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AKAMAI REPORTS FOURTH QUARTER 2024 AND FULL-YEAR 2024 FINANCIAL RESULTS

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Fourth quarter highlights

Revenue of $1.020 billion, up 3% year-over-year and when adjusted for foreign exchange*Security and compute revenue represented 69% of total revenue in the fourth quarter and grew 16% year-over-year and 17% when adjusted for foreign exchange*GAAP net income per diluted share of $0.91, down 12% year-over-year and down 9% when adjusted for foreign exchange*, and non-GAAP net income per diluted shared* of $1.66, down 2% year-over-year and flat when adjusted for foreign exchange*

Full-year highlights

Revenue of $3.991 billion, up 5% year-over-year and when adjusted for foreign exchange*Security and compute revenue represented 67% of total revenue in 2024 and grew 18% year-over-year and when adjusted for foreign exchange*GAAP net income per diluted share of $3.27, down 7% year-over-year and down 4% when adjusted for foreign exchange*, and non-GAAP net income per diluted share* of $6.48, up 5% year-over-year and up 6% when adjusted for foreign exchange*

CAMBRIDGE, Mass., Feb. 20, 2025 /PRNewswire/ — Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial results for the fourth quarter and full-year ended December 31, 2024.

“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. As we head into 2025, our focus on delivering sustainable profitability across all areas of our business, coupled with our ongoing transformation into a leading cybersecurity and cloud solutions provider, positions us for long-term success.”

Akamai delivered the following results for the fourth quarter and full-year ended December 31, 2024:

Revenue: Revenue for the fourth quarter was $1.020 billion, a 3% increase over fourth quarter 2023 revenue of $995 million and a 3% increase when adjusted for foreign exchange.* Total revenue for 2024 was $3.991 billion compared to $3.812 billion for 2023, up 5% year-over-year and when adjusted for foreign exchange.*

Revenue by solution:

Security revenue for the fourth quarter was $535 million, up 14% year-over-year and when adjusted for foreign exchange.* Security revenue for 2024 was $2.043 billion, up 16% year-over-year and when adjusted for foreign exchange.*Delivery revenue for the fourth quarter was $318 million, down 18% year-over-year and when adjusted for foreign exchange.* Delivery revenue for 2024 was $1.318 billion, down 15% year-over-year and down 14% when adjusted for foreign exchange.*Compute revenue for the fourth quarter was $167 million, up 24% year-over-year and up 25% when adjusted for foreign exchange.* Compute revenue for 2024 was $630 million, up 25% year-over-year and when adjusted for foreign exchange.*

Revenue by geography:

U.S. revenue for the fourth quarter was $530 million, up 3% year-over-year. U.S. revenue for 2024 was $2.076 billion, up 5% year-over-year.International revenue for the fourth quarter was $490 million, up 2% year-over-year and up 4% when adjusted for foreign exchange.* International revenue for 2024 was $1.916 billion, up 4% year-over-year and up 5% when adjusted for foreign exchange.*

Income from operations: GAAP income from operations for the fourth quarter was $148 million, a 20% decrease from fourth quarter 2023 income from operations of $185 million. GAAP operating margin for the fourth quarter was 15%, down 4 percentage points from the same period last year. GAAP income from operations for 2024 was $533 million, a 16% decrease from the prior year’s GAAP income from operations of $637 million. Full-year GAAP operating margin was 13%, down 4 percentage points from the same period last year.

Non-GAAP income from operations* for the fourth quarter was $298 million, a 2% decrease from fourth quarter 2023 non-GAAP income from operations* of $303 million. Non-GAAP operating margin* for the fourth quarter was 29%, down 1 percentage point from the same period last year. Non-GAAP income from operations* for 2024 was $1.167 billion, a 3% increase from the prior year’s non-GAAP income from operations* of $1.136 billion. Full-year non-GAAP operating margin* was 29%, down 1 percentage point from the same period last year.

Net income: GAAP net income for the fourth quarter was $140 million, a 13% decrease from fourth quarter 2023 GAAP net income of $161 million. GAAP net income for 2024 was $505 million, an 8% decrease from the prior year’s GAAP net income of $548 million.

Non-GAAP net income* for the fourth quarter was $254 million, a 3% decrease from fourth quarter 2023 non-GAAP net income* of $263 million. Non-GAAP net income* for 2024 was $996 million, a 4% increase from the prior year’s non-GAAP net income* of $960 million.

EPS: GAAP net income per diluted share for the fourth quarter was $0.91, a 12% decrease from fourth quarter 2023 GAAP net income per diluted share of $1.03 and a 9% decrease when adjusted for foreign exchange.* GAAP net income per diluted share for 2024 was $3.27, a 7% decrease from the prior year’s GAAP net income per diluted share of $3.52 and a 4% decrease when adjusted for foreign exchange.*

Non-GAAP net income per diluted share* for the fourth quarter was $1.66, a 2% decrease from fourth quarter 2023 non-GAAP net income per diluted share* of $1.69 and flat when adjusted for foreign exchange.* Non-GAAP net income per diluted share* for 2024 was $6.48, a 5% increase from the prior year’s non-GAAP net income per diluted share* of $6.20 and a 6% increase when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA* for the fourth quarter was $429 million, a 1% increase from fourth quarter 2023 Adjusted EBITDA* of $426 million. Adjusted EBITDA* for 2024 was $1.682 billion, a 5% increase from the prior year’s Adjusted EBITDA* of $1.608 billion.

