Revenue Performance - Total revenue for 2023 was $3,811.9 million, representing a 5.4% increase compared to 2022, driven primarily by growth in security solutions and the acquisition of Linode[169]. - Security solutions revenue increased to $1,765.3 million in 2023, a 14.5% increase from 2022, while compute solutions revenue grew by 24.4% to $504.2 million[169]. - Delivery solutions revenue decreased by 7.6% to $1,542.4 million in 2023, impacted by pricing effects from contract renewals and moderated traffic growth[169]. - U.S. revenue was $1,968,779, representing a 3.5% increase from $1,902,051 in 2022, while international revenue grew by 7.5% to $1,843,141[172]. - Total revenue for the year ended December 31, 2023, was $3,811,920, an increase of 5.4% from $3,616,654 in 2022[288]. Cost and Expenses - The cost of revenue as a percentage of total revenue increased to 39.6% in 2023 from 38.3% in 2022, indicating rising operational costs[167]. - Total cost of revenue rose to $1,511,063, a 9.2% increase from $1,383,819 in 2022, with co-location fees contributing significantly to this rise[174]. - Research and development expenses accounted for 10.7% of total revenue in 2023, slightly down from 10.8% in 2022[167]. - Research and development expenses totaled $406,048, reflecting a 3.7% increase from $391,434 in 2022, driven by higher payroll and stock-based compensation[180]. - Sales and marketing expenses increased to $533,226, a 6.1% rise from $502,409 in 2022, primarily due to higher payroll and travel expenses[185]. - General and administrative expenses for 2023 increased by 2.8% to $600,851,000 compared to $584,206,000 in 2022[190]. - Payroll and related costs rose to $218,272,000 in 2023, a 2.1% increase from $213,772,000 in 2022[190]. - Stock-based compensation surged by 49.9% to $94,316,000 in 2023 from $62,926,000 in 2022[190]. - The company expects an increase in cost of revenue in 2024, particularly in co-location costs, to support growth in compute solutions[178]. Profitability and Income - Net income for 2023 was $547.6 million, an increase of 4.2% from $523.7 million in 2022[216]. - Non-GAAP net income for 2023 reached $960.0 million, up 11.9% from $857.7 million in 2022[216]. - Basic net income per share increased to $3.59 in 2023 from $3.29 in 2022, representing an increase of 9.1%[288]. - The company reported a net income margin of 14.4% for 2023, slightly down from 14.5% in 2022[224]. - Non-GAAP income from operations for 2023 was $1,135,525, an increase from $1,032,788 in 2022, reflecting a growth of 9.9%[215]. Cash Flow and Financing - Cash provided by operating activities for 2023 was $1.35 billion, an increase from $1.27 billion in 2022, driven by higher profitability[230]. - Net cash provided by financing activities was $443,379 thousand in 2023, a significant increase from $(634,177) thousand in 2022, driven by the issuance of convertible senior notes[235]. - The company issued $1,265.0 million in convertible senior notes in August 2023, with net proceeds used to repay $1,150.0 million of existing notes and for stock repurchases[237]. - Cash used in investing activities increased to $(1,848,238) thousand in 2023 from $(622,310) thousand in 2022, primarily due to increased purchases of marketable securities and property and equipment[232]. - Cash paid for business acquisitions was $(106,171) thousand in 2023, a decrease from $(872,091) thousand in 2022, reflecting the acquisition of Linode in March 2022[232]. Strategic Initiatives and Future Outlook - The company plans to continue investing in security and compute solutions to enhance its product portfolio and drive future revenue growth[153]. - The company expects general and administrative expenses to rise in 2024, particularly payroll and related costs due to mid-year merit increases[191]. - The company plans to continue managing operating margins while investing in growth initiatives, including migrating third-party cloud services to its own solutions[178]. - Global economic conditions, including inflation and geopolitical tensions, are expected to continue impacting the company's business and revenue growth rates[164]. Tax and Regulatory Matters - For the year ended December 31, 2023, the provision for income taxes decreased to $106,373, a 16.0% decline from $126,696 in 2022[200]. - The effective income tax rate for 2023 was 16.3%, down from 19.3% in 2022, primarily due to foreign income taxed at lower rates and U.S. research and development credits[201]. - The company anticipates that the effective income tax rate will increase due to the enactment of a 15% global minimum corporate tax rate starting in 2024[203]. Investments and Assets - Total assets increased to $9,900,037 in 2023, up from $8,303,400 in 2022, marking a growth of 19.2%[286]. - The company held $2.3 billion in cash, cash equivalents, and marketable securities as of December 31, 2023[227]. - The company capitalized $77.0 million in internal-use software development costs in 2023, up from $30.0 million in 2022[182]. - The company has net deferred tax assets, including net operating loss carryforwards and tax credit carryforwards, which are subject to management's estimates and judgments[258]. Stock and Shareholder Information - The company repurchased 7.8 million shares of common stock in 2023 at an average price of $83.83 per share, compared to 6.4 million shares at $94.96 in 2022[236]. - The total number of common stock shares outstanding decreased from 160,512,111 in 2021 to 151,232,908 in 2023, reflecting stock repurchases[303]. - Stock-based compensation increased significantly to $328.5 million in 2023, compared to $217.2 million in 2022, reflecting a 51.3% rise[224].

