Core Viewpoint - Akamai Technologies, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding expectations, driven by robust demand across various markets, particularly for its Guardicore platform and cloud services [1] Financial Performance - GAAP net income decreased to $123.2 million or $0.82 per share from $175.4 million or $1.11 per share year-over-year, impacted by high operating expenses [2] - Non-GAAP net income was $256.1 million or $1.70 per share, slightly up from $255.5 million or $1.64 per share a year ago, beating the Zacks Consensus Estimate by $0.12 [2] - Quarterly net sales reached $1.02 billion, a 3% increase from $987 million in the previous year, surpassing the Zacks Consensus Estimate of $1 billion [2] Revenue Breakdown - Security Technology Group revenues were $530.7 million, an 8% increase from $490.7 million year-over-year, driven by demand for Guardicore Segmentation Solution and API security solutions [3] - Delivery segment revenues declined to $319 million from $351.8 million year-over-year but exceeded estimates [4] - Compute segment revenues increased to $165.5 million from $144.5 million in the prior year, supported by enterprise customer traction and deal wins [5] Geographic Performance - U.S. net sales were $528.7 million, up 3% year-over-year, while international revenues totaled $486.4 million, an increase from $474.6 million in the previous year [6] Operating Expenses and Margins - Total operating expenses rose to $860.6 million from $820.2 million year-over-year, while non-GAAP income from operations improved to $307 million with a margin of 30% [7] - Adjusted EBITDA increased to $441.3 million from $417.2 million in the previous year [7] Cash Flow and Share Repurchase - Akamai generated $251.2 million in cash from operating activities, down from $351.9 million in the prior year [8] - The company had $1.09 billion in cash and cash equivalents as of March 31, 2025, and repurchased approximately 6.2 million shares for around $500 million during the quarter [8] Future Outlook - For Q2 2025, Akamai expects revenues between $1.012 billion and $1.032 billion, with a non-GAAP operating margin projected at 28% [10] - Non-GAAP earnings are forecasted to be between $1.52 and $1.58 per share, with capital expenditure expected to be around 22% to 23% of projected total revenues [11] - For the full year 2025, revenues are anticipated to be between $4.050 billion and $4.2 billion, with non-GAAP earnings projected at $6.10 to $6.40 per share [12]

