Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **AI Edge Computing** industry, particularly the collaboration between **NVIDIA** and **Akamai** to enhance AI inference capabilities through edge computing solutions [1][2][4]. Core Insights and Arguments - **Collaboration Benefits**: NVIDIA's hardware, such as the RTX Pro 6,000 GPU, combined with Akamai's Inferent Cloud, provides AI inference capabilities across thousands of global nodes, significantly reducing latency and improving throughput [1][2]. - **Akamai's Financial Performance**: Akamai reported third-quarter revenue of **$1 billion**, a year-over-year increase of approximately **7%**, with profits rising by about **9%**. The cloud infrastructure business saw a **30%** increase in revenue [1][5]. - **Increased Capital Expenditure**: Akamai has raised its capital expenditure to over **$200 million** and plans a **$300 million** stock buyback, adjusting its annual growth forecast to **4%-5%**, indicating strong growth potential in the cloud computing sector [1][5]. - **Edge Inference Importance**: Edge inference addresses high latency, data privacy risks, and expensive data transmission costs, especially critical in applications like autonomous driving [1][6]. - **Market Growth Projections**: The global edge computing market is expected to grow at a compound annual growth rate (CAGR) of **14%-15%** in 2024 and 2025, with the domestic market growing even faster at **36%**. By **2028-2029**, the edge inference market is projected to reach approximately **$55 billion**, with China accounting for about **30%** [2][12]. Additional Important Insights - **Technological Advantages**: The partnership allows for real-time inference and optimization of task routing, leading to significant improvements in efficiency. For instance, Akamai's architecture shows a **15%** reduction in latency and a **29.4%** increase in throughput compared to AWS T4, with costs reduced by **58.4%** [3][4]. - **Shift in Business Model**: The edge inference model transitions from merely selling bandwidth to providing integrated services, enhancing profit margins and accelerating profit growth. This SaaS-like model lowers the barriers to AI technology adoption, expanding market demand [8]. - **Domestic Response to Chip Sanctions**: Chinese companies are developing domestic chips to mitigate the impact of international chip sanctions, enhancing their competitiveness in the global market. For example, He Sheng New Materials has invested in a company producing integrated machines using domestic chips, which have been procured by Tencent for overseas deployment [13]. Conclusion - The collaboration between NVIDIA and Akamai is pivotal in advancing edge computing and AI inference capabilities, addressing critical challenges in latency and data privacy while driving significant market growth. The strategic investments and technological advancements position both companies favorably in the rapidly evolving AI landscape.