Supplemental cash information: Cash from operations for the fourth quarter was $344 million, or 34% of revenue. Cash from operations for 2024 was $1.519 billion, or 38% of revenue. Cash, cash equivalents and marketable securities was $1.872 billion as of December 31, 2024.

Share repurchases: The Company spent $138 million in the fourth quarter of 2024 to repurchase 1.4 million shares of its common stock at an average price of $97.43 per share. For the full-year 2024, the Company spent $557 million to repurchase 5.6 million shares of its common stock at an average price of $99.14 per share. The Company had 150 million shares of common stock outstanding as of December 31, 2024.

Financial guidance: The Company reports the following financial guidance for the first quarter and full year 2025:

Three Months Ending

March 31, 2025

Year Ending

December 31, 2025

Low End

High End

Low End

High End

Revenue (in millions)

$     1,000

$     1,020

$     4,000

$     4,200

Non-GAAP operating margin *

28 %

28 %

28 %

28 %

Non-GAAP net income per diluted share *

$       1.54

$       1.59

$       6.00

$       6.40

Non-GAAP tax rate*

19.5 %

19.5 %

19.5 %

19.5 %

Shares used in non-GAAP per diluted share calculations * (in millions)

152

152

152

152

Capex as a percentage of revenue *

24 %

24 %

19 %

19 %

The guidance that is provided on a non-GAAP basis cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures. For example, stock-based compensation is unpredictable for Akamai’s performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets. Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, Akamai excludes certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items Akamai excludes and to estimate certain discrete tax items, such as the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.

*    See Use of Non-GAAP Financial Measures below for definitions

Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode Akamai Technologies Call. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-877-344-7529 (or 1-412-317-0088 for international calls) and using passcode 3157633. The archived webcast of this event may be accessed through the Akamai website.

About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense-in-depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence. Learn more about Akamai’s cloud computing, security and content delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on X, formerly known as Twitter, and LinkedIn.

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

December 31,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$          517,707

$          489,468

Marketable securities

1,078,876

374,971

Accounts receivable, net

727,687

724,302

Prepaid expenses and other current assets

253,827

216,114

Total current assets

2,578,097

1,804,855

Marketable securities

275,592

1,431,354

Property and equipment, net

1,995,071

1,825,944

Operating lease right-of-use assets

1,006,738

908,634

Acquired intangible assets, net

727,585

536,143

Goodwill

3,151,077

2,850,470

Deferred income tax assets

483,249

418,297

Other assets

151,376

124,340

Total assets

$    10,368,785

$      9,900,037

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$          130,447

$          146,927

Accrued expenses

370,888

352,181

Deferred revenue

149,222

107,544

Convertible senior notes

1,149,116

—

Operating lease liabilities

259,134

222,944

Other current liabilities

32,516

6,442

Total current liabilities

2,091,323

836,038

Deferred revenue

26,314

23,006

Deferred income tax liabilities

16,066

24,622

Convertible senior notes

2,396,695

3,538,229

Operating lease liabilities

829,660

774,806

Other liabilities

130,370

106,181

Total liabilities

5,490,428

5,302,882

Total stockholders’ equity

4,878,357

4,597,155

Total liabilities and stockholders’ equity

$    10,368,785

$      9,900,037

 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Year Ended

(in thousands, except per share data)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Revenue

$     1,019,939

$     1,004,679

$         995,017

$     3,991,168

$     3,811,920

Costs and operating expenses:

Cost of revenue (1) (2)

414,356

408,806

393,397

1,620,793

1,511,063

Research and development (1)

120,245

120,347

109,202

470,876

406,048

Sales and marketing (1)

144,621

138,551

135,256

556,781

533,226

General and administrative (1) (2)

155,544

159,957

155,575

621,785

600,851

Amortization of acquired intangible assets

25,614

24,368

16,833

92,081

66,751

Restructuring charge (benefit)

11,499

82,013

(32)

95,441

56,643

Total costs and operating expenses

871,879

934,042

810,231

3,457,757

3,174,582

Income from operations

148,060

70,637

184,786

533,411

637,338

Interest and marketable securities income, net

22,746

23,065

23,981

100,280

45,194

Interest expense

(6,735)

(6,735)

(6,884)

(27,117)

(17,709)

Other expense, net

(5,962)

(13,161)

(5,642)

(19,561)

(12,296)

Income before provision for income taxes

158,109

73,806

196,241

587,013

652,527

Provision for income taxes

(18,204)

(15,899)

(35,076)

(82,095)

(106,373)

Gain from equity method investment

—

—

—

—

1,475

Net income

$         139,905

$           57,907

$         161,165

$         504,918

$         547,629

Net income per share:

