Akamai (AKAM) FY Conference June 05, 2025 11:40 AM ET Speaker0 Excellent. Hello, everyone, and thank you for joining us for our Growth Stock Conference and today's session with Akamai. My name is Jonathan Hoenn. I'm the cybersecurity analyst for William Blair and Company. Our speaker today is Ed McGowan, who is the chief financial officer of the company and has been with Akamai and is with Akamai. Before we begin, I'm required to inform you that a complete list of research disclosures or conflicts of intere ...

It’s been a couple of quarters since I looked at Akamai Technologies, Inc. ( NASDAQ: AKAM ), so I thought I’d look at the company’s Q1 results since no one has covered them yet, and give some comments onMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclo ...

Core Insights - Akamai Technologies has launched Akamai DNS Posture Management, a solution providing unified, multicloud visibility and real-time monitoring to prevent DNS-based attacks [1][5] - The solution addresses the complexities of managing multiple DNS systems and helps organizations ensure proper configuration and security [3][5] Group 1: Product Features - Akamai DNS Posture Management offers agentless real-time monitoring and guided remediation across major DNS providers [1] - The solution includes a Certificate Monitor that organizes digital certificates by domain names to identify risks such as expired or misconfigured certificates [7] - It provides a comprehensive view of zones, domains, sub-domains, and records across various DNS providers, including Akamai Cloud, AWS, Microsoft Azure, and Google Cloud Platform [8] Group 2: Security Challenges - DNS configurations can become outdated, leading to vulnerabilities that may expose organizations to serious threats like unauthorized SSL/TLS certificate issuance and DNS spoofing [5][6] - The overwhelming number of unmanaged alerts and compliance requirements can lead to high-priority issues being overlooked, emphasizing the need for automation in compliance assessments [4] Group 3: Compliance and Regulatory Needs - Akamai DNS Posture Management automates adherence to critical security frameworks such as NIST, PCI DSS, and HIPAA, helping organizations reduce compliance costs while enhancing security [6] - Continuous compliance monitoring is essential to address critical gaps in DNS and certificate security hygiene [6]

Financial Data and Key Metrics Changes - The company has reset its long-term growth expectations, projecting about 10% growth for its security segment due to product maturity and market saturation [15][16] - The company anticipates a 30% to 35% growth in Annual Recurring Revenue (ARR) for new capabilities this year, particularly in API security and Gardacore segmentation [18][46] - Operating margins were close to 30% in Q1, with guidance for slightly lower margins for the year due to investments in new platforms and infrastructure [22][23] Business Line Data and Key Metrics Changes - The security segment is expected to grow at a slower rate due to maturity, while new products are projected to drive significant growth [15][16][18] - The compute business is identified as a major focus, with investments being reallocated from the delivery business to enhance growth in this area [25][26] - The delivery business is aiming for stabilization, with traffic growth expected to improve as market conditions rationalize [65][68] Market Data and Key Metrics Changes - The company has seen a shift in customer acquisition strategies, with channel partners becoming the primary source of new customers for security and compute services [8][12] - The competitive landscape has changed, with several competitors exiting the market, which may help stabilize pricing dynamics [68][71] Company Strategy and Development Direction - The company is focusing on a go-to-market transition to increase the ratio of hunters to farmers, emphasizing the need to target new customers beyond traditional CDN users [4][5] - Investments are being made in cloud infrastructure and security products to enhance the total addressable market (TAM) [23][25] - The company aims to position itself as a comprehensive cloud provider, similar to hyperscalers, by integrating compute, security, and delivery services [84][86] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by AI in the security landscape, noting that AI has increased the attack surface and sophistication of threats [53][57] - The company believes that the demand for new security solutions, particularly those tailored for AI applications, will drive future growth [55][56] - Management is optimistic about traffic growth in the delivery business, citing potential increases from video content and AI-generated media [68][70] Other Important Information - The company has been insourcing third-party compute services to improve efficiency and customer experience [44] - The compute business is seen as a significant opportunity, particularly in media, where customers are looking for cost-effective solutions [29][30] Q&A Session Summary Question: How has the go-to-market transition been going? - The company is evolving to focus more on hunting for new customers, particularly in security and cloud computing [4][5] Question: What led to the reset of growth expectations? - The company had not provided long-term guidance for over three years and felt it was important to update the community on current views [13][15] Question: What are the critical investments needed to achieve growth? - Investments are being made in technology, compute infrastructure, and sales force expansion to support growth [21][23] Question: Is compute the top priority for the company? - Both security and compute are considered equally important, with significant investments being made in both areas [25][26] Question: How is AI impacting the security landscape? - AI has increased the sophistication of attacks and the demand for specialized security solutions [53][55] Question: What is the outlook for the delivery business? - The company aims to stabilize the delivery business and improve traffic growth, with expectations for better pricing dynamics [65][68]

