Akamai Technologies ( (AKAM) ) has released its Q3 earnings. Here is a breakdown of the information Akamai Technologies presented to its investors.
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Akamai Technologies, a leading company in the cybersecurity and cloud computing sectors, provides vital online business solutions including security, cloud computing, and content delivery services. In its latest earnings report, Akamai announced a revenue milestone for the third quarter of 2024, surpassing the billion-dollar mark for the first time with a total revenue of $1.005 billion, reflecting a 4% year-over-year increase. Notably, the company saw a significant rise in its security and compute segments, which together grew by 17% year-over-year and now constitute nearly 70% of the company’s total revenue.
Key financial highlights from the report include a 14% increase in security revenue and a 28% rise in compute revenue, while delivery revenue saw a 16% decline. Geographically, U.S. revenue increased by 5%, while international revenue grew by 3%, adjusted for foreign exchange rates. The quarter also saw a restructuring charge of $82 million, impacting GAAP income from operations and net income, which decreased by 60% and 64% respectively compared to the previous year. However, the company’s adjusted EBITDA rose by 2% to $426 million.
Despite the restructuring costs, Akamai maintained a robust financial position with cash from operations amounting to $393 million, representing 39% of revenue. The company also invested in growth initiatives, spending $166 million on share repurchases and maintaining a solid cash reserve of nearly $2 billion. Akamai’s strategic focus on new products and commitment to bottom-line performance is expected to support its future growth ambitions.
Looking ahead, Akamai remains optimistic about its trajectory, with expectations of continued momentum in its security and compute solutions. The company projects revenue between $995 million and $1.020 billion for the fourth quarter of 2024, and an annual revenue forecast ranging from $3.966 billion to $3.991 billion, underscoring its confidence in sustaining its growth momentum.