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $1,004,679,000, a decrease of 5% compared to $1,054,630,000 in the same period of 2024[95] - Security solutions revenue increased by 10% to $568,437,000 for the three months ended September 30, 2025, compared to $518,670,000 in 2024[95] - Cloud computing revenue grew by 8% to $179,698,000 for the three months ended September 30, 2025, compared to $166,877,000 in 2024[95] - Delivery solutions revenue decreased by 4% to $306,495,000 for the three months ended September 30, 2025, compared to $319,132,000 in 2024[95] - Total revenue for the three months ended September 30, 2025, was $1,054,630, a 5% increase from $1,004,679 in 2024; for the nine months, revenue was $3,113,263, a 5% increase from $2,971,229 in 2024[100] - International revenue for the three months ended September 30, 2025, was $524,652, a 9% increase from $480,068 in 2024; for the nine months, it was $1,526,939, a 7% increase from $1,425,575 in 2024[100] Profitability and Expenses - Net income for the three months ended September 30, 2025, was 13% of revenue, up from 6% in the same period of 2024[94] - Total costs and operating expenses as a percentage of revenue decreased to 84% for the three months ended September 30, 2025, from 93% in 2024[94] - Cost of revenue for the three months ended September 30, 2025, was $429,532, a 5% increase from $408,806 in 2024; for the nine months, it was $1,275,012, a 6% increase from $1,206,437 in 2024[101] - Research and development expenses for the three months ended September 30, 2025, were $124,720, a 4% increase from $120,347 in 2024; for the nine months, they were $374,107, a 7% increase from $350,631 in 2024[105] - Sales and marketing expenses for the three months ended September 30, 2025, were $144,867, a 5% increase from $138,551 in 2024; for the nine months, they were $425,237, a 3% increase from $412,160 in 2024[109] - General and administrative expenses for the three months ended September 30, 2025, were $161,719, a 1% increase from $159,957 in 2024; for the nine months, they were $480,249, a 3% increase from $466,241 in 2024[111] Strategic Investments and Future Outlook - The company plans to continue investing in higher growth security products and cloud infrastructure services to advance its product portfolios[90] - The company expects an increase in cost of revenue, particularly in co-location fees and depreciation of network equipment, due to investments in network growth[103] - Research and development costs are expected to increase in 2025, particularly payroll and related costs, to support faster-growing security and cloud computing solutions[108] - The company plans to reinvest in headcount and resources to support faster-growing security and cloud computing solutions as part of its go-to-market transformation initiative[110] - The company expects to continue evaluating strategic investments to strengthen its business and maintain financial stability[137] Non-Operating Income and Taxation - Non-operating income from interest and marketable securities for Q3 2025 was $18.9 million, an 18% decrease from $23.1 million in Q3 2024, and for the nine months ended September 30, 2025, it was $52.6 million, down 32% from $77.5 million in the same period of 2024[116] - The provision for income taxes for Q3 2025 was $(33.0) million, a 108% increase from $(15.9) million in Q3 2024, and for the nine months ended September 30, 2025, it was $(131.5) million, up 106% from $(63.9) million in the same period of 2024[119] - The effective income tax rate for Q3 2025 was (19)%, compared to (22)% in Q3 2024, while for the nine months ended September 30, 2025, it was (26)%, up from (15)% in the same period of 2024[120] Cash Flow and Financing Activities - Cash, cash equivalents, and marketable securities totaled $1.8 billion as of September 30, 2025, providing significant liquidity for operations[135] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,152,181 thousand, a decrease from $1,175,383 thousand in 2024 due to timing of customer collections and higher tax payments[139] - Cash used in investing activities decreased to $174,351 thousand for the nine months ended September 30, 2025, compared to $554,493 thousand in 2024, primarily due to reduced cash paid for business acquisitions[140] - The company held $416.4 million in cash and cash equivalents outside the U.S. as of September 30, 2025, with minimal expected impact on liquidity from these holdings[138] - The company expects its current cash, cash equivalents, and marketable securities to meet foreseeable cash needs for at least the next 12 months, including capital expenditures and potential strategic acquisitions[151] - The company entered into a $150.0 million uncommitted revolving credit agreement in January 2025, with no outstanding borrowings as of September 30, 2025[146] - The 2022 Credit Agreement was amended in May 2025 to increase revolving commitments from $500.0 million to $1.0 billion, with no outstanding borrowings as of September 30, 2025[147] Share Repurchase and Debt Management - In the nine months ended September 30, 2025, the company repurchased 10.0 million shares of common stock at a weighted average price of $79.77 per share, totaling $800.0 million, with $1.2 billion remaining for future repurchases[143] - The company issued $1,725.0 million in convertible senior notes in May 2025 and repaid $1,150.0 million in convertible senior notes due in May 2025[144] - As of September 30, 2025, the company had $4,140.0 million in convertible senior notes outstanding, maturing between September 2027 and May 2033[145] - The increase in cash used in financing activities for the nine months ended September 30, 2025, was primarily due to an increase in stock repurchases, totaling $586.3 million compared to $538.8 million in the same period of 2024[142] Risk and Credit Exposure - A hypothetical 100 basis points increase in interest rates could lead to a decline of approximately $12.9 million in the fair value of the company's available-for-sale portfolio[155] - The company has no significant changes in operating lease obligations as of September 30, 2025, as it continues to execute its expansion plans[149] - The company has limited credit risk exposure, with no customer accounting for 10% or more of accounts receivable as of September 30, 2025[163]

