Akamai Technologies Reports Fourth Quarter and Full-Year Financial Results
Fourth quarter highlights
- Revenue of $1.020 billion, up 3% year-over-year.
- Security and compute revenue accounted for 69% of total revenue in the fourth quarter, growing by 16% year-over-year.
- GAAP net income per diluted share was $0.91, a decrease of 12% year-over-year.
Full-year highlights
- Total revenue reached $3.991 billion, a 5% increase from the previous year.
- Security and compute revenue made up 67% of overall revenue, marking an 18% growth year-over-year.
- GAAP net income per diluted share for the year was $3.27, down 7% from the prior year.
Akamai Technologies, Inc. (NASDAQ: AKAM), a leader in cybersecurity and cloud computing, reported its financial performance for the fourth quarter and full-year results recently.
"Akamai delivered a solid fourth quarter, highlighting our strong profitability and consistent momentum across our security and cloud solutions," said Dr. Tom Leighton, the Chief Executive Officer of Akamai. "As we move into 2025, our commitment to sustainable growth through product innovation positions us for continued success."
Revenue Performance
During the fourth quarter, Akamai's revenue reached approximately $1.020 billion, reflecting a 3% increase compared to $995 million from the fourth quarter of the previous year. The total revenue for 2024 stood at $3.991 billion against $3.812 billion reported in 2023, marking a 5% rise.
Revenue Breakdown by Solutions:
- Security revenue for Q4 registered $535 million, a notable increase of 14% compared to last year.
- Delivery revenue for Q4 fell to $318 million, down 18% year-over-year.
- Compute revenue surged to $167 million in Q4, an increase of 24% year-over-year.
Geographic Revenue Overview:
- Within the U.S., revenue for Q4 totaled $530 million, reflecting a 3% year-over-year increase.
- International revenue for Q4 was $490 million, a modest increase of 2% year-over-year.
Income from Operations
GAAP income from operations for the fourth quarter was $148 million, down 20% from $185 million reported in the same period last year. The overall operating margin for 2024 was 13%, reflecting a reduction of 4 percentage points from 2023.
Non-GAAP operating income was $298 million for Q4, which represents a slight decrease from $303 million in the comparable period of 2023. Non-GAAP operating margin for Q4 was reported at 29%.
Net Income
In terms of net income, GAAP results indicated a figure of $140 million for Q4, reflecting a 13% decrease from $161 million in Q4 2023. The overall net income for 2024 came in at $505 million, down from $548 million the previous year.
Alternately, non-GAAP net income for Q4 stood at $254 million.
Earnings Per Share
The diluted GAAP EPS registered at $0.91 for Q4 compared to $1.03 in the prior year, equating to a 12% decline. For 2024, diluted EPS was $3.27 compared to $3.52 from 2023.
Adjusted EBITDA
For Q4, adjusted EBITDA reached $429 million, a modest increase from the previous year. For the full year, adjusted EBITDA was reported at $1.682 billion, up by 5% over the prior year.
Share Repurchases and Financial Guidance
Akamai allocated approximately $138 million during Q4 to repurchase 1.4 million shares at an average price of $97.43 per share, summing up a total of $557 million repurchased for the full year. The earnings guidance for the first quarter of 2025 reflects anticipated revenue of between $1.000 billion and $1.020 billion.
Frequently Asked Questions
What is the revenue growth for Akamai in 2024?
Akamai reported a revenue growth of 5% year-over-year, totaling $3.991 billion.
What was Akamai's net income per diluted share for Q4 2024?
The GAAP net income per diluted share for Q4 was $0.91, down 12% from the previous year.
How much did Akamai spend on share repurchases in 2024?
Akamai spent $557 million on share repurchases for the full year 2024.
What was Akamai's adjusted EBITDA for 2024?
Adjusted EBITDA for Akamai was $1.682 billion, an increase of 5% compared to 2023.
How did Akamai manage its operating expenses in 2024?
Akamai aimed to maintain its operating expenses in line with revenue growth, achieving a non-GAAP operating income of $298 million in Q4 2024.
