Group 1: Core Strategy - The "Cloud + AI" development strategy has become a common goal for major tech companies globally, with Akamai transitioning towards this strategy as well [1][2] - Akamai's revenue growth is increasingly driven by its security and cloud computing segments, with cloud computing being the fastest-growing business unit [1][4] Group 2: Market Trends - The shift towards "Cloud + AI" is largely driven by customer demand for digital transformation, leading to increased needs for cloud computing [2][3] - AI technology has become essential in the digital transformation process across various industries, with companies willing to invest heavily in AI despite strict cost control measures [3][5] Group 3: Business Performance - Akamai's CDN business has seen a decline in revenue contribution from nearly 80% in 2016 to 40% currently, while security services have risen to 47% and cloud computing services to 13% of total revenue [4][6] - The emergence of the inference market is expected to see investments in AI inference surpassing those in training by a factor of ten [5][6] Group 4: Edge Computing - The edge computing market is experiencing growth, with predictions indicating a potential market size of $445 billion by 2030, driven largely by AI inference demand [9][10] - Akamai aims to leverage its CDN resources to enhance edge computing capabilities, reducing latency and costs for clients [6][10] Group 5: Competitive Landscape - The competition in the "Cloud + AI" space is shifting from scale of computing power to how effectively companies can integrate edge intelligence, distributed architecture, and security capabilities [10]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Akamai's unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, income, cash flows, and stockholders' equity with notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Akamai's total assets were $9.98 billion, a decrease from $10.37 billion at year-end 2024, primarily driven by a reduction in marketable securities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,374,971 | $2,578,097 | | **Total Assets** | **$9,982,190** | **$10,368,785** | | **Total Current Liabilities** | $2,016,529 | $2,091,323 | | **Total Liabilities** | **$5,397,629** | **$5,490,428** | | **Total Stockholders' Equity** | **$4,584,561** | **$4,878,357** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, Akamai reported revenue of $1.015 billion, a 3% increase, but higher costs and taxes led to a 30% decrease in net income to $123.2 million Q1 2025 vs. Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue** | $1,015,139 | $986,970 | | **Income from Operations** | $154,583 | $166,728 | | **Net Income** | $123,171 | $175,418 | | **Diluted EPS** | $0.82 | $1.11 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities decreased to $251.2 million, while investing activities provided $876.8 million, and financing activities used $552.3 million due to increased stock repurchases Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $251,200 | $351,878 | | **Net cash provided by (used in) investing activities** | $876,846 | $(151,583) | | **Net cash used in financing activities** | $(552,250) | $(215,981) | | **Net increase (decrease) in cash** | $581,227 | $(19,699) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures supporting the financial statements, covering revenue, convertible notes, share repurchases, and the effective income tax rate Revenue by Solution Category (in thousands) | Solution Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Security | $530,695 | $490,681 | | Delivery | $318,988 | $351,758 | | Cloud computing | $165,456 | $144,531 | | **Total revenue** | **$1,015,139** | **$986,970** | - The company has three outstanding convertible senior notes (2029, 2027, 2025) with a total par value of **$3.565 billion**, with the 2025 Notes, principal **$1.15 billion**, repaid on May 1, 2025[41](index=41&type=chunk) - The effective income tax rate was **29.0%** for Q1 2025, significantly higher than **6.8%** in Q1 2024, primarily due to a shortfall in stock-based compensation tax benefits and decreased foreign income taxed at lower rates[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, focusing on revenue drivers, operating expenses, liquidity, and non-GAAP financial measures [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenue increased 3% (4% at constant currency) YoY to $1.015 billion, driven by Security and Cloud Computing, while Delivery revenue declined, and cost of revenue increased due to network investments Revenue by Solution Category - Q1 2025 vs Q1 2024 (in thousands) | Solution | 2025 | 2024 | % Change | % Change at Constant Currency | | :--- | :--- | :--- | :--- | :--- | | Security | $530,695 | $490,681 | 8% | 10% | | Delivery | $318,988 | $351,758 | (9)% | (8)% | | Cloud computing | $165,456 | $144,531 | 14% | 15% | | **Total revenue** | **$1,015,139** | **$986,970** | **3%** | **4%** | - The decline in delivery solutions revenue was attributed to downward pricing on contract renewals and a large social media customer reducing traffic on Akamai's network due to cost optimization and 'do-it-yourself' initiatives[90](index=90&type=chunk) - Cost of revenue increased primarily due to higher co-location fees (**+15%**) and depreciation of network equipment (**+19%**) related to investments in the company's compute platform[93](index=93&type=chunk)[96](index=96&type=chunk) [Use of Non-GAAP Financial Measures](index=33&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures, including non-GAAP income from operations and Adjusted EBITDA, to offer a clearer understanding of ongoing business performance Reconciliation of GAAP Net Income to Non-GAAP Net Income (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net income** | **$123,171** | **$175,418** | | Amortization of acquired intangible assets | $27,637 | $21,023 | | Stock-based compensation | $111,978 | $93,260 | | Other adjustments (net) | $5,347 | $12,321 | | Income tax effect of adjustments | $(11,797) | $(46,727) | | **Non-GAAP net income** | **$256,096** | **$255,495** | Key Non-GAAP Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Non-GAAP operating margin | 30% | 30% | | Adjusted EBITDA margin | 43% | 42% | | Non-GAAP net income per diluted share | $1.70 | $1.64 | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Akamai held $1.3 billion in cash, cash equivalents, and marketable securities, having repaid $1.15 billion in notes and repurchased $500.0 million in shares - The company repurchased **6.2 million shares** of its common stock for **$500.0 million** during the three months ended March 31, 2025[136](index=136&type=chunk)[137](index=137&type=chunk) - The company repaid **$1.15 billion** of convertible senior notes at maturity in May 2025 and subsequently borrowed **$250.0 million** under its 2022 Credit Agreement in April 2025[138](index=138&type=chunk)[140](index=140&type=chunk) - Net cash from operations decreased to **$251.2 million** in Q1 2025 from **$351.9 million** in Q1 2024, due to timing of collections, payroll, and higher tax payments[134](index=134&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company outlines its primary market risks, including interest rate, foreign currency, and credit risks, with a strengthening U.S. dollar negatively impacting reported revenue - The company's primary market risks are interest rate fluctuations on its investment portfolio and variable-rate debt, foreign currency translation and transaction exposure from international operations, and credit risk from accounts receivable[148](index=148&type=chunk)[151](index=151&type=chunk)[155](index=155&type=chunk) - A strengthening U.S. dollar negatively impacts the company's consolidated revenue results due to the translation of foreign currency-denominated transactions[151](index=151&type=chunk)[153](index=153&type=chunk) - As of March 31, 2025, there were no outstanding borrowings under the company's revolving credit facilities, but **$250.0 million** was borrowed in April 2025, exposing the company to variable interest rate risk[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[156](index=156&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025[157](index=157&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation but does not anticipate any material adverse effects on its business, financial condition, or cash flows - Akamai is party to various routine litigation and governmental proceedings but does not expect any to have a material effect on its business or financial condition[158](index=158&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Details significant risks to Akamai's business, including revenue growth, competition, cybersecurity, global operations, and customer DIY shifts - Slowing revenue growth is a key risk, with delivery solutions facing pricing pressure and traffic reduction from major customers, such as a large social media company implementing a DIY strategy[160](index=160&type=chunk)[161](index=161&type=chunk) - The company faces intense competition, particularly in cloud computing where established large competitors have greater resources and market recognition[172](index=172&type=chunk)[173](index=173&type=chunk) - Cybersecurity breaches, attacks, and system defects pose significant risks, which could lead to service disruptions, loss of customers, and reputational damage, with acquired companies like Linode presenting ongoing security challenges[183](index=183&type=chunk)[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during Q1 2025, totaling 6,158,235 shares for approximately $500 million under its repurchase program Issuer Purchases of Equity Securities - Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 53,123 | $90.15 | | Feb 2025 | 1,777,588 | $78.86 | | Mar 2025 | 4,327,524 | $82.03 | | **Total** | **6,158,235** | **$81.19** | - The repurchases were made under the **$2.0 billion** share repurchase program authorized in May 2024, which runs through June 2027[244](index=244&type=chunk) [Item 5. Other Information](index=56&type=section&id=Item%205.