akamai 2016 investor relations summit presentation

©2016 AKAMAI | FASTER FORWARDTM 1

Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Welcome

Tom BarthHead of Investor Relations


AGENDAThe Future of the Internet

The Akamai Platform

Break

General Manager Intro

Web

Media

Break

Financial Update

Q&A

Lunch

Dr. Tom Leighton: CEO & Co-Founder

Dr. Robert Blumofe: EVP, Platform

Dr. Tom Leighton: CEO & Co-Founder

Rick McConnell: President & GM, Web

Bill Wheaton: EVP & GM, Media

Jim Benson: EVP & CFO

©2016 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 March 7, 2016 and should not be relied upon as representing our viewsas 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


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.

The Future of the Internet Starts HereDr. Tom LeightonCEO & Co-Founder



OUR EXPECTATIONS ARE

ENORMOUS



Akamai’s goal is to make the Internet be fast, reliable and secure.



Media: Delivering broadcast-quality, at scale, over IP

Performance: Accelerating your online business

Security: Defending against attacks

Enterprise: Scaling and securing your enterprise network


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.MEDIA

MEDIA

PERFORMANCE

SECURITY

ENTERPRISE


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.34 Tbps

X 10

340 Tbps

BY 2020

Peak traffic on the Akamai platform could grow 10X60% CAGR



60M Viewers X 10 Mbps

600 Tbps

BY 2020

1,000,000 minutes of online video will be consumed every single second

— Cisco


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.700M Viewers

X 10 Mbps

7,000 Tbps

BY 2020

More people will be watching video online than on TV

TDG RESEARCH



34 TbpsX 10

340 Tbps

AKAMAI CAGR MODEL

Our Future Bandwidth Needs Are Enormous

60M ViewersX 10 Mbps

600 Tbps

CISCOMODEL

700M ViewersX 10 Mbps

7,000 Tbps

INTERNET OVERTAKES TV

(2020)(2019)(2020)

2.5B ViewersX 10 Mbps

25,000 Tbps

TOM’SMODEL(SOMEDAY)



The Scalability Challenge



The Last Mile Has Enormous Capacity

400M Lines

10,000 TbpsX 25 Mbps



The Problem is at the Core Cloud Data Centers

100 Major Networks

500 TbpsX 5 Tbps



The Problem is at the Core Cloud Data Centers

500 Tbps

25,000 Tbps

2% of what we need!

=



Akamai ServersThe Akamai Approach: A Massively Distributed Platform



Akamai Servers

The Akamai Approach: A Massively Distributed Platform



Akamai ServersThe Future:Extending the Platform to every home, office, and device


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.AND IT’S OTT

THE FUTURE IS HERE



Additional Challenges for OTTIngress, Egress, Transcoding, Distribution, Rights Management, Ad Insertion, Resiliency, Scale, Multi-Device Playback, Analytics, etc.



ON PREMISE

AKAMAI BROADCAST OPERATIONS CENTER

LIVE CONTENT

Akamai OTT Delivery PlatformAKAMAI CLIENT-ASSISTED DELIVERY (& MULTICAST)

AKAMAI ENTRY POINT

AKAMAI THROUGHPUTOPTIMIZATION

AKAMAI TRANSCODING AND DRM

AKAMAI NETSTORAGE

= BEACON

STANDARDENCODER

AKAMAI BROADCASTSOFTWARE

STREAM REPLICATION TO AKAMAI EDGE PLATFORM

AKAMAI OPTIMIZED DELIVERY & SERVER SIDE AD INSERTION

AKAMAI CLIENT SOFTWARE



PERFORMANCE

MEDIA

PERFORMANCE

SECURITY

ENTERPRISE



Web Pages Are Slowing Down!

Typical Page Size (Kilobytes)Typical # of ObjectsMobile RequestsAvg. Page Load Time (Sec.)

1,97412850%11.8

1,62211434%10.7

20152014

1,08110123%7.2

2013

Source: httparchive.org, Akamai



Consumers Are Losing Patience

49%Expect <2 second page load times

30%Expect <1 second page load times

18%Expect instantpage load times!

Source: Akamai



Performance Matters!

