Akamai Technologies, Inc. · NASDAQ:AKAM
Akamai Technologies — Q4 2021 Earnings Presentation
30 slides from Akamai Technologies's earnings presentation, Feb 15, 2022
Slide 1: Q4 and FY 2021 Earnings Call & Acquisition of Linode
Q4 and FY 2021 Earnings Call & Acquisition of Linode 1
Slide 2: Agenda
Agenda: Q4 and FY 2021 Highlights & Akamai’s Future with Linode Dr. Tom Leighton, CEO & Co-Founder Cloud and Edge Computing Adam Karon, COO & GM, Edge Technology Group Transaction Specifics, Q4 and FY 2021 Results & 2022 Guidance Ed McGowan, EVP & CFO Q&A All Speakers 2
Slide 3: Safe Harbor
Safe Harbor This presentation and related materials contain information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including st
Slide 4: Q4 and FY 2021 Highlights & Akamai's Future with Linode
Q4 and FY 2021 Highlights & Akamai’s Future with Linode Dr. Tom Leighton CEO and Co-Founder 4
Slide 5: Q4 and FY21 Financial Results
Q4 and FY21 Financial Results ($ in M, except earnings per share) Q4 2021 FY 2021 Revenue $905 $3,461 y/y growth +7% (+8% cc) +8% (+7% cc) Security Revenue $365 $1,335 y/y growth +23% (+25% cc) +26% (+25 cc) CDN Revenue $541 $2,126 y/y growth -2% (-1% cc) 0% (-1 cc) Non-GAAP Operating Margin 31% 32%
Slide 6: Our Mission
Our Mission We power and protect life online. Our Purpose We make life better for billions of people, billions of times a day. 6
Slide 7: Akamai has a rich history
20+ Akamai has a rich history YEARS of market-changing innovation Content Streaming Application Security Delivery Video Acceleration Cloud and Edge Computing 7
Slide 8: The cloud company that powers and protects life online
+ The cloud company that powers and protects life online The world’s most distributed compute platform – from cloud to edge – making it easier for developers and businesses to build, run, and secure applications 8
Slide 9: A Transformational Opportunity
A Transformational Opportunity What we showed at our 2021 IR Day 9
Slide 10: Akamai Tomorrow
Akamai Tomorrow The world’s most distributed cloud services provider, with leading solutions for: Security Delivery Compute 10
Slide 11: Cloud and Edge Computing
Cloud and Edge Computing Adam Karon COO and GM, Edge Technology Group 11
Slide 12: Akamai Tomorrow
Akamai Tomorrow The world’s most distributed cloud services provider, with leading solutions for: Security Delivery Compute 12
Slide 13: Linode Product Portfolio
Linode Product Portfolio Compute & Storage with a Leading Developer Experience Cloud Compute Storage Orchestration Dev Tools Shared CPU Block Storage DNS CLI Dedicated CPU Object Storage Load Balancing API High Memory Beta: Managed VLAN Terraform Database Bare Metal Ansible GPU Marketplace Kubernete
Slide 14: Akamai's Future Compute Portfolio
Akamai’s Future Compute Portfolio with Linode products Cloud Developer Edge Compute Storage Optimization Tools Applications Akamai’s compute products will be sold via Linode’s traditional “cloud models” and via Akamai’s globally located enterprise salesforce and robust channel ecosystem 14
Slide 15: Akamai and Linode: The world's most distributed compute platform
Akamai and Linode: The world’s most distributed compute platform – from cloud to edge – making it easier for developers and businesses to build, run, and secure applications. © 2021 Akamai | Confidential © 2021 Akamai 15
Slide 16: Potential Use Cases
Potential Use Cases Sports IoT E-Commerce Metaverse Health Care Application Watch Along App Fleet Management Dynamic Persistent virtual Video Processing using WebRTC Personalization experience Key Distributed VMs MQTT Managed DB Distributed GPU Bare Metal Capabilities Load Balancing Distributed VM K
Slide 17: Market Positioning
Market Positioning We plan to combine Linode’s ease of use and developer-friendliness with Akamai’s market-leading scale, performance, and security We expect this combined offering to: ● Appeal to developers by offering the core cloud compute functionality, ease of use, and tools they need ● Appeal
Slide 18: Akamai & Linode: Why We Can Win
Akamai & Linode: Why We Can Win Highly secure, elastic compute with storage capabilities on the world’s largest edge network Category leading security Edge computing platform for latency sensitive workloads Akamai’s global private network Global enterprise salesforce Robust channel ecosystem 18
Slide 19: Q4 and FY 2021 Results, Linode Transaction Specifics, & 2022 Guidance
Q4 and FY 2021 Results, Linode Transaction Specifics, & 2022 Guidance Ed McGowan EVP and CFO 19
Slide 20: Q4 and FY21 Financial Results
Q4 and FY21 Financial Results Revenue $ in M, except earnings per share Guardicore: Q4 revenue of $10M, ahead of plan given two large deals Q4 2021 FY 2021 Edge Applications: >$200M annual Revenue Growth +7% +8% revenue run-rate,grew 30% y/y in ‘21 +8% cc +7% cc International: revenue +13% y/y in Ca
Slide 21: Linode Transaction Specifics
Linode Transaction Specifics Treated as asset purchase PURCHASE PRICE: for tax purposes ~$900M Expected to generate cash consideration annual cash tax savings with a net present value (NPV) Expected to close in late Q1 2022, subject to regulatory approvals of approximately $120M No expected impact o
Slide 22: Transaction Has an Attractive Financial Profile
Transaction Has an Attractive Financial Profile Profitable Business Expected to be: - Accretive to Akamai in 2022 (~$0.05-$0.06 of non-GAAP EPS) - Immaterial impact to 2022 non-GAAP operating margin We Expect Akamai Can Bring Significant Revenue and Cost Synergies by: - Leveraging Go-to-Market and M
Slide 23: Anticipated Future Revenue Reporting
Anticipated Future Revenue Reporting (upon transaction close) Security Delivery Compute No change to Existing ETG Linode STG business business minus + Edge Apps Edge Apps and + Net Storage Net Storage 23
Slide 24: Guidance Factors
Guidance Factors Linode NOT included in guidance until transaction closes Expect Q1 revenue Multiple top significant FX and expense customer headwinds seasonality renewals in H1 24
Slide 25: Q1 2022 Guidance (excludes proposed acquisition of Linode)
Q1 2022 Guidance (excludes proposed acquisition of Linode) Revenue $896 – 910M +6-8%, +8-10% cc Cash Gross Margin 76% Adjusted EBITDA Margin 43% Non-GAAP Operating Margin 30% Non-GAAP EPS $1.39 – 1.43 +1-3%, +2-8% cc Capex $120-124M ~14% of Revenue cc refers to constant currency. Margin numbers are
Slide 26: FY 2022 Guidance (excludes proposed acquisition of Linode)
FY 2022 Guidance (excludes proposed acquisition of Linode) Revenue $3.673 – 3.728B +6-8%, +7-9% cc Security Growth 20% Non-GAAP Operating Margin 29 – 30% Non-GAAP EPS $5.82 – 5.97 Capex 14% of Revenue cc refers to constant currency. Margin numbers are expressed as a percentage of revenue. Refer to t
Slide 27: In Summary
In Summary Dr. Tom Leighton CEO and Co-Founder 27
Slide 28: Our future is bright
Our future is bright Security Delivery Compute The cloud company that powers and protects life online 28
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