%20Other%20Information) During Q1 2025, three executive officers adopted Rule 10b5-1 trading arrangements for the potential sale of company securities - Three executives, Kimberly Salem Jackson (CMO), Robert Blumofe (CTO), and Paul C. Joseph (EVP, Global Sales), adopted Rule 10b5-1 trading plans for the sale of company stock during the quarter[245](index=245&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files in Inline XBRL format - The filing includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002[246](index=246&type=chunk) - The financial statements and notes are submitted in an interactive data format using Inline XBRL, as detailed in Exhibit 101[246](index=246&type=chunk)

Core Viewpoint - Akamai Technologies, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding expectations, driven by robust demand across various markets, particularly for its Guardicore platform and cloud services [1] Financial Performance - GAAP net income decreased to $123.2 million or $0.82 per share from $175.4 million or $1.11 per share year-over-year, impacted by high operating expenses [2] - Non-GAAP net income was $256.1 million or $1.70 per share, slightly up from $255.5 million or $1.64 per share a year ago, beating the Zacks Consensus Estimate by $0.12 [2] - Quarterly net sales reached $1.02 billion, a 3% increase from $987 million in the previous year, surpassing the Zacks Consensus Estimate of $1 billion [2] Revenue Breakdown - Security Technology Group revenues were $530.7 million, an 8% increase from $490.7 million year-over-year, driven by demand for Guardicore Segmentation Solution and API security solutions [3] - Delivery segment revenues declined to $319 million from $351.8 million year-over-year but exceeded estimates [4] - Compute segment revenues increased to $165.5 million from $144.5 million in the prior year, supported by enterprise customer traction and deal wins [5] Geographic Performance - U.S. net sales were $528.7 million, up 3% year-over-year, while international revenues totaled $486.4 million, an increase from $474.6 million in the previous year [6] Operating Expenses and Margins - Total operating expenses rose to $860.6 million from $820.2 million year-over-year, while non-GAAP income from operations improved to $307 million with a margin of 30% [7] - Adjusted EBITDA increased to $441.3 million from $417.2 million in the previous year [7] Cash Flow and Share Repurchase - Akamai generated $251.2 million in cash from operating activities, down from $351.9 million in the prior year [8] - The company had $1.09 billion in cash and cash equivalents as of March 31, 2025, and repurchased approximately 6.2 million shares for around $500 million during the quarter [8] Future Outlook - For Q2 2025, Akamai expects revenues between $1.012 billion and $1.032 billion, with a non-GAAP operating margin projected at 28% [10] - Non-GAAP earnings are forecasted to be between $1.52 and $1.58 per share, with capital expenditure expected to be around 22% to 23% of projected total revenues [11] - For the full year 2025, revenues are anticipated to be between $4.050 billion and $4.2 billion, with non-GAAP earnings projected at $6.10 to $6.40 per share [12]

Core Insights - Akamai Technologies reported revenue of $1.02 billion for the quarter ended March 2025, reflecting a year-over-year increase of 2.9% [1] - The company's EPS for the quarter was $1.70, up from $1.64 in the same quarter last year, exceeding the consensus estimate of $1.58 by 7.59% [1] Revenue Breakdown - International revenue was $486.40 million, slightly below the average estimate of $489.92 million, with a year-over-year change of +2.5% [4] - United States revenue reached $528.74 million, surpassing the average estimate of $523.19 million, marking a year-over-year increase of +3.2% [4] - Security revenue was reported at $530.70 million, below the average estimate of $538.25 million, with a year-over-year growth of +8.2% [4] - Compute revenue stood at $165.46 million, slightly below the estimated $168.06 million, showing a significant year-over-year increase of +14.5% [4] - Delivery revenue was $318.99 million, which was lower than the estimated $302.31 million, reflecting a year-over-year decline of -9.3% [4] Stock Performance - Over the past month, shares of Akamai Technologies have returned +8.5%, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

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 ...