Every 100ms saved leads to a 1% increase in revenue

Making your site faster can improve your search ranking



AKAMAI ION OFFERS THE FASTESTWEB EXPERIENCE

Especially for Mobile



Ion FeaturesSimple Front-End Optimization*Advanced Image Compression*EdgeStart & Edge CSS*Mobile Detect and Redirect*Device Characteristics*SHUTR*

Content TargetingReal User MonitoringResource Domain ShardingAdvanced Offload

Advanced Front-End Optimization*Advanced Cellular Optimizations*Critical CSS*Enhanced Large File DownloadsPage & Resource PrefetchingOrigin Health Reporting

Fast DNSImage PlaceholdersDNS Prefetching

*Focused on Mobile



Case Study: Leading Sporting Retailer (Mobile)

$489KMonthly

Revenue Increase

20%Improvement

in Conversion Rate



Mobile vs. Cellular

30%of mobile

traffic is across cellular networks

2.4%of desktop

traffic is cellular

Transport-basedDevice-based



Case Study: Major North American Retailer (Over Cellular)GOOD EXPERIENCE BAD EXPERIENCE

RESPONSE IN SECONDS AKAMAI ION ORIGIN

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5

% OF USERS

18

16

14

12

10

8

6

4

2

0

AVERAGE PERFORMANCE IMPROVEMENT68% 28X more

users under 2 seconds

24X fewer users over 3 seconds


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.SECURITY

MEDIA

PERFORMANCE

SECURITY

ENTERPRISE



EVERYTHING DEPENDS ON THE WEB…BankingGovernmentDefenseEducationAutomotiveRetailBusiness

HealthcareMediaInsuranceManufacturingGamingSocial MediaCommunications



…CREATING A PERFECT STORMBankingGovernmentDefenseEducationAutomotiveRetailBusiness

HealthcareMediaInsuranceManufacturingGamingSocial MediaCommunications


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Growing over 25% every year

ANNUAL COST OF CYBER ATTACKS$575B

Source: Politico



CYBER CRIMEPOLITICALHACKTIVISMGLORY HOUNDS

WHY?STATE-

SPONSORED



PHISHING REFLECTION ATTACK

HOW?VULNERABILITIES



Major Attacks on Akamai Customers

Typical Attack Size10s of Gbps

Attacks are originating from all geographies and are moving

between geographies during the attack

Large Attack Size100s of Gbps

Number of DDoSAttacks PROTECTED

2010 2011 2012 2013 2014

9911317

20022936

4316

0

2000

4000

10694

6000

8000

10000

12000

2015



Traditional Solutions Are Insufficient

Sufficient Capacity

Packet Inspection

Proactive vs. Reactive

Maintain Performance

Data Center Level Defense

Data Center Devices

Carrier Filtering



+

The Akamai Solution

(Cloud) Data Centers

End User

1

10

100

10000

Origin Traffic

1000

Akamai Traffic

1

10

100

10000

1000 COVERED

– Kona Site Defender + PROLEXIC



Analyze bot activity across Akamai’s platform

Real-time identification of bots by type

Policy enforcement on the Akamai edge based on bot type and your business needs

Bot ManagerJUST RELEASED



search engine bots, SEO bots, ad bots

performance bots,vulnerability scanner bots

partner bots

aggregator bots, media bots

hacker botsgray marketer bots

scraper botsspam bots

The Bot LandscapeGood Bad

respond fast

prioritize services you use

deprioritize & monitor

deprioritizeserve alternate content

block slow them down

block



Making the internet fast, reliable and securefor the user



THE GOAL

Protecting the user from undesirable content

GAMBLING

PHISHING

MALWARE

PORNOGRAPHY

DRUGS & ALCOHOL

WEAPONS & VIOLENCE

CYBER BULLYING



liquor.com

How It Works

Akamai RecursiveDNS Server

CSI

Adult Content

Akamai Recursive DNS Server

Approved

liquor.com



akarnai.com

How It Works

CSI

Akamai Recursive DNS Server

Malware



Available as a product today: AnswerXServing billions of queries per day for 50 million

subscribers across 22 carriers globally



Akamai Enterprise Security ServicesGOING FORWARD

ALL POWERED BY AKAMAI SECURITY INTELLIGENCE

• Enterprise Threat Protection (later this year)• Recursive DNS (later this year)• Secure Web Gateway (early 2017)



STATEOFTHEINTERNET.COM

Learn more and download the latest security report


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.ENTERPRISE

MEDIA

PERFORMANCE

SECURITY

ENTERPRISE



LONGDISTANCEBetween branch and web applications

Internet

WAN(MPLS/VPN)

“The Trombone Effect” for MPLS & VPN Branches

Remote Branch

Cloud Provider

Branch Networks are SLOW

3rd Party Web Sites

EnterpriseData Center



10-100Xincrease in capacity neededVideo, 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


Remote Branch

Cloud Provider3rd Party

Web Sites



Long distance and limited bandwidthThe latencies and congestion are even worsefor employees connecting through mobile devices!

Employees are Often REMOTE

Internet

WAN(MPLS/VPN)

Remote Branch


Web Sites

Remote Employee




Akamai is Moving into the Enterprise

AkamaiFunctionality:

And everything else the Akamai Intelligent Platform™ does!

