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Dec 31, 2024
Akamai Q4 2024 Earnings Report
Akamai reported solid financial performance in Q4 2024, with revenue growth driven by security and compute segments despite a decline in delivery services.
Key Takeaways
Akamai's Q4 2024 revenue grew 3% year-over-year to $1.02 billion. Security and compute segments drove growth, while delivery revenue declined. GAAP EPS decreased 12% to $0.91, and non-GAAP EPS fell 2% to $1.66. Net income declined 13% year-over-year to $140 million, and operating income dropped 20% to $148 million. The company continues its focus on cybersecurity and cloud computing solutions.
Total revenue increased by 3% year-over-year to $1.02 billion.
Security and compute revenue accounted for 69% of total revenue and grew 16% year-over-year.
GAAP EPS declined 12% to $0.91, while non-GAAP EPS decreased 2% to $1.66.
GAAP net income fell 13% to $140 million, and GAAP operating income declined 20% to $148 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Akamai expects moderate revenue growth in Q1 2025, driven by security and compute services, while delivery remains under pressure. Non-GAAP EPS is expected to range between $1.54 and $1.59.
Positive Outlook
- Revenue expected to be between $1.00 billion and $1.02 billion for Q1 2025.
- Continued strong demand for security and compute solutions.
- Non-GAAP operating margin projected at 28%.
- Non-GAAP EPS expected between $1.54 and $1.59.
- Full-year revenue expected to grow to $4.0-$4.2 billion.
Challenges Ahead
- Delivery revenue decline expected to persist.
- Operating margins remain under pressure due to increased costs.
- Stock-based compensation and restructuring costs remain significant.
- Foreign exchange fluctuations could impact results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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