Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

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Form 10-Q

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(Mark One)
þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004.
or
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission file number 0-27275

Akamai Technologies, Inc.

Delaware		04-3432319
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

8 Cambridge Center

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     Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes þ          No o

     Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).     Yes þ          No o

     The number of shares outstanding of the registrant’s common stock as of May 6, 2004: 122,945,616 shares.

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AKAMAI TECHNOLOGIES, INC.

FORM 10-Q

For the quarterly period ended March 31, 2004

TABLE OF CONTENTS

				Page
PART I. FINANCIAL INFORMATION
Item 1.		Consolidated Financial Statements			1
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations			13
Item 3.		Quantitative and Qualitative Disclosures About Market Risk			26
Item 4.		Controls and Procedures			26
PART II. OTHER INFORMATION
Item 1.		Legal Proceedings			27
Item 2.		Changes in Securities and Use of Proceeds			27
Item 6.		Exhibits and Reports on Form 8-K			27
Signatures					28
EX-10.28 RUFFOLO SEPARATION AGREEMENT
EX-31.1 SECT. 302 CERTIFICATION OF C.E.O.
EX-31.2 SECT. 302 CERTIFICATION OF C.F.O.
EX-32.1 SECT. 906 CERTIFICATION OF C.E.O.
EX-32.2 SECT. 906 CERTIFICATION OF C.F.O.

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PART I.     FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements

AKAMAI TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

				March 31,				December 31,
				2004				2003
				(In thousands, except share data)
ASSETS
Current assets:
	Cash and cash equivalents			$	132,853			$	160,074
	Restricted cash				—				5,000
	Marketable securities (including restricted securities of $826 and $726 at March 31, 2004 and December 31, 2003, respectively)				7,493				4,910
	Accounts receivable, net of allowance for doubtful accounts of $1,001 and $1,241 at March 31, 2004 and December 31, 2003, respectively				24,505				20,727
	Prepaid expenses and other current assets				9,206				11,705
		Total current assets			174,057				202,416
Property and equipment, net					20,879				23,878
Marketable securities (including restricted securities of $3,922 at March 31, 2004 and December 31, 2003)					36,702				38,371
Goodwill					4,937				4,937
Other intangible assets, net					227				239
Other assets					8,361				9,100
		Total assets		$	245,163			$	278,941
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
	Accounts payable			$	12,837			$	11,769
	Accrued expenses				27,172				30,462
	Deferred revenue				4,299				3,016
	Current portion of obligations under capital leases and vendor financing				500				775
	Current portion of accrued restructuring				1,538				1,638
	Current portion of 5 1/2% convertible subordinated notes				—				15,000
		Total current liabilities			46,346				62,660
Accrued restructuring, net of current portion					3,289				3,641
Obligations under capital leases and vendor financing, net of current portion					144				—
Other liabilities					1,992				1,994
1% convertible senior notes					200,000				175,000
5 1/2% convertible subordinated notes, net of current portion					163,127				211,000
		Total liabilities			414,898				454,295
Commitments, contingencies and guarantees
Stockholders’ deficit:
	Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding at March 31, 2004 and December 31, 2003				—				—
	Common stock, $0.01 par value; 700,000,000 shares authorized; 122,815,772 shares issued and 122,711,541 shares outstanding at March 31, 2004; 122,154,517 shares issued and 121,875,286 shares outstanding at December 31, 2003				1,229				1,222
	Additional paid-in capital				3,439,393				3,437,186
	Deferred compensation				(1,045	)			(1,545	)
	Accumulated other comprehensive income				1,363				1,379
	Accumulated deficit				(3,610,675	)			(3,613,596	)
		Total stockholders’ deficit			(169,735	)			(175,354	)
		Total liabilities and stockholders’ deficit		$	245,163			$	278,941

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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AKAMAI TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

				For the Three Months
				Ended March 31,
				2004				2003
				(In thousands, except
				per share data)
Revenues:
	Services			$	47,431			$	35,556
	Software and software-related				936				934
	Services and software from related parties				—				74
		Total revenues			48,367				36,564
Costs and operating expenses:
	Costs of revenues				12,215				17,885
	Research and development				2,694				3,472
	Sales and marketing				14,010				11,089
	General and administrative				11,266				16,071
	Amortization of other intangible assets				12				2,198
	Restructuring benefit				—				(9,820	)
		Total costs and operating expenses			40,197				40,895
Income (loss) from operations					8,170				(4,331	)
Interest income					598				357
Interest expense					(3,756	)			(4,585	)
Loss on early extinguishment of debt					(2,018	)			—
Gain (loss) on investments, net					11				(15	)
Income (loss) before provision for income taxes					3,005				(8,574	)
Provision for income taxes					84				73
		Net income (loss)		$	2,921			$	(8,647	)
Net income (loss) per share:
Basic				$	0.02			$	(0.07	)
Diluted				$	0.02			$	(0.07	)
Shares used in per share calculation:
Basic					122,104				116,398
Diluted					133,825				116,398

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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AKAMAI TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

					For the Three Months
					Ended March 31,
					2004				2003
					(In thousands)
Cash flows from operating activities:
	Net income (loss)				$	2,921			$	(8,647	)
	Adjustments to reconcile net income (loss) to net cash used in operating activities:
		Depreciation, amortization and impairment of long-lived assets				6,497				17,792
		Equity-related compensation				533				2,971
		Interest income on notes receivable for stock				—				(33	)
		Non-cash portion of loss on early extinguishment of debt				977				—
		Loss on investments, property and equipment and foreign currency, net				156				170
		Provision for doubtful accounts				(206	)			(700	)
		Changes in operating assets and liabilities:
			Accounts receivable, net			(3,333	)			(2,744	)
			Prepaid expenses and other current assets			2,474				2,729
			Accounts payable, accrued expenses and other current liabilities			(2,204	)			(13,031	)
			Accrued restructuring			(450	)			(12,002	)
			Deferred revenue			1,173				216
			Other noncurrent assets and liabilities			98				278
	Net cash provided by (used in) operating activities					8,636				(13,001	)
Cash flows from investing activities:
		Purchases of property and equipment and capitalization of internal-use software costs				(3,042	)			(2,202	)
		Purchase of investments				(12,468	)			—
		Proceeds from sales of property and equipment				9				44
		Proceeds from sales and maturities of investments				11,725				2,569
		Decrease in restricted cash held for note repurchases				5,000				—
	Net cash provided by investing activities					1,224				411
Cash flows from financing activities:
		Payments on capital leases				(131	)			(307	)
		Proceeds from the issuance of 1% convertible senior notes, net of financing costs				24,313				—
		Repurchase and retirement of 5 1/2% convertible subordinated notes				(62,873	)			—
		Proceeds from the issuance of common stock upon exercise of stock options				2,178				164
	Net cash used in financing activities					(36,513	)			(143	)
Effects of exchange rate translation on cash and cash equivalents						(568	)			103
Net decrease in cash and cash equivalents						(27,221	)			(12,630	)
Cash and cash equivalents, beginning of period						160,074				111,262
Cash and cash equivalents, end of period					$	132,853			$	98,632
Supplemental disclosure of cash flow information:
	Cash paid for interest				$	8,772			$	8,302

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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AKAMAI TECHNOLOGIES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

1.	Nature of Business, Basis of Presentation and Principles of Consolidation

      Akamai Technologies, Inc. (“Akamai” or the “Company”) provides distributed computing services and solutions that are designed to enable enterprises to extend and control their e-business infrastructure to ensure superior performance, reliability, scalability and manageability. Akamai’s globally distributed platform comprises more than 14,000 servers in more than 1,000 networks in 69 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. Akamai currently operates in one business segment: providing e-business Internet-related infrastructure services and software.

      The accompanying interim condensed consolidated financial statements, together with the related notes, are unaudited and reflect all adjustments, consisting only of normal recurring adjustments, that in the opinion of management are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows as of the dates and for the periods presented. The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Consequently, these interim financial statements do not include all disclosures normally required by accounting principles generally accepted in the United States of America for annual audited financial statements. Accordingly, reference should be made to the Company’s annual report on Form 10-K for the year ended December 31, 2003 for additional disclosures filed with the Securities and Exchange Commission. Results of the interim periods are not necessarily indicative of results for the entire year.

      The accompanying condensed consolidated financial statements include the accounts of Akamai and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Certain reclassifications of prior year amounts have been made to conform to current year presentation.

2.	Recent Accounting Pronouncements

      In December 2003, the Financial Accounting Standards Board (the “FASB”) issued Interpretation 46R, or FIN 46R, “A Revision to FIN 46, Consolidation of Variable Interest Entities.” FIN 46R clarifies some of the provisions of FIN 46 and exempts certain entities from its requirements. FIN 46R is effective at the end of the first interim period ending after March 15, 2004. Entities that have adopted FIN 46 prior to this effective date can continue to apply the provisions of FIN 46 until the effective date of FIN 46R. The Company is not currently an investor in any variable interest entities and, therefore, FIN 46R does not have an effect on the Company’s condensed consolidated financial statements.

3.	Equity-Related Compensation

      Akamai accounts for stock-based awards to employees using the intrinsic value method as prescribed by Accounting Principles Board Opinion (“APB”) No. 25, “Accounting for Stock Issued to Employees,” and related interpretations. Accordingly, no compensation expense is recorded for stock-based awards issued to employees and directors in fixed amounts and with fixed exercise prices at least equal to the fair market value of the Company’s common stock at the date of grant. Akamai applies the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123, as amended by SFAS No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure, an amendment of FASB Statement No. 123, Accounting for Stock-Based Compensation,” through disclosure only for stock-based awards issued to employees and directors. All stock-based awards to non-employees are accounted for at their fair value in accordance with SFAS No. 123.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

      The following table illustrates the effect on net income (loss) and net income (loss) per share if the Company had accounted for stock options issued to employees and directors under the fair value recognition provisions of SFAS No. 123, as amended by SFAS No. 148 (in thousands, except per share data):

				For the
				Three Months Ended
				March 31,
				2004				2003
Net income (loss), as reported				$	2,921			$	(8,647	)
		Add: stock-based employee compensation included in reported net loss			491				2,964
		Deduct: stock-based employee compensation expense determined under fair value method for all awards			(10,803	)			(12,132	)
Pro forma net loss				$	(7,391	)		$	(17,815	)
Basic net income (loss) per share:
	As reported			$	0.02			$	(0.07	)
	Pro forma				(0.06	)			(0.15	)

4.	Net Income (Loss) per Share

      Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the applicable quarter. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding during the year, plus the dilutive effect of potential common stock. Potential common stock consists of stock options, deferred stock units, warrants, unvested restricted common stock and convertible notes.