• Deduplication• Local Caching• Prepositioning of Content• Intelligent Routing• App Acceleration

WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee




WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee

• Akamai optimizes bandwidth & speeds up applications in the cloud




WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee


• Akamai optimizes bandwidth & speeds up applications on the enterprise WAN




WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee



• Akamai offloads the WAN for bandwidth-intensive applications




WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee

Traffic Prioritization (QoS)




• Akamai adds quality of service to the enterprise cloud network




WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee

Security





• Akamai provides security for the enterprise cloud network





WAN(MPLS/VPN)


Remote Branch


Web Sites

Remote Employee





• Akamai provides security for the enterprise cloud network

• Akamai accelerates applications for the remote user

Security




Our Expectations Are

ENORMOUS…

SPEED • QUALITY • RELIABILITY • SCALE • SECURITY • AGILITY • AFFORDABILITY

…But Achievable



The AkamaiPlatformDr. Robert BlumofeEVP, Platform Division



Media: Delivering broadcast-quality, at scale, over IP

Performance: Accelerating your online business

Security: Defending against attacks

Enterprise: Scaling and securing your enterprise network



Traditional Delivery

Data center

Transit Network

ISP

ISP

ISP1 or more data centersConnect to 1 or more transit providersConnect directly or indirectly to a myriad of ISPs

Home

Mobile

Enterprise



ISP

Problems with Traditional Delivery

Data center

$$

Bad for application ownersBad for usersBad for ISPs

Transit Network X

$$$$

Home

Enterprise

Mobile

ISP

ISP



Data center

The Akamai Way

Transit Network

ISP

ISP

ISP

Bypass middle mile

Directly deployed in a myriad of ISPs

Home

Enterprise

Mobile



ISP

Solving Problems the Akamai Way

Good for application ownersGood for usersGood for ISPs

Transit Network

$$

Data center Home

Enterprise

Mobile

ISP

ISP



ISP

Data center

Transit Network

Home

Mobile

Enterprise

Solving Problems the Akamai Way

ISP

ISP



Traffic Servers

Ports

Racks

Energy

ServerCapEx

ColoCOGS

EnergyCOGS

BandwidthCOGS

Drivers of Cost



Every line is an OPPORTUNITYfor optimization.



ServerCapEx

ColoCOGS

EnergyCOGS

BandwidthCOGS

Traffic Servers

Ports

Racks

Energy

Opportunities for Optimization

Colo migration

Metered power buying

ServerCapEx

ColoCOGS

EnergyCOGS

BandwidthCOGS

Servers

Ports

Racks

Energy

Vendor management

ISP partnerships

Port optimization

Deployment optimization

Power optimization

Hardware and software optimization

ISP partnerships



ISP Relationships

CustomerSelling

Recursive DNS, Licensed and

Managed CDNs

Channel10% of Total

2015 Revenue

VendorBuying Bandwidth

and Colocation

Technology Partner

Working together to optimize

delivery



ISP Peering Cities

Los Angeles

Dallas

New York

Washington D.C

Chicago

San Jose



ISP Market Cities

Los Angeles

Dallas

New York

Boston

Philadelphia

Washington D.CPittsburgh

DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle

San FranciscoSan Jose

Sacramento

Portland

El Paso

Las Vegas



ISP Backbone

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas



Real Example ISP Backbone



Traditional Delivery

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas

Traffic puts enormous load on ISP backbone• High cost• Low performance



Media Demand in a Metro

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas

2 million viewersX 10 Mbps

20 Tbps

Example: AtlantaLet’s do the math again



Traditional Delivery Over Backbone

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas

20 Tbps?NO

Traffic has to transit the ISP backbone• Not enough capacity• Too expensive



Akamai Delivery

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas

Traffic delivered locally does not transit the ISP backbone• More capacity• Less expensive



Akamai Delivery

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas



Akamai Delivery

Los Angeles

Dallas

New York

Boston

Philadelphia


DetroitChicago

Indianapolis

Nashville

Minneapolis

Houston

Atlanta

Jacksonville

West Palm Beach

Miami

Denver

Salt Lake City

SpokaneSeattle


Sacramento

Portland

El Paso

Las Vegas

Traffic delivered locally• Low cost• High performance



Global Platform with Enormous Scale

2014

1,300Networks

100Countries 90

1,2002013

2,700Locations 2,300

2015

1,450

120

3,100



Performance ImplicationsPercent of subscribers who cannot view high quality video (10 Mbps)

Large ISP 1 Large ISP 2 Large ISP 3

26%

40%

85%

9%19%

26%

6%16%

69%

Akamai Traditional Competitor DIY



Why is this soHard to Replicate?

