| Metric (USD) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------|---------|---------|---------|---------|---------|---------|---------|---------|
| U.S. Revenue | **$482.8M**  **[0001086222-23-000041_exhibit991-q42022.htm:6]** **[0001086222-23-000041_exhibit991-q42022.htm:1]**  | **$473.8M**  **[0001086222-23-000187_akam-20230331.htm:18]**  | **$480M**  **[0001086222-23-000246_exhibit991-q22023.htm:0]**  | **$498.5M**  **[0001086222-23-000282_exhibit991-q32023.htm:0]**  | **$516M**  **[0001086222-24-000013_exhibit991-q42023.htm:1]**  | **$512.347M**  **[0001086222-24-000148_akam-20240331.htm:16]**  | **$508.7M**  **[0001086222-24-000199_akam-20240630.htm:18]**  | **$524.611M**  **[0001086222-24-000216_akam-20240930.htm:19]** **[0001086222-24-000216_akam-20240930.htm:30]**  |
| International Revenue | **$445M**  **[0001086222-23-000041_exhibit991-q42022.htm:6]** **[0001086222-23-000041_exhibit991-q42022.htm:1]**  | **$441.9M**  **[0001086222-23-000187_akam-20230331.htm:18]**  | **$456M**  **[0001086222-23-000246_exhibit991-q22023.htm:0]**  | **$466.9M**  **[0001086222-23-000282_exhibit991-q32023.htm:0]**  | **$479M**  **[0001086222-24-000013_exhibit991-q42023.htm:1]**  | **$474.623M**  **[0001086222-24-000148_akam-20240331.htm:16]**  | **$470.9M**  **[0001086222-24-000199_akam-20240630.htm:18]**  | **$480.068M**  **[0001086222-24-000216_akam-20240930.htm:19]** **[0001086222-24-000216_akam-20240930.htm:30]**  |
| Total Revenue | N/A | **$915.7M**  **[0001086222-23-000187_akam-20230331.htm:18]**  | **$936M**  **[0001086222-23-000246_exhibit991-q22023.htm:0]**  | **$965.5M**  **[0001086222-23-000285_akam-20230930.htm:21]**  | N/A | **$986.97M**  **[0001086222-24-000148_akam-20240331.htm:16]**  | **$979.6M**  **[0001086222-24-000199_akam-20240630.htm:18]**  | **$1,004.679M**  **[0001086222-24-000216_akam-20240930.htm:19]** **[0001086222-24-000216_akam-20240930.htm:30]**  |

c1185125a9783a447120378787bd79109a8745ef7ae1c5d0b35872f8bda227e8

d9397735592a68586358911b33e1b57a3e4d95dcaad9f51f22a84d3e55420275

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]

cd29a47389764ccb311c55e373834e8384e20da65f6cb29a11511dba2ce576a1

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 **[AKAM_3390212_1]** **[AKAM_3400709_18]** **[AKAM_3397538_1]** **[AKAM_3406728_1]**.

1. **Security Solutions** - Provides web application firewall, bot management, and Guardicore's micro-segmentation services, contributing significantly to the company's revenue **[AKAM_3390212_1]** **[AKAM_3400709_18]** **[AKAM_3397538_1]** **[AKAM_3406728_1]**.
2. **Compute Solutions** - Offers cloud computing services, enhanced by the acquisition of Linode, and plays a substantial role in the company's growth **[AKAM_3390212_1]** **[0001086222-24-000216_akam-20240930.htm:25]** **[AKAM_3406728_1]**.
3. **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 **[AKAM_3397538_1]** **[AKAM_3388421_3]**.

cd55c611cffd0d3b1f88ce19565b27372ead31144b6d5a7cc5bab36c098f6f41

e3b631b7ee2202e2569e718704f99638b8076a2a568080473a0863647affb42e

1. **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?**  **[AKAM_3406728_9]** **[AKAM_3406728_3]** 
2. **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?**  **[AKAM_3406728_10]** **[AKAM_3406728_4]** **[AKAM_3406728_13]** 
3. **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?**  **[AKAM_3406728_3]** **[AKAM_3406728_13]** 
4. **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?**  **[AKAM_3406728_3]** 
5. **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?**  **[AKAM_3406728_10]** **[AKAM_3406728_19]** **[AKAM_3406728_4]** **[AKAM_3406728_2]** 

30f285dcd03cd62c26b47b4e1cd9c07474b5dac5852bb5f188a3fdff8df320e9

60584e84bcc8b716e62c908e914d7b636b1ca5e5dbccd037e904b4e8b725cd97

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

293ead0830c98c5527aab9fe57021fddc733aa4dc1147b72ec4666f471eee0af

U.S.

