Akamai Technologies, Inc. (NASDAQ:AKAM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 04:30 pm ET


Akamai Technologies, Inc. (NASDAQ:AKAM) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Akamai Technologies Q2 2020 Earnings Conference Call. Please be advised today's conference call is being recorded.

I would now like to turn the conference over to your host Mr. Tom Barth, Head of Investor Relations. Sir, you may begin.

Tom Barth

Thank you, operator. Good afternoon, everyone, and thank you for joining Akamai's second quarter 2020 earnings conference call. Speaking today will be Tom Leighton, Akamai's Chief Executive Officer; and Ed McGowan, Akamai's Chief Financial Officer.

Before we get started, please note that today's comments include forward-looking statements including statements regarding revenue and earnings guidance. These forward-looking statements are subject to risks and uncertainties and involve a number of factors that could cause actual results differ materially from those expressed or implied by such statements. The factors include uncertainty stemming from COVID-19 pandemic and any impact on unexpected geopolitical developments.

Additional information concerning these factors is contained in Akamai's filings with the SEC, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements included in this call represent the company's view on July 28, 2020. Akamai disclaims any obligation to update these statements to reflect future events or circumstances. As a reminder, we will be referring to some non-GAAP financial metrics during today's call. A detailed reconciliation of GAAP and non-GAAP metrics can be found under the financial portion of the Investor Relations section of akamai.com.

With that, let me turn the call over to Tom.

Tom Leighton

Thanks, Tom, and thank you all for joining us today. I'm pleased to report that Akamai achieved excellent results in the second quarter. Revenue was $795 million, up 13% year-over-year and up 14% in constant currency. Non-GAAP operating margin was 32%, up 3 points over Q2 of last year. And non-GAAP EPS was $1.38 per diluted share, up 29% year-over-year and up 30% in constant currency.

These very strong results were driven by a continuation of the high traffic levels we've seen since the onset of the pandemic, very strong demand for our Cloud Security Solutions and by our ongoing focus on operational efficiency. Akamai was founded with the vision of enabling the internet to scale, so that it could support millions of enterprises and billions of people everywhere.

Our mission has been to make all digital experiences be fast, reliable, and secure, a mission that is especially important now amid a devastating pandemic. In our 22-year history as a company, there's never been a time when Akamai's importance and value to daily life has been more evident. Due to the incredible work of our highly talented employees, we believe that Akamai has become an indispensable part of the internet, supporting remote work, home entertainment, the learning online banking, home deliveries, logistics, security systems, and commercial transactions of all kinds, for billions of people around the world as they cope with a pandemic.

The Akamai Intelligent Edge Platform has grown to include over 300,000 servers in over 4,000 locations