• Deep network relationships• Hardware efficiency• Software innovation• Global request routing, failover, load balancing• Global system management• Multi-tenant, multi-product platform



A global platform with enormous scale

Opportunity for continued cost savings through optimization

Distributed architecture provides competitive advantage

Summary



General Manager IntroDr. Tom LeightonCEO & Co-Founder



Go-to-Market + Product & Development

Enterprise & Carrier

Services & Support

Web MediaWeb SecurityPerformance

MobileCloud NetworkingEnterprise Security

2016: Realigning to better focus on customers and growth drivers



Web

KEY PRODUCTS KEY VERTICALS

Make apps and sites instant on mobile devices, and secure all web transactions.

Acceleration & Delivery (Ion, DSA, DSD)

Security (Kona, Prolexic, Bot Manager)

Commerce

Travel

High Tech / SaaS

Financial Services

Public Sector



Grow market leadership for delivery of premium content through unparalleled quality, scale, reliability, cost.

Media


Video On Demand

Live & Linear OTT Video

Software Delivery

NetStorage

Media

Gaming / High Tech

Social Networking



Enterprise& CarrierEnable enterprise cloud networks to be fast, secure, scalable and affordable.


Cisco Akamai Connect

Aura Licensed and Managed CDN

AnswerX DNS

Cloud Connected Branch (2016)

Enterprise Threat Protection (2016)

Finance

Retail

Manufacturing

Healthcare

All of the Major Carriers



Bill WheatonRick McConnell

Up Next

EVP & GM of the Media Division

President & GM of the Web Division



WebRick McConnellPresident & GM



Main Drivers for Growth

Enterprise & Carrier

Services & Support

Web MediaWeb SecurityPerformance

MobileCloud NetworkingEnterprise Security

Realigning to better focus on customers & growth drivers



All NetworksCellular, Wi-Fi,

Wired Broadband

All DevicesMobile Devices

All Web TrafficWebsites, Native Mobile

Applications, APIs, Images

Providing instant and secure access to all apps and sites for users everywhere, on all devices


Performance Security

+


“More users will connect to the Internet over mobile devices than desktop PCs [by 2015] ”

— MARY MEEKER / MORGAN STANLEY/ 2010

Time Spent per US Adult User per Day With Digital

Media

2014 2015

4

3

2

1

0

Source: KPCB

5

Mobile

Desktop / Laptop

Other Connected Devices

0.3

2.4

2.62.8

2.4

0.4

Worldwide Trends: Mobile


“More users will connect to the Internet over mobile devices than desktop PCs [by 2015] ”

— MARY MEEKER / MORGAN STANLEY/ 2010

Time Spent per US Adult User per Day With Digital

Media

2014 2015

4

3

2

1

0

Source: KPCB

5

Mobile

Desktop / Laptop

Other Connected Devices

0.3

2.4

2.62.8

2.4

0.4

Number of SmartPhones

2014 2015 2016 2017

4.0

3.0

2.0

1.0

02018

5.0

2019Source: Cisco VNI Mobile, 2015

26% CAGR

1.3B

4.2B

Worldwide Trends: Mobile?


Worldwide Trends: Mobile

27% conversion rate improvement

by reducing mobile page load time

from 3 to 2 seconds

Slow pages are the #1 mobile web

user complaint, higher than site

crashes

Mobile API usage grows

76% Y/Y

©2016 AKAMAI | FASTER FORWARDTM 108Lifestyle & Shopping

Utilities &Productivity

MessagingSocial

Health &Fitness

TravelSportsNews &Magazines

News &Magazines

Games

Source: Flurry Analytics

174%

121%

103%89%89%

74%

49%

33%30%

Avg. Growth Rate 76%

Mobile app usage growing quickly


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.83%30%

Y/Y Increase in # of Images

Y/Y Growth in # of Websites Using HTTPS

20K+Devices to Support

Developers struggling with complexity



Ion PremierMaximum Performance

Ion StandardIndustry Leading Performance

DSADynamic Acceleration

Performance Driven

Price Driven

China CDNCloudletsImage Manager (2016)

Web Performance



Inside Sales & Resellers

Cloud Service Providers

Direct SalesGlobal Web

Companies

Mid Market

Small Organizations

Web go-to-market strategy



IonCloudletsImage Manager

Web Performance

Operational Simplicity• Image mgmt• Fast Purge• Self-service

Mobile PerformanceNear instant cellular performance

APIAcceleration• Scale requests• Mobile apps



• Ion Premier• Image Manager•Mobile SDK in the app (Future)

Responsive Website Accelerated by Akamai

FUTURE: Push Into the Browser

©2016 AKAMAI | FASTER FORWARDTM 114Source: Akamai

Y/Y Request Growth

86%API

API & Web Services Transactions on Akamai Network Everyday

2B12

69%HTML



Operational Simplicity: Ease of use & Self-serviceAkamai at the Speed of your Business

Self-service trials & configuration Image Manager / CloudletsFast PurgeLuna / OPEN Platform