International

f43912bbbca874ae11218860e7fd636f6673f76d96b0fc92e44563198509e809

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024

#### Q4 2024 Guidance:
- **Revenue**: $995 million to $1.020 billion
- **Foreign Exchange Impact**: Negative $7 million impact on Q4 revenue compared to Q3 levels and negative $5 million year-over-year
- **Cash Gross Margins**: 72% to 73%
- **Non-GAAP Operating Expenses**: $321 million to $327 million
- **EBITDA Margin**: 40% to 41%
- **Non-GAAP Depreciation Expense**: $131 million to $133 million
- **Non-GAAP Operating Margin**: 27% to 28%
- **CapEx**: $184 million to $192 million, 18% to 19% of projected total revenue
- **Non-GAAP EPS**: $1.49 to $1.56
- **Taxes**: $54 million to $57 million, 19% tax rate
- **Fully Diluted Share Count**: 153 million shares

#### FY 2024 Guidance:
- **Revenue**: $3.966 billion to $3.991 billion
- **Foreign Exchange Impact**: Negative $22 million impact
- **Security Growth**: 15% to 17% in constant currency
- **Compute Revenue Growth**: Approximately 25% in constant currency
- **Non-GAAP Operating Margin**: 29%
- **Non-GAAP EPS**: $6.31 to $6.38
- **Non-GAAP Effective Tax Rate**: 19%
- **Fully Diluted Share Count**: 154 million shares
- **CapEx**: Approximately 17% of total revenue  **[AKAM_3406728_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024

#### Q3 2024 Guidance:
- **Revenue**: $988 million to $1.008 billion
- **Foreign Exchange Impact**: Positive $2 million impact compared to Q2, negative $5 million year-over-year
- **Cash Gross Margins**: 73%
- **Non-GAAP Operating Expenses**: $307 million to $312 million
- **EBITDA Margin**: 42%
- **Non-GAAP Depreciation Expense**: $129 million to $131 million
- **Non-GAAP Operating Margin**: 29%
- **CapEx**: $166 million to $174 million, 17% of projected total revenue
- **Non-GAAP EPS**: $1.56 to $1.62
- **Taxes**: $59 million to $60 million, 19% to 20% tax rate
- **Fully Diluted Share Count**: 154 million shares

#### FY 2024 Guidance:
- **Revenue**: $3.970 billion to $4.010 billion
- **Foreign Exchange Impact**: Negative $20 million impact
- **Security Revenue Growth**: 15% to 17% in constant currency
- **Compute Revenue Growth**: 23% to 25% in constant currency
- **Non-GAAP Operating Margin**: 29%
- **Non-GAAP EPS**: $6.34 to $6.47
- **Non-GAAP Effective Tax Rate**: 19% to 20%
- **Fully Diluted Share Count**: 154 million shares
- **CapEx**: Approximately 16% of total revenue  **[AKAM_3397538_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024

#### Q2 2024 Guidance:
- **Revenue**: $967 million to $986 million
- **Non-GAAP EPS**: $1.51 to $1.56
- **Non-GAAP Operating Expenses**: $302 million to $307 million
- **EBITDA Margins**: 41% to 42%
- **Non-GAAP Depreciation Expense**: $126 million to $128 million
- **Non-GAAP Operating Margin**: 28% to 29%
- **Cash Gross Margins**: 72% to 73%
- **Foreign Exchange Impact**: Negative $5 million impact compared to Q1, negative $9 million year-over-year

#### FY 2024 Guidance:
- **Revenue**: $3.950 billion to $4.020 billion
- **Security Revenue Growth**: 15% to 17% in constant currency
- **Compute Revenue Growth**: 21% to 23% in constant currency
- **Non-GAAP Operating Margin**: 28% to 29%
- **Non-GAAP EPS**: $6.20 to $6.40
- **Non-GAAP Effective Tax Rate**: 19% to 19.5%
- **Fully Diluted Share Count**: 155 million shares
- **CapEx**: Approximately 16% of total revenue
- **Foreign Exchange Impact**: Negative $40 million impact, $0.12 negative impact on EPS
- **Non-GAAP Operating Margin Impact from FX**: 30 basis points negative impact  **[AKAM_3388421_5]** **[AKAM_3388421_6]** **[AKAM_3388421_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024

#### Q1 2024 Guidance:
- **Revenue**: $980 million to $1 billion
- **Cash Gross Margin**: 73%
- **Non-GAAP Operating Expenses**: $305 million to $310 million
- **EBITDA Margins**: 42% to 43%
- **Non-GAAP Depreciation Expense**: $127 million to $129 million
- **Non-GAAP Operating Margin**: 29% to 30%
- **Non-GAAP EPS**: $1.59 to $1.64
- **Taxes**: $56 million to $58 million, 18.5% to 19% tax rate
- **Fully Diluted Share Count**: 155 million shares
- **CapEx**: $146 million to $154 million, 15% of total revenue

