Akamai's Q4 Earnings Beat Estimates, Revenues Increase Y/Y

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 $140 million or $0.91 per share, down from $161 million or $1.03 in the same quarter last year, primarily due to increased operating expenses [2]. - Non-GAAP net income was $253.9 million or $1.66 per share, a slight decrease from $262.6 million or $1.69 a year ago, but still beating the Zacks Consensus Estimate by $0.14 [2]. - For the full year 2024, GAAP net income was $504.9 million or $3.27 per share, compared to $547.6 million or $3.52 in 2023. Non-GAAP net income increased to $995.6 million or $6.48 per share from $960 million or $6.20 in 2023 [3]. Revenue Breakdown - Akamai generated $1 billion in revenues for the fourth quarter, up from $995 million in the previous year, with a $5 million beat over the Zacks Consensus Estimate [4]. - Revenue from the Security Technology Group was $534.6 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 $389 million year-over-year, facing challenges from macroeconomic headwinds [5]. - The Compute segment saw revenues rise to $167.5 million from $135 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 $810.2 million year-over-year, with non-GAAP operating income declining to $298.1 million from $302.7 million [7]. - Akamai generated $343.8 million in cash from operating activities in the fourth quarter, down from $389.2 million in the prior year, but for the full year 2024, cash from operations increased to $1.51 billion from $1.34 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 $829.7 million, compared to $489.5 million and $774.8 million, respectively, in the previous year [9]. Future Outlook - For Q1 2025, Akamai estimates revenues between $1 billion and $1.02 billion, with non-GAAP earnings expected in the range of $1.54 to $1.59 per share [10]. - For the full year 2025, management anticipates revenues between $4 billion and $4.2 billion, with non-GAAP earnings projected to be between $6 and $6.4 per share [11].