Basic

$               0.93

$               0.38

$               1.07

$               3.34

$               3.59

Diluted

$               0.91

$               0.38

$               1.03

$               3.27

$               3.52

Shares used in per share calculations:

Basic

150,240

151,435

150,979

151,392

152,510

Diluted

153,091

153,240

157,024

154,346

155,397

(1) Includes stock-based compensation (see supplemental table for figures)

(2) Includes depreciation and amortization (see supplemental table for figures)

 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Year Ended

(in thousands)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Cash flows from operating activities:

Net income

$         139,905

$           57,907

$         161,165

$         504,918

$         547,629

Adjustments to reconcile net income to
net cash provided by operating
activities:

Depreciation and amortization

167,949

165,729

147,634

648,410

570,776

Stock-based compensation

99,045

102,607

92,123

393,378

328,467

Benefit for deferred income taxes

(71,206)

(2,541)

(13,224)

(70,268)

(22,987)

Amortization of debt issuance costs

1,588

1,591

1,741

6,521

5,341

Loss (gain) on investments

5,000

—

—

5,066

(311)

Other non-cash reconciling items, net

19,797

41,733

5,019

65,488

50,221

Changes in operating assets and liabilities,
net of effects of acquisitions:

Accounts receivable

(50,392)

11,290

(2,941)

(22,300)

(49,203)

Prepaid expenses and other current assets

(20,614)

(717)

(2,623)

(46,094)

(18,726)

Accounts payable and accrued expenses

79,535

(31,765)

20,345

344

(39,825)

Deferred revenue

6,709

(8,719)

(24,098)

20,687

48

Other current liabilities

(15,490)

41,370

(774)

26,860

1,516

Other non-current assets and liabilities

(18,038)

14,057

4,826

(13,839)

(24,507)

Net cash provided by operating activities

343,788

392,542

389,193

1,519,171

1,348,439

Cash flows from investing activities:

Cash paid for business acquisitions, net of cash acquired

—

—

—

(434,066)

(106,171)

Cash paid for asset acquisitions

(127,973)

(66)

(84,637)

(132,835)

(120,985)

Purchases of property and equipment and capitalization of
internal-use software development costs

(162,859)

(185,117)

(133,887)

(685,267)

(730,040)

Purchases of short- and long-term marketable securities

(34,535)

(15,519)

(277,053)

(236,176)

(1,461,890)

Proceeds from sales, maturities and redemptions of short-
and long-term marketable securities

81,368

84,849

178,382

685,692

576,917

Other, net

(187)

(375)

1,362

3,973

(6,069)

Net cash used in investing activities

(244,186)

(116,228)

(315,833)

(798,679)

(1,848,238)

 

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued

Three Months Ended

Year Ended

(in thousands)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Cash flows from financing activities:

Proceeds from borrowings under revolving credit facility

—

—

—

—

90,000

Repayment from borrowings under revolving credit facility

—

—

—

—

(90,000)

Proceeds from the issuance of convertible senior notes, net of issuance costs

—

—

—

—

1,247,388

Proceeds from the issuance of warrants related to convertible senior notes

—

—

—

—

90,195

Purchases of note hedges related to convertible senior notes

—

—

—

—

(236,555)

Proceeds from the issuance of common stock under stock plans

13,805

19,442

13,426

61,513

62,979

Employee taxes paid related to net share settlement of stock-based awards

(16,061)

(15,868)

(15,312)

(173,176)

(66,222)

Repurchases of common stock

(138,371)

(165,839)

(54,891)

(557,468)

(654,046)

Other, net

(213)

(104)

—

(10,504)

(360)

Net cash (used in) provided by financing activities

(140,840)

(162,369)

(56,777)

(679,635)

443,379

Effects of exchange rate changes on cash, cash equivalents and restricted cash

(12,431)

9,494

11,597

(12,243)

3,868

Net (decrease) increase in cash, cash equivalents and restricted cash

(53,669)

123,439

28,180

28,614

(52,552)

Cash, cash equivalents and restricted cash at beginning of period

572,753

449,314

462,290

490,470

543,022

Cash, cash equivalents and restricted cash at end of period

$         519,084

$         572,753

$         490,470

$         519,084

$         490,470

 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY SOLUTION

Three Months Ended

Year Ended

(in thousands)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Security

$     534,602

$     518,670

$     470,977

$  2,042,661

$  1,765,267

Delivery

317,842

319,132

389,048

1,318,131

1,542,434

Compute

167,495

166,877

134,992

630,376

504,219

Total revenue

$  1,019,939

$  1,004,679

$     995,017

$  3,991,168

$  3,811,920

Revenue growth rates year-over-year:

Security

14 %

14 %

18 %

16 %

14 %

Delivery

(18)

(16)

(6)

(15)

(8)

Compute

24

28

20

25

24

Total revenue

3 %

4 %

7 %

5 %

5 %

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (1):

Security

14 %

14 %

17 %

16 %

15 %

Delivery

(18)

(16)

(7)

(14)

(7)

Compute

25

28

20

25

25

Total revenue

3 %

4 %

7 %

5 %

6 %

 

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY GEOGRAPHY

Three Months Ended

Year Ended

(in thousands)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

U.S.

