AKAM Valuation - AKAM network architecture is and advantage...

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AKAM 75000 servers in 70 countries with 3400 customers 72% revs in US 2011 1.62 2012 1.9 57 % of Revs Growth 43% 18% volume delivery - speed up through network - growing 40% a year, but pricing down 20% a year Commerce 20% 22% value added services - ecommerce site acceleration, site monitoring, advertising, and security - revs based on page views - slower growth but pricing power High Tech 19% 9% Enterprise 12% 19% Public 6% Pure play on Internet traffic growth (est 34% CAGR from 09 to 14 with video at 53%) Benefits from growth in cloud computing in enterprise with spending exp to grow 21% CAGR through 2013 Mkt share leader in CDN space with 68% share, 7x nearest competition
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Unformatted text preview: AKAM network architecture is and advantage - doesnt use big data centers that use much bandwithLVLT won business from Netflix that they may now lose money on bc of Comcast pricing Service & Trustworthiness is an advantage Most stable balance sheet and cash flow in the space allows pricing power EV/Ebitda of 16x20% exp growth in EBITDA Mgd hosting at 10x and softwar with sim growth at 20x Weakness since analyst day (no updated guidance) weighing on shares as well as Nflx concern - not material...
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