Core Viewpoint - Akamai Technologies, Inc. has announced a private offering of $1.5 billion in convertible senior notes due 2033, which was upsized from a previously announced $1.35 billion offering [1][3] Group 1: Offering Details - The notes will be senior unsecured obligations, maturing on May 15, 2033, with an interest rate of 0.25% per year, payable semiannually starting November 15, 2025 [2] - The initial conversion rate is set at 10.7513 shares per $1,000 principal amount, equating to an initial conversion price of approximately $93.01 per share, representing a 20% premium over the closing price of $77.51 on May 14, 2025 [2] Group 2: Use of Proceeds - Akamai estimates net proceeds from the offering to be approximately $1,479.1 million, or $1,701.3 million if the option for additional notes is fully exercised [3] - The company plans to use about $250 million to repay borrowings under its revolving credit facility and a portion of its $1.15 billion convertible senior notes due 2027 [4] - Approximately $239.1 million will be allocated to cover costs related to convertible note hedge transactions [5] - Akamai intends to repurchase approximately $300 million of its common stock at a price of $77.51 per share from purchasers of the notes [6] Group 3: Repurchase and Conversion Terms - Holders can require Akamai to repurchase their notes for cash on May 15, 2031, if the stock price is below the conversion price [7] - In the event of a fundamental change, holders may also require repurchase at a price equal to 100% of the principal amount plus accrued interest [7] Group 4: Hedge Transactions - Akamai has entered into convertible note hedge and warrant transactions to mitigate potential dilution from the notes [8] - The hedge transactions will cover the same number of shares underlying the notes, and the warrants could have a dilutive effect if the market price exceeds the strike price [8] Group 5: Market Impact - The Option Counterparties may engage in purchasing shares or entering derivative transactions, which could influence the market price of Akamai's common stock and the notes [9]

CAMBRIDGE, Mass., May 13, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) ("Akamai"), the cybersecurity and cloud computing company that powers and protects business online, today announced that it proposes to offer, subject to market factors and other conditions, $1.35 billion in aggregate principal amount of convertible senior notes due 2033. The notes are to be sold only to persons reasonably believed to be "qualified institutional buyers" pursuant to Rule 144A under the Securities Act of 1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________ FORM 10-Q ______________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-27275 ____________________________ ...

Akamai Technologies, Inc. (AKAM) reported strong first-quarter 2025 results, with both the adjusted earnings and revenues surpassing the Zacks Consensus Estimate. The company reported a top-line expansion year over year, driven by healthy demand trends in multiple end markets. Strong demand for the Guardicore platform, API security solutions and cloud infrastructure services is a key growth driver. Net IncomeGAAP net income declined to $123.2 million or 82 cents per share from $175.4 million or $1.11 per sh ...

For the quarter ended March 2025, Akamai Technologies (AKAM) reported revenue of $1.02 billion, up 2.9% over the same period last year. EPS came in at $1.70, compared to $1.64 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.01 billion, representing a surprise of +0.64%. The company delivered an EPS surprise of +7.59%, with the consensus EPS estimate being $1.58.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Akamai Technologies (AKAM) came out with quarterly earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $1.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.59%. A quarter ago, it was expected that this cloud services provider would post earnings of $1.52 per share when it actually produced earnings of $1.66, delivering a surprise of 9.21%.Over the last four quar ...