      The following table sets forth the components used in the computation of basic and diluted net income (loss) per common share (in thousands, except per share data):

						For the
						Three Months Ended
						March 31,
						2004				2003
Numerator:
	Net income (loss)					$	2,921			$	(8,647	)
Denominator:
	Denominator for basic net income (loss) per common share						122,104				116,398
		Effect of dilutive securities:
			Restricted common stock and deferred stock units				278				—
			Warrants				33				—
			Stock options				11,410				—
	Denominator for diluted net income (loss) per common share						133,825				116,398
				Basic net income (loss) per common share		$	0.02			$	(0.07	)
				Diluted net income (loss) per common share		$	0.02			$	(0.07	)

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

      The following potential common shares have been excluded from the computation of diluted net income (loss) per share as of March 31, 2004 and 2003 because their effect would have been antidilutive (in thousands):

			As of March 31,
			2004				2003
Stock options				3,023				14,613
Restricted common stock and deferred stock units				—				1,276
Warrants				36				1,047
1% convertible senior notes				12,945				—
5 1/2% convertible subordinated notes				1,413				2,598
	Total			17,417				19,534

5.	Comprehensive Income (Loss)

      The following table presents the calculation of comprehensive income (loss) and its components for the three-months ended March 31, 2004 and 2003 (in thousands):

			For the
			Three Months Ended
			March 31,
			2004				2003
Net income (loss)			$	2,921			$	(8,647	)
Other comprehensive income (loss):
	Foreign currency translation adjustment			(176	)			111
	Unrealized gain (loss) on investments, net			160				(30	)
Comprehensive income (loss)			$	2,905			$	(8,566	)

      For the periods presented, accumulated other comprehensive income consisted of (in thousands):

			As of				As of
			March 31,				December 31,
			2004				2003
Foreign currency translation adjustment			$	1,241			$	1,417
Unrealized gain (loss) on investments				122				(38	)
	Total accumulated other comprehensive income		$	1,363			$	1,379

6.	Restricted Marketable Securities

      As of March 31, 2004, the Company had issued $4.7 million in irrevocable letters of credit in favor of third-party beneficiaries, primarily related to facility leases. The letters of credit are collateralized by restricted marketable securities, of which $3.9 million are classified as long-term marketable securities and $826,000 are classified as short-term marketable securities on the consolidated balance sheet dated as of March 31, 2004. The restrictions on these marketable securities lapse as the Company fulfills its obligations or as such obligations expire as provided by the letters of credit. These restrictions are expected to lapse through May 2009.

7.	Concentration of Credit Risk and Fair Value of Financial Instruments

      Financial instruments that subject the Company to credit risk consist of cash and cash equivalents, marketable securities and accounts receivable. The Company maintains the majority of its cash, cash

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

equivalents and marketable securities balances principally with domestic financial institutions that the Company believes are of high credit standing. Concentrations of credit risk with respect to accounts receivable is limited to certain customers to whom the Company makes substantial sales. To reduce risk, the Company routinely assesses the financial strength of its customers and, as a consequence, believes that its accounts receivable credit risk exposure is limited. As of March 31, 2004, one customer accounted for approximately 15% of the Company’s accounts receivable balance. No other customer accounted for 10% or more of accounts receivable as of March 31, 2004 or as of December 31, 2003.

8.	Asset Retirement Obligation

      In January 2003, the Company adopted SFAS No. 143, “Accounting for Asset Retirement Obligations.” SFAS No. 143 addresses the accounting and reporting requirements for obligations associated with the retirement of tangible long-lived assets. As a result of adopting this statement, the Company recorded an asset retirement obligation and associated long-lived asset of $109,000 as of January 1, 2003 for the fair value of a contractual obligation to remove leasehold improvements at the conclusion of the Company’s facility lease in Cambridge, Massachusetts. The obligation and asset are classified on the Company’s consolidated balance sheet as of March 31, 2004 as non-current liabilities and property and equipment, respectively. The Company will amortize the asset and accrete the obligation over the remaining life of the associated leasehold improvements.

9.	Accrued Expenses

      Accrued expenses consist of the following (in thousands):

		As of				As of
		March 31,				December 31,
		2004				2003
Payroll and benefits		$	8,539			$	7,419
Interest			2,841				8,338
Property, use and other taxes			13,159				12,878
Other			2,633				1,827
Total		$	27,172			$	30,462

10.	Restructurings and Lease Terminations

      As of March 31, 2004, the Company had approximately $4.8 million remaining of accrued restructuring liabilities. No restructuring charges were recorded during the three months ended March 31, 2004. During the three months ended March 31, 2003, the Company reversed previously recorded restructuring liabilities totaling $9.8 million. The reversals represent the difference between the previously estimated restructuring liabilities and the amounts payable under negotiated agreements for certain leased properties with these properties’ landlords.

      The following table summarizes the restructuring activity in 2004 (in millions):

			Restructuring
			Liabilities
Ending balance, December 31, 2003			$	5.2
	Cash payments during the three months ended March 31, 2004			(0.4	)
Ending balance, March 31, 2004			$	4.8
Current portion of accrued restructuring			$	1.5
Long-term portion of accrued restructuring			$	3.3

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

      The amount of restructuring liabilities associated with facility leases has been estimated based on the most recent available market data and discussions with the Company’s lessors and real estate advisors as to the likelihood that the Company will be able to partially offset its obligations with sublease income.

11.	Other Intangible Assets

      Other intangible assets subject to amortization consist of the following (in thousands):

			As of March 31, 2004
			Gross Carrying				Accumulated				Net Carrying
			Amount				Amortization				Amount
Completed technology			$	26,769			$	(26,769	)		$	—
Trademarks and trade names				4,527				(4,527	)			—
Acquired license rights				490				(263	)			227
	Total		$	31,786			$	(31,559	)		$	227

			As of December 31, 2003
			Gross Carrying				Accumulated				Net Carrying
			Amount				Amortization				Amount
Completed technology			$	26,769			$	(26,769	)		$	—
Trademarks and trade names				4,527				(4,527	)			—
Acquired license rights				490				(251	)			239
	Total		$	31,786			$	(31,547	)		$	239

      Amortization expense for other intangible assets was $12,000 and $2.2 million for the three months ended March 31, 2004 and 2003, respectively. Amortization expense is expected to be $36,000 for the remainder of 2004 and $48,000 in each year thereafter through 2008.

12.	Convertible Notes

      In January 2004, the initial purchaser of the Company’s 1% convertible senior notes exercised its option to purchase an additional $25.0 million in principal amount of the notes for a payment of $24.3 million, which reflected a purchase discount of 2.75%. The purchase discount of $700,000 was recorded as deferred financing costs. As of March 31, 2004, the Company has $200.0 million in aggregate principal amount of 1% convertible senior notes outstanding. The 1% convertible senior notes are convertible at certain times into the Company’s common stock at a conversion price of $15.45 per share (equivalent to 64.7249 shares of common stock per $1,000 principal amount of 1% convertible senior notes), subject to adjustment in certain events. The Company may redeem the 1% convertible senior notes on or after December 15, 2010 at the Company’s option at par value. Conversely, holders of the 1% convertible senior notes may require the Company to repurchase the notes at par value on certain specified dates beginning on December 15, 2010. In the event of a change of control, the holders may require Akamai to repurchase their 1% convertible senior notes at par value plus accrued interest. Interest on the 1% convertible senior notes began to accrue as of the issue date and is payable semiannually on June 15 and December 15 of each year, commencing on June 15, 2004. The 1% convertible senior notes are senior unsecured obligations and are the same rank as all existing and future senior unsecured indebtedness of Akamai. The 1% convertible senior notes rank senior to all of the Company’s subordinated indebtedness, including its 5 1/2% convertible subordinated notes. Deferred financing costs of $5.9 million, including the initial purchaser’s discount and other offering expenses, for the 1% convertible senior notes are being amortized over the initial 7 years of the term of the notes. Amortization of the deferred financing costs was approximately $208,000 for the three months ended March 31, 2004. The Company records the amortization of deferred financing costs using the interest method as interest expense in the consolidated statement of operations.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

      During January 2004, in a limited number of individually negotiated transactions, the Company repurchased an aggregate of $25.0 million in principal amount of its outstanding 5 1/2% convertible subordinated notes. As of December 31, 2003, the Company had entered into agreements for the repurchase of $15.0 million in principal amount of these notes. As a result, as of December 31, 2003, the Company had recorded $15.0 million in principal amount of these notes as the current portion of the 5 1/2% convertible subordinated notes. The Company amortized the outstanding deferred financing costs relating to the repurchased $25.0 million in principal amount of 5 1/2% convertible subordinated notes, totaling $404,000 for the three months ended March 31, 2004, to loss on early extinguishment of debt. Additionally, the Company incurred $100,000 of advisory services in connection with the repurchases, which is included in loss on early extinguishment of debt.

      In February 2004, the Company commenced a tender offer to repurchase up to $101.0 million in aggregate principal amount of its outstanding 5 1/2% convertible subordinated notes. Under the modified Dutch Auction structure of the tender offer, the Company offered to repurchase up to $101.0 million in principal amount of validly tendered 5 1/2% convertible subordinated notes at a purchase price between $1,000 and $1,005 for each $1,000 principal amount tendered. In March 2004, the Company amended the tender offer to increase the maximum price at which it was willing to repurchase the 5 1/2% convertible subordinated notes to $1,012.50 per $1,000 principal amount of the notes. In accordance with the terms of the tender offer, $37.9 million in aggregate principal amount of the 5 1/2% convertible subordinated notes was tendered. The Company purchased the validly tendered 5 1/2% convertible subordinated notes at a purchase price of $1,012.50 per $1,000 of principal amount of the notes in March 2004. The Company amortized the outstanding deferred financing costs relating to these tendered notes and the premium paid of $573,000 and $474,000, respectively, to loss on early extinguishment of debt for the three months ended March 31, 2004. Additionally, the Company incurred $467,000 of advisory services and offering expenses in connection with the tender offer that was also recorded as to loss on early extinguishment of debt.

13.	Equity Transactions

      In March 2004, the Company announced that its Chief Operating Officer was leaving the Company effective in April 2004. As a result, the Company has recorded the outstanding deferred compensation of $52,000 relating to this individual’s outstanding stock-based compensation as equity-related compensation expense.

14.	Transactions with Related Parties

      During the three months ended March 31, 2003, the Company recognized approximately $74,000 revenue from Akamai Australia. The Company formed Akamai Australia in August 2002 as a joint venture with ES Group Ventures Pty Ltd (“ES Ventures”). The Company owned 40% of Akamai Australia and accounted for its investment under the equity method. No losses of the joint venture were recognized because Akamai’s basis in its investment in Akamai Australia was zero. Upon inception of the joint venture, the Company entered into a five-year distribution agreement with Akamai Australia under which Akamai Australia was required to make quarterly payments to the Company in accordance with minimum resale commitments. In June 2003, Akamai and ES Ventures terminated the joint venture. In accordance with the termination agreement, Akamai removed its representatives from the joint venture’s board of directors and surrendered its 40% interest in the entity. ES Ventures agreed to wind down the affairs of the joint venture and was responsible for settling all of the joint venture’s obligations. The distribution agreement was terminated, and Akamai forgave all amounts due under the agreement. The Company purchased all customer contracts from the former joint venture for a fee of $472,000 and will continue to service these customers. The fee has been recorded as an asset and was fully amortized as a reduction to future revenue of these customers during fiscal year 2003. The Company did not have any related party transactions during the three months ended March 31, 2004.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

15.	Segment and Enterprise-Wide Disclosure

      Akamai’s chief decision-maker, as defined under SFAS No. 131, “Disclosures About Segments of an Enterprise and Related Information,” is the Chief Executive Officer and the executive management team. As of March 31, 2004, Akamai operated in one business segment: providing e-business infrastructure services and software.

      The Company deploys its servers into networks worldwide. As of March 31, 2004, the Company had approximately $19.2 million and $1.7 million of property and equipment, net of accumulated depreciation, located in the United States and foreign locations, respectively. As of December 31, 2003, the Company had approximately $21.3 million and $2.6 million of property and equipment, net of accumulated depreciation, located in the United States and foreign locations, respectively. Akamai sells its services and licenses through a direct sales force located both domestically and abroad. For the three months ended March 31, 2004, approximately 19% of revenue was derived from the Company’s operations outside the United States, of which 15% was derived from Europe. For the three months ended March 31, 2003, approximately 15% of revenue was derived from the Company’s operations outside the United States, of which 13% was derived from Europe. No single country accounted for 10% or more of revenue derived outside the United States during these periods. For each of the three months ended March 31, 2004 and 2003, one customer accounted for 11% of total revenues. No other customers accounted for more than 10% of revenue for any other period reported in these condensed consolidated financial statements.