Core Insights - Akamai Technologies Inc. reported better-than-expected third-quarter results, leading to a 10% increase in share price during intra-day trading [1] - The company raised its full-year outlook, indicating strong growth potential [3] Financial Performance - Adjusted earnings per share for the third quarter were $1.86, exceeding analyst estimates of $1.64 [1] - Revenue for the quarter reached $1.055 billion, surpassing expectations of $1.04 billion, representing a 5% year-over-year increase or 4% on a constant-currency basis [1] - For 2025, Akamai raised its revenue outlook to between $4.178 billion and $4.198 billion, and adjusted EPS guidance to $6.93–$7.13, both exceeding consensus projections [3] Business Segments - The security business drove growth with revenue up 10% year-over-year to $568 million [2] - Cloud Infrastructure Services revenue surged 39% to $81 million [2] - Content delivery revenue fell 4% to $306 million [2] Future Guidance - The company forecasts fourth-quarter revenue between $1.065 billion and $1.085 billion, with adjusted earnings per share expected in the range of $1.65–$1.85, both at or above market expectations [2]

Core Insights - Akamai Technologies Inc. reported strong third-quarter 2025 results, with both revenue and net income exceeding expectations, driven by robust demand across various markets [1][3][9] Financial Performance - GAAP net income rose to $140.2 million or 97 cents per share, up from $57.9 million or 38 cents per share year-over-year, aided by high revenues and lower operating expenses [2] - Non-GAAP net income increased to $268.9 million or $1.86 per share, compared to $243.5 million or $1.59 per share a year ago, beating the Zacks Consensus Estimate by 22 cents [2] Revenue Breakdown - Quarterly net sales reached $1.05 billion, a 5% increase from $1 billion in the same quarter last year, driven by strong performance in the Security and Compute verticals [3][9] - Security Technology Group revenues were $568.4 million, up 10% year-over-year, primarily due to demand for Guardicore Segmentation Solution and API security solutions [4] - The Delivery segment generated $306.5 million, down from $319.1 million year-over-year, but exceeded estimates [5] - Cloud Computing segment revenues increased to $179.7 million from $166.9 million, although it missed estimates [5] - U.S. net sales were $530 million, a 1% increase year-over-year, while international revenues rose to $524.6 million from $480.1 million [6] Operating Expenses and Margins - Total operating expenses decreased to $888.6 million from $934 million year-over-year, with non-GAAP income from operations improving to $322 million [7] - Adjusted EBITDA rose to $458.4 million from $426.3 million in the previous year [7] Cash Flow and Liquidity - Akamai generated $441.8 million in cash from operating activities, up from $392.5 million in the prior-year quarter [8] - As of September 30, 2025, the company had $927.9 million in cash and cash equivalents [8] Future Outlook - For Q4 2025, Akamai expects revenues between $1.065 billion and $1.085 billion, with non-GAAP EPS projected between $1.65 and $1.85 [10] - For the full year 2025, revenues are expected to be in the range of $4.178 billion to $4.198 billion, with non-GAAP earnings projected between $6.93 and $7.13 per share [11]

Core Insights - Akamai Technologies (AKAM) is currently viewed as a better value opportunity compared to Shopify (SHOP) based on various financial metrics [1][7] Valuation Metrics - AKAM has a forward P/E ratio of 10.88, significantly lower than SHOP's forward P/E of 107.01 [5] - The PEG ratio for AKAM is 2.22, while SHOP's PEG ratio stands at 4.33, indicating that AKAM is more reasonably priced relative to its expected earnings growth [5] - AKAM's P/B ratio is 2.39, compared to SHOP's P/B of 16.21, further suggesting that AKAM is undervalued [6] Earnings Outlook - AKAM is currently exhibiting an improving earnings outlook, which is a positive indicator in the Zacks Rank model [3][7] - The Zacks Rank for AKAM is 2 (Buy), while SHOP holds a Zacks Rank of 3 (Hold), reflecting a more favorable earnings estimate revision trend for AKAM [3]