Akamai Guardicore Segmentation is available first to public-cloud customers via Microsoft Azure MarketplaceCAMBRIDGE, Mass., Feb. 27, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, today announced that it is extending its industry-leading segmentation solution, Akamai Guardicore Segmentation, to hybrid cloud environments. Extending Akamai Guardicore Segmentation to the cloud helps reduce attack surfaces and helps contain attacks targeti ...

Akamai Technologies, Inc. (AKAM) reported modest fourth-quarter 2023 results, with the bottom surpassing the Zacks Consensus Estimate but the top line missing the same. The company recorded higher revenues year over year, driven by solid momentum in security and compute verticals. Growing adoption of API security solutions in various industries and healthy demand for Akamai Connected Cloud drove the top line.Net IncomeGAAP net income improved to $161.2 million or $1.03 per share from $128.8 million or 82 ce ...

Akamai Technologies, Inc. (NASDAQ:AKAM) Q4 2023 Earnings Conference Call February 13, 2024 4:30 PM ET Company Participants Tom Barth - Investor Relations Tom Leighton - Chief Executive Officer Ed McGowan - Chief Financial Officer Conference Call Participants Fatima Boolani - Citi Frank Louthan - Raymond James James Fish - Piper Sandler Keith Weiss - Morgan Stanley Mark Murphy - JPMorgan Madeline Brooks - Bank of America Rishi Jaluria - RBC Michael Elias - TD Cowen Raymond McDonough - Guggenheim Securities T ...

For the quarter ended December 2023, Akamai Technologies (AKAM) reported revenue of $995.02 million, up 7.3% over the same period last year. EPS came in at $1.69, compared to $1.37 in the year-ago quarter.The reported revenue represents a surprise of -0.26% over the Zacks Consensus Estimate of $997.61 million. With the consensus EPS estimate being $1.59, the EPS surprise was +6.29%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Akamai Technologies (AKAM) came out with quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.59 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.29%. A quarter ago, it was expected that this cloud services provider would post earnings of $1.51 per share when it actually produced earnings of $1.63, delivering a surprise of 7.95%.Over the last four quar ...

New initiative, code-named Gecko, accelerates Akamai's build-out of the world's most distributed cloud computing platformCAMBRIDGE, Mass., Feb. 13, 2024 /PRNewswire/ -- Akamai Technologies (NASDAQ: AKAM), the cloud company that powers and protects life online, today unveiled plans to embed cloud computing capabilities into its massive edge network. Akamai's Generalized Edge Compute (Gecko) advances Akamai's strategy to be the cloud computing platform for companies that want to deliver better experiences by ...

Yesterday, subscribers to our Schaeffer's Weekend Player service scored a 178% profit with our recommended Akamai Technologies, Inc. (NASDAQ:AKAM) February 110 call. Their patience paid off, as it took roughly three months to see such a hefty return. Below, we'll explain why we recommended the bullish position, and how the trade played out so quickly.At the time of our recommendation in November, a solid earnings report was keeping wind at AKAM's back, pushing it near an all-time high and taking its year-to ...

Investors are always looking for stocks that are poised to beat at earnings season and Akamai Technologies, Inc. (AKAM) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Akamai is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty g ...

Akamai Technologies, Inc. (AKAM) is scheduled to release fourth-quarter 2023 results on Feb 13, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 7.95%. It pulled off a trailing four-quarter earnings surprise of 6.89%, on average. The company is expected to witness a top-line expansion year over year, owing to healthy demand trends in several business verticals.Factors at PlayDuring the quarter, Akamai announced that it has introduced its Client-Side Protect ...