Akamai reported $1.005 billion in revenue for the quarter ended September 30, 2024, up 4% year over year and its first quarter above $1 billion. Security and compute grew, while delivery revenue fell. The results, announced November 7, 2024, also show a sharp distinction between GAAP earnings and Akamai’s adjusted figures: an $82 million restructuring charge weighed on GAAP results.
Revenue topped $1 billion as security and compute grew
Akamai’s total revenue was $1.005 billion, a 4% increase from the same quarter a year earlier. Security and compute together accounted for 68% of revenue and grew 17% year over year, according to the company’s November 7, 2024 results release. CEO Tom Leighton called passing the $1 billion quarterly revenue threshold a significant milestone.
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| Solution | Q3 2024 revenue | Year-over-year change |
|---|---|---|
| Security | $519 million | +14% |
| Delivery | $319 million | -16% |
| Compute | $167 million | +28% |
The figures are company-reported for the quarter ended September 30, 2024. The segment mix makes the overall 4% growth rate easier to interpret: strong security and compute growth more than offset the decline in delivery revenue.
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GAAP results include expenses recognized under generally accepted accounting principles. Akamai reported GAAP operating income of $71 million, net income of $58 million, and diluted earnings per share (EPS) of $0.38. The company said an $82 million restructuring charge primarily reflected severance tied to a workforce reduction and impairments of certain acquired assets; the charge affected operating income, net income, and EPS.
Akamai also reported company-defined non-GAAP results, which exclude specified items and should not be treated as interchangeable with GAAP figures. Its November 7 release reported:
| Measure | Q3 2024 result |
|---|---|
| Non-GAAP operating income | $296 million |
| Non-GAAP net income | $244 million |
| Diluted non-GAAP EPS | $1.59 |
| Adjusted EBITDA | $426 million |
Because the non-GAAP measures exclude items that affect GAAP reporting, the large gap between GAAP and non-GAAP operating income is not a like-for-like comparison of two accounting standards. Readers assessing earnings should keep the restructuring charge and the company’s adjusted definitions in view.
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Cash flow, liquidity, and share repurchases
Operating cash flow was $393 million, equal to 39% of revenue. At September 30, 2024, Akamai held $1.979 billion in cash, cash equivalents, and marketable securities. During the quarter, it repurchased 1.7 million shares for $166 million, an average of $97.29 per share, as reported in the company’s results release.
Geographic revenue grew modestly in both regions
U.S. revenue was $525 million, up 5% year over year. International revenue was $480 million, up 3%; the release also stated international growth was 3% after adjusting for foreign-exchange effects.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Akamai forecast in November 2024
The following figures are the outlook Akamai issued with its November 7, 2024 results, not current guidance. In the release, the company presented the guidance as non-GAAP and said it could not reconcile it to the closest GAAP measures without unreasonable effort because excluded items were unpredictable.
Quick Recap
| Measure | Q4 2024 guidance (three months ending December 31, 2024) |
Full-year 2024 guidance |
|---|---|---|
| Revenue | $995 million–$1.020 billion | $3.966 billion–$3.991 billion |
| Non-GAAP operating margin | 27%–28% | 29% |
| Diluted non-GAAP EPS | $1.49–$1.56 | $6.31–$6.38 |
| Non-GAAP tax rate | 19% | 19% |
| Capital expenditures as a share of revenue | 18%–19% | 17% |
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