Reconciliation of Non-GAAP Metrics and Definitions

Reconciliation of Non-GAAP Metrics and Definitions

Definitions of Non-GAAP Financial Measures Adjusted EBITDA GAAP net income excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; restructuring charges; acquisition-related costs; certain gains and losses on investments; benefit from adoption of software development activities, gains and other activity related to divestiture of a business; foreign exchange gains and losses; loss on early extinguishment of debt, amortization of debt discount and issuance costs; amortization of capitalized interest expense; gains and losses on legal settlements and other non-recurring or unusual items that may arise from time to time. Adjusted EBITDA margin Adjusted EBITDA stated as a percentage of revenue. Capital expenditures Purchases of property and equipment, capitalization of internal-use software development costs, capitalization of stock-based compensation and capitalization of interest expense. Cash cost of revenue GAAP cost of revenue, excluding stock-based compensation and depreciation and amortization. Cash operating expenses GAAP operating expenses (consisting of research and development, sales and marketing, general and administrative, amortization of acquired intangible assets and restructuring charges), excluding stock-based compensation, amortization of acquired intangible assets, depreciation and amortization, restructuring charges, acquisition-related costs, legal settlements, benefit from adoption of software development activities and gains from other activity related to divestiture of a business. Free cash flow Cash flows from operations less purchases of property and equipment and capitalization of internal-use software development costs included in the statement of cash flows. Cash gross margin Revenue less cash cost of revenue. Cash gross profit Revenue less GAAP cost of revenue, excluding stock-based compensation and depreciation and amortization, as a percentage of revenue. cash cost of revenue. Cash operating expenses GAAP operating expenses (consisting of research and development, sales and marketing, general and administrative, amortization of acquired intangible assets, depreciation and amortization, and restructuring charges), excluding stock-based compensation, amortization of acquired intangible assets, depreciation and amortization, restructuring charges, acquisition-related costs, legal settlements, benefit from adoption of software development activities and gains and other activity related to divestiture of a business. Gross R&D GAAP research and development expenses, plus salaries and payroll-related costs (excluding stock-based compensation) of research and development employees and consultants who devote time to the development of internal-use software projects and whose costs have been capitalized during the period. Impact of Foreign Currency Exchange Rates on Revenue Revenue from international operations has historically been an important contributor to Akamai s total revenue. Consequently, Akamai s revenue results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of Akamai s foreign subsidiaries weaken, consolidated results stated in U.S. dollars are negatively impacted. Because exchange rates are an meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchanges rates on revenue enhances the understanding of revenue results and evaluation of its performance in comparison to prior periods. The information presented is calculated by translating current period results using the same average foreign currency exchange rates per month from the comparative period. Non-GAAP Tax Rate GAAP tax rate excluding the tax effect of non-gaap adjustments and certain discrete tax items. Operational free cash flow Adjusted EBITDA less capital expenditures, excluding stock-based compensation. Revenue, adjusted for ADS divestiture Revenue excluding the impact of Akamai's Advertising Decision Solutions (ADS) divestiture. For a full list and definitions of all our non-gaap measures, refer to the Investor Relations section of our website.

Adjusted EBITDA ($MM) Net income $201 $204 $293 $334 Interest income (11) (6) (6) (8) Provision for income taxes 106 118 126 146 Depreciation and amortization 144 176 155 205 Amortization of capitalized stock-based compensation 7 8 8 10 Amortization of capitalized interest Amortization of acquired intangible assets 17 21 22 32 Stock-based compensation 61 91 96 112 Restructuring charges 5 0 2 1 Acquisition-related costs 1 6 2 5 Gain from divestiture of a business (1) Legal settlements (8) Benefit from adoption of software development activities (3) Loss on investments 1 Amortization of debt discount and issuance costs 5 5 15 Other expense (income), net 2 (1) 2 Adjusted EBITDA $525 $615 $697 $853 Adjusted EBITDA margin 45% 45% 44% 43%

Cash costs of revenue ($MM) GAAP cost of revenue $454 $530 $511 $611 Stock-based compensation 10 11 11 12 Depreciation and amortization 134 163 136 175 Cash cost of revenue $310 $355 $364 $424 Cash gross profit ($MM) Revenue $1,159 $1,374 $1,578 $1,964 Cash cost of revenue 310 355 364 424 Cash gross profit $848 $1,019 $1,214 $1,540 Cash gross margin 73.2% 74.1% 76.9% 78.4%

Revenue adjusted for ADS divestiture ($MM) Revenue $1,159 $1,374 $1,578 $1,964 ADS revenue (43) (44) (3) Revenue adjusted for ADS divestiture $1,116 $1,330 $1,575 $1,964 Free Cash Flow ($MM) Cash provided by operating activities $446 $530 $564 $658 Purchases of property and equipment 133 167 188 207 Capitalization of internal-use software development costs 43 54 72 111 Free cash flow $270 $309 $304 $339

Cash operating expenses ($MM) GAAP Operating Expense $414 $530 $653 $863 Stock-based compensation (52) (79) (85) (100) Amortization of acquired intangible assets (17) (21) (22) (32) Depreciation and amortization (17) (20) (27) (40) Restructuring charges (5) (0) (2) (1) Acquisition related costs (1) (6) (2) (5) Gain from divestiture of a business 1 Legal settlement Benefit from adoption of software development activities 3 Cash operating expense $323 $403 $517 $688 Percent of revenue 27.9% 29.3% 32.8% 35.0%