Group 1: Affirm Holdings (AFRM) - Affirm Holdings reported an EPS of 23 cents, beating estimates by 12 cents [1][7] - Revenue reached $933.34 million, a 33.6% year-over-year increase, surpassing estimates by $49.98 million [1][7] - The company raised its gross merchandise volume (GMV) guidance to $47.5 billion from $46 billion and increased the adjusted operating margin outlook to 27.1% from 26.1% [1][7] Group 2: Expedia Group (EXPE) - Expedia Group's shares rose by about 17%, or $37.47 per share, driven by strong earnings [2] - The company raised its 2025 revenue growth forecast to between 6% and 7%, up from earlier estimates of 3% to 5% [2] - Bookings in the B2B segment increased by 26% to $9.38 billion during the third quarter [2] Group 3: Globus Medical (GMED) - Globus Medical's shares increased by about 29%, or $18 per share, following strong earnings [3] - The company reported an EPS of $1.18, beating estimates by 41 cents [3] - Revenue was $769 million, a 23% increase year-over-year, exceeding estimates by $34.33 million [3][4] Group 4: Akamai Technologies (AKAM) - Akamai Technologies' shares rose by about 10%, or $7.26 per share, due to strong earnings [5] - The company reported an EPS of $1.86, beating estimates by 22 cents [5] - Revenue was $1.05 billion, a 5% year-over-year increase, surpassing estimates by $10 million [5][6]

智通财经APP获悉，周五，阿克迈(AKAM.US)盘前涨逾5%，报76.96美元。消息面上，阿克迈公布的第 三季度非GAAP每股收益为1.86美元(同比增长17%)，超出市场预期0.22美元，而营收为10.55亿美元，同 比增长5%，超出预期1000万美元。公司上调了全年收入指引至41.78亿至41.98亿美元，并将2025年非 GAAP每股收益指引提高至6.93至7.13美元，高于市场预期的6.72美元。非GAAP营业利润率同比扩大 2%至31%。 ...

周五，阿克迈(AKAM.US)盘前涨逾5%，报76.96美元。消息面上，阿克迈公布的第三季度非GAAP每股 收益为1.86美元(同比增长17%)，超出市场预期0.22美元，而营收为10.55亿美元，同比增长5%，超出预 期1000万美元。公司上调了全年收入指引至41.78亿至41.98亿美元，并将2025年非GAAP每股收益指引 提高至6.93至7.13美元，高于市场预期的6.72美元。非GAAP营业利润率同比扩大2%至31%。 ...

Core Insights - Akamai Technologies, Inc. shares increased by 6.92% in after-hours trading to $78.06 following the release of its third-quarter financial results [1] - The company reported a quarterly revenue of $1.055 billion, reflecting a 5% increase from $1.005 billion in the same quarter last year [2] - Non-GAAP net income per diluted share rose 17% year over year to $1.86 [2] Revenue Breakdown - Security segment revenue reached $568 million, showing a 10% year-over-year growth [2] - Cloud Infrastructure Services generated $81 million in revenue, marking a significant 39% growth compared to the previous year [2] Margin and New Initiatives - Non-GAAP operating margin improved to 31%, up 2 percentage points from the same period last year [3] - The company launched Akamai Inference Cloud, leveraging NVIDIA AI infrastructure for secure, low-latency AI performance at the edge [3] Future Guidance - Akamai projects fourth-quarter revenue between $1.065 billion and $1.085 billion, with non-GAAP operating margins expected to range from 28% to 30% [4] Stock Performance - Year-to-date, Akamai shares have decreased by 23.50% [5] - The stock has traded between $67.60 and $104.99 over the past year, with a current market capitalization of $10.47 billion [5]

Core Insights - Akamai Technologies (AKAM) reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.64 per share, and up from $1.59 per share a year ago, representing an earnings surprise of +13.41% [1] - The company achieved revenues of $1.05 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.23%, compared to $1 billion in the same quarter last year [2] - Akamai Technologies has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +11.61%, with actual earnings of $1.73 per share compared to an expected $1.55 per share [1] - The company has shown a favorable trend in estimate revisions leading up to the earnings release, contributing to a Zacks Rank 2 (Buy) for the stock [6] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $1.07 billion, and for the current fiscal year, it is $6.71 on revenues of $4.17 billion [7] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Industry Context - The Internet - Services industry, to which Akamai belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]