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Dec 31, 2023

Akamai Q4 2023 Earnings Report

Akamai's Q4 2023 financial performance was reported, highlighting strong profitability and growth in security and cloud computing revenues.

Key Takeaways

Akamai reported Q4 2023 revenue of $995 million, a 7% year-over-year increase. Security and compute revenue grew by 18% and represented 61% of total revenue. GAAP net income per diluted share was $1.03, a 26% increase year-over-year, while non-GAAP net income per diluted share was $1.69, a 23% increase year-over-year.

Q4 revenue reached $995 million, up 7% year-over-year.

Security and compute revenue accounted for 61% of total revenue, growing 18% year-over-year.

GAAP net income per diluted share increased by 26% to $1.03.

Non-GAAP net income per diluted share rose by 23% to $1.69.

Total Revenue
$995M
Previous year: $928M
+7.2%
EPS
$1.69
Previous year: $1.37
+23.4%
Gross Profit
$568M
Previous year: $570M
-0.3%
Cash and Equivalents
$489M
Previous year: $542M
-9.7%
Free Cash Flow
$134M
Previous year: $276M
-51.4%
Total Assets
$9.9B
Previous year: $8.3B
+19.2%

Akamai

Akamai

Akamai Revenue by Segment

Akamai Revenue by Geographic Location

Forward Guidance

The Company reports the following financial guidance for the three months ending March 31, 2024:

Positive Outlook

  • Revenue (in millions) $980 - $1,000
  • Non-GAAP operating margin 29% - 30%
  • Non-GAAP net income per diluted share $1.59 - $1.64
  • Non-GAAP tax rate 18.5% - 19.0%
  • Shares used in non-GAAP per diluted share calculations (in millions) 155

Challenges Ahead

  • Capex as a percentage of revenue 15%
  • 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 Akamai excludes from non-GAAP measures.
  • Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.
  • This guidance includes the capex associated with the Gecko product launch in 2024
  • This guidance has been calculated using the December 31, 2023 month end foreign currency exchange rates.