Didn't the 300 or so Speedera customers get counted in last time?
I could be wrong, but I got the idea these were regular new customers. I thought there was a question about this on the CC.
Either way, I consider every dip a gift of $$$. They all have been so far.
>>That's a safe bet, but I didn't see any break out of specific government/private sector customer numbers. Sagan did say that no customer comprised as much as 10% of Akamai's business . . . but I don't know if he considers the government one customer, or each government agency a separate customer.<<
I can't guess one way or the other, but the bigger Akamai grows � the more customers and the more revenue � the harder it would be for any one customer to account for 10% of it's business.
Akamai's 10K for their fiscal year ending December 2004 listed these government agencies:
U.S. Department of Labor
U.S. Food and Drug Administration
U.S. Army Recruitment
U.S. Geological Survey's Earthquake Hazards Program
Voice of America [VOA site says it is <funded by the U.S. government through the Broadcasting Board of Governors>.]
<For the years ended December 31, 2004 and 2003, Microsoft Corporation accounted for 10% and 15% of total revenue, respectively. No customer accounted for 10% or more of total revenue for the year ended December 31, 2002.>
Does a stock comparison illustrate, even though invalidly, why Microsoft's former 15%, then 10%, shrunk in proportion to Akamai's burgeoning customer base?
>>Chicked soup, hold the Zicam.<<
LOL Souds like a cure! Cad I have sweet potato fries with it?
Gee, I just checked Google to see if there was a Zicam update, and at the tippity-top of the page was a sponsor in there plugging:
<Zicam injury lawyers
www.zicam-lawyers.com� � � Info on Zicam loss of smell cases. Anosmia lawsuit & case inquiries.>
It's a beautiful day in the markethood. Wonder how a federal indictment or two will benefit our investments tomorrow.
The lowered average monthly revenue is not a bad thing. Most new customers lower the average. As time goes by they tend to raise it by buying more services.
The important things are that customers spend more and more, they continue to show up in impressive numbers and they stick around. Maybe I'm simple-minded, but what else do you need (except a unique and valuable service with no competition and exploding demand)?
I love this company.
>>Listening to the CC I think at least some of the Speedera customers are included in that big burst of new customers. Sagan said the average revenue per customer had fallen from $14.x k per month to $14 kpm due to the new Speedera customers who tend to be smaller, more public sector, and who spend less (but, he said, they expect them to increase their spending over time . . . apparently the normal pattern). <<
I can handle increased customer spending. :-)
I read your next post and understand 'private sector' the same as I did 'public sector' � nongovernment. Is that correct?
I had also noticed in Sagan's comment yesterday that he included government agencies in those increasingly trusting Akamai. Since Speedera customers came largely from the private sector, it seems likely that most, if not all, of the government business is via Akamai, especially given Conrades is in Bush's National Infrastructure Advisory Council (NIAC). Has anyone said explicitly whether Akamai's government business increased?
It's good to see AKAM steadily climbing today. The suspense is over and investors are rendering their verdict . . . on 229% normal volume, too. That is a statement.
>>39 degrees this morming so not very Florida like, but at least it'll be sunny.<<
I can handle sunny as easily as I can increased customer spending. We've had cold and rain, cold and rain, here for so many days I forget what sunny feels like. And by dose is ruddig.
The number of customers under long-term services contracts at the end of the third quarter increased by 94 to a record 1,830, a 5 percent increase over second quarter 2005, and a 45 percent increase year-over-year.> <<
Great! Thanks! That's a _very impressive_ YoY increase!
In your earlier post, you wondered whether Akamai was counting Speedera and concluded that they didn't seem to be. Basing on the paragraph following the above one, I conclude the same.
<"Strong growth in our customer base reflects increasing trust in Akamai to accelerate the on-line delivery of mission critical content and Web-based applications by businesses and government agencies," Sagan said.>
That <increasing trust in Akamai> doesn't seem at all to imply a contribution by Speedera.
>>Huh, earnings up over 700% but the stock down? Must be some bad news in there somewhere.<<
Could it be this? ;-)
<Strong growth in operating income of over 5,000% to $11,115,000 in the third quarter of 2005 compared to $189,000 in the third quarter of 2004;>
Prolly the bad news is they didn't meet some whisper number somewhere out there. (That's with tongue in cheek.)
Be thankful for your Florida sunshine, PE. We're anticipating a winter preview here. :'-\
>>Saw that . . . only down .07 from closing. I expect it to go up from here. The numbers are good, Akamai is growing like a weed, the stock is going to continue on up, even when they only make their numbers.<<
I like those 94 new customers, too! Any idea the previous customer total? I'd like to know what percentage the increase is.