Financial Data and Key Metrics Changes - First quarter revenue reached $1,015 million, representing a 3% year-over-year increase and a 4% increase in constant currency [5][24] - Non-GAAP operating margin was reported at 30%, exceeding guidance [5] - Non-GAAP earnings per share (EPS) was $1.7, up 4% year-over-year and 6% in constant currency, surpassing the high end of guidance [5][26] - Total Q1 CapEx was $226 million, accounting for 22% of revenue [26] Business Line Data and Key Metrics Changes - Security and compute combined accounted for 69% of total revenue, growing 10% year-over-year as reported and 11% in constant currency [6][24] - Compute revenue grew to $165 million, a 14% year-over-year increase as reported and 15% in constant currency [24] - Security revenue was $531 million, growing 8% year-over-year as reported and 10% in constant currency [24] - Delivery revenue was $319 million, down 9% year-over-year as reported and down 8% in constant currency [24] Market Data and Key Metrics Changes - International revenue was $486 million, up 2% year-over-year or 5% in constant currency, representing 48% of total revenue [25] - Foreign exchange fluctuations negatively impacted revenue by $5 million sequentially and $14 million year-over-year [25] Company Strategy and Development Direction - Akamai is transforming from a CDN pioneer into a cybersecurity and cloud computing company [6] - The company is focusing on enhancing its security offerings, particularly in API security and Guardicore segmentation solutions [6][9] - New product introductions, such as the firewall for AI, are aimed at addressing emerging threats in AI applications [10][11] - The sales transformation efforts are on track, with a focus on new customer acquisition and longer-term contracts [19][65] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential recession impacts on bookings later in the year [20][21] - The company anticipates a $10 million impact from tariffs in 2025, amortized over six years [20] - Akamai expects to maintain revenue growth and healthy margins despite heightened economic volatility [36] Other Important Information - Akamai was recognized as one of the most trustworthy companies in America by Newsweek [22] - The company has approximately $1.3 billion in cash, cash equivalents, and marketable securities [27] Q&A Session Summary Question: What drove the upside in delivery revenue? - Management indicated that traffic growth was the primary driver, with strong performance across various sub-verticals [40][41] Question: How did security revenue perform in Q1? - Security revenue met internal expectations, with strong growth in API security and Guardicore solutions [43][45] Question: What role can Akamai play with AgenTeq AI and the AI firewall? - Akamai aims to protect AI applications from various attacks and ensure they do not ingest harmful information [48][50] Question: What differentiates Akamai in the segmentation market? - Akamai's scale, ease of use, and trustworthiness set it apart in the market, particularly for large enterprises [58][60] Question: What are the expectations for compute growth? - The growth in compute is driven by cloud infrastructure services, with expectations of 40-45% ARR growth [86]

Financial Data and Key Metrics Changes - First quarter revenue reached $1,015 million, representing a 3% year-over-year increase and a 4% increase in constant currency [4][23] - Non-GAAP operating margin was reported at 30%, exceeding guidance [4] - Non-GAAP earnings per share (EPS) was $1.7, up 4% year-over-year and up 6% in constant currency, surpassing the high end of guidance [4][26] - Total Q1 CapEx was $226 million, accounting for 22% of revenue [26] Business Line Data and Key Metrics Changes - Security and compute combined accounted for 69% of total revenue, growing 10% year-over-year as reported and 11% in constant currency [5][24] - Security revenue was $531 million, growing 8% year-over-year as reported and 10% in constant currency [24] - Compute revenue grew to $165 million, a 14% year-over-year increase as reported and 15% in constant currency [23][24] - Delivery revenue was $319 million, down 9% year-over-year as reported and down 8% in constant currency [24] Market Data and Key Metrics Changes - International revenue was $486 million, up 2% year-over-year or 5% in constant currency, representing 48% of total revenue [24] - Foreign exchange fluctuations negatively impacted revenue by $5 million sequentially and $14 million year-over-year [24] Company Strategy and Development