9f5f52e8be768e6a07091ceda3c82dd208c230510841c406ab6f2545a98096fe

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

b2be36adf948c67994a1d85f54fe1833a295ca29374f12d520b20e17ab39f938

8a98b67d7cf2ea08da1730699fdee4fca05641617c63f563683ad4f756cc2982

Security

Delivery

Compute

- Security Technology Group

- Edge Technology Group

Web Division

Media and Carrier Division

Enterprise and Carrier Division

- Performance and Security Solutions

- Media Delivery Solutions

- Services and Support Solutions

Advertising Decision Solutions and other

Total Revenue

9be59fdd9553960f4a91db832b17822949cac71647c812e1704625daea624f0c

U.S.

International

59cbb5ff00f4c6523e976b17cb021a92e70a31aec9d6f3be705e512e736b3b27

76ecca939bfe5f7dd8f6126bf0403da1003ef07fcc316a0815ff21bd50455dc8

fc6bb883b68fbf4404b640bcce53a6660c0448d981a5146b55fc81faedf82dd9

The jump in Q3 2024 was primarily driven by **strong cash generation from operating activities**, which contributed **$392,542 thousand** from operations, bolstered by solid net income of **$57,907 thousand** and significant non-cash adjustments such as **depreciation of $165,729 thousand** and **stock-based compensation of $102,607 thousand**. Additionally, a **$9,494 thousand** benefit from exchange rate changes further supported the increase, even as the positive operating cash flow was partially offset by outflows from investing and financing activities.  **[20241107NE50961:3]** **[0001086222-24-000214_exhibit991-q32024.htm:4]** 

What drove the jump in cash levels in Q3 2024?

The surge in marketable securities in Q1 2024 was driven primarily by a reallocation of investments. Specifically, a significant portion of long-term marketable securities was reclassified as current due to their upcoming maturity dates, and active investment activities—including purchases, sales, maturities, and redemptions—further contributed to the increase.  **[0001086222-24-000148_akam-20240331.htm:7]** **[0001086222-24-000148_akam-20240331.htm:8]** 

Why did marketable securities surge in Q1 2024?

The sharp drop in **Convertible Senior Notes, Non-Current** in Q2 2024 is primarily explained by the reclassification of part of the **2025 Notes** from non-current liabilities to current liabilities, as these notes, with a maturity date of **May 1, 2025**, are now due within the next 12 months.  **[0001086222-24-000197_exhibit991-q22024.htm:2]** **[0001086222-24-000199_akam-20240630.htm:2]** 

What explains the sharp drop in convertible senior notes non-current in Q2 2024?

The spike in total current liabilities in Q2 2024 was primarily driven by a significant addition of **$1,147,826 thousand** in convertible senior notes, which had not been recorded as current liabilities at the end of the previous period. This major change was further compounded by an increase in deferred revenue from **$107,544 thousand** to **$139,934 thousand** and a rise in operating lease liabilities from **$222,944 thousand** to **$242,223 thousand**.  **[0001086222-24-000199_akam-20240630.htm:2]** **[20240808NE79987:3]** **[0001086222-24-000197_exhibit991-q22024.htm:2]** 

What led to the spike in total current liabilities in Q2 2024?

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The documents indicate that the precise drivers behind the significant reduction in capital expenditures in Q4 2023 were not explicitly detailed. However, they note that the company has been focusing on **optimizing its global network infrastructure** and has been adjusting its spending priorities, including investments in **compute infrastructure build-out**. These strategic initiatives likely played a role in influencing the reduced property and equipment purchases during the quarter.  **[0001086222-24-000040_akam-20231231.htm:69]** **[0001086222-24-000040_akam-20231231.htm:93]** 

What drove the significant reduction in capital expenditures in Q4 2023?

Capital expenditures nearly doubled in FY 2023 because the company significantly increased its investments in compute infrastructure build-out, which was a key part of its strategic initiatives.  **[0001086222-24-000040_akam-20231231.htm:69]** 

Why did capital expenditures nearly double in FY 2023?

Akamai’s jump in operating cash flow in Q2 2024 was mainly driven by **increased profitability**, highlighted by a significant rise in net income for the six months ended June 30, 2024, compared to the previous year.  **[0001086222-24-000197_exhibit991-q22024.htm:3]** **[0001086222-24-000199_akam-20240630.htm:42]**  Additionally, there was an **improved timing of collections from customers** and a strategic **shift in performance-based compensation** from a cash-based framework to a stock-based one, which helped reduce cash outflows. These factors collectively contributed to the boost in operating cash flow in Q2 2024.  **[0001086222-24-000197_exhibit991-q22024.htm:3]** **[0001086222-24-000199_akam-20240630.htm:42]** 

What factors contributed to the jump in operating cash flow in Q2 2024?

6c03ba348518f1df8cdf1cfd3dfe6d2294a81d92cc1cf90c5c858ebb13375b58

Akamai Technologies Inc (AKAM)

Financials