November 18, 2024 at 04:55PM
Akamai Technologies reported a $1.005 billion revenue for Q3 2024, a 4% increase year-over-year, with strong growth in security and cloud computing solutions. However, GAAP net income fell 64%. An $82 million restructuring charge impacted income metrics. The company remains optimistic about future product traction and performance.
### Meeting Takeaways from Akamai Technologies Q3 2024 Financial Results
**Overview:**
– Akamai Technologies reported financial results for the third quarter ending September 30, 2024, achieving significant milestones in revenue and growth, especially in security and cloud computing solutions.
**Key Financial Highlights:**
– **Total Revenue:** $1.005 billion, a 4% year-over-year increase from $965 million in Q3 2023.
– **Revenue by Solution:**
– Security: $519 million (up 14% YoY)
– Delivery: $319 million (down 16% YoY)
– Compute: $167 million (up 28% YoY)
– **Revenue by Geography:**
– U.S.: $525 million (up 5% YoY)
– International: $480 million (up 3% YoY)
**Significant Charges:**
– **Restructuring Charge:** $82 million related to workforce reduction aimed at strategic repositioning.
**Income Metrics:**
– **GAAP Income from Operations:** $71 million, down 60% YoY.
– **Non-GAAP Income from Operations:** $296 million (flat YoY).
– **Net Income:**
– GAAP: $58 million, down 64% YoY.
– Non-GAAP: $244 million, down 3% YoY.
– **Earnings Per Share (EPS):**
– GAAP: $0.38 (down 63% YoY)
– Non-GAAP: $1.59 (down 2% YoY).
**Cash Flow:**
– **Cash from Operations:** $393 million, representing 39% of revenue.
– **Cash, Cash Equivalents, and Marketable Securities:** $1.979 billion as of September 30, 2024.
**Share Repurchases:**
– Akamai repurchased 1.7 million shares for $166 million at an average price of $97.29 per share.
**Future Outlook:**
– Akamai provided guidance based on non-GAAP metrics, noting variability in assumptions regarding stock-based compensation, restructuring costs, and tax implications, emphasizing potential unpredictability in future financial performance.
**Additional Insights:**
– Akamai emphasized strong growth in cybersecurity and cloud solutions, which now represent nearly 70% of total revenue.
– The company plans to continue focusing on mission-critical investments while managing operational efficiencies.
**Conference Call:**
– Scheduled for later in the day, available via phone and live webcast.
### Conclusion
Overall, Akamai Technologies displayed robust growth in key sectors despite facing challenges with restructuring and revenue declines in specific areas. The company is committed to investing in its strategic initiatives while navigating the complexities of the current economic environment.