#### FY 2024 Guidance:
- **Revenue Growth**: 6% to 8% in constant currency
- **Security Revenue Growth**: 14% to 16% in constant currency
- **Compute Revenue Growth**: 20% in constant currency
- **Non-GAAP Operating Margin**: 30% in constant currency
- **CapEx**: 15% of total constant currency revenue
- **Non-GAAP EPS Growth**: 7% to 11% in constant currency
- **Non-GAAP Effective Tax Rate**: 18.5% to 19%
- **Fully Diluted Share Count**: 155 million shares  **[AKAM_3373078_6]** .

5623f2a7721c160fa8cb924d8a933bbd7bfe39024a4e00395028bce77623d494

be0d1de6190541f1f85d8637069b4d94af0e9ea56557fb8e4dcae86145df4be4

- **AT&T** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Avant** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **BV Tech** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Carahsoft** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Deutsche Telecom** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Kyndryl** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Microsoft Azure** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Telefonica Group** - Mentioned as a channel partner, which implies competition in certain areas  **[0001086222-24-000040_akam-20231231.htm:9]** .
- **Hyper-scaler cloud computing providers** - Mentioned as competitors in cloud computing solutions  **[0001086222-24-000040_akam-20231231.htm:9]** .

8f24c878300ca8bfaf413930fb37fd193ac9d3b8bcc16f9ee2114568a4bd4e79

| Name                | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|---------------------|--------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| F. Thomson Leighton | Chief Executive Officer, President, and Director (Principal Executive Officer) | January 2013     | F. Thomson Leighton co-founded Akamai in **1998** and has served as CEO since **January 2013**. He was previously the Chief Scientist and is a Professor of Applied Mathematics at MIT (currently on leave). He chaired the Presidential IT Advisory Committee on Cybersecurity from **2003 to 2005**  **[0001086222-24-000040_akam-20231231.htm:135]** **[0001193125-24-056151_d873368dpre14a.htm:22]** **[0001193125-24-080562_d873368ddef14a.htm:22]** .                         |
| Edward McGowan      | Executive Vice President and Chief Financial Officer                      | March 2019       | Edward McGowan joined Akamai in **2000** and became CFO in **March 2019**. He oversees the global IT organization since **December 2021**. He has held various roles, including Senior Vice President, Finance, and is a certified public accountant  **[0001193125-24-080562_d873368ddef14a.htm:23]** **[0001193125-24-056151_d873368dpre14a.htm:23]** **[0001193125-23-082903_d435813ddef14a.htm:21]** .                                                                                   |
| Aaron Ahola         | Executive Vice President, General Counsel, and Corporate Secretary        | May 2019         | Aaron Ahola joined Akamai in **April 2000** and became General Counsel in **May 2019**. He previously served as Senior Vice President, General Counsel, and Corporate Secretary from **October 2017 to April 2019**  **[0001193125-24-056151_d873368dpre14a.htm:22]** **[0001193125-24-080562_d873368ddef14a.htm:22]** **[0001086222-24-000040_akam-20231231.htm:135]** .                                                                                                               |
| Robert Blumofe      | Executive Vice President and Chief Technology Officer                     | March 2021       | Robert Blumofe joined Akamai in **1999** and became CTO in **March 2021**. He previously served as Executive Vice President, Platform and General Manager of the Enterprise Division  **[0001193125-24-056151_d873368dpre14a.htm:22]** **[0001193125-24-080562_d873368ddef14a.htm:22]** **[0001193125-23-082903_d435813ddef14a.htm:20]** .                                                                                                                                            |
| Adam Karon          | Chief Operating Officer and General Manager of the Cloud Technology Group | March 2021       | Adam Karon joined Akamai in **February 2005** and became COO in **March 2021**. He has held various leadership roles, including Executive Vice President and General Manager of the Media and Carrier Division  **[0001193125-24-080562_d873368ddef14a.htm:23]** **[0001193125-24-056151_d873368dpre14a.htm:23]** .                                                                                                                      |
| Kim Salem-Jackson   | Executive Vice President and Chief Marketing Officer                      | March 2021       | Kim Salem-Jackson joined Akamai in **August 2017** and became CMO in **March 2021**. She previously served as Senior Vice President of Marketing and Corporate Communications  **[0001193125-24-080562_d873368ddef14a.htm:24]** **[0001193125-24-056151_d873368dpre14a.htm:24]** .                                                                                                                                                     |
| Paul Joseph         | Executive Vice President, Global Sales and Services                       | March 2021       | Paul Joseph joined Akamai in **January 2000** and became Executive Vice President, Global Sales and Services in **March 2021**. He gained additional responsibility for Global Services in **December 2021**  **[0001193125-24-080562_d873368ddef14a.htm:23]** **[0001193125-24-056151_d873368dpre14a.htm:23]** **[0001193125-23-082903_d435813ddef14a.htm:21]** .                                                                                                                    |
| Mani Sundaram       | Executive Vice President and General Manager of the Security Technology Group | December 2021    | Mani Sundaram joined Akamai in **February 2007** and became Executive Vice President and General Manager of the Security Technology Group in **December 2021**. He previously served as Executive Vice President Global Services & Support and CIO  **[0001193125-24-080562_d873368ddef14a.htm:24]** **[0001193125-24-056151_d873368dpre14a.htm:24]** **[0001193125-23-082903_d435813ddef14a.htm:22]** .                                                                               |
| Anthony Williams    | Executive Vice President and Chief Human Resources Officer                | January 2020     | Anthony Williams joined Akamai in **April 2015** and became Chief Human Resources Officer in **January 2020**. He previously served as Vice President, Talent Acquisition and Diversity  **[0001193125-24-080562_d873368ddef14a.htm:24]** **[0001193125-24-056151_d873368dpre14a.htm:24]** .                                                                                                                                             |

