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Akamai Technologies operates a massively distributed edge and cloud platform known as Akamai Connected Cloud, which supports their cloud computing, security, and content delivery solutions. The company's primary business activities are centered around these three areas, with security being the largest contributor to revenue. Akamai sells security solutions, including web application firewall, bot management, and Guardicore's micro-segmentation, as well as content delivery network services and compute solutions bolstered by the acquisition of Linode .
- Security Solutions - Provides web application firewall, bot management, and Guardicore's micro-segmentation services, contributing significantly to the company's revenue .
- Compute Solutions - Offers cloud computing services, enhanced by the acquisition of Linode, and plays a substantial role in the company's growth .
- Content Delivery Network (CDN) - Delivers content delivery services, which remain a profitable part of the business despite facing challenges from slower internet traffic growth and increased competition .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
F. Thomson Leighton ExecutiveBoard | Chief Executive Officer, President, and Director | N/A | Co-founder of Akamai, instrumental in developing CDN technology, CEO since 2013. | View Report → |
Aaron Ahola Executive | Executive Vice President, General Counsel, and Corporate Secretary | Member of Nasdaq Listing and Hearing Review Council | Joined Akamai in 2000, significant role in legal and corporate governance, promoted to EVP in 2019. | |
Adam Karon Executive | Chief Operating Officer and General Manager of the Cloud Technology Group | N/A | Joined Akamai in 2005, significant role in Media and Carrier Division, COO since 2021. | |
Anthony Williams Executive | Executive Vice President and Chief Human Resources Officer | N/A | Joined Akamai in 2015, focuses on talent acquisition and diversity, CHRO since 2020. | |
Edward McGowan Executive | Executive Vice President, Chief Financial Officer, and Treasurer | Board Member at WinVest Acquisition Corp. | Joined Akamai in 2000, CFO since 2019, oversees global IT organization. | |
Kim Salem-Jackson Executive | Executive Vice President and Chief Marketing Officer | Board Member at Akamai Foundation, Forbes Communications Council, Chief, Fast Company Executive Board | Joined Akamai in 2017, leads global marketing strategies, CMO since 2021. | |
Mani Sundaram Executive | Executive Vice President and General Manager of the Security Technology Group | N/A | Joined Akamai in 2007, significant role in security technology, EVP since 2021. | |
Paul Joseph Executive | Executive Vice President, Global Sales and Services | N/A | Joined Akamai in 2000, promoted to EVP in 2021, oversees global sales and services. | |
Robert Blumofe Executive | Executive Vice President and Chief Technology Officer | N/A | Joined Akamai in 1999, widely published in distributed computing, CTO since 2021. | |
Bernardus Verwaayen Board | Director | General Partner at Keen Venture Partners, Board Member at Renewi plc, Ofcom | Director since 2013, former CEO of Alcatel-Lucent, expertise in telecommunications. | |
Daniel R. Hesse Board | Independent Chair of the Board | Board Member at PNC Corporation | Director since 2016, Chair since 2021, former CEO of Sprint Corporation. | |
Jonathan F. Miller Board | Director | CEO of Integrated Media Co., Advisor at Advancit Capital, Board Member at Interpublic Group | Director since 2015, insight into media and technology developments. | |
Madhu Ranganathan Board | Director | Board Member at Bank of Montreal | Director since 2019, Chair of Audit Committee, CFO of Open Text Corporation. | |
Marianne C. Brown Board | Director | Board Member at Charles Schwab, Northrop Grumman, IBM | Director since 2020, extensive leadership experience in technology sales and strategy. | |
Monte E. Ford Board | Director | Principal Partner at CIO Strategy Exchange, Network Partner at Brightwood Capital, Board Member at Iron Mountain, JetBlue, Centene | Director since 2013, expertise in IT and business analytics. | |
Peter T. Killalea Board | Director | Founder and President of Aionle LLC, Board Member at Capital One, Chair of MongoDB, Board Member at Satellogic | Director since 2018, expertise in internet security and cloud computing. | |
Sharon Y. Bowen Board | Director | Chair of NYSE, Board Member at Intercontinental Exchange, Bakkt Trust Company, Neuberger Berman Group | Director since 2021, brings regulatory and public policy expertise. | |
William R. Wagner Board | Director | Board Member at Avery Dennison, Semrush Holdings, Blackline | Director since 2018, former CEO of a software company, expertise in sales and marketing. |
- Given the ongoing consolidation in the delivery market and the bankruptcy of competitors like EdgeCast and Limelight, how do you see this impacting Akamai's delivery business in the near and long term, and what strategies are you implementing to capitalize on potential market stabilization?
