Core Viewpoint - Akamai Technologies is experiencing significant stock price movement and growth opportunities driven by increasing demand for its security solutions and advancements in API security technology [1][2][3]. Group 1: Stock Performance - Akamai's shares rose 10.3% in the last trading session, closing at $104.61, with trading volume significantly higher than normal [1]. - The stock has gained 4.6% over the past four weeks, indicating a positive trend [1]. Group 2: Growth Opportunities - The demand for Akamai's security solutions is expected to grow significantly due to the rapid adoption of cloud computing and increasing security concerns among enterprises [2]. - Large enterprises are anticipated to increase their security budgets to address these concerns effectively [2]. - The deployment of 5G and IoT devices is expected to drive higher demand for Akamai's security offerings related to data computing at the edge [2]. Group 3: API Security Market - The market for API security is projected to grow substantially, and Akamai is actively pursuing this opportunity [3]. - Akamai's acquisitions of Neosec and Noname Security have accelerated the development of its AI-powered API security solution, which analyzes APIs, detects vulnerabilities, and minimizes risks [3]. - The increasing use of APIs among enterprises is expected to boost demand for Akamai's API security solutions [3]. Group 4: Earnings Expectations - Akamai is expected to report quarterly earnings of $1.75 per share, reflecting a year-over-year increase of 5.4%, with revenues projected at $1.08 billion, up 5.6% from the previous year [4]. - The consensus EPS estimate for Akamai has been revised marginally higher over the last 30 days, indicating a positive trend that may lead to price appreciation [5]. Group 5: Industry Context - Akamai Technologies is part of the Zacks Internet - Services industry, where another company, Sprout Social, has seen a decline of 5.6% in its stock price recently [5].

OVERVIEW OF SYSTEM SALES JANUARY 18, 2024 SAFE HARBOR STATEMENT This presentation and oral statements made by management in connection herewith that are not historical facts are "forward ‐ looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward ‐ looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. They include statements regarding current expectations, estimates, forecas ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $41.3 million, down 18% year over year [20] - Hardware revenue decreased by 35% year over year to $18.8 million, reflecting a strategic shift away from hardware sales [20] - SaaS revenue grew by 17% year over year to $14 million, supported by improved ARPU and strong customer retention [21] - Gross margin for Q1 was 32.8%, down from 38.5% in the prior year, primarily due to lower hardware volume [21][22] - Net losses increased to $40.2 million, compared to $7.7 million in the same period last year, largely due to a non-cash goodwill impairment charge of $24.9 million [22] Business Line Data and Key Metrics Changes - SaaS ARPU increased to $5.69, up 5% from the prior year, while units booked SaaS ARPU reached $10.28, a 44% increase year over year [21] - SaaS gross margin remained strong at 70.7%, with expectations for further expansion over time [22] Market Data and Key Metrics Changes - The total addressable market (TAM) is estimated to be between $11 billion to $13 billion, with a target market of $3 billion to $4 billion for Class A and B buildings [15] - Customer retention rate has remained above 99.9% over the past three years, indicating strong customer loyalty [14] Company Strategy and Development Direction - The company is focusing on sustainable and predictable ARR growth, emphasizing a hardware-enabled SaaS model rather than hardware sales [11] - Strategic pillars include platform superiority, operational excellence, and collaborative innovation [12] - The company has initiated a significant restructuring to enhance scalability and customer focus [10] Management's Comments on Operating Environment and Future Outlook - Management believes that execution challenges are largely solvable and that improving operating effectiveness will unlock scalable long-term growth [14] - The company aims to achieve non-GAAP adjusted EBITDA profitability while maintaining long-term growth [17] - Management remains confident in the company's strategy and market position despite current challenges [26] Other Important Information - The company has executed over $10 million in annualized cost savings to improve cash flow and return to profitability [23] - The company ended the quarter with $125.6 million in cash and no debt, providing a strong balance sheet for future operations [24] Q&A Session Summary Question: Do the $10 million savings represent the full benefit expected? - The $10 million savings are actions taken in April, and the full effect will be seen in Q3 [28] Question: Is the sales organization build-out sufficient for scalability? - The initial build-out is complete, but new salespeople require time to ramp up [29] Question: How much of the organizational changes are on hold due to the CEO search? - The company is not pausing any changes; the strategy is well evolved and will continue to be executed [32] Question: What are the qualities sought in the new CEO? - The new CEO should have a proven track record in operational execution within a recurring revenue business at scale [37] Question: How is the company addressing potential tariff impacts? - The company has a potential $2 million exposure related to tariffs and is evaluating changes in manufacturing locations to mitigate costs [42] Question: When will the benefits of the go-to-market team be evident? - The timeline is uncertain due to various factors, but 2025 is expected to be a foundation-building year with some growth [44]