Core Insights - Akamai Technologies reported revenue of $1.02 billion for the quarter ended March 2025, reflecting a year-over-year increase of 2.9% [1] - The company's EPS for the quarter was $1.70, up from $1.64 in the same quarter last year, exceeding the consensus estimate of $1.58 by 7.59% [1] Revenue Breakdown - International revenue was $486.40 million, slightly below the average estimate of $489.92 million, with a year-over-year change of +2.5% [4] - United States revenue reached $528.74 million, surpassing the average estimate of $523.19 million, marking a year-over-year increase of +3.2% [4] - Security revenue was reported at $530.70 million, below the average estimate of $538.25 million, with a year-over-year growth of +8.2% [4] - Compute revenue stood at $165.46 million, slightly below the estimated $168.06 million, showing a significant year-over-year increase of +14.5% [4] - Delivery revenue was $318.99 million, which was lower than the estimated $302.31 million, reflecting a year-over-year decline of -9.3% [4] Stock Performance - Over the past month, shares of Akamai Technologies have returned +8.5%, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Akamai Technologies reported quarterly earnings of $1.70 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and showing an increase from $1.64 per share a year ago, representing an earnings surprise of 7.59% [1] - The company achieved revenues of $1.02 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.64%, and up from $986.97 million year-over-year [2] - Over the last four quarters, Akamai has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed, losing about 13.4% since the beginning of the year, compared to the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $1.01 billion, and for the current fiscal year, it is $6.25 on revenues of $4.1 billion [7] - The Internet - Services industry, to which Akamai belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - First quarter revenue reached $1,015 million, representing a 3% year-over-year increase and a 4% increase in constant currency [5][24] - Non-GAAP operating margin was reported at 30%, exceeding guidance [5] - Non-GAAP earnings per share (EPS) was $1.7, up 4% year-over-year and 6% in constant currency, surpassing the high end of guidance [5][26] - Total Q1 CapEx was $226 million, accounting for 22% of revenue [26] Business Line Data and Key Metrics Changes - Security and compute combined accounted for 69% of total revenue, growing 10% year-over-year as reported and 11% in constant currency [6][24] - Compute revenue grew to $165 million, a 14% year-over-year increase as reported and 15% in constant currency [24] - Security revenue was $531 million, growing 8% year-over-year as reported and 10% in constant currency [24] - Delivery revenue was $319 million, down 9% year-over-year as reported and down 8% in constant currency [24] Market Data and Key Metrics Changes - International revenue was $486 million, up 2% year-over-year or 5% in constant currency, representing 48% of total revenue [25] - Foreign exchange fluctuations negatively impacted revenue by $5 million sequentially and $14 million year-over-year [25] Company Strategy and Development Direction - Akamai is transforming from a CDN pioneer into a cybersecurity and cloud computing company [6] - The company is focusing on enhancing its security offerings, particularly in API security and Guardicore segmentation solutions [6][9] - New product introductions, such as the firewall for AI, are aimed at addressing emerging threats in AI applications [10][11] - The sales transformation efforts are on track, with a focus on new customer acquisition and longer-term contracts [19][65] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential recession impacts on bookings later in the year [20][21] - The company anticipates a $10 million impact from tariffs in 2025, amortized over six years [20] - Akamai expects to maintain revenue growth and healthy margins despite heightened economic volatility [36] Other Important Information - Akamai was recognized as one of the most trustworthy companies in America by Newsweek [22] - The company has approximately $1.3 billion in cash, cash equivalents, and marketable securities [27] Q&A Session Summary Question: What drove the upside in delivery revenue? - Management indicated that traffic growth was the primary driver, with strong performance across various sub-verticals [40][41] Question: How did security revenue perform in Q1? - Security revenue met internal expectations, with strong growth in API security and Guardicore solutions [43][45] Question: What role can Akamai play with AgenTeq AI and the AI firewall? - Akamai aims to protect AI applications from various attacks and ensure they do not ingest harmful information [48][50] Question: What differentiates Akamai in the segmentation market? - Akamai's scale, ease of use, and trustworthiness set it apart in the market, particularly for large enterprises [58][60] Question: What are the expectations for compute growth? - The growth in compute is driven by cloud infrastructure services, with expectations of 40-45% ARR growth [86]

Financial Data and Key Metrics Changes - First quarter revenue reached $1,015 million, representing a 3% year-over-year increase and a 4% increase in constant currency [4][23] - Non-GAAP operating margin was reported at 30%, exceeding guidance [4] - Non-GAAP earnings per share (EPS) was $1.7, up 4% year-over-year and up 6% in constant currency, surpassing the high end of guidance [4][26] - Total Q1 CapEx was $226 million, accounting for 22% of revenue [26] Business Line Data and Key Metrics Changes - Security and compute combined accounted for 69% of total revenue, growing 10% year-over-year as reported and 11% in constant currency [5][24] - Security revenue was $531 million, growing 8% year-over-year as reported and 10% in constant currency [24] - Compute revenue grew to $165 million, a 14% year-over-year increase as reported and 15% in constant currency [23][24] - Delivery revenue was $319 million, down 9% year-over-year as reported and down 8% in constant currency [24] Market Data and Key Metrics Changes - International revenue was $486 million, up 2% year-over-year or 5% in constant currency, representing 48% of total revenue [24] - Foreign exchange fluctuations negatively impacted revenue by $5 million sequentially and $14 million year-over-year [24] Company Strategy and Development Direction - Akamai is transforming from a CDN pioneer into a cybersecurity and cloud computing company, focusing on security solutions like Guardicore and API security [5][6] - The company introduced new products such as the firewall for AI, aimed at protecting AI applications from emerging threats [10][11] - Akamai aims to enhance its edge computing capabilities with the introduction of a managed container service [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential recession impacts on bookings later in the year, although no current impacts were noted [20] - The company expects to lose a few million dollars in revenue in the latter half of 2025 due to federal cutbacks, but sees potential for increased revenue from solutions that generate savings for federal agencies [21] - Akamai remains committed to maintaining strong customer relationships and trust, which are core values for the company [22] Other Important Information - Akamai's capital allocation strategy includes share buybacks, with approximately $1.5 billion remaining on the current repurchase authorization [27] - The company completed the migration of Edgeio customers to its platform, expecting revenue contributions from Edgeio to remain between $85 million to $105 million for 2025 [28] Q&A Session Summary Question: What drove the upside in delivery revenue? - Management indicated that traffic growth was the primary driver, with strong performance across various sub-verticals [38][39] Question: How did security revenue perform in March? - Security revenue met internal expectations, with growth driven by strong API security and Guardicore performance [41][42] Question: What role can Akamai play with AgenTic AI and its AI firewall? - Akamai's AI firewall is designed to protect AI applications from various attacks, ensuring the integrity of AI agents and their data [47][50] Question: What differentiates Akamai's segmentation product in the market? - Akamai's scale, ease of use, and trustworthiness set it apart, allowing it to protect large enterprises effectively [56][60] Question: What are the expectations for security revenue growth? - Management expects security revenue growth of approximately 10% in constant currency for 2025, driven by strong demand for segmentation and API security solutions [34][90]