Image Manager

• Leading online travel business

• Akamai Ion & Kona Site Defender

• Heavily reliant on images

CASE STUDY

40M+ Pristine Images

1.2B+ Derivative Images

25B+ Image Requests

~200 Countries w/ End Users

Automatic delivery of optimized images

Increase in revenue due to faster time to market

Decrease in image infrastructure costs


+

Performance Security



24%56%multi-vectored

DDoSattacks

Increase of web attacks during

holidays

149%Increase in total DDoS

attacks

1,000+ Kona and Prolexic Customers

Web security is getting worse



Kona Site DefenderProlexic RoutedClient ReputationBot Manager

Web Security

Security Operations Center

WebSecurity• Cloud-based DDoS• Web App. Firewall

Data Intelligence• Attackers• Bots (good & bad)



Kona Site Defender (Managed)Integrated DDoS & WAF, fully managed

Kona Site Defender (Self-Service)Integrated DDoS & WAF, self-service

Kona DDoS DefenderDDoS, some managed

Price Driven

Prolexic RoutedDDoS, fully managed multi-protocol

Client ReputationBot Manager

Web Security

©2016 AKAMAI | FASTER FORWARDTM 121AKAMAIOWASP

False negatives

False positives

3.81%

28.9%

.06%.94%

• Petabytes of attack data

• 20 TB new attack data added daily

• 80 million WAF triggers per hour

• 24/7 SOCC for over a decade

SEO Inventory grabbing

Price scrapingContent aggregation

Akamai’s unique data is a differentiatorPrevent revenue loss caused by Bot traffic

Better WAF protection



154925924811

Client Reputation

CASE STUDY

Detected by WAF

Detected by Client Reputation

US national retailer• Malicious IP addresses over 24 hour period • Analyze user

activity across Akamai’s platform

• Score bad clients based on past behavior

• Policy enforcement on the Akamai edge based on risk score & your business needs



SummaryLeverage combined leadership in Web Performance & Security

Driving instant and secure access for web & mobile traffic

Grow installed base revenue through new product adjacencies

Expand customer base through partner engagement


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Media

Bill WheatonEVP & GM


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Enterprise

& Carrier

Services & Support

MediaCloud NetworkingEnterprise Security

Realigning to better focus on customers & growth drivers

Main Drivers for Growth

WebWeb SecurityPerformance

Mobile



Provide our customers with a global, highly scalable platform for content ingestion and transformation, storage, and intelligent

delivery to any device cost effectively, securely and with the best experience possible.

Media Vision


Social Media &

Networking

Media Broadcast & Studio Content

Online Game & Software

Delivery

Media DivisionAkamai continues to drive internet growth

by focusing on the following verticals globally


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.23

of top 25

60% of the top grossing iOS & Android game

developers

49of top 100

7of top

15

98of top

200

64of top

200

56of top

200

Americas

EMEA

APJ Worldwide InfoTech CompaniesWorldwide

Worldwide

High Tech Companies

GamingCustomers

Social MediaCompanies

EntertainmentCustomers



Inside sales & resellers

Resellers & VAR partners

Direct sales deployed in 3 theatersTop

global media brands

Mid market brands

Transactional & remaining media brands

Media go-to-market strategy



Reasons whyMedia customers buy from Akamai

Quality

Scale

Reliability

Breadth of our solutions

Knowledge

Focus



• Audiences are abandoning traditional television

• Popularity in cord cutting

• Growth in mobile

• Opportunity for 4K

Broadcast/Studio

Changing market conditions

• Movement from brick & mortar

• Growth in number of consumers (millennials)

• Constant demand for patches & download content

Software/Games

• Billions of active users

• Growth in mobile users

• Growth in social video

SocialMedia

Active Internet Users: 3.4B

©2016 AKAMAI | FASTER FORWARDTM 132Alcatel-Lucent Bell Labs - “How the tablet generation is pushing networks to the edge”, 13th Dec. 2012

Shift in viewing consumption behaviorsFrom cable / broadband to web-based OTT & connected devices

PayTVVoD22%

PayTVLinear66%

OTT11%

OTT48%

PayTVLinear10%

Cloud11%

PayTVVoD29%

vConf 2%

20207 hrs

20124.5 hrs



Growing number of connected device options

36 MillionPlayStation 4 Total Sales

~10 MillionRokus Sold

25 MillionApple TVs Sold

in 2015



Streaming live events, linear TV & video on demand


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.AUDIENCE

IS GETTING BIGGER

PEOPLE ARE WATCHING LONGER

BITRATE PER USER IS GOING UP



2016 Super Bowl Success!

2.12012

2.32013

2.32014

2.52015

4 Million

37.42012

38.12013

47.82014

84.22015

101 Minutes

2.52014

3.52015

4.5 Mbps

1.52012

2.52013

Unique Viewers (millions)

Average Viewing Time (minutes)

Average Bitrate (Mbps)