$     529,879

$     524,611

$     516,348

$  2,075,533

$  1,968,779

International

490,060

480,068

478,669

1,915,635

1,843,141

Total revenue

$  1,019,939

$  1,004,679

$     995,017

$  3,991,168

$  3,811,920

Revenue growth rates year-over-year:

U.S.

3 %

5 %

7 %

5 %

4 %

International

2

3

8

4

7

Total revenue

3 %

4 %

7 %

5 %

5 %

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (1):

U.S.

3 %

5 %

7 %

5 %

4 %

International

4

3

6

5

8

Total revenue

3 %

4 %

7 %

5 %

6 %

(1)  See Use of Non-GAAP Financial Measures below for a definition

 

AKAMAI TECHNOLOGIES, INC.

OTHER SUPPLEMENTAL DATA

Three Months Ended

Year Ended

(in thousands, except end of period statistics)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Stock-based compensation:

Cost of revenue

$        16,129

$        16,566

$        11,898

$        61,177

$        43,802

Research and development

37,843

39,275

36,428

152,114

123,896

Sales and marketing

18,730

21,076

17,895

77,593

66,453

General and administrative

26,343

25,690

25,902

102,494

94,316

Total stock-based compensation

$        99,045

$      102,607

$        92,123

$      393,378

$      328,467

Depreciation and amortization:

Network-related depreciation

$        74,949

$        72,546

$        63,225

$      282,106

$      231,500

Capitalized internal-use software development amortization

40,343

41,973

43,919

168,355

176,675

Other depreciation and amortization

15,983

15,998

16,170

63,994

63,860

Depreciation of property and equipment

131,275

130,517

123,314

514,455

472,035

Capitalized stock-based compensation amortization (1)

10,952

10,740

7,379

41,452

31,548

Capitalized interest expense

amortization (1)

108

104

108

422

442

Amortization of acquired intangible assets

25,614

24,368

16,833

92,081

66,751

Total depreciation and amortization

$      167,949

$      165,729

$      147,634

$      648,410

$      570,776

Capital expenditures (2) (3):

Purchases of property and equipment

$      122,694

$        91,600

$        80,408

$      383,392

$      459,167

Capitalized internal-use software development costs

69,974

72,391

62,355

292,509

258,626

Total capital expenditures

$      192,668

$      163,991

$      142,763

$      675,901

$      717,793

Capex as a percentage of revenue (3)

19 %

16 %

14 %

17 %

19 %

End of period statistics:

Number of employees

10,748

10,947

10,281

(1)

Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized related to cloud-computing arrangements and contract fulfillment costs. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).

(2)

Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

(3)

See Use of Non-GAAP Financial Measures below for a definition.

 

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND TAX RATE

Three Months Ended

Year Ended

(in thousands)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Income from operations

$     148,060

$       70,637

$     184,786

$     533,411

$     637,338

GAAP operating margin

15 %

7 %

19 %

13 %

17 %

Amortization of acquired intangible assets

25,614

24,368

16,833

92,081

66,751

Stock-based compensation

99,045

102,607

92,123

393,378

328,467

Amortization of capitalized stock-based compensation and capitalized interest expense

11,264

11,089

7,774

42,910

32,981

Restructuring charge (benefit)

11,499

82,013

(32)

95,441

56,643

Acquisition-related costs

115

5,036

1,189

7,502

13,345

Legal settlements

2,500

—

—

2,500

—

Operating adjustments

150,037

225,113

117,887

633,812

498,187

Non-GAAP income from operations

$     298,097

$     295,750

$     302,673

$  1,167,223

$  1,135,525

Non-GAAP operating margin

29 %

29 %

30 %

29 %

30 %

Net income

$     139,905

$       57,907

$     161,165

$     504,918

$     547,629

Operating adjustments (from above)

150,037

225,113

117,887

633,812

498,187

Amortization of debt issuance costs

1,588

1,591

1,741

6,521

5,341

Loss (gain) on cost method investments

5,000

—

—

5,066

(311)

Gain from equity method investment

—

—

—

—

(1,475)

Income tax effect of above non-GAAP adjustments and certain discrete tax items

(42,605)

(41,097)

(18,162)

(154,735)

(89,364)

Non-GAAP net income

$     253,925

$     243,514

$     262,631

$     995,582

$     960,007

GAAP tax rate

12 %

22 %

18 %

14 %

16 %

Income tax effect of non-GAAP adjustments and certain discrete tax items

7

(3)

(1)

5

1

Non-GAAP tax rate

19 %

19 %

17 %

19 %

17 %

 

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER DILUTED SHARE

Three Months Ended

Year Ended

(in thousands, except per share data)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

GAAP net income per diluted share

$               0.91

$               0.38

$               1.03

$               3.27

$               3.52

Adjustments to net income:

Amortization of acquired intangible assets

0.17

0.16

0.11

0.60

0.43

Stock-based compensation

0.65

0.67

0.59

2.55

2.11

Amortization of capitalized stock-based compensation and capitalized interest expense