16.	Commitments, Contingencies and Guarantees

	Operating and Capital Leases

      The Company leases its facilities and certain equipment under non-cancelable operating leases. These operating leases expire at various dates through May 2009 and generally require the payment of real estate taxes, insurance, maintenance and operating costs. The Company also leases certain equipment under capital leases, which expire at various dates through June 2005. The minimum aggregate future obligations under non-cancelable leases as of March 31, 2004 are as follows (in thousands):

							Capital Leases
			Operating				(Including Vendor
			Leases				Financing)
Remaining 2004			$	4,462			$	397
	2005			5,414				292
	2006			5,007				—
	2007			4,550				—
	2008			3,328				—
	Thereafter			1,296				—
Total			$	24,057				689
Less: interest								(45	)
Total principal obligations								644
Less: current portion								500
Non-current portion of principal obligations							$	144

	Litigation

      Between July 2, 2001 and August 31, 2001, purported class action lawsuits seeking monetary damages were filed in the United States District Court for the Southern District of New York against the Company as well as against the underwriters of its October 28, 1999 initial public offering of common stock. The

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED

complaints were filed allegedly on behalf of persons who purchased our common stock during different time periods, all beginning on October 28, 1999 and ending on various dates. The complaints are similar and allege violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 primarily based on the allegation that the underwriters received undisclosed compensation in connection with the Company initial public offering. On April 19, 2002, a single consolidated amended complaint was filed, reiterating in one pleading the allegations contained in the previously filed separate actions. The consolidated amended complaint defines the alleged class period as October 28, 1999 through December 6, 2000. Although the Company believes that it has meritorious defenses to the claims made in the complaint, an adverse resolution of the action could have a material adverse effect on the Company’s financial condition and results of operations in the period in which the lawsuit is resolved. The Company is not presently able to estimate potential losses, if any, related to this lawsuit.

      In February 2002, the Company filed suit against Speedera Networks, Inc., or Speedera, in federal court in Massachusetts, alleging patent infringement and false advertising by Speedera. In April 2003, the Company amended its complaint to include an allegation that Speedera infringes a content delivery patent held by MIT and licensed to Akamai. In response, Speedera filed a counterclaim alleging that Akamai has infringed a Speedera patent relating to the combined provision of traffic management and content delivery services. The Company believes that it has meritorious defenses to the claims made in the counterclaim and intends to contest such claims vigorously; however, there can be no assurance that the Company will be successful. The Company is not presently able to reasonably estimate potential losses, if any, related to this counterclaim.

      In June 2002, the Company filed suit against Speedera in California Superior Court alleging theft of Akamai trade secrets from an independent company that provides website performance testing services. In connection with this suit, in September 2002, the Court issued a preliminary injunction to restrain Speedera from continuing to access the Company’s confidential information from the independent company’s database and from using any data obtained from such access. In October 2002, Speedera filed a cross-claim against the Company seeking monetary damages and injunctive relief and alleging that the Company engaged in various unfair trade practices, made false and misleading statements and engaged in unfair competition. The Company believes that it has meritorious defenses to the claims made in Speedera’s cross-claim and intends to contest the allegations vigorously; however, there can be no assurance that the Company will be successful. The Company is not presently able to reasonably estimate potential losses, if any, related to this cross-claim.

      In September 2002, Teknowledge Corporation, or Teknowledge, filed suit in the United States District Court for the District of Delaware against Akamai, Cable & Wireless Internet Services and Inktomi Corporation alleging that certain services offered by each company infringe a Teknowledge patent relating to automatic retrieval of changed files by a network software agent. The Company believes that it has meritorious defenses to the claims made in the complaint and intends to contest the lawsuit vigorously; however, there can be no assurance that the Company will be successful. The Company is not presently able to reasonably estimate potential losses, if any, related to this lawsuit.

      In November 2002, the Company filed suit against Speedera in federal court in Massachusetts for infringement of a patent held by Akamai. In January 2003, Speedera filed a counterclaim in this case alleging that Akamai has infringed a patent held by Speedera. The Company believes that it has meritorious defenses to the claims made in the counterclaim and intends to contest such claims vigorously; however, there can be no assurance that the Company will be successful. The Company is not presently able to reasonably estimate potential losses, if any, related to this counterclaim.

	Guarantees

      In November 2002, the FASB issued Interpretation 45, or FIN 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” FIN 45 elaborates on the existing disclosure requirements for most guarantees, including loan guarantees such as standby letters of credit. FIN 45 also clarifies that at the time an entity issues a guarantee, the entity must

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recognize an initial liability for the fair value, or market value, of the obligations it assumes under the guarantee and must disclose that information in its interim and annual financial statements. The disclosure provisions of FIN 45 were effective for the Company’s Annual Report on Form 10-K for the year ended December 31, 2003. The initial recognition and initial measurement provisions of FIN 45 apply on a prospective basis to guarantees issued or modified after December 31, 2002. The fair value of the Company’s guarantees issued or modified during the three months ended March 31, 2004 was determined to be immaterial.

17.	Subsequent Events

      In April 2004, in a limited number of individually negotiated transactions, the Company repurchased an aggregate of $56.4 million in principal amount of its outstanding 5 1/2% convertible subordinated notes for total cash payments of $58.5 million. The purchase prices ranged between $1,018.00 and $1,023.57 for each $1,000 in principal amount repurchased.

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

      We believe that this report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties and are based on the beliefs and assumptions of our management based on information currently available to our management. Use of words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “should,” “likely” or similar expressions, indicate a forward-looking statement. Forward-looking statements involve risks, uncertainties and assumptions. Certain of the information contained in this quarterly report on Form 10-Q consists of forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, those set forth under the heading “Factors Affecting Future Operating Results.” We assume no obligation to update any such forward-looking statements.

Overview

      The following sets forth, as a percentage of revenue, consolidated statements of operations data for the periods indicated:

			For the
			Three Months Ended
			March 31,
			2004				2003
Revenues				100.0	%			100.0	%
Costs of revenues				25.2				48.9
Research and development				5.6				9.5
Sales and marketing				29.0				30.3
General and administrative				23.3				44.0
Amortization of other intangible assets				—				6.0
Restructuring charges (benefits)				—				(26.9	)
	Total costs and operating expenses			83.1				111.8
Income (loss) from operations				16.9				(11.8	)
Interest income				1.2				0.9
Interest expense				(7.7	)			(12.5	)
Loss on early extinguishment of debt				(4.2	)			—
Gain on investments, net				—				—
Income (loss) before provision for income taxes				6.2				(23.4	)
Provision for income taxes				0.2				0.2
	Net income (loss)			6.0	%			(23.6	)%

      We were profitable on a quarterly basis during the quarter ended March 31, 2004. We have incurred significant costs to develop our technology, build our worldwide network, sell and market our services and software and support our operations. In recent years, we have incurred significant restructuring expenses related to employee severance payments and facility lease settlements. We have not yet achieved profitability on an annual basis; however, we have observed the following known trends and events that are likely to have an impact on our financial condition and results of operations in the future:

	•	During the first quarter of 2004 and each quarter in 2003, the dollar volume of the recurring revenue contracts that we booked exceeded the dollar volume of the contracts we lost through cancellations, terminations and non-payment quarter-over-quarter. A continuation of this trend would lead to increased revenue; however, we cannot guarantee that the trend will continue.
	•	During recent quarters, we have reduced our network bandwidth costs per unit by entering into new supplier contracts with lower pricing and amending existing contracts to take advantage of price reductions in the market. These per unit price reductions contributed to keeping our bandwidth costs

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		relatively constant during the current quarter, even though we experienced increased traffic delivered on our network. We expect bandwidth costs per unit to be relatively constant or to decrease during 2004 as compared to 2003.
	•	During the first quarter of 2004, one customer, Microsoft Corporation, accounted for greater than 10% of our total revenue. We expect to continue to do business with this customer under a long-term contract, and that the revenue from this customer will be greater than 10% of our total revenue in 2004. During the quarter ended March 31, 2004, revenue derived from companies outside the United States was 19% of our total revenue. We expect revenue derived from companies outside the United States will be between 15% and 20% of our total revenue in 2004.
	•	Depreciation of our network equipment has continued to decrease quarter-over-quarter due to assets becoming fully depreciated. We believe that depreciation will continue to decline from previous levels as we replace our equipment at lower cost as compared to historical cost. Although we expect that the amortization of internal-use software development costs, which we include in depreciation expense, will increase in the future, we expect that total depreciation expense will continue to decline in 2004.
	•	We expect a net decline in equity compensation costs in 2004 as equity awards issued in previous years become fully vested. This reduction will be primarily due to the full vesting on May 5, 2004 of restricted common stock issued as part of our 2001 stock option exchange offer. Any change in the accounting rules related to employee stock awards requiring that we record expense for employee stock awards at fair value would increase our equity-based compensation expense in the future because we have a significant number of employee options outstanding and expect to continue to grant new options in the future. The amount of any increase resulting from the change in the method of accounting for employee stock options is not determinable at this time due to the number of variables that are considered when determining the fair value of stock awards.
	•	We do not anticipate significant investment losses or gains in the future because our portfolio is currently comprised primarily of high-grade investments.
	•	While operating expenses decreased during the first quarter of 2004, compared to the same period in 2003, we do not expect significant decreases to continue in 2004. We expect a slight increase in operating costs in each of the remaining quarters of 2004 due to a rise in costs related to sales commissions and marketing expenses and an expected increase in headcount.
	•	In December 2003 and the first four months of 2004, we repurchased a total of $193.2 million in aggregate principal amount of our outstanding 5 1/2% convertible subordinated notes due 2007. In December 2003 and January 2004, we issued a total of $200.0 million in principal amount of our 1% convertible senior notes. By lowering our effective interest rate on outstanding debt, we believe that interest expense on our debt obligations will not exceed $10.0 million in 2004.

Based on our analysis of the aforementioned known trends and events, we expect to continue to generate net income on a quarterly basis throughout 2004; however, our future results will be affected by many factors identified below in “Factors Affecting Future Operating Results,” including our ability to:

	•	increase our revenue by adding to our recurring customer base and limiting customer cancellations and terminations;
	•	maintain our network bandwidth costs and other operating expenses consistent with our revenues;
	•	address future capital expenditure requirements at costs that are within our expectations; and
	•	maintain or increase the prices we charge for our services.

As a result, there is no assurance that the aforementioned trends will continue in the future or that we will achieve our expected financial objectives.

Critical Accounting Policies and Estimates

      Our discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared by us in accordance with accounting

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Results of Operations

      Revenues. Total revenue increased 32%, or $11.8 million, to $48.4 million for the three months ended March 31, 2004 as compared to $36.6 million for the three months ended March 31, 2003. The increase in total revenue for the quarter ended March 31, 2004 as compared to the same period in the prior year was attributable to an increase in service revenue of $11.9 million. The increase in service revenue was primarily attributable to an increase in monthly committed customer revenue, an increase in customer traffic during the quarter and an increase in the number of customers under recurring revenue contracts as compared to the same period in the prior year. As of March 31, 2004, we had 1,172 customers under recurring revenue contracts as compared to 994 as of March 31, 2003.

      For the three months ended March 31, 2004 and 2003, 19% and 15%, respectively, of our total revenue was derived from our operations located outside of the United States, of which 15% and 13%, respectively, was derived from Europe. No single country accounted for 10% or more of revenue derived outside of the United States. Resellers accounted for 27% of revenue for the three months ended March 31, 2004 and 24% in the three months ended March 31, 2003. For each of the three months ended March 31, 2004 and 2003, Microsoft Corporation accounted for 11% of total revenue. No other customer accounted for 10% or more of revenue during these periods.

