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Akamai Technologies, Inc. (AKAM) , a global provider of content delivery network and cloud infrastructure services, reported better-than-expected second-quarter results. Non-GAAP earnings of $1.58 per share surpassed the Zacks Consensus Estimate by 4 cents.Revenues improved 5% year over year to $979.58 million, surpassing the Zacks Consensus Estimate by $3 million. Growing customer engagement in the Security and Compute portfolio across various end markets primarily drove the outperformance. Integration of ...

Key TakeawaysAkamai Technologies shares surged more than 10% on Friday after the cloud services company reported strong earnings and lifted its profit outlook amid robust demand for its computing and security offerings.The share price broke out from an inverse head and shoulders pattern following the company's better-than-expected quarterly results.Important post-earnings price levels on Akamai's chart to monitor include $102, $109, $113, and $120, all areas where the stock may encounter overhead resistance ...

Akamai Technologies, Inc. AKAM reported better-than-expected second-quarter financial results on Thursday.Akamai Techs reported quarterly earnings of $1.58 per share which beat the analyst consensus estimate of $1.53 per share. The company reported quarterly sales of $979.580 million which beat the analyst consensus estimate of $977.242 million.“Akamai delivered solid results in the second quarter highlighted by our strong bottom-line performance and continued strength in our security and cloud computing so ...

Key TakeawaysAkamai Technologies beat second-quarter profit and sales estimates on strong demand for its security and cloud computing products.Security revenue was up 15%, and compute revenue jumped 23%.The company raised its full-year adjusted EPS guidance. Shares of Akamai Technologies (AKAM) took off Friday, a day after the tech firm reported better-than-expected second-quarter results and raised its profit guidance on higher demand for its security and cloud computing products.  Akamai posted adjusted e ...

Akamai Technologies Inc. (AKAM) reported strong second-quarter 2024 results, with both the bottom and top lines surpassing the respective Zacks Consensus Estimate. The company recorded a top-line expansion year over year, driven by solid momentum in security and compute verticals in multiple end markets.Net IncomeGAAP net income improved to $131.7 million or 86 cents per share from $128.8 million or 84 cents per share in the year-ago quarter. The improvement was primarily attributed to year-over-year net sa ...

Financial Data and Key Metrics - Q2 2024 revenue grew to $980 million, up 5% YoY as reported and 6% in constant currency [6] - Non-GAAP operating margin was 29% [7] - Non-GAAP EPS was $1.58, up 6% YoY and 9% in constant currency [7] - Security revenue reached $499 million, up 15% YoY and 16% in constant currency [9] - Compute revenue grew to $151 million, up 23% YoY and 24% in constant currency [17] - Delivery revenue declined to $329 million, down 13% YoY and 12% in constant currency [23] - International revenue was $471 million, up 3% YoY and 5% in constant currency, representing 48% of total revenue [24] - Non-GAAP net income was $243 million [25] - Cash, cash equivalents, and marketable securities totaled approximately $1.9 billion as of June 30 [25] Business Line Performance - Delivery accounted for one-third of revenue ($329 million), down from two-thirds five years ago [8] - Security now represents the majority of revenue, with $499 million in Q2, up 15% YoY [9] - Compute revenue grew to $151 million, driven by enterprise adoption and new capabilities [17] - Security and compute combined accounted for 66% of total revenue, growing 17% YoY [23] Market Performance - International revenue grew 3% YoY, with foreign exchange fluctuations negatively impacting revenue by $10 million YoY [24] - The Paris Summer Games are expected to drive an additional $3-4 million in Q3 revenue [27] - India's elimination of its digital service tax may result in a slight increase in the effective non-GAAP tax rate [27] Strategic Direction and Industry Competition - The company is shifting focus from delivery to security and compute, which now generate two-thirds of revenue [20] - The acquisition of No Name Security strengthens the company's position in the fast-growing API security market, which is expected to grow at a CAGR of 34% to nearly $1 billion by 2027 [13] - The company's distributed cloud platform, with over 4,100 points of presence, provides better performance, economics, and reliability compared to hyperscalers [16] - The company is leveraging its delivery platform to offer compute at a lower price point than hyperscalers, targeting enterprise customers [73] Management Commentary on Operating Environment and Future Outlook - The macroeconomic environment remains challenging, with geopolitical tensions potentially impacting the business [28] - The company expects Q3 revenue in the range of $988 million to $1.008 billion, up 2-4% YoY [28] - Full-year 2024 revenue is expected to grow 4-5% YoY, with security revenue growth of 15-17% in constant currency [30] - The company aims to maintain a 30% operating margin, with potential upside as compute and security businesses expand [21] Other Important Information - The company repurchased 1.4 million shares for $128 million in Q2 and has $2.3 billion remaining in share buyback authorizations [25] - The No Name acquisition is expected to add $18-20 million in revenue for 2024 but will be dilutive to non-GAAP EPS by $0.04-0.05 [26] - The company expects to reduce third-party cloud spending by over $100 million annually by migrating to its own platform [20] Q&A Session Summary Question: Trajectory of Akamai Connected Cloud - The company expects to reach $100 million ARR by the end of 2024 and is optimistic about strong growth driven by enterprise customers [34] Question: Delivery Business Headwinds - The headwinds in the delivery business are not expected to persist long-term, with traffic growth likely to continue at a slower rate [36] Question: Full-Year Guidance and Expense Savings - The company has seen better-than-expected business performance, with $100 million in savings from migrating to its own cloud platform [39][41] Question: Guardicore Zero Trust Platform - The Guardicore platform integrates micro-segmentation, zero trust network access, and threat hunting, with strong channel adoption [45][48] Question: AI Workloads on Compute Platform - AI workloads are currently a small fraction of ARR but have significant growth potential, particularly for focused applications [57] Question: Use Cases for Connected Cloud - Media customers are the largest segment, but the platform is also being used for observability, security, and AI applications [62][63] Question: Compute Customer Base - Growth is coming from both existing and new customers, with media companies being the largest segment [66][67] Question: Delivery Revenue Decline - The decline is attributed to tough comparisons from previous acquisitions and lower traffic growth, not a shift to low-cost providers [70][98] Question: Security Growth Rate - Growth has been volatile due to new product introductions, but API security and Guardicore are expected to ramp quickly [94][96] Question: Muted Q4 Seasonality - Weaker trends in retail and gaming are expected to continue, with no significant traffic growth anticipated [100]

Akamai Technologies (AKAM) reported $979.58 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 4.7%. EPS of $1.58 for the same period compares to $1.49 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $976.44 million, representing a surprise of +0.32%. The company delivered an EPS surprise of +2.60%, with the consensus EPS estimate being $1.54.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Akamai Technologies (AKAM) came out with quarterly earnings of $1.58 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.60%. A quarter ago, it was expected that this cloud services provider would post earnings of $1.61 per share when it actually produced earnings of $1.64, delivering a surprise of 1.86%.Over the last four quar ...