Revenue and Growth - First quarter revenue was $1.015 billion, a 3% increase year-over-year and a 4% increase when adjusted for foreign exchange[2]. - Total revenue for Q1 2025 was $1,015,139, representing a year-over-year growth of 3% compared to $986,970 in Q1 2024[14]. - Security and cloud computing revenue represented 69% of total revenue, growing 10% year-over-year and 11% when adjusted for foreign exchange[1]. - Security revenue was $531 million, up 8% year-over-year, while Cloud computing revenue grew by 14% to $165,456[14]. Income and Earnings - GAAP net income per diluted share was $0.82, down 26% year-over-year, while non-GAAP net income per diluted share was $1.70, up 4% year-over-year[6]. - Net income for Q1 2025 was $123,171, a decrease of 30% from $175,418 in Q1 2024[13]. - Non-GAAP net income for Q1 2025 was $256,096, slightly up from $255,495 in Q1 2024[19]. - GAAP net income per diluted share for Q1 2025 was $0.82, down from $1.11 in Q1 2024, reflecting a decrease of 26.1%[21]. - Non-GAAP net income per diluted share for Q1 2025 was $1.70, compared to $1.64 in Q1 2024, representing an increase of 3.7%[21]. Operating Performance - GAAP income from operations was $155 million, a 7% decrease from the previous year, with a GAAP operating margin of 15%[3]. - The company reported a GAAP operating margin of 15% for Q1 2025, down from 17% in Q1 2024[19]. - Non-GAAP adjusted EBITDA was $441 million, a 6% increase from the previous year[6]. - Adjusted EBITDA for Q1 2025 was $441.3 million, up from $417.2 million in Q1 2024, indicating a growth of 5.8%[23]. - The adjusted EBITDA margin for Q1 2025 was 43%, slightly up from 42% in Q4 2024[23]. Cash Flow and Capital Expenditures - Cash from operations for the first quarter was $251 million, representing 25% of revenue[7]. - Cash provided by operating activities in Q1 2025 was $251,200, down from $351,878 in Q1 2024[13]. - Total capital expenditures for Q1 2025 were $225,900, which is 22% of total revenue[16]. - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $1,100,311, up from $470,771 in Q1 2024[13]. Shareholder Actions and Financial Guidance - The company plans to repurchase $500 million worth of shares, acquiring 6.2 million shares at an average price of $81.19 per share[7]. - Financial guidance for Q2 2025 projects revenue between $1.012 billion and $1.032 billion, with non-GAAP net income per diluted share expected to be between $1.52 and $1.58[8]. Assets and Liabilities - Total assets as of March 31, 2025, were $9.982 billion, a decrease from $10.368 billion at the end of 2024[11]. Employee and Compensation Metrics - The number of employees at the end of Q1 2025 was 10,811, an increase from 10,533 in Q1 2024[16]. - Stock-based compensation for Q1 2025 amounted to $112.0 million, increasing from $93.3 million in Q1 2024, which is a rise of 20.0%[23]. - Amortization of acquired intangible assets for Q1 2025 was $27.6 million, compared to $21.0 million in Q1 2024, reflecting a growth of 31.4%[23]. Market and Economic Considerations - Management emphasizes the importance of foreign currency exchange rates in understanding financial results and performance comparisons[41]. - The dollar impact of foreign currency exchange rates is calculated by translating current period results using monthly average rates from the comparative period[41]. - Akamai's forward-looking statements include expectations about future financial performance and growth objectives, with potential risks highlighted[42]. - Actual results may differ materially from forward-looking statements due to various factors, including competition and macroeconomic trends[42]. - Akamai anticipates that subsequent events may change its expectations and beliefs, but disclaims any obligation to update forward-looking statements[43].

