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Akamai
🇺🇸 NASDAQ:AKAM
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•
Mar 31, 2023

Akamai Q1 2023 Earnings Report

Akamai had a strong start to 2023, with both revenue and earnings above expectations. Security became the largest revenue stream for the first time.

Key Takeaways

Akamai's first quarter 2023 revenue reached $916 million, a 1% increase year-over-year (4% when adjusted for foreign exchange). Security and compute revenue grew 13% year-over-year, representing 57% of total revenue. GAAP EPS was $0.62, and non-GAAP EPS was $1.40, up 1% year-over-year. The company raised guidance for full-year revenue and non-GAAP net income per diluted share.

Revenue was $916 million, up 1% year-over-year and 4% when adjusted for foreign exchange.

Security and compute revenue represented 57% of total revenue and grew 13% year-over-year.

GAAP EPS was $0.62, down 24% year-over-year, while non-GAAP EPS was $1.40, up 1% year-over-year.

Guidance was raised for full-year revenue and non-GAAP net income per diluted share.

Total Revenue
$916M
Previous year: $904M
+1.3%
EPS
$1.4
Previous year: $1.39
+0.7%
Gross Profit
$554M
Previous year: $571M
-2.9%
Cash and Equivalents
$299M
Previous year: $378M
-20.9%
Free Cash Flow
$91.8M
Previous year: $171M
-46.5%
Total Assets
$8.18B
Previous year: $8.3B
-1.5%

Akamai

Akamai

Akamai Revenue by Segment

Akamai Revenue by Geographic Location

Forward Guidance

The Company reports the following financial guidance for the second quarter and full year 2023:

Positive Outlook

  • Revenue (in millions): $923 - $937 (Q2 2023), $3,740 - $3,785 (FY 2023)
  • Non-GAAP operating margin: 28.5% (Q2 2023), 28.0% - 29.0% (FY 2023)
  • Non-GAAP net income per diluted share: $1.38 - $1.42 (Q2 2023), $5.69 - $5.84 (FY 2023)
  • Non-GAAP tax rate: 17.5% - 18.0% (Q2 2023), 17.5% - 18.0% (FY 2023)
  • Shares used in non-GAAP per diluted share calculations (in millions): 153 (Q2 2023), 153 (FY 2023)

Challenges Ahead

  • Capex as a percentage of revenue: 21.0% - 22.0% (Q2 2023), 18.5% - 19.0% (FY 2023)
  • This guidance is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures.
  • For example, stock-based compensation is unpredictable for Akamai’s performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets.
  • Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict.
  • Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.

Company Overview

Full financial data and analysis

View Akamai