of acquired intangible assets, depreciation and amortization, restructuring charges, acquisition-related costs, legal settlements, benefit from adoption of software development activities and gains and other activity related to divestiture of a business. •  Gross R&D – GAAP research and development expenses, plus salaries and payroll-related costs (excluding stock-based compensation) of research and development employees and consultants who devote time to the development of internal-use software projects and whose costs have been capitalized during the period. •  Impact of Foreign Currency Exchange Rates on Revenue – Revenue from international operations has historically been an important contributor to Akamai’s total revenue. Consequently, Akamai’s revenue results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of Akamai’s foreign subsidiaries weaken, consolidated results stated in U.S. dollars are negatively impacted. Because exchange rates are an meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchanges rates on revenue enhances the understanding of revenue results and evaluation of its performance in comparison to prior periods. The information presented is calculated by translating current period results using the same average foreign currency exchange rates per month from the comparative period. •  Non-GAAP Tax Rate – GAAP tax rate excluding the tax effect of non-GAAP adjustments and certain discrete tax items. •  Operational free cash flow – Adjusted EBITDA less capital expenditures, excluding stock-based compensation. •  Revenue, adjusted for ADS divestiture – Revenue excluding the impact of Akamai's Advertising Decision Solutions (ADS) divestiture. Definitions of Non-GAAP Financial Measures For a full list and definitions of all our non-GAAP measures, refer to the Investor Relations section of our website.
  172. 172. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Net income $201 $204 $293 $334 Interest income (11) (6) (6) (8) Provision for income taxes 106 118 126 146 Depreciation and amortization 144 176 155 205 Amortization of capitalized stock-based compensation 7 8 8 10 Amortization of capitalized interest — — — — Amortization of acquired intangible assets 17 21 22 32 Stock-based compensation 61 91 96 112 Restructuring charges 5 0 2 1 Acquisition-related costs 1 6 2 5 Gain from divestiture of a business — — (1) — Legal settlements (8) — — — Benefit from adoption of software development activities — — — (3) Loss on investments 1 — — — Amortization of debt discount and issuance costs 5 5 — 15 Other expense (income), net 2 (1) — 2 Adjusted EBITDA $525 $615 $697 $853 Adjusted EBITDA margin 45% 45% 44% 43% Adjusted EBITDA ($MM) Amounts may not add due to rounding. 2011 2012 2013 2014 Reconciliation of GAAP to Non-GAAP Metrics
  173. 173. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Cash costs of revenue ($MM) GAAP cost of revenue $454 $530 $511 $611 Less: Stock-based compensation 10 11 11 12 Depreciation and amortization 134 163 136 175 Cash cost of revenue $310 $355 $364 $424 Revenue $1,159 $1,374 $1,578 $1,964 Less: Cash cost of revenue 310 355 364 424 Cash gross profit $848 $1,019 $1,214 $1,540 Cash gross margin 73.2% 74.1% 76.9% 78.4% Cash gross profit ($MM) Amounts may not add due to rounding. Reconciliation of GAAP to Non-GAAP Metrics 2011 2012 2013 2014 2011 2012 2013 2014
  174. 174. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Revenue adjusted for ADS divestiture ($MM) Revenue $1,159 $1,374 $1,578 $1,964 Less: ADS revenue (43) (44) (3) — Revenue adjusted for ADS divestiture $1,116 $1,330 $1,575 $1,964 Amounts may not add due to rounding. Free Cash Flow ($MM) Cash provided by operating activities $446 $530 $564 $658 Less: Purchases of property and equipment 133 167 188 207 Capitalization of internal-use software development costs 43 54 72 111 Free cash flow $270 $309 $304 $339 Reconciliation of GAAP to Non-GAAP Metrics 2011 2012 2013 2014 2011 2012 2013 2014
  175. 175. ©2015 AKAMAI | FASTER FORWARDTM Avoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. Cash operating expenses ($MM) GAAP Operating Expense $414 $530 $653 $863 Less: Stock-based compensation (52) (79) (85) (100) Amortization of acquired intangible assets (17) (21) (22) (32) Depreciation and amortization (17) (20) (27) (40) Restructuring charges (5) (0) (2) (1) Acquisition related costs (1) (6) (2) (5) Gain from divestiture of a business — — 1 — Legal settlement — — — — Benefit from adoption of software development activities — — — 3 Cash operating expense $323 $403 $517 $688 Percent of revenue 27.9% 29.3% 32.8% 35.0% Amounts may not add due to rounding. Reconciliation of GAAP to Non-GAAP Metrics 2011 2012 2013 2014
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2015 Investor Summit presentation

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