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Jun 30, 2023

Akamai Q2 2023 Earnings Report

Akamai delivered excellent results driven by the strength of security solutions and continued improvements in operating efficiency.

Key Takeaways

Akamai reported a 4% year-over-year revenue increase to $936 million, driven by strong security solutions and compute growth. The company increased guidance for full-year revenue and non-GAAP net income per diluted share.

Second quarter revenue was $936 million, up 4% year-over-year and up 4% when adjusted for foreign exchange.

Security and compute revenue represented 59% of total revenue and grew 14% year-over-year and 15% when adjusted for foreign exchange.

GAAP diluted EPS was $0.84, down 1% year-over-year and up 1% when adjusted for foreign exchange, and non-GAAP diluted EPS was $1.49, up 10% year-over-year and up 11% when adjusted for foreign exchange.

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

Total Revenue
$936M
Previous year: $903M
+3.6%
EPS
$1.49
Previous year: $1.35
+10.4%
Gross Profit
$562M
Previous year: $557M
+1.0%
Cash and Equivalents
$299M
Previous year: $427M
-30.0%
Free Cash Flow
$254M
Previous year: $267M
-4.9%
Total Assets
$8.35B
Previous year: $8.23B
+1.4%

Akamai

Akamai

Akamai Revenue by Segment

Akamai Revenue by Geographic Location

Forward Guidance

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

Positive Outlook

  • Revenue (in millions): $937 - $952 (Three Months Ended September 30, 2023)
  • Revenue (in millions): $3,765 - $3,795 (Year Ended December 31, 2023)
  • Non-GAAP operating margin: 29% (Three Months Ended September 30, 2023)
  • Non-GAAP operating margin: 29% (Year Ended December 31, 2023)
  • Non-GAAP net income per diluted share: $1.48 - $1.52 (Three Months Ended September 30, 2023)

Challenges Ahead

  • Non-GAAP net income per diluted share: $5.87 - $5.95 (Year Ended December 31, 2023)
  • Non-GAAP tax rate: 16% (Three Months Ended September 30, 2023)
  • Non-GAAP tax rate: 17% (Year Ended December 31, 2023)
  • Shares used in non-GAAP per diluted share calculations (in millions): 155 (Three Months Ended September 30, 2023)
  • Shares used in non-GAAP per diluted share calculations (in millions): 155 (Year Ended December 31, 2023)