0.07

0.07

0.05

0.28

0.21

Restructuring charge (benefit)

0.08

0.54

—

0.62

0.36

Acquisition-related costs

—

0.03

0.01

0.05

0.09

Legal settlements

0.02

—

—

0.02

—

Amortization of debt issuance costs

0.01

0.01

0.01

0.04

0.03

Loss (gain) on cost method investments

0.03

—

—

0.03

—

Gain from equity method investment

—

—

—

—

(0.01)

Income tax effect of above non-GAAP adjustments and certain discrete tax items

(0.28)

(0.27)

(0.12)

(1.00)

(0.58)

Adjustment for shares (1)

—

—

0.02

0.03

0.02

Non-GAAP net income per diluted share

$               1.66

$               1.59

$               1.69

$               6.48

$               6.20

Shares used in GAAP per diluted share calculations

153,091

153,240

157,024

154,346

155,397

Impact of benefit from note hedge transactions (1)

(368)

(294)

(1,755)

(744)

(574)

Shares used in non-GAAP per diluted share calculations (1)

152,723

152,946

155,269

153,602

154,823

(1)

Shares used in non-GAAP per diluted share calculations have been adjusted for the periods presented for the benefit of Akamai’s note hedge transactions. During these periods, Akamai’s average stock price was in excess of $95.10, which is the initial conversion price of Akamai’s convertible senior notes due in 2025. See Use of Non-GAAP Financial Measures below for further definition.

 

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

Three Months Ended

Year Ended

(in thousands)

December 31,
2024

September 30,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Net income

$      139,905

$        57,907

$      161,165

$      504,918

$      547,629

Net income margin

14 %

6 %

16 %

13 %

14 %

Interest and marketable securities income, net

(22,746)

(23,065)

(23,981)

(100,280)

(45,194)

Provision for income taxes

18,204

15,899

35,076

82,095

106,373

Depreciation and amortization

131,275

130,517

123,314

514,455

472,035

Amortization of capitalized stock-based compensation and capitalized interest expense

11,264

11,089

7,774

42,910

32,981

Amortization of acquired intangible assets

25,614

24,368

16,833

92,081

66,751

Stock-based compensation

99,045

102,607

92,123

393,378

328,467

Restructuring charge (benefit)

11,499

82,013

(32)

95,441

56,643

Acquisition-related costs

115

5,036

1,189

7,502

13,345

Legal settlements

2,500

—

—

2,500

—

Interest expense

6,735

6,735

6,884

27,117

17,709

Loss (gain) on cost method investments

5,000

—

—

5,066

(311)

Gain from equity method investment

—

—

—

—

(1,475)

Other expense, net

962

13,161

5,642

14,495

12,607

Adjusted EBITDA

$      429,372

$      426,267

$      425,987

$   1,681,678

$   1,607,560

Adjusted EBITDA margin

42 %

42 %

43 %

42 %

42 %

Use of Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP financial measures). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes, to measure executive compensation and to evaluate Akamai’s financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP tax rate, capital expenditures and impact of foreign currency exchange rates, as discussed below.

Management believes that these non-GAAP financial measures reflect Akamai’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparison of financial results across accounting periods and to those of our peer companies. Management also believes that these non-GAAP financial measures enable investors to evaluate Akamai’s operating results and future prospects in the same manner as management. These non-GAAP financial measures may exclude expenses and gains that may be unusual in nature, infrequent or not reflective of Akamai’s ongoing operating results.

The non-GAAP financial measures do not replace the presentation of Akamai’s GAAP financial measures and should only be used as a supplement to, not as a substitute for, Akamai’s financial results presented in accordance with GAAP. Akamai has provided a reconciliation of each non-GAAP financial measure used in its financial reporting and investor presentations to the most directly comparable GAAP financial measure. This reconciliation captioned “Reconciliation of GAAP to Non-GAAP Financial Measures” can be found on the Investor Relations section of Akamai’s website.

The non-GAAP adjustments, and Akamai’s basis for excluding them from non-GAAP financial measures, are outlined below:

