AKAM
Akamai Technologies INC
NASDAQ
DEF: Akamai Technologies Reports Strong 2024 Revenue Growth Driven by Security and Cloud Computing
Sentiment:
Proxy Statement
1 April 2025 4:17 PM
Akamai Technologies achieved a 5% year-over-year revenue increase in 2024, reaching $3.99 billion, with security solutions contributing the majority of the annual revenue.
Better than expected
Security revenue exceeded $2 billion, growing 16% year-over-year and representing the majority of Akamai's annual revenue.
Cloud computing revenue reached over $630 million, a 25% increase year-over-year.
Operating cash flow climbed to $1.52 billion, or 38% of revenue.
Summary
- Akamai Technologies reported total revenue of $3.99 billion in 2024, a 5% increase compared to the previous year.
- Security solutions contributed over $2 billion to Akamai's annual revenue for the first time, demonstrating a 16% year-over-year growth.
- The company's cloud computing portfolio generated over $630 million in revenue, reflecting a 25% year-over-year growth.
- Akamai's content delivery portfolio generated more than $1.3 billion in revenue in 2024.
- Operating cash flow reached $1.52 billion, representing 38% of revenue.
- Akamai spent $557 million to repurchase 5.6 million shares in 2024, reducing the number of outstanding shares by approximately 16% since January 1, 2013.
- The company acquired Noname Security to enhance its API Security solution.
- Akamai is hosting its 2025 Annual Meeting of Stockholders on May 14, 2025, as a virtual-only event.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong revenue growth in key areas like security and cloud computing, coupled with efficient cash management and strategic acquisitions. The company is also recognized for its workplace environment and corporate responsibility.
Positives
- Strong revenue growth in security and cloud computing sectors.
- Significant operating cash flow generation.
- Continued share repurchase program to increase shareholder value.
- Acquisition of Noname Security to expand API security capabilities.
- Recognition as a great place to work by The Wall Street Journal and other institutions.
- Continued recognition for ethical, sustainability and governance practices.
Risks
- The document mentions risks related to inability to grow revenue, lack of market acceptance of solutions, cyberattacks, inability to integrate acquisitions, failure to achieve sustainability goals, and changes in economic, political, and regulatory conditions.
- The document mentions risks related to changes in business, competitive, technological and other factors or events such as acts of terrorism, outbreak of war or hostilities (including the wars involving Ukraine and Israel), civil unrest, adverse climate or weather related events, or public health emergencies.
Future Outlook
Akamai aims to continue driving transformation by offering security, cloud computing, and content delivery services. The company plans to capture more of the growth opportunity in the cloud computing market and continues to provide support and services for its enterprise customers.
Management Comments
- In 2024, Akamai made tremendous progress on our multi-year effort to transform Akamai from a content delivery network (CDN) pioneer into the cybersecurity and cloud computing company that powers and protects business online.
- Dr. Tom Leighton, Co-Founder and Chief Executive Officer, stated that Akamai continues to provide excellent support and services for major enterprise customers around the world.
Industry Context
Akamai is transitioning from a CDN provider to a cybersecurity and cloud computing company, aligning with the industry's increasing focus on security and distributed cloud solutions. The acquisition of Noname Security reflects the growing importance of API security in the market.
Comparison to Industry Standards
- The document does not provide specific comparisons to industry standards or comparable companies.
- The document mentions recognition from industry analysts, including Gartner, IDC, Forrester, and GigaOm, but does not provide specific details on how Akamai's results compare to industry benchmarks.
Stakeholder Impact
- Shareholders benefit from increased shareholder value through stock repurchases and potential for future growth.
- Employees benefit from a positive work environment and development opportunities.
- Customers benefit from enhanced security and cloud computing solutions.
- The company supports the communities in which it lives and works.
Next Steps
- Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
- Akamai will host its 2025 Annual Meeting of Stockholders on May 14, 2025.
- The company will continue to focus on growing its security and cloud computing businesses.
Key Dates
- 2013-01-01: Akamai has reduced the number of shares of common stock outstanding by approximately 16% since this date.
- 2014-06: Sharon Bowen became Commissioner of the United States Commodity Futures Trading Commission.
- 2017-09: Sharon Bowen retired as Commissioner of the United States Commodity Futures Trading Commission.
- 2018-04: Madhu Ranganathan became President and Chief Financial Officer of Open Text Corporation.
- 2020-01-01: Start date for various equity award performance periods.
- 2021-06: Daniel Hesse became Board Chair.
