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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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