2016 2016 2016



Tbps3.5Tbps.872012 Total Peak Traffic 2014 Total Peak Traffic

Quality, Scale & Reach



Projected Traffic

Tbps

2016: Estimated Total Peak Traffic/Event

-1310Tbps

2016: Estimated Total Peak Traffic/Event

-1815



Target Verticals

Broadcast/Virtual MVPDs

On-line Gaming

High Tech



Quality Securely @ Scale

200,000+ Servers1,450+ Networks

Delivering Global Traffic30+ Tbps40+ Million Hits/Second2+ Trillion Deliveries/Day100+ Petabytes/Day100 Million Page Views/SecondDaily Mobile Traffic Peaks: 1 Terabit100+ Billion API Request/Day

120+ Countries

“The quality of the CBS Sports streaming video was sharp, clear, and never had one second of dropout over a six hour period. In another room I had the game on my HD cable box with my local CBS station and to be honest the streaming video was actually better.”

Super Bowl 50 Streaming Video & Ratings Winner



Be Cost EffectiveInternet management experienceThe development and application of content delivery network (CDN) technology to stream broadcast-quality video over the Internet

Making investments/innovating• Client assisted delivery technology• Multicast capabilities• Protocol optimizations• Mobile initiatives

Moving workflow to the cloud• Services that get content early• Systems that transform the content• Optimized with delivery in mind



Sharing our expertise

16+ Years of Experience supporting & delivering premiere live events…

March Madness (10 years)Super Bowl (5 years)2012 Euro CupOlympicsThe MastersThe ElectionsRoyal Wedding2010 & 2014 World Cup

Over 1,500 people focused on media



BEST BOCC • BEST NOCC • BEST SOCC



ON PREMISE

Akamai Broadcast Operations Center

Akamai Client-assisted Delivery (& Multicast)

AKAMAI ENTRY POINT

AKAMAI THROUGHPUTOPTIMIZATION

AKAMAI TRANSCODING AND DRM

AKAMAI NETSTORAGE

= Beacon

AKAMAIBROADCASTER

STREAM REPLICATION TO AKAMAI EDGE PLATFORM

AKAMAI OPTIMIZED DELIVERY & SERVER SIDE AD INSERTION

AKAMAI CLIENT SOFTWARE

Akamai OTT Delivery Platform Support

LIVE CONTENT

VOD CONTENT



SummaryPremium CDN offering with leading market share

Globally distributed platform – difficult to replicate

Highly profitable business

New and growing OTT & cloud opportunities


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Financial Update

Jim BensonEVP & CFO


Outline

2015 Year in Review

Solution Category Review

Looking Forward



(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.

2013 2014 2015

($MM / % revenue)

OperationalFree Cash Flow

26%22%

28% $513$479

$439

2015: Another Year of Strong Operational Execution

2013 2014 2015

($MM / % revenue)

Adjusted EBITDA

43% 41%

44% $853 $897

$697

2013 2014 2015

($MM / Y/Y % growth1)

Revenue

25%16%

20% $1,964$2,197

$1,578



2015: Another Year of Strong Operational Execution

(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

2013 2014 2015

($MM / % revenue)

OperationalFree Cash Flow

26%22%

28% $513$479

$439

2013 2014 2015

($MM / % revenue)

Adjusted EBITDA

43% 41%

44% $853 $897

$697

2013 2014 2015


Revenue

25%16%

20% $1,964$2,197

$1,578

2013 2014 2015


Performance & Security

29%20%

20% $899

$1,050

$698

2013 2014 2015


Services & Support

26%20%

30% $147

$170

$117

2013 2014 2015


Media Delivery

21% 10%

17% $917$977

$761



Continued Strong Revenue Growth Across All SolutionsContinued Strong Revenue Growth Across All Theaters

2013 2014 2015



29%20%

20% $899

$1,050

$698

2013 2014 2015


Services & Support

26%20%

30% $147

$170

$117

2013 2014 2015


Media Delivery

21% 10%

17% $917$977

$761

2013 2014 2015


Revenue

25%16%

20% $1,964$2,197

$1,578

($MM / Y/Y% of growth1)

U.S. Revenue

2013 2014 2015

25%12%

19% $1,429$1,604

$1,142

($MM / Y/Y% of growth1)

International Revenue

2013 2014 2015

25%24%

21%

$307$334

$252

25% Y/Y APJ

24% Y/Y EMEA

$227$259

$181

(1)Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.


Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.OTHER TOP-LINE FUN FACTS

1 of 11 U.S. public Internet Software & Services companies to surpass $2B

Cloud security solutions now have an annual run-rate of $300M

418 customers spend over $1M

with Akamai annually

50% of the Fortune 500and 40% of the Fortune 1000

are customers



2011

73%

2012

74%

2013

77%

2014

78%

Cash Gross Margins($MM / % revenue)

2015

78%

Continued Strong Gross Margin Profile

Refer to the Appendix for definitions of our non-GAAP metrics and a reconciliation to the closest GAAP metric.

