Akamai(US:AKAM)2025-05-08 20:04Revenue 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].