Akamai Technologies (AKAM) came out with quarterly earnings of $1.59 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.63 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this cloud services provider would post earnings of $1.54 per share when it actually produced earnings of $1.58, delivering a surprise of 2.60%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Akamai Tec ...

Revenue Performance - Third quarter revenue reached $1.005 billion, a 4% increase year-over-year from $965 million[3] - Security and compute revenue accounted for 68% of total revenue, growing 17% year-over-year[2] - Security revenue was $519 million, up 14% year-over-year, while compute revenue increased by 28% to $167 million[3] - Revenue for Q3 2024 reached $1,004,679, a 4.1% increase from $965,484 in Q3 2023[14] - Total revenue for the three months ended September 30, 2024, was $1,004,679, representing a 4% year-over-year growth[19] - International revenue for the three months ended September 30, 2024, was $480,068, showing a 3% year-over-year growth[20] Income and Earnings - GAAP net income decreased by 64% to $58 million, with GAAP EPS at $0.38, a 63% decline from the previous year[5][6] - Non-GAAP net income was $244 million, a 3% decrease year-over-year, with non-GAAP EPS at $1.59, down 2%[5][6] - Net income for Q3 2024 was $57,907, down 56.0% from $131,688 in Q2 2024 and down 64.0% from $160,542 in Q3 2023[14] - For the three months ended September 30, 2024, Akamai reported a GAAP net income of $57,907 thousand, a decrease from $160,542 thousand for the same period in 2023[26] - Non-GAAP net income for the three months ended September 30, 2024, was $243,514 thousand, compared to $251,071 thousand for the same period in 2023, reflecting a slight decline[26] - The non-GAAP operating margin for the three months ended September 30, 2024, was 29%, consistent with the previous quarter but down from 31% in the same quarter last year[26] Expenses and Costs - Total costs and operating expenses increased to $934,042 in Q3 2024, up 12.4% from $831,594 in Q2 2024 and up 18.3% from $789,355 in Q3 2023[14] - Research and development expenses rose to $120,347 in Q3 2024, a 6.5% increase from $113,352 in Q2 2024 and a 13.6% increase from $105,942 in Q3 2023[14] - Research and development expenses for the three months ended September 30, 2024, totaled $39,275, an increase from $33,366 in the same period last year[23] - The company reported a restructuring charge of $82,013 in Q3 2024, compared to $1,385 in Q2 2024 and $2,595 in Q3 2023[14] - The company incurred a restructuring charge of $82,013 thousand for the three months ended September 30, 2024, compared to $2,595 thousand for the same period in 2023[26] - Total amortization of acquired intangible assets increased to $24,368 in Q3 2024, compared to $21,076 in Q2 2024 and $18,108 in Q3 2023[14] Cash Flow and Capital Expenditures - Cash from operations for Q3 2024 was $393 million, representing 39% of total revenue[7] - Cash provided by operating activities for Q3 2024 was $392,542, a decrease from $430,963 in Q2 2024 but an increase from $359,436 in Q3 2023[16] - Net cash used in investing activities was $116,228 in Q3 2024, a decrease from $286,682 in Q2 2024 and a significant decrease from $1,164,163 in Q3 2023[16] - Capital expenditures for the three months ended September 30, 2024, were $163,991, representing 16% of total revenue[24] Shareholder Actions - The company plans to repurchase $166 million worth of shares, totaling 1.7 million shares at an average price of $97.29[7] Financial Guidance - Financial guidance for Q4 2024 projects revenue between $995 million and $1.020 billion[8] - Non-GAAP operating margin is expected to be between 27% and 28% for Q4 2024[8] Assets and Liabilities - Total assets increased to $10.190 billion as of September 30, 2024, up from $9.900 billion at the end of 2023[13] - Cash, cash equivalents, and restricted cash at the end of the period were $572,753, up from $462,290 at the end of the same period last year[17] Stock-Based Compensation - Total stock-based compensation for the three months ended September 30, 2024, was $102,607, compared to $87,017 in the same period last year[23] - Stock-based compensation for the three months ended September 30, 2024, amounted to $102,607 thousand, up from $87,017 thousand in the same quarter last year[31] Taxation - The GAAP tax rate for the three months ended September 30, 2024, was 22%, compared to 11% for the same period in 2023[26] - Akamai's total income tax effect of non-GAAP adjustments for the three months ended September 30, 2024, was $(41,097) thousand[26] Non-GAAP Measures - Akamai excludes amortization of acquired intangible assets from non-GAAP financial measures to provide a consistent basis for comparing pre- and post-acquisition operating results[36] - Stock-based compensation is excluded from non-GAAP measures to highlight the performance of Akamai's core business and facilitate comparisons with peer companies[37] - Acquisition-related costs, including transaction fees and advisory fees, are excluded from non-GAAP measures to provide a useful comparison of operating results to prior periods[38] - Restructuring charges are excluded from non-GAAP measures as they do not reflect expected future operating expenses and vary significantly based on the magnitude of the restructuring action[39] - Non-GAAP income from operations is adjusted for items such as stock-based compensation and acquisition-related costs, providing a clearer view of operational performance[45] - Non-GAAP net income per diluted share is adjusted for the impact of convertible senior notes, with specific conversion prices set at $126.31, $116.18, and $95.10 for notes maturing in 2029, 2027, and 2025 respectively[49] - Adjusted EBITDA excludes items like interest, taxes, and depreciation, providing a clearer picture of operational performance[51] - Capital expenditures (capex) are presented on an accrual basis, excluding stock-based compensation and interest expense, to reflect true investment in property and equipment[53] Risks and Forward-Looking Statements - The impact of foreign currency exchange rates on revenue and earnings is significant, with management emphasizing the importance of understanding these fluctuations for financial results[55] - Akamai's forward-looking statements indicate potential risks including competition, macroeconomic trends, and geopolitical uncertainties that may affect future performance[57]