Direction - Akamai is transforming from a CDN pioneer into a cybersecurity and cloud computing company, focusing on security solutions like Guardicore and API security [5][6] - The company introduced new products such as the firewall for AI, aimed at protecting AI applications from emerging threats [10][11] - Akamai aims to enhance its edge computing capabilities with the introduction of a managed container service [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential recession impacts on bookings later in the year, although no current impacts were noted [20] - The company expects to lose a few million dollars in revenue in the latter half of 2025 due to federal cutbacks, but sees potential for increased revenue from solutions that generate savings for federal agencies [21] - Akamai remains committed to maintaining strong customer relationships and trust, which are core values for the company [22] Other Important Information - Akamai's capital allocation strategy includes share buybacks, with approximately $1.5 billion remaining on the current repurchase authorization [27] - The company completed the migration of Edgeio customers to its platform, expecting revenue contributions from Edgeio to remain between $85 million to $105 million for 2025 [28] Q&A Session Summary Question: What drove the upside in delivery revenue? - Management indicated that traffic growth was the primary driver, with strong performance across various sub-verticals [38][39] Question: How did security revenue perform in March? - Security revenue met internal expectations, with growth driven by strong API security and Guardicore performance [41][42] Question: What role can Akamai play with AgenTic AI and its AI firewall? - Akamai's AI firewall is designed to protect AI applications from various attacks, ensuring the integrity of AI agents and their data [47][50] Question: What differentiates Akamai's segmentation product in the market? - Akamai's scale, ease of use, and trustworthiness set it apart, allowing it to protect large enterprises effectively [56][60] Question: What are the expectations for security revenue growth? - Management expects security revenue growth of approximately 10% in constant currency for 2025, driven by strong demand for segmentation and API security solutions [34][90]

Revenue and Growth - First quarter revenue was $1.015 billion, a 3% increase year-over-year and a 4% increase when adjusted for foreign exchange[2]. - Total revenue for Q1 2025 was $1,015,139, representing a year-over-year growth of 3% compared to $986,970 in Q1 2024[14]. - Security and cloud computing revenue represented 69% of total revenue, growing 10% year-over-year and 11% when adjusted for foreign exchange[1]. - Security revenue was $531 million, up 8% year-over-year, while Cloud computing revenue grew by 14% to $165,456[14]. Income and Earnings - GAAP net income per diluted share was $0.82, down 26% year-over-year, while non-GAAP net income per diluted share was $1.70, up 4% year-over-year[6]. - Net income for Q1 2025 was $123,171, a decrease of 30% from $175,418 in Q1 2024[13]. - Non-GAAP net income for Q1 2025 was $256,096, slightly up from $255,495 in Q1 2024[19]. - GAAP net income per diluted share for Q1 2025 was $0.82, down from $1.11 in Q1 2024, reflecting a decrease of 26.1%[21]. - Non-GAAP net income per diluted share for Q1 2025 was $1.70, compared to $1.64 in Q1 2024, representing an increase of 3.7%[21]. Operating Performance - GAAP income from operations was $155 million, a 7% decrease from the previous year, with a GAAP operating margin of 15%[3]. - The company reported a GAAP operating margin of 15% for Q1 2025, down from 17% in Q1 2024[19]. - Non-GAAP adjusted EBITDA was $441 million, a 6% increase from the previous year[6]. - Adjusted EBITDA for Q1 2025 was $441.3 million, up from $417.2 million in Q1 2024, indicating a growth of 5.8%[23]. - The adjusted EBITDA margin for Q1 2025 was 43%, slightly up from 42% in Q4 2024[23]. Cash Flow and Capital Expenditures - Cash from operations for the first quarter was $251 million, representing 25% of revenue[7]. - Cash provided by operating activities in Q1 2025 was $251,200, down from $351,878 in Q1 2024[13]. - Total capital expenditures for Q1 2025 were $225,900, which is 22% of total revenue[16]. - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $1,100,311, up from $470,771 in Q1 2024[13]. Shareholder Actions and Financial Guidance - The company plans to repurchase $500 million worth of shares, acquiring 6.2 million shares at an average price of $81.19 