This summary is based on the first earnings call conducted by Akamai Technologies Inc. (AKAM: chart) on April 25, 2007.

Management:

- President and Chief Executive Officer: Paul Sagan
- Chief Financial Officer: J.D. Sherman
- Investor Relations: S. Smith

Key Investors Issues

- Net income rose 40% to $19.2 million or 11 cents a share from $11.5 million or 7 cents a share in the prior year.
- Revenue was up 53% to $139 million.
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First Quarter Highlights

Revenue grew 53% to $139,3 million from $90.8 million in the prior year as media and entertainment led the way with expanding demand from both large established media brands and growing innovative user-generated content customers.

- International sales represented 22% of total revenue, as the revenue added from the Nine Systems and Netli acquisitions was primarily domestic.
- Resellers represented 20% of total revenue, up a point from the prior quarter and the firm added 89 net new customers on an organic basis.
- Netli brought an additional 45 net new customers, bringing the total customer count to 2,481.
- ARPU or average revenue per customer grew to $19,100, excluding any impact from Netli, which are expected to dampen near term ARPU growth, but over the long-term the new customers and the new service offerings added from Nine Systems and Netli will help expand revenue opportunities.

Net income was $19.2 million or 11 cents a share from $11.5 million or 7 cents a share in the prior year, including noncash charges for stock compensation related to FAS 123R and book tax charges.

- Operating expenses were $77.6 million, up from $54 million in the prior year including depreciation, amortization of intangible assets and stock-based compensation charges and some normal seasonal impacts such as the annual sales training summit, the reset of payroll taxes and the impact of acquisitions.
- The firm ended the period with $480 million of cash, cash equivalents and marketable securities, up from $434.5 million at the end of the prior quarter.
- Capital expenditures, excluding stock-based compensation, totaled $31.5 million, reflecting the pattern of front-loading purchasing early in the year to take advantage of volume buying opportunities.

Strategic Insights:

- The market is increasingly dynamic and customer needs are evolving rapidly to keep up with changing business requirements.
- Key areas being focused on for long-term product leadership include meeting the growing need of media companies to manage, monetize and deliver their digital assets in the fast-moving online entertainment market.
- It also entails helping to accelerate the migration of performance sensitive business-to-business applications to the Internet and realizing opportunities to continue to improve the cost and effectiveness of delivery capabilities by extending the massive edge server deployment.
- This deployment already extends into about 1,000 partner networks and several thousand physical locations.

CBS’ recent Interactive Audience Network announcement is instructive and this multi-partner initiative will require a robust set of controls to capture the explosion opportunities to deliver content online to users.

- The firm has been selected as the delivery platform, partly because of the leading content delivery capabilities combined with some of the new media asset management functionality.
- With the integration of the Nine Systems technology, the firm plans to continue to develop capabilities and offer more of the functionality and tools the market will require over the next few years.
- The acquisition of Netli addresses the movement of customers’ key applications online and progress being made to incorporate Netli’s protocol for application performance optimization into the network will further enhance the company’s differentiated offerings.

By applying Red Swoosh, the firm can extend industry leading delivery capabilities and further enable content work to pursue innovative and profitable online business models.

- The firm has made significant investment over many years to develop an intelligent controls overlay edge network that offers enterprises superior reliability, performance and scalability over the public Internet.
- The highly distributed architecture that enhances content distribution and application performance has significant advantages for customers over other solutions.

Second Quarter Outllook:

- Revenue is expected to be in the range of $149 million to $153 million, representing 8% quarter-over-quarter.
- Given the short-term costs associated with integrating the three acquisitions, earnings per share are expected in the range of 29 cents to 30 cents.

Fiscal 2007 Outlook:

- Revenue is expected to grow by between 42% and 46% or between $610 million and $625 million, consistent with previous guidance.
- Earnings per share are anticipated to be between $1.26 to $1.30.
- Gross margins will decline by about three points driven in part by volume discounts and increased depreciation, though this will be offset by continued operating efficiencies and scalability.