- With the increased investment in cloud computing capabilities and new security products, including the addition of go-to-market positions and specialists, how do you plan to manage the potential strain on operating margins, especially considering the elimination of 2.5% of roles and the need to maintain a 30% operating margin target?
- Despite strong growth in the compute segment, with a 28% year-over-year increase and plans to reach $100 million in ARR by year-end, why aren't we seeing greater evidence of operating leverage and improved profitability, given that compute commands better gross profit characteristics than the declining delivery segment?
- Can you elaborate on the challenges you're facing in the delivery business due to macroeconomic headwinds and slowed traffic growth, and how you plan to address these issues to sustain profitability and market leadership?
- Your strategy includes shifting investments toward hunters and sales specialists as well as strengthening your partner ecosystem to support the new compute and security products; how do you plan to balance this with your existing customer base and ensure that traditional services are not neglected while pursuing new markets?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Select Assets from Edgio | 2024 | Akamai acquired selected customer contracts in content delivery and security, along with non‐exclusive license rights to Edgio’s full patent portfolio during a Chapter 11 bankruptcy sale process; the deal is expected to generate $9–11 million in Q4 revenue and $80–100 million in FY2025 revenue while enabling cross-selling of its security and cloud solutions. |
Noname Security | 2024 | Akamai acquired Noname Security for $452.3 million in cash in June 2024 to expand its API security offerings with enhanced deployment options and vendor integrations; the deal, which brought in about $20 million in revenue for 2024 and significant goodwill and intangible assets, is expected to be dilutive to 2024 EPS. |
Certain Customer Contracts from Lumen Technologies, Inc. | 2023 | In October 2023, Akamai acquired selected customer contracts from Lumen for $75 million in cash to bolster its content delivery and cloud services, with anticipated revenue contributions of $40–50 million in 2024 and EPS accretion. |
Certain Customer Contracts from StackPath, LLC | 2023 | In August 2023, Akamai acquired selected customer contracts from StackPath for a preliminary purchase price of $47.2 million (with partial cash payments and milestone-based additional consideration), adding over 200 customers and targeting incremental revenue across Q3 2023 and all of 2024. |
Neosec, Inc. | 2023 | In May 2023, Akamai acquired Neosec for approximately $91.5 million in cash to enhance its API security portfolio with advanced detection and response capabilities, reflecting a transaction that included $67.0 million in goodwill and over $19.9 million in identifiable intangibles. |
StorageOS, Inc. (also known as Ondat) | 2023 | In March 2023, Akamai acquired StorageOS (Ondat) for $20.6 million in cash to strengthen its cloud computing offerings by integrating enterprise-grade storage capabilities, with $14.0 million allocated to goodwill and $4.5 million in identifiable intangibles (amortized over 8.8 years). |
Linode Limited Liability Company | 2022 | Akamai acquired Linode for approximately $898.8 million in cash (subject to post-closing adjustments) in March 2022 to enhance its cloud platform with a massively distributed compute infrastructure, resulting in $68.9 million in revenue for the nine months ended September 2022 and adding $617.7 million in goodwill along with significant intangible assets. |
Recent press releases and 8-K filings for AKAM.
- Strategic shift: Akamai is transitioning from a traditional CDN model to a dual focus on security and compute, leveraging channel partners to drive new customer acquisition compared to its historical approach.
- Growth outlook: The company now expects security revenue to grow at about 10% while forecasting 30%-35% ARR growth in security products like Guardicore, reflecting a matured yet robust market position.
- Compute investments: Akamai is expanding its compute business by deploying both core data centers (in 36 cities) and an edge-based managed container service (in 100 cities), aiming to deliver improved performance and cost benefits.
- On May 19, 2025, Akamai completed a $1.725 billion offering of 0.25% Convertible Senior Notes due May 15, 2033, executed through a private placement with key financial institutions.
- Proceeds were earmarked for $275 million in hedge transaction costs, a $300 million share repurchase of approximately 3,870,468 shares, with the remaining funds designated to reduce its revolving credit facility borrowings and repay a portion of 2027 Convertible Notes.