$848$1,019

$1,214

$1,540$1,704

Cost Optimizations Driven By:

• Software innovation• Hardware efficiency• Deep network relationships• Services productivity improvements



12.6% 12.8% 13.4%

15.3% 16.8% 17.6%

4.8% 5.4% 5.7%33% 35% 37%

2013 2014 2015

R&D S&M G&A

Operating Expenses

10.0%9.2%GROSS R&D 10.5%

Disciplined Investments to Drive Growth & Scale

5.0%

7.8%

4.9%

7.7%

Global Functions Infrastructure

4.9%

8.5%

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.

% of Revenue 2015 Investment Areas:

• Sales & GTM support• Engineering innovation• Network planning• Infrastructure scaling



Capital Expenditure Evolution

8.3% 8.0% 10.2%

4.8% 5.9%5.8%

3.3% 3.4%3.0%16% 17%19%

2013 2014 2015

% of Revenue

Facilities/IT/Other Capitalized Software Development Network

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.

OTT

2015 Capex Drivers:

• OTT build-out• Network headroom expansion• Capitalized software (innovation pipeline)• Infrastructure build-out

19%



2012 2013 2014 2015

$191

$304

$479

$311$339

$655

$319

$444

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



0

200

400

600

800

1000

1200

1400

1600

1800

2000

2012 – 2015Axis Title

$1,273

$1,770(139% of FCF)

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

Disciplined Capital Allocation:

• Ongoing share buyback• New $1B authorization 2/16

• Strategic M&A


Outline

2015 Year in Review


Looking Forward



2013 2014 2015



29%20%

20% $899

$1,050

$698

2013 2014 2015


Services & Support

26%20%

30% $147

$170

$117

2013 2014 2015


Media Delivery

21% 10%

17% $917$977

$761

Akamai Solution Portfolio Review

8%

44%48%

Services & SupportMedia DeliveryPerformance & Security

8%

44%48%

Services & SupportMedia DeliveryPerformance & Security


Web PerformanceCloud SecurityCustom GovernmentNetwork OperatorCloud Networking

Services & Support

Professional ServicesSupport Services

Media Delivery

DeliveryVideo, Software, Site

WorkflowMedia Services



Performance & Security Solutions

Product Lines:

44%

Services & Support


Media Delivery

Performance & Security Services & SupportMedia Delivery

48%

8%

Web Performance

Cloud Security

Custom Government

Network Operator

Cloud Networking



Web Performance Solutions

44%

Services & Support


Media Delivery


48%

8% 2015 Revenue Highlights• Revenue: $730M

• 10% Y/Y growth(1)• 33% of total revenue

• Base penetration: 53% of total customers• Multi-product penetration: 36%• ARPU ~$21K (consistent with 2014)

2016 Business Drivers• Cloud computing & e-Commerce megatrends• Mobile adoption• Adjacent offerings

(1)Revenue growth rates exclude the impact of foreign currency exchange rate changes



Cloud Security Solutions

44%

Services & Support


Media Delivery


48%


• 54% Y/Y growth(1)• 12% of total revenue (and growing)

• Exited 2015 with $300M annual rev. run rate• Base penetration: 33% of total customers• ARPU ~$12K (up from $11K)

2016 Business Drivers• Data and assets moving to the cloud• Attack size, frequency & sophistication• Expanding portfolio & capabilities

• Client Reputation, Bot Manager• Enterprise Threat Detection (Coming soon)




Custom Government Solutions

44%

Services & Support


Media Delivery


48%


• 27% Y/Y growth(1)• Innovation engine

2016 Business Drivers• Government needs to solve challenges for:

• Performance• Security• Scalability




Network Operator Solutions

44%

Services & Support


Media Delivery


48%


• 62% Y/Y growth(1)• Traction in strategic carrier partnerships:

• Managed and licensed software sale• Fastest growing reseller channel (27% Y/Y)• Deeper network deployments

• Improved carrier quality & costs• Akamai cost savings

2016 Business Drivers• Carrier efforts to reduce cost & monetize traffic• Migration of video to IP




Cloud Networking Solutions

44%

Services & Support


Media Delivery


48%


• 270% Y/Y growth(1)• Capability demonstration with Cisco & Riverbed partnerships• Extending solution reach with new carrier partnerships

2016 Business Drivers• SaaS & IaaS adoption creating demand for hybrid WAN• Solving branch bandwidth constraints to enable innovation• Office 365 adoption and solving performance pains




Cash GMs

Cash Opex

Adj. EBITDA

Capex

Operational FCF

2015 P&L*89%

49%

40%

16%

24%*expressed as % of revenue (estimated)

Y/Y Δ

Financial Model Update: Performance & Security Solutions

Investment Areas• R&D Innovation • Security services staffing• Go-to-market• Strategic partnerships

% of Total Revenue: 48%2015 Revenue: $1,050M Y/Y Growth: 20%(1)

*Excludes ADS

Target Model (at scale)High 80s

Mid 40s

Mid 40s

Teens

High 20s

(1)Revenue growth rates exclude the impact of foreign currency exchange rate changes.Refer to the Appendix for definitions of our non-GAAP metrics.