Amortization of acquired intangible assets – Akamai has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions Akamai has made. The amount of an acquisition’s purchase price allocated to intangible assets and term of its related amortization can vary significantly and is unique to each acquisition; therefore, Akamai excludes amortization of acquired intangible assets from its non-GAAP financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.Stock-based compensation and amortization of capitalized stock-based compensation – Stock-based compensation is an important aspect of the compensation paid to Akamai’s employees, which includes long-term incentive plans to encourage retention, performance-based plans to encourage achievement of specified financial targets and also short-term incentive awards with a one year vest. The grant date fair value of the stock-based compensation awards varies based on the stock price at the time of grant, varying valuation methodologies, subjective assumptions and the variety of award types. This makes the comparison of Akamai’s current financial results to previous and future periods difficult to interpret; therefore, Akamai believes it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from its non-GAAP financial measures in order to highlight the performance of Akamai’s core business and to be consistent with the way many investors evaluate its performance and compare its operating results to peer companies.Acquisition-related costs – Acquisition-related costs include transaction fees, advisory fees, due diligence costs and other direct costs associated with strategic activities, as well as certain additional compensation costs payable to employees acquired from the Linode acquisition if employed for a certain period of time. The additional compensation cost was initiated by and determined by the seller, and is in addition to normal levels of compensation, including retention programs, offered by Akamai. Acquisition-related costs are impacted by the timing and size of the acquisitions, and Akamai excludes acquisition-related costs from its non-GAAP financial measures to provide a useful comparison of operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the acquisition transactions and do not reflect Akamai’s core operations.Restructuring charge – Akamai has incurred restructuring charges from programs that have significantly changed either the scope of the business undertaken by the Company or the manner in which that business is conducted. These charges include severance and related expenses for workforce reductions, impairments of long-lived assets that will no longer be used in operations (including acquired intangible assets, right-of-use assets, other facility-related property and equipment and internal-use software) and termination fees for any contracts cancelled as part of these programs. Akamai excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.Amortization of debt issuance costs and capitalized interest expense – Akamai has convertible senior notes outstanding that mature in 2029, 2027 and 2025. The issuance costs of the convertible senior notes are amortized to interest expense and are excluded from Akamai’s non-GAAP results because management believes the non-cash amortization expense is not representative of ongoing operating performance.Gains and losses on cost method investments – Akamai has recorded gains and losses from the disposition, changes to fair value and impairment of cost method investments. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to these gains and losses are not representative of Akamai’s core business operations and ongoing operating performance.Legal settlements – Akamai has incurred losses related to the settlement of legal matters. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of Akamai’s core business operations.Gains and losses from equity method investment – Akamai records income or losses on its share of earnings and losses from its equity method investment, and any gains from returns of investments or impairments. Akamai excludes such income and losses because it does not have direct control over the operations of the investment and the related income and losses are not representative of its core business operations.Income tax effect of non-GAAP adjustments and certain discrete tax items – The non-GAAP adjustments described above are reported on a pre-tax basis. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments) and excludes certain discrete tax items (such as the impact of intercompany sales of intellectual property related to acquisitions), if any. Akamai believes that applying the non-GAAP adjustments and their related income tax effect allows Akamai to highlight income attributable to its core operations.

Akamai’s definitions of its non-GAAP financial measures are outlined below:

Non-GAAP income from operations – GAAP income from operations adjusted for the following items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; amortization of capitalized interest expense; acquisition-related costs; restructuring charges; legal settlements; and other non-recurring or unusual items that may arise from time to time.

Non-GAAP operating margin – Non-GAAP income from operations stated as a percentage of revenue.

Non-GAAP net income – GAAP net income adjusted for the following tax-affected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; amortization of debt issuance costs; amortization of capitalized interest expense; gains and losses on cost method investments; gains and losses from equity method investment; and other non-recurring or unusual items that may arise from time to time. 

Non-GAAP tax rate – GAAP tax rate excluding the tax effect of non-GAAP adjustments and certain discrete tax items.

Non-GAAP net income per diluted share, or EPS – Non-GAAP net income divided by weighted average diluted common shares outstanding. Diluted weighted average common shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transactions entered into in connection with the issuances of $1,265 million of convertible senior notes due 2029 and the issuances of $1,150 million of convertible senior notes due 2027 and 2025, respectively. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully-diluted share calculation until they are delivered. However, Akamai would receive a benefit from the note hedge transactions and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of operating performance. With respect to the convertible senior notes due in each of 2029, 2027 and 2025, unless Akamai’s weighted average stock price is greater than $126.31, $116.18 and $95.10, respectively, the initial conversion prices, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.

Adjusted EBITDA – GAAP net income excluding the following items: interest and marketable securities income and losses; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; foreign exchange gains and losses; interest expense; amortization of capitalized interest expense; gains and losses on cost method investments; gains and losses from equity method investment; and other non-recurring or unusual items that may arise from time to time.

Adjusted EBITDA margin – Adjusted EBITDA stated as a percentage of revenue.

Capital expenditures, or capex – Purchases of property and equipment and capitalization of internal-use software development costs presented on an accrual basis, which differs from the cash-basis presentation included in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

Capex as a percentage of revenue – Capital expenditures, or capex, stated as a percentage of revenue.

Impact of foreign currency exchange rate – Revenue and earnings from international operations have historically been important contributors to Akamai’s financial results. Consequently, Akamai’s financial results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of our international subsidiaries weaken, our consolidated results stated in U.S. dollars are negatively impacted.

Because exchange rates are a meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchange rates on revenue and earnings enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. The dollar impact of changes in foreign currency exchange rates presented is calculated by translating current period results using monthly average foreign currency exchange rates from the comparative period and comparing them to the reported amount. The percentage growth rate impacted by foreign currency exchange rates, sometimes referred to as constant currency, is calculated by comparing the prior period amounts as reported and the current period amounts translated using the same monthly average foreign currency exchange rates from the comparative period.