      Costs of Revenues. Costs of revenues include fees paid to network providers for bandwidth and co-location of our network equipment. Costs of revenues also includes payroll and related costs and equity-related compensation for network operations personnel, cost of software licenses, depreciation of network equipment used to deliver our services and amortization of internal-use software costs.

      Costs of revenues decreased 32%, or $5.7 million, to $12.2 million for the three months ended March 31, 2004 as compared to $17.9 million for the three months ended March 31, 2003. The decrease was primarily due to a reduction of depreciation expense of network equipment as our network assets become fully depreciated, offset by a slight increase in bandwidth costs. Traffic delivered over our network increased significantly in the three months ended March 31, 2004 as compared to the same period in the prior year. Despite this increase in traffic, bandwidth costs increased minimally because we have reduced our network bandwidth cost per unit by entering into new, competitively priced network contracts, renegotiating existing network contracts to achieve more favorable pricing and by continuing to improve management of our network traffic.

      Costs of revenues during the three months ended March 31, 2004 and 2003 also included credits of approximately $155,000 and $826,000, respectively, as a result of network contract settlements and renegotiations. We expect that credits of this nature may occur in the future as a result of our efforts to monitor and reduce our network costs; however, the timing and amount of these credits, if any, will vary.

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      Costs of revenues were comprised of the following (in thousands):

			For the
			Three Months Ended
			March 31,
			2004				2003
Bandwidth, co-location and storage			$	6,603			$	6,054
Payroll and related costs of network operations personnel, including equity compensation				846				836
Costs of software licenses				247				105
Depreciation of network equipment and amortization of internal-use software				4,519				10,890
	Total costs of revenues		$	12,215			$	17,885

      We believe costs of revenues will increase slightly on a quarterly basis in the remainder of 2004 as we expect to deliver more traffic on our network. We also believe that amortization of internal-use software development costs will increase as software projects become complete and are placed in service. We anticipate that these increases will be offset by a decline in depreciation of our network equipment. In addition, higher expenses associated with increased traffic on our network could be mitigated by lower bandwidth costs per unit if we are successful at continuing to improve our management of our network.

      Research and Development. Research and development expenses consist primarily of payroll and related costs and equity-related compensation for research and development personnel who design, develop, test and enhance our services and our network. Research and development costs are expensed as incurred, except certain internal-use software development costs required to be capitalized. During the three months ended March 31, 2004 and 2003, we capitalized software development costs of $1.7 million and $1.8 million, respectively, consisting of payroll and payroll-related costs related to the development of internal-use software used to deliver our services and operate our network, net of impairments. These capitalized internal-use software costs are amortized to cost of revenue over their useful lives of two years.

      Research and development expenses decreased 22%, or $778,000, to $2.7 million for the three months ended March 31, 2004 as compared to $3.5 million for the three months ended March 31, 2003. The decrease in research and development expenses was primarily due to a decrease in equity compensation, a component of payroll and payroll-related costs, as a result of equity awards issued to employees becoming fully vested. The following table quantifies the reduction in research and development expenses for the three months ended March 31, 2004 as compared to the three months ended March 31, 2003 (in millions):

			(Decrease) Increase
			in Research
			and Development
			Expenses
Payroll and related costs, including equity compensation			$	(1.0	)
Capitalization of internal-use software development costs and other				0.2
	Total decrease		$	(0.8	)

      We believe that research and development expenses will increase slightly on a quarterly basis in the remainder of 2004, as we continue to make development investments in our EdgeComputing service and refinements to other service offerings.

      Sales and Marketing. Sales and marketing expenses consist primarily of payroll and related costs, equity-related compensation and commissions for personnel engaged in marketing, sales and service support functions, as well as advertising and promotional expenses.

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      Sales and marketing expenses increased 26%, or $2.9 million, to $14.0 million for the three months ended March 31, 2004 as compared to $11.1 million for the three months ended March 31, 2003. The increase in sales and marketing expenses was primarily due to an increase in commissions, a component of payroll and payroll-related costs, due to higher sales quarter over quarter. The following table quantifies the increase in sales and marketing expenses for the three months ended March 31, 2004 as compared to the three months ended March 31, 2003 (in millions):

			Increase in Sales
			and Marketing
			Expenses
Payroll and related costs			$	1.8
Advertising and related costs				0.2
Other expenses				0.9
	Total increase		$	2.9

      We believe that sales and marketing expenses will increase modestly on a quarterly basis in the remainder of 2004 due to an expected increase in commissions as a result of higher forecasted sales and marketing costs.

      General and Administrative. General and administrative expenses consist primarily of depreciation of property and equipment used by us internally, payroll and related costs, including equity-related compensation and related expenses for executive, finance, business applications, network management, human resources and other administrative personnel, fees for professional services, the provision for doubtful accounts and rent and other facility-related expenditures for leased properties.

      General and administrative expenses decreased 30%, or $4.8 million, to $11.3 million for the three months ended March 31, 2004 as compared to $16.1 million for the three months ended March 31, 2003. The decrease in general and administrative expenses was primarily due to a reduction in depreciation expense as a result of assets becoming fully depreciated, reduction in payroll and payroll-related costs, including equity compensation, and reduced rent expense as a result of restructurings. The following table quantifies the decrease in general and administrative expenses for the three months ended March 31, 2004 as compared to the three months ended March 31, 2003 (in millions):

			(Decrease) Increase in General and
			Administrative Expenses
Depreciation			$	(3.0	)
Payroll and related costs, including equity compensation				(1.8	)
Rent and facilities				(0.6	)
Other expenses				0.6
	Total decrease		$	(4.8	)

      We do not expect significant further decreases in general and administrative expenses on a quarterly basis in the remainder of 2004, rather we believe that these expenses will remain consistent with our first quarter expenses during the remaining quarters in 2004 as we continue to maintain our cost structure.

      Amortization of Other Intangible Assets. Amortization of other intangible assets consists of amortization of assets acquired in business combinations and amortization of acquired license rights. Amortization of other intangible assets decreased to $12,000 for the three months ended March 31, 2004 as compared to $2.2 million for the three months ended March 31, 2003. Intangible assets acquired in business combinations were fully amortized as of the end of the first quarter of 2003; therefore, there was no corresponding amortization of such intangible assets in 2004. We expect to amortize approximately $36,000 of intangible assets for the remainder of 2004 and $48,000 in each year thereafter through 2008, at which time they will be fully amortized.

      Restructuring Benefits. During the three months ended March 31, 2003, we recorded net restructuring benefits of $9.8 million as a result of amendments to certain lease agreements. In April 2003, we amended our lease agreement for our Santa Clara facility. Under the terms of the amended lease, we made an $8.8 million payment, of which $5.7 million included the release of restricted marketable securities, and we continued to

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      The following table summarizes the restructuring activity related to real estate leases for the three months ended March 31, 2004 (in millions):

				Restructuring
				Liabilities
Ending balance, December 31, 2003				$	5.2
	Cash payments				(0.4	)
Ending balance, March 31, 2004				$	4.8
		Current portion of accrued restructuring		$	1.5
		Long-term portion of accrued restructuring		$	3.3

      We do not anticipate significant restructuring charges in the future; however, we will continue to pursue modifications or settlements on our long-term leases if we believe it to be in the best interests of Akamai and our stockholders. We have estimated the amount of restructuring liabilities associated with real estate leases based on the most recently available market data and discussions with our lessors and real estate advisors.

      Interest Income. Interest income consists of interest earned on invested cash balances and interest earned on notes receivable for stock. Interest income increased 68%, or $241,000, to $598,000 for the three months ended March 31, 2004 as compared to $357,000 for the three months ended March 31, 2003. The increase was a result of an increase in our invested cash, cash equivalents and marketable securities balance of $67.1 million.

      Interest Expense. Interest expense includes interest accrued on our debt obligations. Interest expense decreased 18%, or $829,000, to $3.8 million for the three months ended March 31, 2004 as compared to $4.6 million for the three months ended March 31, 2003. The decrease was due to lower interest expense as a result of our debt repurchases in December 2003 and January 2004. During January 2004 and April 2004, we repurchased $81.4 million in aggregate principal amount of our 5 1/2% convertible subordinated notes in individually negotiated transactions. In addition, in March 2004, as a result of our tender offer we repurchased an additional $37.9 million in principal amount of the 5 1/2% convertible subordinated notes. As a result of these transactions, we believe that interest expense on our debt obligations will not exceed $10.0 million in 2004.

      Loss on Early Extinguishment of Debt. During the three months ended March 31, 2004, we recorded a loss on early extinguishment of debt of $2.0 million as a result of costs incurred in connection with our repurchase of a total of $62.9 million in principal amount of our 5 1/2% convertible subordinated notes during the period. This loss represents the reduction of $977,000 of deferred financing costs associated with repurchases of notes prior to their maturity, $474,000 of the premium paid to repurchase such notes and $567,000 of advisory services and offering costs incurred related to the repurchases. We expect to incur additional losses on early extinguishment of debt in connection with the additional repurchases of our 5 1/2% convertible subordinated debt in April 2004. See “Overview” above.

Liquidity and Capital Resources

      To date, we have financed our operations primarily through the following transactions:

	•	private sales of capital stock;
	•	the issuance in April 1999 of senior subordinated notes, which we repaid in 1999, totaling approximately $124.6 million in net proceeds;
	•	an initial public offering of our common stock in October 1999 that provided $217.6 million after underwriters’ discounts and commissions;
	•	the sale in June 2000 of $300 million in principal amount of our 5 1/2% convertible subordinated notes, which generated net proceeds of $290.2 million; and

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	•	the sale in December 2003 and January 2004 of $200 million in principal amount of our 1% convertible senior notes, which generated net proceeds of $194.1 million.

      As of March 31, 2004, cash, cash equivalents and marketable securities totaled $177.0 million, of which $4.7 million is subject to restrictions limiting our ability to withdraw or otherwise use such cash, cash equivalents and marketable securities. See “Letters of Credit” below.

      Cash provided by operating activities was $8.6 million for the three months ended March 31, 2004 compared to cash used in operating activities of $13.0 million for the three months ended March 31, 2003. The cash provided by operating activities was primarily due to an increase in service revenues during the first quarter of 2004, as well as a decrease in accrued restructuring costs of $11.6 million and a decrease in accounts payable, accrued expenses and other current liabilities of $10.8 million, partially offset by an increase in deferred revenue of $1.0 million. We expect to continue to generate cash from operating activities as a result of a stabilization of operating expenses that require cash outlays, a reduction in payments toward our real estate restructuring liabilities and an upward trend in cash collections related to an increase in recurring revenue contract bookings. However, the timing and amount of future working capital changes and our ability to manage our days sales outstanding will affect the future amount of cash used in or provided by operating activities.

      Cash provided by investing activities was $1.2 million for the three months ended March 31, 2004 compared to $411,000 for the three months ended March 31, 2003. The cash provided by investing activities for the three months ended March 31, 2004 was primarily due to a decrease of $5.0 million in restricted cash to reflect our repurchase of $5.0 million in principal amount of our 5 1/2% convertible subordinated notes in early 2004 offset by a net decrease in proceeds from sales and maturities of investments as a result of a decrease in our marketable securities portfolio year over year. Cash used in investing activities for the three months ended March 31, 2004 reflects net purchases, sales and maturities of investments of $743,000 and capital expenditures of $3.0 million, consisting primarily of the capitalization of internal-use software development costs related to our current and future service offerings. Cash provided by investing activities in the three months ended March 31, 2003 was primarily from the net sale and maturity of marketable securities, offset by capital expenditures. We continue to expect that total capital expenditures, a component of cash used in investing activities, to not exceed 10% of revenue in 2004.

