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By Julie Bort
04/23/01
 Content delivery network powerhouse Akamai Technologies earned this year's title of fastest growing company on the Network World 200, our annual ranking of the biggest U.S. network companies. The No. 176 NW200 company expanded revenue an astounding 2,152% from 1999 to 2000, jumping from $4 million to $90 million. That revenue came from all-out selling: It closed 2000 with 3,675 customers, up from the 227 customers in the year prior.
Simultaneously, the company grew its network to roughly 8,000 servers inside 473 service provider networks in 55 countries as of year-end 2000. In 1999, Akamai operated just 2,000 servers on about 100 networks in 40 countries.
Even as it expands its network, the Cambridge, Mass., company insists it is moving closer to profitability.
"We have a large global network already in place, and therefore new revenue comes on at higher margins," says CEO George Conrades.
Still, Akamai reported a net loss of $886 million in 2000. Whether Akamai can maintain the fast-paced growth it needs to get into the black remains to be seen. The company announced April 4 that it expects to break even in the second quarter of 2002 on earnings before interest, taxes, depreciation and amortization. Analysts are at odds over Akamai's future, with many concerned that the content delivery market will take years to pay off. Others are bullish on the company's long-term potential.
In the here and now, the naysayers appear justified. In that same April announcement, the company lowered its 2001 revenue projections, saying it now expects to earn $175 million to $190 million, rather than $240 million to $250 million.
Conrades remains confident. Akamai can continue strong growth rates, he says, because he is shifting the company toward enterprise and network customers and away from dot-coms.
Akamai, which Network World in 1999 named one of 10 companies to watch, is still worth keeping an eye on.
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