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Sep 30, 2023
Akamai Q3 2023 Earnings Report
Akamai's Q3 2023 financial results were reported, showing revenue growth and increased profitability.
Key Takeaways
Akamai reported a strong third quarter with revenue of $965 million, up 9% year-over-year. Security and compute revenue grew by 20% and now account for 61% of total revenue. GAAP EPS was $1.04, up 33% year-over-year, and non-GAAP EPS was $1.63, up 29% year-over-year.
Third quarter revenue reached $965 million, a 9% increase year-over-year.
Security and compute revenue comprised 61% of total revenue, growing 20% year-over-year.
GAAP diluted EPS was $1.04, a 33% increase year-over-year.
Non-GAAP diluted EPS was $1.63, a 29% increase year-over-year.
Akamai
Akamai
Akamai Revenue by Segment
Akamai Revenue by Geographic Location
Revenue by Segment
Security Revenue
CapyFin.comDelivery Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The Company reports the following financial guidance for the fourth quarter and full-year 2023:
Positive Outlook
- Revenue (in millions) $985 - $1,005
- Non-GAAP operating margin 29%
- Non-GAAP net income per diluted share $1.57 - $1.62
- Non-GAAP tax rate 17 %
- Shares used in non-GAAP per diluted share calculations (in millions) 155
Challenges Ahead
- Capex as a percentage of revenue 15 %
- incremental cost of revenue of $13 million to $14 million for transition service agreements related to the acquired customer contracts
- negative impact to revenue of $8 million as compared to the third quarter related to foreign currency exchange rate fluctuations.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income