      Cash used in financing activities was $36.5 million for the three months ended March 31, 2004, as compared to $143,000 for the three months ended March 31, 2003. Cash provided by financing activities during the three months ended March 31, 2004 reflects proceeds received from the issuance of our 1% convertible senior notes, net of financings costs, of $24.3 million and issuances of common stock under our stock plans of $2.2 million. Proceeds from our issuances of securities were offset by payments for the repurchase of $62.9 million in principal amount of our 5 1/2% convertible subordinated notes and payments on our capital lease obligations of $131,000. Cash provided by financing activities in the three months ended March 31, 2003 reflects proceeds from the issuance of common stock of $164,000, offset by cash used in financing activities for payments on capital lease obligations of $307,000. We expect cash used in financing activities to increase in the second quarter of 2004 due to the repurchases of $56.4 million in principal amount of our 5 1/2% convertible subordinated debt in April 2004.

      We believe that our current cash, cash equivalents and marketable securities of $177.0 million will be sufficient to meet our cash needs for working capital and capital expenditures for at least the next 24 months. If the assumptions underlying our business plan regarding future revenue and expenditures change or if unexpected opportunities or needs arise, we may seek to raise additional cash by selling equity or debt securities. We may seek to retire or refinance our long-term debt with cash, equity or a combination thereof. If additional funds are raised through the issuance of equity or debt securities, these securities could have rights, preferences and privileges senior to those accruing to holders of common stock, and the terms of such debt could impose restrictions on our operations. The sale of additional equity or convertible debt securities could result in additional dilution to our stockholders. See “Factors Affecting Future Operating Results.”

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Contractual Obligations and Commercial Commitments

      The following table presents our contractual obligations and commercial commitments as of March 31, 2004 over the next five years and thereafter (in millions):

			Payments Due by Period
Contractual Obligations							Less than				12-36				36-60				More than
as of March 31, 2004			Total				12 Months				Months				Months				60 Months
5 1/2% convertible subordinated notes			$	163.2			$	—			$	—			$	163.2			$	—
1% convertible senior notes				200.0				—				—				—				200.0
Interest on convertible notes outstanding assuming no early redemption				91.4				11.0				21.9				8.5				50.0
Bandwidth and co-location agreements				9.8				8.9				0.9				—				—
Real estate operating leases				24.1				5.9				10.3				7.4				0.5
Capital leases and vendor financing				0.6				0.5				0.1				—				—
Vendor equipment purchase obligations				0.5				0.5				—				—				—
Open vendor purchase orders				3.2				3.2				—				—				—
Advisory services				0.1				0.1				—				—				—
	Total		$	492.9			$	30.1			$	33.2			$	179.1			$	250.5

Letters of Credit

      As of March 31, 2004, we had issued $4.7 million in irrevocable letters of credit in favor of third-party beneficiaries, primarily related to facility leases. The letters of credit are collateralized by restricted marketable securities, of which $3.9 million are classified as long-term marketable securities and $826,000 are classified as short-term marketable securities on the consolidated balance sheet dated as of March 31, 2004. The restrictions on these marketable securities lapse as we fulfill our obligations or as such obligations expire as provided by the letters of credit. These restrictions are expected to lapse through May 2009.

Off-Balance Sheet Arrangements

      We have entered into indemnification agreements with third parties, including vendors, customers, landlords, our officers and directors, shareholders of acquired companies, joint venture partners and third parties to whom we license technology. Generally, these indemnification agreements require us to reimburse losses suffered by the third party due to various events, such as lawsuits arising from patent or copyright infringement or our negligence. These indemnification obligations are considered off-balance sheet arrangements in accordance with Financial Accounting Standards Board, or FASB, Interpretation 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” See “Obligations under Guarantees” in the footnotes to our condensed consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2003 for further discussion of these indemnification agreements. The initial recognition and initial measurement provisions of FIN 45 apply on a prospective basis to guarantees issued or modified after December 31, 2002. The fair value of guarantees issued or modified during the three months ended March 31, 2004 was determined to be immaterial.

Recent Accounting Pronouncements

      In December 2003, the FASB issued Interpretation 46R, or FIN 46R, “A revision to FIN 46, Consolidation of Variable Interest Entities.” FIN 46R clarifies some of the provisions of FIN 46 and exempts certain entities from its requirements. FIN 46R is effective at the end of the first interim period ending after March 15, 2004. Entities that have adopted FIN 46 prior to this effective date can continue to apply the provisions of FIN 46 until the effective date of FIN 46R. We are not currently an investor in any variable interest entities and, therefore, FIN 46R does not have an effect on our condensed consolidated financial statements.

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Factors Affecting Future Operating Results

	The markets in which we operate are highly competitive, and we may be unable to compete successfully against new entrants and established companies with greater resources.

      We compete in markets that are new, intensely competitive, highly fragmented and rapidly changing. We have experienced and expect to continue to experience increased competition. Many of our current competitors, as well as a number of our potential competitors, have longer operating histories, greater name recognition, broader customer relationships and industry alliances and substantially greater financial, technical and marketing resources than we do. Other competitors may attract potential customers by offering services that may be perceived as less sophisticated versions of our services or at lower prices than those we charge. Our competitors may be able to respond more quickly than we can to new or emerging technologies and changes in customer requirements. Some of our current or potential competitors may bundle their services with other services, software or hardware in a manner that may discourage website owners from purchasing any service we offer or ISPs from installing our servers. Increased competition could result in price and revenue reductions, loss of customers and loss of market share, which could materially and adversely affect our business, financial condition and results of operations.

	If the prices we charge for our services decline over time, our business and financial results are likely to suffer.

      Prices we have been charging for some of our services have declined in recent years. We expect that this decline may continue in the future as a result of, among other things, existing and new competition in the markets we address. Consequently, our historical revenue rates may not be indicative of future revenue based on comparable traffic volumes. If we are unable to sell our services at acceptable prices relative to our costs or if we are unsuccessful with our strategy of “upselling” our higher-priced services to our EdgeSuite delivery customers, our revenue and gross margins will decrease, and our business and financial results will suffer.

	Failure to increase our revenue and keep our expenses consistent with revenues could prevent us from maintaining profitability.

      The quarter ended March 31, 2004 was the first quarter in our corporate history during which we achieved profitability as measured in accordance with generally accepted accounting principles. We have large fixed expenses, and we expect to continue to incur significant bandwidth, sales and marketing, product development, administrative, interest and other expenses. Therefore, we will need to generate higher revenue to maintain profitability. There are numerous factors that could, standing alone or combined with other factors, impede our ability to increase revenue and/or moderate expenses, including:

	•	failure to increase sales of our EdgeSuite and EdgeComputing services;
	•	significant increases in bandwidth costs or other operating expenses;
	•	inability to maintain or increase our prices;
	•	any lack of market acceptance of our services due to continuing concerns about commercial use of the Internet, including security, reliability, speed, cost, ease of access, quality of service and regulatory initiatives;
	•	any failure of our current and planned services and software to operate as expected;
	•	a failure by us to respond rapidly to technological changes in our industry that could cause our services to become obsolete;
	•	unauthorized use or access to content delivered over our network;
	•	a continuation of adverse economic conditions worldwide that have contributed to slowdowns in capital expenditures by businesses, particularly capital spending in the information technology market;
	•	failure of a significant number of customers to pay our fees on a timely basis or at all or to continue to purchase our services in accordance with their contractual commitments; and

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	•	inability to attract high-quality customers to purchase and implement our current and planned services and software.

	Reduction of revenue from Microsoft would cause our business and financial results to suffer.

      For the three months ended March 31, 2004, Microsoft accounted for 11% of our revenue. In September 2003, we entered into an amendment to our content delivery services customer agreement with Microsoft that has a two-year term and includes a minimum usage commitment. In September 2004, Microsoft will have the right to reduce its commitment levels by 50% for the second year of the term and convert the contract to a month-to-month term if the parties fail to reach agreement as to appropriate price changes after the first year of the term. A significant decline in sales to Microsoft would reduce our revenue and cause our business and financial results to suffer.

	Our substantial leverage may harm our financial condition and results of operations, and our failure to significantly increase our revenue would seriously harm our business and operating results and could cause us to fail to make interest or principal payments or repay our outstanding indebtedness.

      We have significant long-term debt, and we may not be able to make interest or principal payments when due. As of March 31, 2004, our total long-term debt was approximately $363.1 million and our stockholders’ deficit was approximately $169.7 million. In April 2004, however, we repurchased $56.4 million in principal amount of our outstanding 5 1/2% convertible subordinated notes. Our level of indebtedness could adversely affect our future operations, by increasing our vulnerability to adverse changes in general economic and industry conditions and by limiting or prohibiting our ability to obtain additional financing for capital expenditures, acquisitions, and general corporate and other purposes.

      Historically, we have had negative cash flow from operations. For the year ended December 31, 2003, net cash used in operating activities was approximately $18.0 million. As of April 30, 2004, we had $106.8 million in aggregate principal amount of our 5 1/2% convertible subordinated notes outstanding. Assuming no additional 5 1/2% convertible subordinated notes are converted or redeemed our annual interest payments on our 5 1/2% convertible subordinated notes will be approximately $5.9 million and annual interest payment on our 1% convertible senior notes, will be approximately $2.0 million. In addition, if our 5 1/2% convertible subordinated notes are converted or if we do not repurchase, redeem, exchange or otherwise repay our outstanding 5 1/2% notes prior to 2007, they will become due at such time.

	Any unplanned interruption in our network or services could lead to significant costs and disruptions that could reduce our revenue and harm our business, financial results and reputation.

      Our business is dependent on providing our customers with fast, efficient and reliable distribution of application and content delivery services over the Internet. For our core services, we currently provide a guarantee that our networks will deliver Internet content 24 hours a day, seven days a week, 365 days a year. If we do not meet this standard, our customer does not pay for all or a part of its services on that day. Our network or services could be disrupted by numerous events, including natural disasters, failure or refusal of our third-party network providers to provide the necessary capacity, power losses, and intentional disruptions of our services, such as disruptions caused by software viruses or attacks by unauthorized users. Any widespread loss or interruption of our network or services would reduce our revenue and could harm our business, financial results and reputation.

	We may have insufficient transmission capacity which could result in interruptions in our services and loss of revenue.

      Our operations are dependent in part upon transmission capacity provided by third-party telecommunications network providers. We believe that we have access to adequate capacity to provide our services; however, there can be no assurance that we are adequately prepared for unexpected increases in bandwidth demands by our customers. In addition, the bandwidth we have contracted to purchase may become unavailable for a variety of reasons. For example, a number of these network providers are operating under the protection of the federal bankruptcy laws. As a result, there is uncertainty about whether such providers, or others that enter into bankruptcy, will be able to continue to provide services to us. Any failure of these network providers to

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	Because our services are complex and are deployed in complex environments, they may have errors or defects that could seriously harm our business.

      Our services are highly complex and are designed to be deployed in and across numerous large and complex networks. From time to time, we have needed to correct errors and defects in our software. In the future, there may be additional errors and defects in our software that may adversely affect our services. If we are unable to efficiently fix errors or other problems that may be identified, we could experience loss of revenues and market share, damage to our reputation, increased expenses and legal actions by our customers.

	If the estimates we make, and the assumptions on which we rely, in preparing our financial statements prove inaccurate, our actual results may be adversely affected.

      Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments about taxes, revenue recognition, capitalization of internal-use software, contingent obligations, doubtful accounts and restructuring charges, among other things. These estimates and judgments affect the reported amounts of our assets, liabilities, revenues and expenses, the amounts of charges accrued by us, such as those made in connection with our restructuring charges, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. If our estimates or the assumptions underlying them are not correct, we may need to accrue additional charges which could adversely affect our results of operations, which in turn could adversely affect our stock price.

	If our license agreement with MIT terminates, our business could be adversely affected.