- 2022: Akamai entered the cloud computing market.
- 2024: Akamai made tremendous progress on its multi-year effort to transform into a cybersecurity and cloud computing company.
- 2024-12-31: End date for various equity award performance periods.
- 2025-03-19: Record date for the 2025 Annual Meeting of Stockholders.
- 2025-04-01: Date of the notice of the 2025 Annual Meeting of Stockholders.
- 2025-05-14: Akamai's 2025 Annual Meeting of Stockholders will be held.
- 2026: The one-year term for directors elected at the 2025 Annual Meeting expires.
Keywords
Akamai, revenue, security, cloud computing, content delivery, cybersecurity, stock repurchase, Noname Security, API Security, operating cash flow, proxy statement, annual meeting, corporate governance, executive compensation
AKAM
Akamai Technologies INC
NASDAQ
Sector: TBD
Filings with Classifications
Capital raise
15 May 2025 7:49 AM
8-K Filing
- Akamai is issuing $1.5 billion in convertible senior notes due 2033 in a private offering.
- Initial purchasers have an option to purchase an additional $225 million in notes.
- The company intends to use the net proceeds for debt repayment, share repurchases, and convertible note hedge transactions.
Capital raise
13 May 2025 4:56 PM
8-K Filing
- Akamai is offering $1.35 billion of Convertible Senior Notes due 2033 in a private offering.
- The initial purchasers have an option to purchase an additional $202.5 million in notes.
- Akamai intends to use the net proceeds to repay debt and repurchase shares.
Worse than expected
9 May 2025 4:08 PM
Quarterly Report
- Net income and diluted earnings per share decreased compared to the same period last year, indicating a decline in profitability.
- Delivery solutions revenue decreased due to pricing pressure and customer optimization, impacting overall revenue growth.
Better than expected
1 April 2025 4:17 PM
Proxy Statement
- Security revenue exceeded $2 billion, growing 16% year-over-year and representing the majority of Akamai's annual revenue.
- Cloud computing revenue reached over $630 million, a 25% increase year-over-year.
- Operating cash flow climbed to $1.52 billion, or 38% of revenue.
Better than expected
27 February 2025 4:31 PM
Current Report
- The CEO's purchase of $3 million in company stock signals confidence in the company's future, which is a better than expected sign.
Worse than expected
24 February 2025 5:10 PM
Annual Results
- Revenue from delivery solutions decreased due to customer optimization and pricing pressure.
- A large social media customer reduced traffic on Akamai's network, negatively impacting revenue.
Worse than expected
8 November 2024 4:33 PM
Quarterly Report
- The company's net income decreased significantly compared to the same period last year.
- The company incurred a substantial restructuring charge impacting profitability.
- Delivery solutions revenue declined, indicating challenges in this segment.
Worse than expected
7 November 2024 4:04 PM
Quarterly Report
- GAAP income from operations decreased by 60% due to a restructuring charge.
- GAAP net income decreased by 64% year-over-year.
- Non-GAAP net income decreased by 3% year-over-year.
Worse than expected
8 August 2024 4:51 PM
Quarterly Report
- The company's delivery revenue declined by 13.2%, indicating a worse than expected performance in that segment.
- The acquisition of Noname Security is expected to be dilutive to earnings per share through 2024, which is worse than expected.
Better than expected
9 May 2024 4:46 PM
Quarterly Report
- The company's net income and earnings per share significantly increased compared to the same quarter last year, indicating better than expected profitability.
Better than expected
9 May 2024 4:25 PM
Quarterly Report
- The company's GAAP net income per diluted share increased by 79% year-over-year, which is significantly better than expected.
- The combined growth of security and compute revenue at 22% year-over-year exceeded expectations.
- The authorization of a new $2.0 billion share repurchase program is a positive surprise for investors.
Better than expected
28 March 2024 4:02 PM
Proxy Statement
- Akamai's total revenue, security revenue, and compute revenue all showed significant year-over-year growth, indicating better-than-expected performance in key areas.
- Akamai's share price increase of 40% in 2023 outperformed the S&P 500 (up 24%).
Worse than expected
28 February 2024 4:21 PM
Annual Results
- The company's delivery revenue declined by 7.6% due to pricing pressures and moderated traffic growth, indicating worse than expected results in this segment.
Better than expected
13 February 2024 4:04 PM
Quarterly Report
- The company's Q4 and full-year results exceeded expectations, particularly in security and compute revenue growth and profitability metrics.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.