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AKAM (Akamai Technologies) Gross Profit : $2,370 Mil (TTM As of Dec. 2024)


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What is Akamai Technologies Gross Profit?

Akamai Technologies's gross profit for the three months ended in Dec. 2024 was $606 Mil. Akamai Technologies's gross profit for the trailing twelve months (TTM) ended in Dec. 2024 was $2,370 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Akamai Technologies's gross profit for the three months ended in Dec. 2024 was $606 Mil. Akamai Technologies's Revenue for the three months ended in Dec. 2024 was $1,020 Mil. Therefore, Akamai Technologies's Gross Margin % for the quarter that ended in Dec. 2024 was 59.37%.

Akamai Technologies had a gross margin of 59.37% for the quarter that ended in Dec. 2024 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Akamai Technologies was 66.98%. The lowest was 59.39%. And the median was 64.70%.

Warning Sign:

Akamai Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -2.1%.


Akamai Technologies Gross Profit Historical Data

The historical data trend for Akamai Technologies's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Akamai Technologies Gross Profit Chart

Akamai Technologies Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,065.48 2,192.27 2,232.84 2,300.86 2,370.38

Akamai Technologies Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 601.62 592.23 576.69 595.87 605.58

Competitive Comparison of Akamai Technologies's Gross Profit

For the Software - Infrastructure subindustry, Akamai Technologies's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Akamai Technologies's Gross Profit Distribution in the Software Industry

For the Software industry and Technology sector, Akamai Technologies's Gross Profit distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's Gross Profit falls into.


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Akamai Technologies Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Akamai Technologies's Gross Profit for the fiscal year that ended in Dec. 2024 is calculated as

Gross Profit (A: Dec. 2024 )=Revenue - Cost of Goods Sold
=3991.168 - 1620.793
=2,370

Akamai Technologies's Gross Profit for the quarter that ended in Dec. 2024 is calculated as

Gross Profit (Q: Dec. 2024 )=Revenue - Cost of Goods Sold
=1019.939 - 414.356
=606

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,370 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Akamai Technologies's Gross Margin % for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=(Revenue - Cost of Goods Sold) / Revenue
=606 / 1019.939
=59.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Akamai Technologies  (NAS:AKAM) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Akamai Technologies had a gross margin of 59.37% for the quarter that ended in Dec. 2024 => Durable competitive advantage


Akamai Technologies Gross Profit Related Terms

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Akamai Technologies Business Description

Address
145 Broadway, Cambridge, MA, USA, 02142
Akamai operates a content delivery network, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. The firm also offers security and cloud computing for its customers, and those businesses have grown to be bigger than the legacy CDN.
Executives
Paul C Joseph officer: EVP - Global Sales C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Anthony P Williams officer: EVP and CHRO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Aaron Ahola officer: SVP & General Counsel C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Edward J Mcgowan officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Adam Karon officer: EVP & GM Media Division C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Mani Sundaram officer: EVP GSS and CIO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
F Thomson Leighton director, officer: Chief Scientist 500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139
William Raymond Wagner director C/O VOCUS, INC., 4296 FORBES BOULEVARD, LANHAM MD 20706
Robert Blumofe officer: EVP Platform C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Kim Salem-jackson officer: EVP, Chief Marketing Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Madhu Ranganathan director 760 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94102
Verwaayen Bernardus Johannes Maria director 55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Rick M Mcconnell officer: EVP - Products and Development LATITUDE, 2121 TASMAN DRIVE, SANTA CLARA CA 4089887256
Monte E Ford director C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Laura Howell officer: VP, Chief Accounting Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142