      We have licensed technology from MIT covered by various patents, patent applications and copyrights relating to Internet content delivery technology. Some of our technology is based in part on the technology covered by these patents, patent applications and copyrights. Our license is effective for the life of the patents and patent applications; however, under limited circumstances, such as a cessation of our operations due to our insolvency or our material breach of the terms of the license agreement, MIT has the right to terminate our license. A termination of our license agreement with MIT could have a material adverse effect on our business.

	We have incurred and could continue to incur substantial costs defending our intellectual property from infringement or a claim of infringement.

      Other companies or individuals, including our competitors, may obtain patents or other proprietary rights that would prevent, limit or interfere with our ability to make, use or sell our services. As a result, we may be found to infringe the proprietary rights of others. In the event of a successful claim of infringement against us and our failure or inability to license the infringed technology, our business and operating results would be significantly harmed. Companies in the Internet market are increasingly bringing suits alleging infringement of their proprietary rights, particularly patent rights. We have been named as a defendant in several lawsuits alleging that we have violated other companies’ intellectual property rights. Any litigation or claims, whether or not valid, could result in substantial costs and diversion of resources and require us to do one or more of the following:

	•	cease selling, incorporating or using products or services that incorporate the challenged intellectual property;
	•	pay substantial damages;

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	•	obtain a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all; and
	•	redesign products or services.

      If we are forced to take any of these actions, our business may be seriously harmed.

	Our business will be adversely affected if we are unable to protect our intellectual property rights from third-party challenges.

      We rely on a combination of patent, copyright, trademark and trade secret laws and restrictions on disclosure to protect our intellectual property rights. We have brought numerous lawsuits against entities that we believe are infringing on our intellectual property rights. These legal protections afford only limited protection. Monitoring unauthorized use of our services is difficult and we cannot be certain that the steps we have taken will prevent unauthorized use of our technology, particularly in foreign countries where the laws may not protect our proprietary rights as fully as in the United States. Although we have licensed from other parties proprietary technology covered by patents, we cannot be certain that any such patents will not be challenged, invalidated or circumvented. Furthermore, we cannot be certain that any pending or future patent applications will be granted, that any future patent will not be challenged, invalidated or circumvented, or that rights granted under any patent that may be issued will provide competitive advantages to us.

	If we are unable to retain our key employees and hire qualified sales and technical personnel, our ability to compete could be harmed.

      Our future success depends upon the continued services of our executive officers and other key technology, sales, marketing and support personnel who have critical industry experience and relationships that they rely on in implementing our business plan. None of our officers or key employees is bound by an employment agreement for any specific term. We have a “key person” life insurance policy covering only the life of F. Thomson Leighton, our Chief Scientist and a member of our Board of Directors. The loss of the services of any of our key employees could delay the development and introduction of and negatively impact our ability to sell our services.

	We face risks associated with international operations that could harm our business.

      We have operations in several foreign countries and may continue to expand our sales and support organizations internationally. Such expansion could require us to make significant expenditures. We are increasingly subject to a number of risks associated with international business activities that may increase our costs, lengthen our sales cycle and require significant management attention. These risks include:

	•	lack of market acceptance of our software and services abroad;
	•	increased expenses associated with marketing services in foreign countries;
	•	general economic conditions in international markets;
	•	currency exchange rate fluctuations;
	•	unexpected changes in regulatory requirements resulting in unanticipated costs and delays;
	•	tariffs, export controls and other trade barriers;
	•	longer accounts receivable payment cycles and difficulties in collecting accounts receivable; and
	•	potentially adverse tax consequences.

	As part of our business strategy, we have entered into and may enter into or seek to enter into business combinations and acquisitions that may be difficult to integrate, disrupt our business, dilute stockholder value or divert management attention.

      We have made acquisitions of other companies in the past and may enter into additional business combinations and acquisitions in the future. Acquisitions are typically accompanied by a number of risks, including the difficulty of integrating the operations and personnel of the acquired companies, the potential

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	If we are required to seek additional funding, such funding may not be available on acceptable terms or at all.

      If our revenue decreases or grows more slowly than we anticipate or if our operating expenses increase more than we expect or cannot be reduced in the event of lower revenue, we may need to obtain funding from outside sources. If we are unable to obtain this funding, our business would be materially and adversely affected. In addition, even if we were to find outside funding sources, we might be required to issue securities with greater rights than the securities we have outstanding today. We might also be required to take other actions that could lessen the value of our common stock, including borrowing money on terms that are not favorable to us, if at all.

	Internet-related and other laws could adversely affect our business.

      Laws and regulations that apply to communications and commerce over the Internet are becoming more prevalent. In particular, the growth and development of the market for online commerce has prompted calls for more stringent tax, consumer protection and privacy laws, both in the United States and abroad, that may impose additional burdens on companies conducting business online. This could negatively affect the businesses of our customers and reduce their demand for our services. Tax laws that might apply to our servers which are located in many different jurisdictions could require us to pay additional taxes that would adversely affect our profitability. Internet-related laws, however, remain largely unsettled, even in areas where there has been some legislative action. The adoption or modification of laws or regulations relating to the Internet or our operations, or interpretations of existing law, could adversely affect our business.

	Terrorist activities and resulting military and other actions could adversely affect our business.

      Terrorist attacks in New York, Pennsylvania and Washington, D.C. in September 2001 disrupted commerce throughout the United States and other parts of the world. The continued threat of terrorism within the United States and abroad, and the potential for military action and heightened security measures in response to such threat, may cause significant disruption to commerce throughout the world. To the extent that such disruptions result in delays or cancellations of customer orders, a general decrease in corporate spending on information technology, or our inability to effectively market, sell or operate our services and software, our business and results of operations could be materially and adversely affected.

	Provisions of our charter documents, our stockholder rights plan and Delaware law may have anti-takeover effects that could prevent a change in control even if the change in control would be beneficial to our stockholders.

      Provisions of our amended and restated certificate of incorporation, by-laws and Delaware law could make it more difficult for a third party to acquire us, even if doing so would be beneficial to our stockholders. In addition, our Board of Directors has adopted, and recently amended, a shareholder rights plan the provisions of which could make it more difficult for a potential acquirer of Akamai to consummate an acquisition transaction.

	A class action lawsuit has been filed against us that may be costly to defend and the outcome of which is uncertain and may harm our business.

      We are named as a defendant in a purported class action lawsuit filed in 2001 alleging that the underwriters of our initial public offering received undisclosed compensation in connection with our initial public offering of common stock in violation of the Securities Act of 1933, as amended, or the Securities Act,

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	We may become involved in other litigation that may adversely affect us.

      In the ordinary course of business, we may become involved in litigation, administrative proceedings and governmental proceedings. Such matters can be time-consuming, divert management’s attention and resources and cause us to incur significant expenses. Furthermore, there can be no assurance that the results of any of these actions will not have a material adverse effect on our business, results of operations or financial condition.

Item 3.	Quantitative and Qualitative Disclosures About Market Risk

      Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio. In our investment portfolio, we do not use derivative financial instruments. We place our investments with high quality issuers and, by policy, limit the amount of risk by investing primarily in money market funds, United States Treasury obligations, high-quality corporate obligations and certificates of deposit.

      We may incur realized losses as a result of early redemptions of our debt securities. Our 5 1/2% convertible subordinated notes and 1% convertible senior notes are subject to changes in market value. Under certain conditions, the holders of our 1% convertible senior notes may require us to redeem the notes on certain specified dates beginning on December 15, 2010. As of March 31, 2004, the carrying amount and fair value of our 5 1/2% convertible subordinated notes were $163.1 million and $140.1 million, respectively. In April 2004, we repurchased an aggregate of $56.4 million in principal amount of our outstanding 5 1/2% convertible subordinated notes. As of March 31, 2004, the carrying amount and fair value of the 1% convertible senior notes were $200.0 million and $196.2 million, respectively.

      We have operations in Europe and Asia. As a result, we are exposed to fluctuations in foreign exchange rates. Additionally, we may continue to expand our operations globally and sell to customers in foreign locations, which may increase our exposure to foreign exchange fluctuations.

Item 4.	Controls and Procedures

      Akamai’s management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2004. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2004, our disclosure controls and procedures were (1) designed to ensure that material information relating to us, including our consolidated subsidiaries, is made known to our Chief Executive Officer and Chief Financial Officer by others within those entities, particularly during the period in which this report was being prepared and (2) effective, in that they provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

      No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act), occurred during the fiscal quarter ended March 31, 2004 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.	Legal Proceedings

      See Item 3 of part I of our annual report on Form 10-K for the year ended December 31, 2003 for a discussion of legal proceedings as to which there were no material developments during the quarter ended March 31, 2004.

Item 2.	Changes in Securities and Use of Proceeds

      On December 12, 2003, we sold $175.0 million in aggregate principal amount of our 1% convertible senior notes. The 1% convertible senior notes are convertible into shares of our common stock at a conversion price $15.45 per share, subject to adjustment in certain circumstances. The offering was made through an initial purchaser to qualified institutional buyers under Rule 144A under the Securities Act. On January 7, 2004, we sold an additional $25.0 million of the 1% convertible senior notes pursuant to the initial purchaser’s exercise of its over-allotment option granted by us in connection with the initial sale of the 1% convertible senior notes.

      On January 29, 2004, we amended the Rights Agreement, dated September 10, 2002, between us and EquiServe Trust Company, N.A., as Rights Agent. In September 2002, each holder of shares of our common stock was issued a dividend of one preferred stock purchase right for each outstanding share of our common stock held by such holder. Each right entitled the holder to purchase from us one one-thousandth of a share of our Series A Junior Participating Preferred Stock at a price of $9.00. In the January 2004 amendment to the Rights Agreement, in addition to effecting certain technical amendments, we increased the price at which holders of preferred stock purchase rights may purchase one one-thousandth of a share of our Series A Junior Participating Preferred Stock from $9.00 to $65.00, subject to adjustment in certain circumstances.

Item 6.	Exhibits and Reports on Form 8-K

      (a) Exhibits

      The exhibits filed as part of this Quarterly Report on Form 10-Q are listed in the Exhibit Index immediately preceding the exhibits and are incorporated herein.

      (b) Reports on Form 8-K

	(1) On January 8, 2004, we filed a Current Report on Form 8-K dated January 7, 2004 under Item 5 — Other Events containing two press releases. The first press release, issued on January 7, 2004, announced that the initial purchaser of our $175.0 million in principal amount of our 1% convertible senior notes had exercised its option to purchase an additional $25.0 million in principal amount of the 1% convertible senior notes. The second press release announced that we repurchased, in several individually negotiated transactions, an aggregate of $99.0 million in principal amount of our 5 1/2% convertible subordinated notes for a total of $98.9 million in cash.
	(2) On February 2, 2004, we filed a Current Report on Form 8-K of even date under Item 5 — Other Events announcing an amendment to the Rights Agreement relating to shares of our common stock and including a copy of the amendment to the Rights Agreement.
	(3) On February 4, 2004, we furnished a Current Report on Form 8-K of even date under Item 12 — Disclosure of Results of Operations and Financial Condition containing a press release in which we announced our financial results for the year ended December 31, 2004.
	(4) On March 24, 2004, we filed a Current Report on Form 8-K of even date under Item 5 — Other Events containing a press release in which we announced the departure of our Chief Operating Officer.

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SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AKAMAI TECHNOLOGIES, INC.

	By:	/s/ ROBERT COBUZZI

	Robert Cobuzzi,
	Chief Financial Officer

Date: May 10, 2004

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EXHIBIT INDEX

Exhibit 10.28		Agreement, dated as of March 15, 2004, between the Registrant and Michael Ruffolo
Exhibit 31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
Exhibit 31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
Exhibit 32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

                                                                   EXHIBIT 10.28

March 15, 2004

Mr. Michael Ruffolo

[address]

Dear Mike:

      As we have discussed, I have determined that it is best for us to separate
at this time. I want to thank you for your efforts since 2001 to help me to
restructure Akamai and to help put the company on its path toward profitability
and continuing success. Despite the current differences between us, I want to
wish you personal success wherever your endeavors may lead.