- The Stock Incentive Plan was amended, including an increase of available shares by 8,000,000 and adjustments to share counts across multiple amendments, enhancing equity compensation flexibility.
- At the Annual Meeting, stockholders approved key proposals, including board director elections and amendments to supermajority voting requirements, reflecting significant corporate governance actions.
- The filing also details terms governing the Preferred Stock, including dividend and voting adjustments that impact Series A Preferred Stock.
- Akamai priced a $1.5 billion offering of convertible senior notes due 2033, with an option to purchase an additional $225.0 million in notes, at an initial conversion price of approximately $93.01 per share—about a 20% premium to the previous closing price of $77.51.
- The offering is expected to yield net proceeds of approximately $1,479.1 million (or $1,701.3 million if the option is fully exercised), which will be used to repay borrowings, address outstanding convertible debt due 2027, and support a $300.0 million share repurchase program.
- The transaction includes convertible note hedge and warrant transactions designed to manage potential dilution and cash flow impacts upon conversion, along with features such as optional repurchase rights if the market price falls below the conversion price.
- Akamai has priced an upsized private offering of $1.5 billion in Convertible Senior Notes due 2033, with an option to purchase an additional $225 million in principal amount, upsizing the original offering from $1.35 billion.
- The notes carry an annual interest rate of 0.25%, with an initial conversion rate of 10.7513 shares per $1,000, translating to an approximate conversion price of $93.01 per share—about a 20% premium to the $77.51 closing price on May 14, 2025.
- Akamai expects net proceeds of approximately $1,479.1 million (up to $1,701.3 million if the option is fully exercised), with a portion earmarked to repay debt and to facilitate a $300.0 million share repurchase at $77.51 per share.
- Akamai held its Virtual Annual Meeting of Stockholders where all director nominees were elected and a quorum was confirmed, ensuring participation of over 121 million shares.
- The meeting approved an amendment to the 2013 stock incentive plan to increase authorized shares by 8 million and confirmed the advisory vote on 2024 executive compensation.
- Amendments to the certificate of incorporation to remove supermajority requirements were approved, and PwC was ratified as the independent auditor for the fiscal year.
- Akamai is proposing a $1.35 billion convertible senior notes offering due 2033, with an additional option for up to $202.5 million in notes.
- The net proceeds will be used to repay approximately $250 million under its revolving credit facility, address part of its $1.15 billion outstanding convertible notes due 2027, and support a $275 million share repurchase program.
- The offering includes convertible note hedge and warrant transactions that aim to manage dilution and related cash conversion obligations.
- Holders have optional repurchase rights on May 15, 2031 if the conversion price is not met, and similar rights apply in the event of a fundamental change.
- Q1 revenue reached $1.015 billion (up 3% YoY), driven by strong performance in compute (up 14% YoY), security (8%-10% YoY), and cloud computing segments (accounting for 69% of total revenue) .
- Mixed financial outcomes with GAAP EPS at $0.82 (down 26% YoY) and non-GAAP EPS at $1.70 (up 4% YoY) .
- Improved operational efficiency resulted in non-GAAP operating margins above guidance and a significant share buyback program with $1.5 billion remaining under repurchase authorization .
- Q2 guidance projects revenue between $1.012 billion and $1.032 billion, with additional FY guidance of $4,050M to $4,200M .
- Market dynamics remain mixed with expectations of higher CapEx spending, cautious outlook in the delivery business, and a noted decline in delivery revenue .
- Akamai Technologies Inc. executed Amendment No. 1 to its Credit Agreement dated November 22, 2022, effective April 17, 2025, with participating lenders and JPMorgan Chase Bank, N.A. as administrative agent.
- The amendment revises key interest rate definitions and notably removes the credit spread adjustment for SOFR borrowings, potentially impacting borrowing costs.
- Akamai Technologies unveiled its new Cloud Inference service on March 27, 2025, delivering 3x throughput improvement, up to 2.5x lower latency, and 86% cost reduction compared to traditional hyperscale infrastructure.
- The service leverages a globally distributed cloud platform with over 4,200 points of presence to support AI inference workloads through integrated compute, containerization, and data management tools.
- It targets enhanced performance for latency-sensitive, AI-powered applications by shifting inference closer to the edge, enabling real-time decision-making and improved scalability.