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.44%48%

2015 Revenue Highlights• Revenue $977M

• 10% Y/Y growth(1)• Strong traffic growth across most of customer base• Improving customer diversification• 14% revenue growth outside of top two customers• Pricing environment remains highly competitive

• Price declines within historic norms• ARPU ~$21K (consistent with 2014)

2016 Business Drivers• Online adoption of video, social media, gaming & software downloads

• Cost reduction, quality, reliability & scale

8%

Media Delivery Solutions


Services & Support


Media Delivery




Cash GMs

Cash Opex

Adj. EBITDA

Capex

Operational FCF

2015 P&L*69%

24%

44%

24%

20%

Y/Y Δ

*expressed as % of revenue (estimated)

Investment Areas:• Scale, quality, reliability• Broadcast Operations Control Center (BOCC)

• Video end-to-end workflow• Next generation delivery platform

% of Total Revenue: 44%2015 Revenue: $977M Y/Y Growth: 10%(1)

Target ModelHigh 60s

Low 20s

Mid 40s

High Teens

Mid 20s



Financial Model Update: Media Delivery Solutions



Services & Support Solutions

2015 Revenue Highlights• Revenue: $170M

• 20% Y/Y growth(1)• Base penetration*: 50% of target tier customers • New customer attach rate: 30%• ARPU ~$7K (consistent with 2014)

2016 Business Drivers• Enabling customers to better leverage Akamai core services

• Customers looking to Akamai for technical expertise• Attaching Services drives more multi-product adoption

(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)


Services & Support


Media Delivery

8%

44%48%



Cash GMs

Cash Opex

Adj. EBITDA

Capex

Operational FCF

2015 P&L*58%

33%

24%

7%

18%*expressed as % of revenue (estimated)

Y/Y Δ

Financial Model Update: Services & Support Solutions

Investment Areas:• Service delivery capacity• Innovation to drive efficiency

• Self-service tools

% of Total Revenue: 8%2015 Revenue: $170M Y/Y Growth: 20%(1)

*Excludes ADS

Target ModelHigh 50s

Low 30s

Low 20s

Single Digits

High Teens




Outline

2015 Year in Review


Looking Forward




Media Delivery

Services & Support

Total Akamai

2015$M

$1,050

$977

$170

$2,197

2015Y/Y%¹

20%

10%

20%

16%

AS REPORTED

(1)Revenue growth rates exclude the impact of foreign currency exchange rate changes.A reconciliation of as-reported and adjusted revenue by solution category is available on the IR section of our website.

Amounts may not add due to rounding.

PORTFOLIO MOVEMENT

$109

($109)

$0

$0

+

–

+

$M2015$M

$1,159

$869

$170

$2,197

AS REVISED

=

=

=

2015Y/Y%¹

19%

10%

20%

16%

Housekeeping: 2016 Revenue Reporting Adjustments



2010 2011 2012 2013

$5B

$4B

$3B

$2B

$1B19% 11%

20%20%

$5 Billion Ambition

Annual Revenue2014 2015 2016 2017 2018 2019 ~2020

Continued Investment in R&D and S&M

Multiple Growth Levers

International & Channel Expansion

Traction in Performance & Security

Execution with Emerging Businesses

OTTVolumes

Strategic M&A

25%

Revenue growth rates exclude the impact of foreign currency exchange rate changes and revenue from our divested ADS business.

16%



Akamai Financial Model: A blend of businesses at differing levels of maturity & scale

High 60s

Low 20s

Mid 40s

High Teens

Mid 20s

NA

MediaDelivery*

High 80s

Mid 40s

Mid 40s

Teens

High 20s

NA

Performance & Security*

High 50s

Low 30s

Low 20s

Single Digits

High Teens

NA

Services & Support*

76 – 78%

35 – 37%

40 – 42%

16 – 18%

22 – 25%

27 – 30%

Company Model

Cash Gross Margin

Cash Opex

Adj. EBITDA

Capex

Operational FCF

Non-GAAP Tax Rate

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.

*Business-specific financial models represent “target model” estimates


The fundamentals of the business remain strong

Akamai is poised to capitalize on significant megatrends

Current/planned investments focused on growth & scale

Successful execution delivers a compelling financial model

Summary



Thank You.