Third quarter revenue of $1.005 billion, up 4% year-over-year and when adjusted for foreign exchange*Security and compute revenue represented 68% of total revenue in the third quarter and combined grew 17% year-over-year and when adjusted for foreign exchange*CAMBRIDGE, Mass., Nov. 7, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial results for the third quarter ended September 30, ...

Akamai Technologies, Inc. (AKAM) is scheduled to release third-quarter 2024 results on Nov. 7, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 2.6%. AKAM pulled off a trailing four-quarter earnings surprise of 4.68%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company is expected to report higher year-over-year revenues, backed by healthy demand in security and compute verticals. Management’s focus on expanding i ...

Akamai Technologies (AKAM) ended the recent trading session at $101.85, demonstrating a -1.08% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.56%.Shares of the cloud services provider witnessed a gain of 3.15% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.83% and the S&P 500's gain of 1.83%.Analysts and ...

New real-time capabilities provide businesses with granular control and security across entire user account lifecycleCAMBRIDGE, Mass., Oct. 29, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, today launched new capabilities to its Account Protector security solution. These enhancements are designed to safeguard user accounts against abuse throughout their entire lifecycle and provide advanced protection against account opening abuse, acc ...

Company Performance - Akamai Technologies (AKAM) closed at $102.80, with a slight increase of +0.08% from the previous session, underperforming the S&P 500's gain of 0.22% [1] - The stock has increased by 3.09% over the past month, outperforming the Computer and Technology sector's gain of 2.29% and the S&P 500's gain of 1.47% [1] - The upcoming earnings report is scheduled for November 7, 2024, with an expected EPS of $1.59, reflecting a 2.45% decline year-over-year, while revenue is projected at $1 billion, indicating a 3.62% increase [1] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $6.43 per share and revenue of $4 billion, representing increases of +3.71% and +4.84% from the prior year [2] - Recent changes to analyst estimates indicate a positive outlook for Akamai Technologies, as upward revisions suggest confidence in the company's profitability [2] Valuation Metrics - Akamai Technologies has a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 15.99, which is a discount compared to the industry's average Forward P/E of 35.45 [3] - The company has a PEG ratio of 2.26, aligning with the average PEG ratio of the Internet - Services industry [3] Industry Overview - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 63, placing it in the top 25% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

The most recent trading session ended with Akamai Technologies (AKAM) standing at $106.67, reflecting a +1.85% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.63%.The cloud services provider's shares have seen an increase of 5.32% over the last month, surpassing the Computer and Technology sector's gain of 4.88% and the S&P 500's gain of 3.76%.Analysts and ...

CAMBRIDGE, Mass., Oct. 17, 2024 /PRNewswire/ -- Akamai Technologies Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, announced today that APIContext is the latest organization to join the Akamai Qualified Compute Partner Program as an Independent Software Vendor (ISV). APIContext is providing advanced API performance monitoring and compliance testing solutions. As an ISV in the Akamai Qualified Compute Partner Program, APIContext will empower enterprises to ensure continuous API ...

New solution leverages machine learning and global intelligence to enhance robust detection and mitigation capabilities against application-layer DDoS attacksCAMBRIDGE, Mass., Oct. 16, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, today announced the availability of Behavioral DDoS Engine for its App & API Protector solution. This new capability leverages machine learning for automatic, proactive protection against application-layer DD ...