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Jun 30, 2024

Akamai Q2 2024 Earnings Report

Akamai delivered solid results driven by strong bottom-line performance and strength in security and cloud computing solutions.

Key Takeaways

Akamai reported a 5% year-over-year increase in revenue, reaching $980 million. Security and compute revenue represented 66% of the total revenue, growing 17% year-over-year. The company's strong bottom-line performance was highlighted by GAAP net income per diluted share of $0.86 and non-GAAP net income per diluted share of $1.58.

Second quarter revenue reached $980 million, a 5% increase year-over-year.

Security and compute revenue accounted for 66% of total revenue, with a combined growth of 17% year-over-year.

GAAP net income per diluted share was $0.86, a 2% increase year-over-year.

Non-GAAP net income per diluted share was $1.58, a 6% increase year-over-year.

Total Revenue
$980M
Previous year: $936M
+4.7%
EPS
$1.58
Previous year: $1.49
+6.0%
Gross Profit
$539M
Previous year: $562M
-4.1%
Cash and Equivalents
$448M
Previous year: $299M
+50.0%
Free Cash Flow
$267M
Previous year: $254M
+5.3%
Total Assets
$10.1B
Previous year: $8.35B
+20.9%

Akamai

Akamai

Akamai Revenue by Segment

Akamai Revenue by Geographic Location

Forward Guidance

The company provided financial guidance for the third quarter and full year 2024.

Positive Outlook

  • Revenue (in millions): $988 - $1,008 (Q3 2024)
  • Revenue (in millions): $3,970 - $4,010 (FY 2024)
  • Security revenue growth rates year-over-year: 15% - 17% (Q3 2024)
  • Compute revenue growth rates year-over-year: 23% - 25% (Q3 2024)
  • Non-GAAP operating margin: 29% (Q3 2024 & FY 2024)

Challenges Ahead

  • Non-GAAP net income per diluted share: $1.56 - $1.62 (Q3 2024)
  • Non-GAAP net income per diluted share: $6.34 - $6.47 (FY 2024)
  • Non-GAAP tax rate: 19% - 20% (Q3 2024 & FY 2024)
  • Shares used in non-GAAP per diluted share calculations (in millions): 154 (Q3 2024 & FY 2024)
  • Capex as a percentage of revenue: 17% (Q3 2024), 16% (FY 2024)