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Akamai's Q4 Earnings Beat Estimates, Revenues Increase Y/Y
AKAMAkamai(AKAM) ZACKS·2025-02-21 17:06

Core Insights - Akamai Technologies, Inc. (AKAM) reported strong fourth-quarter 2024 results, with both revenue and net income exceeding Zacks Consensus Estimates, driven by robust demand across various end markets [1][4]. Financial Performance - GAAP net income for the fourth quarter was 140millionor140 million or 0.91 per share, down from 161millionor161 million or 1.03 in the same quarter last year, primarily due to increased operating expenses [2]. - Non-GAAP net income was 253.9millionor253.9 million or 1.66 per share, a slight decrease from 262.6millionor262.6 million or 1.69 a year ago, but still beating the Zacks Consensus Estimate by 0.14[2].−Forthefullyear2024,GAAPnetincomewas0.14 [2]. - For the full year 2024, GAAP net income was 504.9 million or 3.27pershare,comparedto3.27 per share, compared to 547.6 million or 3.52in2023.Non−GAAPnetincomeincreasedto3.52 in 2023. Non-GAAP net income increased to 995.6 million or 6.48persharefrom6.48 per share from 960 million or 6.20in2023[3].RevenueBreakdown−Akamaigenerated6.20 in 2023 [3]. Revenue Breakdown - Akamai generated 1 billion in revenues for the fourth quarter, up from 995millioninthepreviousyear,witha995 million in the previous year, with a 5 million beat over the Zacks Consensus Estimate [4]. - Revenue from the Security Technology Group was 534.6million,reflectinga14534.6 million, reflecting a 14% year-over-year growth, driven by strong demand for Guardicore segmentation solutions and API security solutions [5]. - The Delivery segment's revenue decreased to 317.8 million from 389millionyear−over−year,facingchallengesfrommacroeconomicheadwinds[5].−TheComputesegmentsawrevenuesriseto389 million year-over-year, facing challenges from macroeconomic headwinds [5]. - The Compute segment saw revenues rise to 167.5 million from 135millionintheprioryear,supportedbystrongenterprisecustomertraction[6].OperatingExpensesandCashFlow−Totaloperatingexpensesincreasedto135 million in the prior year, supported by strong enterprise customer traction [6]. Operating Expenses and Cash Flow - Total operating expenses increased to 871.9 million from 810.2millionyear−over−year,withnon−GAAPoperatingincomedecliningto810.2 million year-over-year, with non-GAAP operating income declining to 298.1 million from 302.7million[7].−Akamaigenerated302.7 million [7]. - Akamai generated 343.8 million in cash from operating activities in the fourth quarter, down from 389.2millionintheprioryear,butforthefullyear2024,cashfromoperationsincreasedto389.2 million in the prior year, but for the full year 2024, cash from operations increased to 1.51 billion from 1.34billionin2023[8].LiquidityPosition−AsofDecember31,2024,Akamaihad1.34 billion in 2023 [8]. Liquidity Position - As of December 31, 2024, Akamai had 517.7 million in cash and cash equivalents, with operating lease liabilities of 829.7million,comparedto829.7 million, compared to 489.5 million and 774.8million,respectively,inthepreviousyear[9].FutureOutlook−ForQ12025,Akamaiestimatesrevenuesbetween774.8 million, respectively, in the previous year [9]. Future Outlook - For Q1 2025, Akamai estimates revenues between 1 billion and 1.02billion,withnon−GAAPearningsexpectedintherangeof1.02 billion, with non-GAAP earnings expected in the range of 1.54 to 1.59pershare[10].−Forthefullyear2025,managementanticipatesrevenuesbetween1.59 per share [10]. - For the full year 2025, management anticipates revenues between 4 billion and 4.2billion,withnon−GAAPearningsprojectedtobebetween4.2 billion, with non-GAAP earnings projected to be between 6 and $6.4 per share [11].