per share[7]. - Financial guidance for Q2 2025 projects revenue between $1.012 billion and $1.032 billion, with non-GAAP net income per diluted share expected to be between $1.52 and $1.58[8]. Assets and Liabilities - Total assets as of March 31, 2025, were $9.982 billion, a decrease from $10.368 billion at the end of 2024[11]. Employee and Compensation Metrics - The number of employees at the end of Q1 2025 was 10,811, an increase from 10,533 in Q1 2024[16]. - Stock-based compensation for Q1 2025 amounted to $112.0 million, increasing from $93.3 million in Q1 2024, which is a rise of 20.0%[23]. - Amortization of acquired intangible assets for Q1 2025 was $27.6 million, compared to $21.0 million in Q1 2024, reflecting a growth of 31.4%[23]. Market and Economic Considerations - Management emphasizes the importance of foreign currency exchange rates in understanding financial results and performance comparisons[41]. - The dollar impact of foreign currency exchange rates is calculated by translating current period results using monthly average rates from the comparative period[41]. - Akamai's forward-looking statements include expectations about future financial performance and growth objectives, with potential risks highlighted[42]. - Actual results may differ materially from forward-looking statements due to various factors, including competition and macroeconomic trends[42]. - Akamai anticipates that subsequent events may change its expectations and beliefs, but disclaims any obligation to update forward-looking statements[43].

Core Insights - Akamai Technologies reported first quarter revenue of $1.015 billion, representing a 3% year-over-year increase and a 4% increase when adjusted for foreign exchange [1][2] - Security and cloud computing revenue accounted for 69% of total revenue, with a combined growth of 10% year-over-year and 11% when adjusted for foreign exchange [1] - GAAP net income per diluted share was $0.82, down 26% year-over-year, while non-GAAP net income per diluted share was $1.70, up 4% year-over-year [1][4] Financial Performance - Revenue by solution showed security revenue at $531 million (up 8% year-over-year), delivery revenue at $319 million (down 9% year-over-year), and cloud computing revenue at $165 million (up 14% year-over-year) [8][17] - GAAP income from operations was $155 million, a 7% decrease from the previous year, while non-GAAP income from operations was $307 million, up 5% [3][4] - Adjusted EBITDA was $441 million, reflecting a 6% increase from the previous year [4][27] Cash Flow and Share Repurchase - Cash from operations for the first quarter was $251 million, representing 25% of revenue [5] - The company repurchased 6.2 million shares for $500 million at an average price of $81.19 per share [5] Financial Guidance - For the second quarter of 2025, revenue guidance is set between $1.012 billion and $1.032 billion, with full-year revenue guidance between $4.050 billion and $4.200 billion [7] Geographic Revenue Breakdown - U.S. revenue was $529 million, up 3% year-over-year, while international revenue was $486 million, up 2% year-over-year [8][18]

Core Insights - Akamai Technologies has announced a strategic partnership with FPT Corporation to enhance cloud application deployment and optimization on Akamai Cloud [1][2] - The collaboration aims to leverage FPT's expertise in cloud migration, AI, and automation alongside Akamai's robust platform to deliver value to customers [2][3] Company Overview - FPT Corporation operates in 30 countries, with a significant presence in the Americas, employing over 1,000 professionals since entering the region in 2008 [4] - In 2024, FPT's global IT services achieved a 27.4% year-on-year revenue increase, contributing 79% of its total technology revenue and 91% of its pre-tax profit [4] - FPT reported a total revenue of USD 2.47 billion in 2024, with a workforce exceeding 54,000 employees [7] Partnership Details - The partnership will enable organizations to optimize multi-cloud and distributed environments, enhancing performance and cost efficiencies [2][3] - FPT and Akamai demonstrated AI capabilities at the 2025 NAB Show, showcasing how AI can transform media archives into monetizable assets [3] Financial Performance - FPT reported a robust first-quarter performance in 2025, with revenue increasing by 13.9% and profit before tax up 19.4% year-on-year [4] - The technology sector remains a key growth driver for FPT, achieving a 15.3% year-on-year increase, supported by a 17% rise in revenue from global IT services [4]