Now, get this. NTRI is down 8.45% AH . . . and look at their numbers:
Is that comprehensible?!
I'm glad AKAM has a different kind of investors!
>>Well they hit the 14 eps and beat the 75.2 M revenue by half a mil. About what we usually get. So now we wait for the guidance.<<
Whatever is being said, investors like it � AKAM just bounced back up to $16.90. Lookin' good!
>>They're frequently overwhelmed . . . but this recommends them to me, they have a lot of business. I'll have to pick up some YHOO one of these days.<<
Insightful. Things like that go right past me unobserved. And I can't claim Yahoo!'s population is something subtle.
YHOO was one of jcarob's favorite stocks during the dot boom days. I wonder if it still is. I see Yahoo! now has its own news items, and I've tried its search. Have you? It's clearly modeled after Google's.
>>I wouldn't bet against AAPL, I just feel safer with AKAM. AKAM is a bit more stodgy, if one can apply that adjective to an internet stock. I feel like I can own and ignore AKAM for a few years if need be, but I wouldn't own and ignore AAPL.<<
You know I keep an eye on my stocks and go in and out of them like doors. But my AAPL core holding I almost never pay heed to and it's split twice since I bought it. Thankfully, I bought more than two shares. :-) It was a whole lot cheaper than AOL ($4 and a few cents split-adjusted). AAPL is my ONE stock purchase that was an act of obedience. If I'd bought nothing but AAPL I'd be rolling in wealth today.
This is funny. I wanted to see if 'plucky' (to describe AKAM's sticking in there today) meant what I thought it meant, so 'turned on' my American Heritage. The Word of the Day that appeared upon opening is 'torpor':
� 1. A state of mental or physical inactivity or insensibility.
� 2. Lethargy; apathy. See Synonyms at lethargy.
� 3. The dormant, inactive state of a hibernating or estivating animal. [Latin, from _torpere_, to be stiff. . . .] . . . .
Kinda goes along with your 'stodgy'. :-)
It's a down day all around. But GEPT is up around 12% after being down a few percentage points yesterday. If only FOREsight could be 20-20!
On IBM, go to http://
. . . and scan downward till you get to mention of IBM. Mention continues into the next paragraph.
Oh, dear. Looks like the pre-ER speculators are running with their profits now. AKAM has sure been hanging tough.
>>Let's hope history repeats itself. We will know in a few hours now.<<
Less than two hours to go . . . .
I did a little math earlier. Last quarter's EPS was $0.12. For this Q the estimate is $0.14. If Akamai makes its estimate, that will be a 16.667% increase. The last time AKAM beat its estimate was Q2 in 2004, by a penny. If this time it beats by a penny, that will be a 25% increase over last quarter.
>>Yes . . . I think I got out a 'bummer' and then was washed away.<<
I just tried finding the posts for that initial AH deluge, but Yahoo! is a dysfunctional mess. (What else is new??) All the posts have different authors' names and April 2005 dates! You don't know who wrote what, when, till you open a post.
>>Maybe because fools rush in where institutions fear to tread.<<
VERY good. That one should become an investor's guiding principle.
>>Maybe a reason to beware, but Apple depends on "the next great thing," while Akamai depends on the growth of the internet. Which can one count on more?<<
One can count on the Internet, and on Akamai holding five aces (its virtual monopoly), but one must also count on Steve Jobs's business plan. That almost eclipses Apple's current and next great things. What would his iPod, one of his greatest things, be without iTunes? without those 99� tunes that music lovers have been downloading by the metric ton? And now he's added, what, movies and TV programs in strategic collaboration with Disney/ABC? All that is more than a product. And the more Jobs intertwines into his 'iLife' hub, the more inextractable each component becomes. In my opinion, Apple is an evolution with a lot farther to go.
I don't know enough about Akamai's technology to be able to discern an evolutionary factor, but I do see it growing � what's the term, organically? Its Asian growth, something I didn't know about till tonight, is exciting!
This is VERY interesting! I just looked at AKAM's historical quotes preceding each Q report. Preceding every report as far back as 4 February 2004, the stock price was either undecided or weakened. But prior to Akamai's 29 October 2003 report, the stock price rose and held tenaciously, just as it's been doing the past couple months. And in the month following that report, AKAM MORE THAN DOUBLED before it settled down a bit. *whistle!*
>>Not really. I have seen reports saying IBM is 'well positioned' to to continue to grow at about 7% which is good for a company that size, but frankly, the stock performance has been disappointing.<<
Maybe because investors are putting their $$ in stocks they think might double? :-)
I'm a-gonna be on tenterhooks tomorrow!