Core Insights - Akamai Technologies reported first quarter revenue of $1.015 billion, representing a 3% year-over-year increase and a 4% increase when adjusted for foreign exchange [1][2] - Security and cloud computing revenue accounted for 69% of total revenue, with a combined growth of 10% year-over-year and 11% when adjusted for foreign exchange [1] - GAAP net income per diluted share was $0.82, down 26% year-over-year, while non-GAAP net income per diluted share was $1.70, up 4% year-over-year [1][4] Financial Performance - Revenue by solution showed security revenue at $531 million (up 8% year-over-year), delivery revenue at $319 million (down 9% year-over-year), and cloud computing revenue at $165 million (up 14% year-over-year) [8][17] - GAAP income from operations was $155 million, a 7% decrease from the previous year, while non-GAAP income from operations was $307 million, up 5% [3][4] - Adjusted EBITDA was $441 million, reflecting a 6% increase from the previous year [4][27] Cash Flow and Share Repurchase - Cash from operations for the first quarter was $251 million, representing 25% of revenue [5] - The company repurchased 6.2 million shares for $500 million at an average price of $81.19 per share [5] Financial Guidance - For the second quarter of 2025, revenue guidance is set between $1.012 billion and $1.032 billion, with full-year revenue guidance between $4.050 billion and $4.200 billion [7] Geographic Revenue Breakdown - U.S. revenue was $529 million, up 3% year-over-year, while international revenue was $486 million, up 2% year-over-year [8][18]

Core Insights - Akamai Technologies has announced a strategic partnership with FPT Corporation to enhance cloud application deployment and optimization on Akamai Cloud [1][2] - The collaboration aims to leverage FPT's expertise in cloud migration, AI, and automation alongside Akamai's robust platform to deliver value to customers [2][3] Company Overview - FPT Corporation operates in 30 countries, with a significant presence in the Americas, employing over 1,000 professionals since entering the region in 2008 [4] - In 2024, FPT's global IT services achieved a 27.4% year-on-year revenue increase, contributing 79% of its total technology revenue and 91% of its pre-tax profit [4] - FPT reported a total revenue of USD 2.47 billion in 2024, with a workforce exceeding 54,000 employees [7] Partnership Details - The partnership will enable organizations to optimize multi-cloud and distributed environments, enhancing performance and cost efficiencies [2][3] - FPT and Akamai demonstrated AI capabilities at the 2025 NAB Show, showcasing how AI can transform media archives into monetizable assets [3] Financial Performance - FPT reported a robust first-quarter performance in 2025, with revenue increasing by 13.9% and profit before tax up 19.4% year-on-year [4] - The technology sector remains a key growth driver for FPT, achieving a 15.3% year-on-year increase, supported by a 17% rise in revenue from global IT services [4]

Akamai Technologies, Inc. (AKAM) is scheduled to release first-quarter 2025 results on May 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 9.21%. It pulled off a trailing four-quarter earnings surprise of 3.42%, on average. The company is expected to report higher revenues year over year, backed by healthy demand in security and compute verticals across multiple end markets. Management’s focus on expanding its product portfolio to cater to advanced use ...

Core Viewpoint - Akamai Technologies (AKAM) is expected to report a quarterly earnings per share (EPS) of $1.58, reflecting a 3.7% decline year-over-year, while revenues are forecasted to increase by 2.2% to $1.01 billion [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.1% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenue- Security' to be $538.25 million, representing a 9.7% increase from the previous year [5]. - 'Revenue- Compute' is expected to reach $168.06 million, indicating a 16.3% year-over-year increase [5]. - 'Revenue- Delivery' is projected at $302.31 million, reflecting a decline of 14.1% compared to the same quarter last year [5]. - 'Revenue- International' is estimated at $489.92 million, showing a 3.2% increase year-over-year [6]. - 'Revenues- United States' are expected to be $523.19 million, indicating a 2.1% increase from the prior year [6]. Stock Performance - Over the past month, Akamai Technologies shares have gained 12%, outperforming the Zacks S&P 500 composite, which increased by 0.4% [6]. - Based on its Zacks Rank 3 (Hold), AKAM is likely to perform in line with the overall market in the upcoming period [6].