      In connection with your separation from employment with Akamai
Technologies, Inc. ("Akamai" or the "Company") on April 9, 2004, you are
eligible to receive the benefits described in this Agreement (the "Agreement")
if you sign and return this Agreement to Tiffany Mosher-Taylor, Vice President
of Human Resources, by April 6, 2004 and do not rescind it within the seven-day
rescission period described below.

      1. SEPARATION OF EMPLOYMENT. You acknowledge that your employment with
Akamai will terminate effective April 9, 2004 (the "Separation Date"). From and
after the Separation Date, you shall have no authority, and shall not represent
yourself, as an employee or agent of Akamai.

      2. DESCRIPTION OF ADDITIONAL BENEFITS. In consideration for the
undertakings, transactions, and considerations recited in this Agreement, within
10 days after this Agreement becomes binding upon you ("Payment Date"), Akamai
agrees to provide you with the following:

      (i) A lump sum payment of Four Hundred Thousand Dollars and Zero Cents
      ($400,000.00) less all applicable federal, state, local and other
      employment-related taxes, deductions, and withholdings, in accordance with
      the Company's normal payroll practices, which sum represents one year of
      base pay (the "Severance Pay").

      (ii) Pursuant to the Restricted Stock Agreement Under Second Amended and
      Restated 1998 Stock Incentive Plan entered into on November 14, 2002, the
      Company agrees to authorize the accelerated vesting of your 175,000 shares
      of restricted stock as of April 9, 2004; and

      (iii) A lump sum cash payment of Seven Thousand Seventy-Seven Dollars and
      Zero Cents ($7,077.00), less all applicable federal, state, local and
      other employment-related taxes, deductions, and withholdings, in
      accordance with the Company's normal payroll practices, which sum
      represents an amount equal to one year's worth of the Company's current
      contribution to your medical and dental plan. You may use this money to
      cover the costs of medical and dental coverage under Consolidated Omnibus
      Budget Reconciliation Act of 1985 ("COBRA"). This payment shall be in lieu
      of reimbursement by the Company of part or all of the costs to continue
      your medical and dental coverage pursuant to COBRA. Upon timely completion
      of the forms required by COBRA, you may continue, at your sole expense,
      your medical and dental insurance coverage after the Separation Date to
      the extent permitted by COBRA. The COBRA "qualifying event" shall be
      deemed to be the Separation Date.

Separation Letter for Mike Ruffolo
March 15, 2004
Page 2


      (iv) The Company agrees that it will instruct the Chairman and CEO,
      Members of the Office of the CEO, the Board of Directors, and the Vice
      President of Human Resources to describe your separation in accordance
      with a mutually agreed statement.

      You acknowledge and agree that the benefits described in this Section 2
are not intended to, and shall not constitute, a severance plan, and shall
confer no benefit on anyone other than the parties hereto. You further
acknowledge that except for (i) the specific financial consideration set forth
in this Agreement, (ii) wages owed for work performed up to the Separation Date,
(iii) payment of accrued and unused vacation time, (iv) expense reimbursement
for previously submitted expenses in accordance with Akamai's expense
reimbursement policies, and (v) a refund, if one is due, of your current
participation in the Employee Stock Purchase Plan ("ESPP") (if you are currently
enrolled in the ESPP, your participation in the plan will end on your
termination date) you are not, and shall not in the future be, entitled to any
other compensation including, without limitation, other wages, commissions,
bonuses, vacation pay, holiday pay, or any other form of compensation or
benefit.

      3. STOCK OPTIONS. You agree that, effective as of the close of business on
April 9, 2004, you will forfeit, and the Company will cancel, the incentive
stock option to purchase 323,438 shares of the Company's Common Stock, with a
strike price of $3.71 per share, that you were granted on May 15, 2001 and as
evidenced by an Incentive Stock Option Agreement Granted Under 1998 Stock
Incentive Plan. The Company and you agree that this paragraph shall have no
affect on your remaining option to purchase 251,562 shares of Common Stock of
the Company in which you have vested. Pursuant to the Company's 1998 Stock
Incentive Plan, you will have up to three months after the Separation Date to
exercise your stock rights. Except as described in Section 2(ii) above, all
unvested stock rights will be cancelled on the Separation Date.

      4. RETURN OF COMPANY PROPERTY. You confirm that, as of the Separation
Date, you will have returned to Akamai all Akamai records and documents (and any
copies thereof), all keys, files, equipment belonging to the Company (including,
but not limited to, computer hardware, software and printers, wireless handheld
devices, pagers, etc.), Company identification, and any other Company-owned
property in your possession or control and have left intact all electronic
Company documents, including but not limited to those which you developed or
helped to develop during your employment. You further confirm that you will have
cancelled all accounts for your benefit, if any, in the Company's name,
including but not limited to, credit cards, telephone charge cards, cellular
phone and/or pager accounts and computer accounts. Moreover, you agree that you
will not, without Akamai's express authorization, access, attempt to access or
otherwise interfere with Akamai's electronic information systems, including but
not limited to Akamai's computer, voice mail, or e-mail systems.

      5. BUSINESS EXPENSES AND COMPENSATION. You acknowledge that the Company
has reimbursed you for all costs and business expenses incurred in conjunction
with the performance of your employment and that no other reimbursements are
owed to you. You further acknowledge that you have received payment in full for
all services rendered in conjunction with your employment by the Company and
that no other compensation is owed to you.

      6. MUTUAL NON-DISPARAGEMENT. To the extent permitted by law, you
understand and agree that, as a condition for payment to you of the
consideration herein described, you shall not make any false, disparaging or
derogatory statements to anyone, including but not limited to any media outlet,
industry group, financial institution, current or former employee, consultant,
client or customer of the Company, regarding the Company or any of its
directors, officers, employees, agents or representatives or about the Company's
business affairs and financial condition, any statements that disparage any
person, product, service, finances, financial condition, capability or any other
aspect of the business of Akamai, and you will not engage in any conduct which
is intended to harm professionally or personally the

Separation Letter for Mike Ruffolo
March 15, 2004
Page 3


reputation of Akamai (including its officers, directors, and employees). The
Company agrees to instruct its the Chairman and CEO, Members of the Office of
the CEO, the Board of Directors, and the Vice President of Human Resources with
knowledge of this Agreement not to make any false, disparaging or derogatory
statements to anyone, including but not limited to any media outlet, industry
group, or current or future employee about you or your employment with, and
separation from, the Company.

      7. MUTUAL RELEASE OF CLAIMS. In consideration of the benefits set forth in
Section 2 above and the Company's release below, which you acknowledge you would
not otherwise be entitled to receive, you hereby fully, forever, irrevocably and
unconditionally release, remise and discharge the Company, its officers,
directors, stockholders, corporate affiliates, subsidiaries, parent companies,
agents and employees (each in their individual and corporate capacities)
(hereinafter, the "Released Parties") from any and all claims, charges,
complaints, demands, actions, causes of action, suits, rights, debts, sums of
money, costs, accounts, reckonings, covenants, contracts, agreements, promises,
doings, omissions, damages, executions, obligations, liabilities, and expenses
(including attorneys' fees and costs), of every kind and nature which you ever
had or now have against the Released Parties arising out of your employment with
and/or separation from the Company, including, but not limited to, all
employment discrimination claims or employment law claims under Civil Rights
Acts of 1866 and 1871, Civil Rights Act of 1991, the Equal Pay Act, Older
Workers Benefits Protection Act, Fair Labor Standards Act, National Labor
Relations Act, Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"), Title
VII of the Civil Rights Act of 1964, 42 U.S.C. Section 2000e et seq., the Age
Discrimination in Employment Act, 29 U.S.C. Section 621 et seq., --- the
Americans With Disabilities Act of 1990, 42 U.S.C., Section 12101 et seq., the
Family and Medical Leave Act, 29 U.S.C. Section 2601 et seq., and the Worker
Adjustment and Retraining Notification Act ("WARN"), 29 U.S.C. Section 2101 et
seq. all as amended; all claims arising out of the Fair Credit Reporting ---
Act, 15 U.S.C. Section 1681 et seq., the Employee Retirement Income Security Act
of 1974 ("ERISA"), 29 U.S.C. Section 1001 et seq., the Massachusetts Fair
Employment Practices Act., M.G.L. c.151B, Section 1 et seq., the Massachusetts
Civil Rights Act, M.G.L. c.12 Sections 11H and 11I, the Massachusetts Equal
Rights Act, M.G.L. c.93, Section 102 and M.G.L. c.214, Section 1C, the
Massachusetts Labor and Industries Act, M.G.L. c.149, Section 1 et seq., the
Massachusetts Privacy Act, M.G.L. c. 214, Section 1B, and the Massachusetts
Maternity Leave Act , M.G.L. c. 149, Section 105(d), all as amended; all common
law claims including, but not limited to, actions in tort, defamation and breach
of contract; all claims to any non-vested ownership interest in the Company,
contractual or otherwise, including but not limited to claims to stock or stock
options; and any claim or damage arising out of your employment with or
separation from the Company (including a claim for retaliation) under any common
law theory or any federal, state or local statute or ordinance not expressly
referenced above; provided, however, that nothing in this Agreement prevents you
from filing, cooperating with, or participating in any proceeding before the
EEOC or a state Fair Employment Practices Agency (except that you acknowledge
that you may not be able to recover any monetary benefits in connection with any
such claim, charge or proceeding).

      In consideration of the undertakings, transactions and consideration
recited in this Agreement, the Company hereby unconditionally and irrevocably
remises, releases and forever discharges you, your heirs and administrators, or
any of them, of and from any and all suits, claims, demands, interest, costs
(including attorney fees and costs actually incurred), expenses, actions and
causes of action, rights, liabilities, obligations, promises, agreements,
controversies, losses and debts, of any nature whatsoever, which the Company now
has, or at any time heretofore ever had, or could have had, whether known or
unknown, suspected or unsuspected, arising out of your employment with the
Company.

      8. FUTURE COOPERATION/INDEMNIFICATION. You agree that you shall cooperate
fully with Akamai in connection with any matter or event relating to your
employment or events that occurred during your employment, including, without
limitation, in the defense or prosecution of any claims or actions not in
existence or which may be brought or threatened in the future against or on
behalf of Akamai, including any claims or actions against its officers,
directors and employees. Your cooperation

Separation Letter for Mike Ruffolo
March 15, 2004
Page 4


in connection with such matters, actions and claims shall include, without
limitation, being available, upon reasonable notice, to meet with Akamai
regarding matters in which you have been involved, and any contract matters or
audits; to prepare for any proceeding (including, without limitation,
depositions, consultation, discovery or trial); to provide affidavits; to assist
with any audit, inspection, proceeding or other inquiry; and to act as a witness
in connection with any litigation or other legal proceeding affecting Akamai.
You shall be reimbursed for actual and reasonable out-of-pocket expenses
incurred in providing such cooperation under this Section. To the extent
permitted by law, you further agree that should you be contacted (directly or
indirectly) by any person or entity (for example, by any party representing an
individual or entity) adverse to Akamai, you shall promptly notify Akamai's
General Counsel.

      9. NON-DISCLOSURE AND NON-COMPETITION AND NON-SOLICITATION. You
acknowledge and reaffirm your obligation to keep confidential all non-public
information concerning the Company which you acquired during the course of your
employment with the Company which remains in full force and effect, as stated
more fully in the Non-Competition and Non-Solicitation Agreement and the
Invention and Non-Disclosure Agreement ("NDAs") you signed when you began your
employment at Akamai. You further acknowledge and reaffirm that those
agreements, and your obligations there under, also remain in full force and
effect.