Akamai Statement Under the Private Securities Litigation Reform Act

This release and related management commentary on our quarterly earnings conference call scheduled for later today contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected future financial performance, expectations, plans and prospects of Akamai, including our outlook, guidance and growth objectives. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to continue to generate cash at the same level as prior years; failure of our investments in innovation to generate solutions that are accepted in the market; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; effects of competition, including pricing pressure and changing business models; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, rising and fluctuating interest rates, foreign currency exchange rate fluctuations, securities market volatility and monetary supply fluctuations; conditions and uncertainties in the geopolitical environment, including sanctions and disruptions resulting from the ongoing war in Ukraine and the Israel-Hamas war; continuing supply chain and logistics costs, constraints, changes or disruptions; defects or disruptions in our products or IT systems, including cyber-attacks, data breaches or malware; difficulties in integrating our acquisitions and investments; failure to realize the expected benefits of any of our acquisitions, reorganizations or investments; changes to economic, political and regulatory conditions in the United States and internationally; our ability to attract and retain key personnel; delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents filed with the SEC.

In addition, the statements in this press release and on our quarterly earnings conference call represent Akamai’s expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai’s expectations or beliefs as of any date subsequent to the date of this press release.

Contacts:

Christine Simeone
Media Relations
Akamai Technologies
AkamaiPR@akamai.com

Mark Stoutenberg
Investor Relations
Akamai Technologies
mstouten@akamai.com

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SOURCE Akamai Technologies, Inc.

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EBSCO Clinical Decisions Appoints Paul Tuten as Executive Vice President

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~ Seasoned health IT executive and former ONC advisor to lead EBSCO Clinical Decisions as it advances its mission to bring trusted evidence to clinicians at the point of care.~

IPSWICH, Mass., Oct. 26, 2026 /PRNewswire/ — EBSCO Clinical Decisions today announced the appointment of Paul Tuten as its Executive Vice President. In his role, Tuten will oversee all aspects of EBSCO Clinical Decisions, including strategy, content, product development, and growth. His priorities include advancing the organization’s point-of-care strategy and expanding partnerships that bring expert-vetted DynaMed® content directly into the workflows, platforms, and AI-enabled tools clinicians use every day.

“Paul’s strong and even-handed leadership is an incredible asset as we work to deliver intelligent, evidence-based tools that elevate care delivery,” said Roy Ziegelstein, MD, MACP, Editor-in-Chief and Chief Medical Officer of DynaMed. “His deep technical expertise and track record in academic publishing will help us take the next step in building and delivering trustworthy, evidence-based solutions for clinicians that integrate natively into their daily workflows, reducing friction and improving care when and where it matters most.”

Tuten joined the company in 2025 as Executive Vice President and Chief Platform Officer at EBSCO Information Services, focused on accelerating scalable growth of EBSCO’s advanced knowledge services. Prior to joining, he was Chief Product and Technology Officer at Taylor & Francis, where he led a global team in driving digital transformation and enhancing data governance, analytics, and platform-centric customer experiences in service to academic researchers. Tuten previously built and repositioned health IT organizations focused on clinical data exchange, patient safety, quality measurement, and revenue cycle management, including at Quantros (now part of RLDatix and Healthcare Bluebook), RxAnte, and ABILITY Network (now part of Inovalon). He holds a PhD in Information Systems from Nova Southeastern University.

“For too long, clinical decision support has worked like a paper map. Useful, but only if you pull over to review it and already know where you are. Clinicians need something closer to GPS, seamlessly integrated into the car and proactively guiding them in real time without having to take their eyes off the road,” said Tuten. “At EBSCO Clinical Decisions, our job is to get trusted clinical knowledge everywhere care is delivered. But like GPS, clinical decision support is only as good as the information behind it. With AI tools multiplying and published research outpacing peer review, it’s never mattered more that human experts decide what evidence informs it. I’m excited to help bring this vision to life and set a new standard for point-of-care delivery.”

Tuten has also advised the federal government on health information exchange and interoperability as a Senior Advisor to the Office of the National Coordinator for Health Information Technology (ONC) at the U.S. Department of Health and Human Services. In that role, he supported the HITECH Act’s Meaningful Use program and served as a government liaison to EHR vendors on certification criteria.

To learn more about EBSCO Clinical Decisions, click here. 

About EBSCO Clinical Decisions

EBSCO Information Services (EBSCO) helps people find, access, and apply trusted information. Through its EBSCO Clinical Decisions suite of products, EBSCO delivers evidence-based clinical decision-support solutions designed to help healthcare professionals answer clinical questions, support informed decisions, and improve patient care.

EBSCO Clinical Decisions combines trusted clinical content with advanced technologies to support healthcare organizations and clinicians across clinical decision-making, patient care, learning, and research. The suite is designed to provide current, evidence-based information within the clinical workflow, helping healthcare professionals find the answers they need when they need them. For more information, visit www.clinicaldecisions.com. Visit our blog at Health Notes or follow us on X and LinkedIn.

