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]

Akamai (AKAM) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Hello, and welcome to the Akamai Technologies First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Mark Stoutenburg, Head of Investor Relations. Please go ahead. Speaker1 Good afternoon, everyone, and thank you for joining Akamai's first quarter twenty twenty five earnings call. Speaking today will ...

Exhibit 99.1 "Akamai delivered a solid start to the year with our results meeting or exceeding expectations," said Dr. Tom Leighton, Akamai's Chief Executive Officer. "We were particularly pleased with the continued momentum of our fast-growing segmentation, API security and cloud solutions. Looking ahead, we remain focused on driving profitable growth that powers our transformation into a leading cybersecurity and cloud computing company." Akamai delivered the following results for the first quarter ended ...

First quarter revenue of $1.015 billion, up 3% year-over-year and up 4% when adjusted for foreign exchange*Security and cloud computing revenue represented 69% of total revenue in the first quarter and combined grew 10% year-over-year and 11% when adjusted for foreign exchange*GAAP net income per diluted share of $0.82, down 26% year-over-year and down 23% when adjusted for foreign exchange*, and non-GAAP net income per diluted share* of $1.70, up 4% year-over-year and up 6% when adjusted for foreign exchan ...

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]

Akamai Technologies, Inc. (AKAM) is scheduled to release first-quarter 2025 results on May 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 9.21%. It pulled off a trailing four-quarter earnings surprise of 3.42%, on average. The company is expected to report higher revenues year over year, backed by healthy demand in security and compute verticals across multiple end markets. Management’s focus on expanding its product portfolio to cater to advanced use ...

In its upcoming report, Akamai Technologies (AKAM) is predicted by Wall Street analysts to post quarterly earnings of $1.58 per share, reflecting a decline of 3.7% compared to the same period last year. Revenues are forecasted to be $1.01 billion, representing a year-over-year increase of 2.2%.The consensus EPS estimate for the quarter has undergone an upward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their i ...

Core Viewpoint - Akamai Technologies and P3M Works have formed a strategic partnership to provide zero trust identity, credential, and access management (ICAM) solutions specifically for UK government and defense supply chains, addressing the need for enhanced security in third-party access and supply chain operations [1][2][3] Group 1: Partnership Details - The collaboration combines Akamai's zero trust security capabilities, already implemented in U.S. Department of Defense networks, with P3M's expertise in UK government requirements [1][2] - The focus will be on Akamai's Zero Trust Federated ICAM solutions, which facilitate secure collaboration with vendors and contractors while minimizing exposure to cyber threats [2][3] - The joint offering will be available to UK government agencies and their supply chain partners starting in Q3 2025 [4] Group 2: Security Features - Key features include federated identity management, zero trust policy enforcement, continuous authentication, and comprehensive auditing of third-party activities [7] - The solutions will utilize a policy engine for dynamic, context-aware access decisions based on identity, device health, and behavioral analytics [3] - The approach aims to mitigate supply chain vulnerabilities and insider threats through continuous verification of access requests, even in challenging environments [3] Group 3: Company Backgrounds - Akamai is recognized for its cybersecurity and cloud computing solutions, providing defense-in-depth to safeguard enterprise data and applications globally [9] - P3M Works specializes in cyber resilience consultancy for public sector and defense organizations, focusing on protecting national security against evolving cyber threats [6][8]

Group 1: Earnings Expectations for Akamai Technologies - Wall Street anticipates a year-over-year decline in earnings for Akamai Technologies, with expected earnings of $1.58 per share, reflecting a -3.7% change, while revenues are projected to be $1.01 billion, up 2.2% from the previous year [3][12] - The earnings report is scheduled for May 8, 2025, and the stock may rise if results exceed expectations, but could decline if they fall short [2][14] - The consensus EPS estimate has been revised 0.14% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4][10] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.07% for Akamai Technologies, suggesting a likelihood of beating the consensus EPS estimate [11][10] - Historical performance indicates that Akamai has beaten consensus EPS estimates three out of the last four quarters, with a notable surprise of +9.21% in the last reported quarter [12][13] Group 3: Comparison with Industry Peers - Zillow, another player in the Zacks Internet - Services industry, is expected to report earnings of $0.43 per share, a +19.4% year-over-year change, with revenues of $588.55 million, up 11.3% [17] - Zillow's consensus EPS estimate has remained unchanged, but it has a negative Earnings ESP of -8.67% and a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18]

CAMBRIDGE, Mass., May 1, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, is pleased to announce the launch of a new T-shirt design in UNIQLO's PEACE FOR ALL collection, UNIQLO's charity T-shirt project. After an incredible response to UNIQLO's charity T-shirt project, UNIQLO was inspired to team up with Akamai again—this time for a brand-new design. The second T-shirt in the collection drops globally on Fr ...