      10. BREACH. A breach of any provision of Section 3-9 shall constitute a
material breach of this Agreement and, in addition to any other legal or
equitable remedy available to Akamai, shall entitle Akamai to recover any monies
paid to you under Section 2, as well as to cease complying with Sections 2 (iv)
and 6, of this Agreement. You also acknowledge that the provisions of this
Section 10 are reasonable and necessary to protect Akamai's business interests,
and further that your breach of any of the covenants set forth in Sections 3-9
would constitute a material breach of the Agreement, that Akamai would suffer
substantial irreparable harm and that Akamai would not have an adequate remedy
at law for such breach. Therefore, in recognition of these acknowledgements, you
agree that in the event of a breach of any of these covenants, in addition to
such other remedies as Akamai may have at law, Akamai, without posting any bond,
shall be entitled to obtain, and you agree not to oppose, a request for
equitable relief in the form of specific performance or temporary, preliminary
or permanent injunctive relief, or any other equitable remedy which then may be
available. The seeking of such injunction or order shall not affect Akamai's
right to seek and obtain damages or other equitable relief on account of any
such actual. You further acknowledge and agree to enforcement of these covenants
under the laws of and in the Commonwealth of Massachusetts, where Akamai
maintains its worldwide headquarters, where all personnel and benefit plans are
administered, documents maintained, where this Agreement has been executed by
Akamai, and where witnesses and documents relating to any dispute would be
primarily located.

      11. AMENDMENT. This Agreement shall be binding upon the parties and may
not be modified in any manner, except by an instrument in writing of concurrent
or subsequent date signed by duly authorized representatives of the parties
hereto. This Agreement is binding upon and shall inure to the benefit of the
parties and their respective agents, assigns, heirs, executors, successors and
administrators.

      12. WAIVER OF RIGHTS. No delay or omission by the Company in exercising
any right under this Agreement shall operate as a waiver of that or any other
right. A waiver or consent given by the Company on any one occasion shall be
effective only in that instance and shall not be construed as a bar or waiver of
any right on any other occasion.

      13. VALIDITY. Should any provision of this Agreement be declared or be
determined by any court of competent jurisdiction to be illegal or invalid, the
validity of the remaining parts, terms or provisions shall not be affected
thereby and said illegal or invalid part, term or provision shall be deemed not
to be a part of this Agreement.

Separation Letter for Mike Ruffolo
March 15, 2004
Page 5


      14. CONFIDENTIALITY. You understand and agree that as a condition for
payment to you and of the Company's description of your separation and
non-disparagement obligations, herein described, the terms and contents of this
Agreement, and the contents of the negotiations and discussions resulting in
this Agreement, shall be maintained as confidential by you and your agents and
representatives and shall not be disclosed except to the extent required by
federal or state law or as otherwise agreed to in writing by the Company.

      15. ACKNOWLEDGMENTS. It is Akamai's desire and intent to make certain that
you fully understand the provisions and effects of this Agreement. To that end,
you have been encouraged and given the opportunity to consult with legal counsel
before signing below and returning this Agreement to Tiffany Mosher-Taylor, Vice
President of Human Resources, Akamai Technologies, Inc., 8 Cambridge Center,
Cambridge, MA 02142. You may take up to twenty-one (21) days (until close of
business on April 6, 2004) to sign this Agreement. In addition, if you sign this
Agreement within that time period, you may change your mind and rescind your
assent to this Agreement if, within seven (7) days after you sign this
Agreement, you deliver a notice of rescission to Tiffany Mosher-Taylor, Vice
President of Human Resources, at Akamai. To be effective, such rescission must
be hand delivered or postmarked within the seven (7) day period and sent by
certified mail, return receipt requested, to Tiffany Mosher-Taylor, Vice
President of Human Resources, Akamai Technologies, Inc., 8 Cambridge Center,
Cambridge, MA 02142. If you do not so rescind, this Agreement will become a
binding agreement between you and the Company upon the expiration of the seven
(7) day rescission period

      If you choose not to sign and return this Agreement by April 6, 2004, for
the reasons previously discussed, you shall not receive any benefits from the
Company. You will, however, receive payment on your separation from employment
for any unused vacation time accrued through the separation date. Also,
regardless of signing this Agreement, you may elect to continue receiving group
medical insurance pursuant to COBRA. You shall pay all premium costs on a
monthly basis for as long as, and to the extent that, you remain eligible for
COBRA continuation. You should consult the COBRA materials to be provided by the
Company for details regarding these benefits. All other benefits, including life
insurance and long-term disability, will cease upon your Separation Date.

      You acknowledge that you have been given at least twenty-one (21) days to
consider this Agreement and that the Company advised you to consult with an
attorney of your own choosing prior to signing this Agreement. You understand
that you may revoke this Agreement for a period of seven (7) days after you sign
this Agreement, and this Agreement shall not be effective or enforceable until
the expiration of this seven (7) day revocation period. YOU UNDERSTAND AND AGREE
THAT BY ENTERING INTO THIS AGREEMENT YOU ARE WAIVING ANY AND ALL RIGHTS OR
CLAIMS YOU MIGHT HAVE UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT, AS AMENDED
BY THE OLDER WORKERS BENEFIT PROTECTION ACT, AND THAT YOU HAVE RECEIVED
CONSIDERATION BEYOND THAT TO WHICH YOU WERE PREVIOUSLY ENTITLED.

      16. VOLUNTARY ASSENT. You affirm that no other promises or agreements of
any kind have been made to or with you by any person or entity whatsoever to
cause you to sign this Agreement, and that you fully understand the meaning and
intent of this Agreement. You state and represent that you have had an
opportunity to fully discuss and review the terms of this Agreement with an
attorney. You further state and represent that you have carefully read this
Agreement, understand the contents herein, freely and voluntarily assent to all
of the terms and conditions hereof, and sign your name of your own free act.

      17. APPLICABLE LAW. This Agreement shall be interpreted and construed by
the laws of the Commonwealth of Massachusetts, without regard to conflict of
laws provisions. You hereby irrevocably submit to and acknowledge and recognize
the jurisdiction of the courts of the Commonwealth of

Separation Letter for Mike Ruffolo
March 15, 2004
Page 6


Massachusetts, or if appropriate, a federal court located in Massachusetts
(which courts, for purposes of this Agreement, are the only courts of competent
jurisdiction), over any suit, action or other proceeding arising out of, under
or in connection with this Agreement or the subject matter hereof. You also
acknowledge that venue for such actions shall lie exclusively in Massachusetts
and that material witnesses and documents are located in Massachusetts.

      18. ENTIRE AGREEMENT. Except for the NDAs, this Agreement contains and
constitutes the entire understanding and agreement between the parties hereto
with respect to your additional benefits and the settlement of claims against
the Company and cancels all previous oral and written negotiations, agreements,
commitments, writings in connection therewith. Nothing in this paragraph,
however, shall modify, cancel or supersede your obligations set forth in this
Agreement. The provisions of this Agreement are severable and if, for any
reason, any part hereof shall be found to be unenforceable, the remaining
provisions shall be enforced in full.

            If you have any questions about the matters covered in this
Agreement, please call Tiffany Mosher-Taylor.

                                    Very truly yours,



                                    AKAMAI TECHNOLOGIES, INC.

                                    By:   /s/ George H. Conrades
                                          -----------------------
                                          George H. Conrades
                                          Chairman and CEO


            I hereby agree to the terms and conditions set forth above. I have
been given at least twenty-one (21) days to consider this Agreement and I have
chosen to execute this on the date below. I intend that this Agreement become a
binding agreement between the Company and me if I do not revoke my acceptance in
seven (7) days.

/s/ Michael Ruffolo                             Date March 22, 2004
- ------------------------------                       --------------
MICHAEL RUFFOLO


To be returned by April 6, 2004

                                  EXHIBIT 31.1

                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, George Conrades, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Akamai Technologies,
      Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were made, not misleading with respect to the period covered by this
      report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this report, fairly present in all material
      respects the financial condition, results of operations and cash flows of
      the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
      and have:

      a)    Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made known
            to us by others within those entities, particularly during the
            period in which this report is being prepared;

      b)    [Paragraph omitted in accordance with SEC transition instructions
            contained in SEC Release 34-47986]

      c)    Evaluated the effectiveness of the registrant's disclosure controls
            and procedures and presented in this report our conclusions about
            the effectiveness of the disclosure controls and procedures, as of
            the end of the period covered by this report based on such
            evaluation; and

      d)    Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on
      our most recent evaluation of internal control over financial reporting,
      to the registrant's auditors and the audit committee of the registrant's
      board of directors (or persons performing the equivalent functions):

      a)    All significant deficiencies and material weaknesses in the design
            or operation of internal control over financial reporting which are
            reasonably likely to adversely affect the registrant's ability to
            record, process, summarize and report financial information; and

      b)    Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal control over financial reporting.

Date: May 10, 2004                         /s/ George H. Conrades
                                          -------------------------------------
                                          George H. Conrades,
                                          Chief Executive Officer

                                  EXHIBIT 31.2

                    CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Robert Cobuzzi, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Akamai Technologies,
      Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were made, not misleading with respect to the period covered by this
      report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this report, fairly present in all material
      respects the financial condition, results of operations and cash flows of
      the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
      and have:

      a)    Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made known
            to us by others within those entities, particularly during the
            period in which this report is being prepared;

      b)    [Paragraph omitted in accordance with SEC transition instructions
            contained in SEC Release 34-47986]

      c)    Evaluated the effectiveness of the registrant's disclosure controls
            and procedures and presented in this report our conclusions about
            the effectiveness of the disclosure controls and procedures, as of
            the end of the period covered by this report based on such
            evaluation; and

      d)    Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on
      our most recent evaluation of internal control over financial reporting,
      to the registrant's auditors and the audit committee of the registrant's
      board of directors (or persons performing the equivalent functions):

      a)    All significant deficiencies and material weaknesses in the design
            or operation of internal control over financial reporting which are
            reasonably likely to adversely affect the registrant's ability to
            record, process, summarize and report financial information; and

      b)    Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal control over financial reporting.

Date: May 10, 2004                       /s/ Robert Cobuzzi
                                        ---------------------------------------
                                        Robert Cobuzzi, Chief Financial Officer

                                  EXHIBIT 32.1

                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

                             AS ADOPTED PURSUANT TO

                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

      In connection with the quarterly report on Form 10-Q of Akamai
Technologies, Inc. (the "Company") for the period ended March 31, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
the undersigned, George H. Conrades, Chief Executive Officer of the Company,
hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

      (1) the Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

      (2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.

                                        /s/ George H. Conrades
                                        ---------------------------------------
Dated: May 10, 2004                     George H. Conrades
                                        Chief Executive Officer

A signed original of this written statement required by Section 906 has been
provided to Akamai Technologies, In. and will be retained by Akamai
Technologies, Inc. and furnished to the Securities and Exchange Commission or
its staff upon request.

                                  EXHIBIT 32.2

                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

                             AS ADOPTED PURSUANT TO

                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

      In connection with the quarterly report on Form 10-Q of Akamai
Technologies, Inc. (the "Company") for the period ended March 31, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
the undersigned, Robert Cobuzzi, Chief Financial Officer of the Company, hereby
certifies, pursuant to 18 U.S.C. Section 1350, that:

      (1) the Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

      (2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.

                                         /s/ Robert Cobuzzi
                                         --------------------------------------
Dated: May 10, 2004                      Robert Cobuzzi
                                         Chief Financial Officer

A signed original of this written statement required by Section 906 has been
provided to Akamai Technologies, In. and will be retained by Akamai
Technologies, Inc. and furnished to the Securities and Exchange Commission or
its staff upon request.