Akamai Technologies, Inc., a leading cybersecurity and cloud computing company, recently announced its financial results for the third quarter ending on September 30, 2024. The company’s CEO, Dr. Tom Leighton, expressed satisfaction with the quarter’s performance, highlighting the continued growth in security and cloud computing solutions. These two sectors saw a year-over-year increase of 17%, comprising nearly 70% of the total revenue.
The company achieved a significant milestone by surpassing the billion-dollar quarterly revenue mark for the first time. Looking ahead, Akamai remains optimistic about the progress made with new products and the commitment to strong bottom-line performance, as emphasized by Dr. Leighton.
In terms of revenue, Akamai reported $1.005 billion for the third quarter, marking a 4% increase from the same period in 2023 when adjusted for foreign exchange. Security revenue reached $519 million, reflecting a 14% year-over-year increase, while delivery revenue totaled $319 million, showing a 16% decline. Additionally, compute revenue saw a 28% rise, reaching $167 million.
Geographically, the U.S. revenue stood at $525 million, up 5% from the previous year, while international revenue reached $480 million, showing a 3% year-over-year increase when adjusted for foreign exchange.
However, the company’s GAAP income from operations experienced a 60% decrease compared to the third quarter of 2023, with a 7% operating margin. Non-GAAP income from operations remained steady at $296 million, with a 29% operating margin.
GAAP net income was reported at $58 million, showing a 64% decrease from the third quarter of 2023, while non-GAAP net income reached $244 million, marking a 3% decline from the previous year. Adjusted EBITDA was $426 million, up 2% from the same period in 2023.
Cash from operations for the third quarter totaled $393 million, representing 39% of revenue. As of September 30, 2024, cash, cash equivalents, and marketable securities amounted to $1.979 billion.
During the quarter, Akamai repurchased 1.7 million shares of its common stock for $166 million, with 151 million shares outstanding as of September 30, 2024.
Akamai provided financial guidance on a non-GAAP basis, acknowledging the unpredictability of certain events affecting the items excluded from non-GAAP measures, such as stock-based compensation and acquisition-related costs.
The company highlighted the importance of non-GAAP financial measures, such as EBITDA, operating margin, and net income, in providing a clear understanding of its financial performance. These metrics allow for meaningful comparisons and analysis of trends, aiding in decision-making and forecasting.
While the company expressed confidence in its current performance, it also acknowledged the potential impact of various factors, such as competition, macroeconomic trends, geopolitical uncertainties, and technological disruptions. Akamai remains committed to adapting to market demands and delivering innovative solutions to meet the evolving needs of its customers.
In conclusion, Akamai’s robust performance in the third quarter of 2024 demonstrates its resilience and adaptability in a competitive market landscape, setting the stage for continued growth and success in the cybersecurity and cloud computing sectors. The company’s strategic investments and commitment to excellence position it as a leader in the industry, driving innovation and value for its stakeholders.