On February 20, 2025, Akamai Technologies Inc (AKAM, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full-year 2024. Akamai, a leader in content delivery networks, operates over 325,000 servers across more than 1,000 cities worldwide, offering security and cloud computing services that have grown to surpass its legacy CDN business.
Quarterly and Annual Financial Highlights
Akamai reported a fourth-quarter revenue of $1.020 billion, a 3% increase year-over-year, surpassing the analyst estimate of $1.015 billion. However, the company's GAAP net income per diluted share was $0.91, exceeding the estimated $0.81. The non-GAAP net income per diluted share was $1.66, slightly down by 2% from the previous year.
For the full year, Akamai achieved a revenue of $3.991 billion, a 5% increase from 2023, aligning closely with the annual estimate of $3.986 billion. The GAAP net income per diluted share for the year was $3.27, a 7% decrease from the previous year, while the non-GAAP net income per diluted share rose by 5% to $6.48.
Revenue Breakdown and Geographic Performance
Security and compute revenue represented a significant portion of Akamai's business, accounting for 69% of total revenue in Q4 and growing 16% year-over-year. Delivery revenue, however, declined by 18% in the same period. Geographically, U.S. revenue increased by 3% to $530 million, while international revenue grew by 2% to $490 million.
Operational and Net Income Analysis
GAAP income from operations for Q4 was $148 million, a 20% decrease from the previous year, with an operating margin of 15%. Non-GAAP income from operations was $298 million, a slight 2% decrease, maintaining a 29% operating margin. The full-year GAAP income from operations was $533 million, down 16% from 2023.
GAAP net income for Q4 was $140 million, a 13% decrease year-over-year, while non-GAAP net income was $254 million, a 3% decrease. For the full year, GAAP net income was $505 million, and non-GAAP net income was $996 million, reflecting a 4% increase.
Cash Flow and Share Repurchase Activity
Cash from operations in Q4 was $344 million, representing 34% of revenue. For the full year, cash from operations totaled $1.519 billion, or 38% of revenue. Akamai repurchased 1.4 million shares in Q4 for $138 million and 5.6 million shares for $557 million throughout 2024.
CEO Commentary and Future Outlook
Akamai delivered a solid fourth quarter, demonstrating robust profitability and sustained momentum across our security and cloud computing solutions," said Dr. Tom Leighton, Akamai's Chief Executive Officer. "We are encouraged by our latest results and the market adoption of our newest product innovations."
Financial Metrics and Analysis
Key financial metrics include a GAAP operating margin of 15% for Q4 and 13% for the full year, with non-GAAP operating margins of 29% for both periods. Adjusted EBITDA for Q4 was $429 million, a 1% increase from the previous year, and $1.682 billion for the full year, a 5% increase.
| Metric | Q4 2024 | Full Year 2024 |
|---|---|---|
| Revenue | $1.020 billion | $3.991 billion |
| GAAP EPS | $0.91 | $3.27 |
| Non-GAAP EPS | $1.66 | $6.48 |
| Adjusted EBITDA | $429 million | $1.682 billion |
Akamai's performance in Q4 2024 highlights its strong position in the cybersecurity and cloud computing sectors, despite challenges in its delivery revenue segment. The company's focus on security and compute solutions continues to drive growth, positioning it well for future success in the evolving digital landscape.
Explore the complete 8-K earnings release (here) from Akamai Technologies Inc for further details.