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SOURCE EBSCO Information Services

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College Board Launches AP Cybersecurity to Prepare Students to Protect the Digital World

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New high school course builds foundational skills for college, careers, and service as states connect cybersecurity education to national security needs

NEW YORK, Oct. 26, 2026 /PRNewswire/ — Cyber threats reach into everyday life, from scams that steal families’ savings to attacks on utilities and other essential services. Helping students understand and respond to those threats can open doors to further education, employment, and national defense service. College Board’s new AP Cybersecurity course, which was launched in high schools this fall, gives students a place to begin.

In 2025, U.S. employers posted more than half a million job listings requiring cybersecurity skills. Yet many students have little opportunity to learn about cybersecurity in high school or see where those skills could take them.

Experience the full interactive Multichannel News Release here: https://www.multivu.com/college_board/9381153-en-college-board-launches-ap-cybersecurity

AP Cybersecurity introduces students to the work behind that demand: protecting the systems people depend on. Through practical scenarios, students assess security weaknesses, weigh risks, and investigate evidence of attacks. An assignment might ask them to evaluate threats to internet-connected farm equipment or recommend protections for computer networks aboard a naval submarine.

These assignments help students see how cybersecurity skills apply across industries and in national defense. Indiana offers an example of how those connections can take shape. The statewide Cybersecurity Partnership brings together high schools, colleges, employers, and the Indiana National Guard to help students explore routes into further education, employment, and military service.

The course and partnerships like Indiana’s address two connected needs: giving students an introduction to cybersecurity and helping them understand where continued learning could lead. For students, that connection gives classroom assignments a larger purpose. Investigating a security weakness today can be a first step toward learning how to protect a hospital, secure a business, or defend the country.

Interested in learning more? Talk to your school district or high school to see if they are offering AP Cybersecurity or visit collegeboard.org

View original content:https://www.prnewswire.com/news-releases/college-board-launches-ap-cybersecurity-to-prepare-students-to-protect-the-digital-world-302918558.html

SOURCE College Board

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Alkami to Host Webinar with Thomaston Savings Bank on Using Predictive AI to Deliver Data-Driven Guidance and Accelerate Growth

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Leaders from Alkami and Thomaston Savings Bank will discuss how financial institutions can use predictive AI and behavioral signals to drive strategic growth and strengthen account holder relationships

PLANO, Texas, Oct. 26, 2026 /PRNewswire/ — Alkami Technology, Inc. (Nasdaq: ALKT) (“Alkami”), a digital sales and service platform provider for financial institutions in the U.S., today announced an upcoming webinar hosted with Thomaston Savings Bank, “Guess Less and Grow More with Predictive AI.” The webinar will take place Wednesday, October 28, 2026, at 2 p.m. ET.

As account holders increasingly expect more personalized and proactive experiences, financial institutions have an opportunity to leverage data to deliver tailored guidance during every interaction. According to Alkami research, 44% of Americans who use digital banking wish their primary financial provider did a better job anticipating their financial needs and goals.1

The upcoming webinar will explore how financial institutions can respond to these expectations by using predictive artificial intelligence (AI) to drive growth across deposits and lending while strengthening primary relationships. Speakers will discuss how Alkami’s Data & Marketing Solution uses behavioral insights and predictive AI to help institutions identify growth opportunities and deliver more personalized outreach.

Featured speakers include:

Kent Blacksher, strategic account executive, AlkamiEthan O’Day, business intelligence analyst, Thomaston Savings Bank

“Data helps us understand how customers engage, but the real value comes from understanding what those behaviors may tell us about their needs,” said Ethan O’Day, business intelligence analyst, Thomaston Savings Bank. “Predictive AI can help us focus our outreach sooner and make it more relevant, while our team’s expertise keeps the work grounded in the relationships we have with our customers.”

During the session, attendees will learn how to:

Identify deposit and lending opportunities using behavioral signalsCreate more relevant outreach for customers and membersRecognize engagement and attrition signals earlierSimplify campaign execution and move from insight to actionBuild marketing strategies that support growth and retention

The presentation will explore real examples of how data-activated campaigns drive faster product adoption, along with insights into how predictive AI can help guide your team’s strategy.

“Financial institutions have more data than ever, but data creates value when teams can turn insight into action,” said Kent Blacksher, strategic account executive at Alkami. “Combining predictive AI with human expertise allows marketing teams to skip the guesswork while building stronger account holder relationships.”

To register for the webinar, visit here.

To learn more about Anticipatory Banking and the Alkami Digital Sales & Service Platform, visit here.

About Alkami
Alkami provides a digital sales and service platform for U.S. banks and credit unions. Our unified Platform integrates onboarding, digital banking, and data and marketing—each solution can stand alone, but together they deliver more—to help institutions onboard, engage, and grow relationships. As the future shifts toward Anticipatory Banking, we help data-informed bankers meet the moment with technology that drives action.

1 Alkami Proprietary Research. 2026 Digital Banking Americans Research Study. Online survey of 1,500 U.S. digital banking Americans conducted March 26–April 22, 2026.

Media Relations Contacts
Vested
alkami@fullyvested.com

Marla Pieton
marla.pieton@alkami.com

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SOURCE Alkami Technology, Inc.

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