88017bfad8d9dc73a2f8293ccc07267f563a6fb5241c9a4949059448c30c17a1

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | January 2022  **[0001086222-24-000216_akam-20240930.htm:18]**    | May 2024  **[0001086222-24-000216_akam-20240930.htm:18]**        |
| End Date/Duration        | December 2024  **[0001086222-24-000216_akam-20240930.htm:18]**   | June 2027  **[0001086222-24-000216_akam-20240930.htm:18]**       |
| Total additional amount  | $1.8 billion  **[0001086222-24-000216_akam-20240930.htm:18]**    | $2.0 billion  **[0001086222-24-000216_akam-20240930.htm:18]**    |
| Remaining authorization amount | $118.8 million  **[0001086222-24-000216_akam-20240930.htm:18]**  | $2.0 billion  **[0001086222-24-000216_akam-20240930.htm:18]**  |
| Details                  | Offset dilution from employee equity compensation and provide flexibility to return capital to shareholders  **[0001086222-24-000040_akam-20231231.htm:117]** **[0001086222-23-000285_akam-20230930.htm:19]** **[0001086222-24-000199_akam-20240630.htm:16]** **[0001086222-24-000216_akam-20240930.htm:18]**  | Offset dilution from employee equity compensation and provide flexibility to return capital to shareholders  **[0001086222-24-000040_akam-20231231.htm:117]** **[0001086222-23-000285_akam-20230930.htm:19]** **[0001086222-24-000199_akam-20240630.htm:16]** **[0001086222-24-000216_akam-20240930.htm:18]**  |

eb34f8cd3b953b2e23b8b37eea20de0f598d3b8ab703a477f6832c9e55b7bf5b

7c5d913e7eee32998e0b0ce9c627393671a40a805c279100f3df49507574a86b

**Quarterly guidance for Q4 2024:**
- **Revenue**: $995M to $1.020B  **[AKAM_3406728_6]**  (raised from $988M to $1.008B  **[AKAM_3397538_6]** )  
- **Foreign Exchange Impact**: Negative $7M  **[AKAM_3406728_6]**  (lowered from Positive $2M  **[AKAM_3397538_6]** )  
- **Cash Gross Margins**: 72% to 73%  **[AKAM_3406728_6]**  (lowered from 73%  **[AKAM_3397538_6]** )  
- **Non-GAAP Operating Expenses**: $321M to $327M  **[AKAM_3406728_6]**  (raised from $307M to $312M  **[AKAM_3397538_6]** )  
- **EBITDA Margin**: 40% to 41%  **[AKAM_3406728_6]**  (lowered from 42%  **[AKAM_3397538_6]** )  
- **Non-GAAP Depreciation Expense**: $131M to $133M  **[AKAM_3406728_6]**  (raised from $129M to $131M  **[AKAM_3397538_6]** )  
- **Non-GAAP Operating Margin**: 27% to 28%  **[AKAM_3406728_6]**  (lowered from 29%  **[AKAM_3397538_6]** )  
- **CapEx**: $184M to $192M (18% to 19% of revenue)  **[AKAM_3406728_6]**  (raised from $166M to $174M, 17% of revenue  **[AKAM_3397538_6]** )  
- **Non-GAAP EPS**: $1.49 to $1.56  **[AKAM_3406728_6]**  (lowered from $1.56 to $1.62  **[AKAM_3397538_6]** )  
- **Taxes**: $54M to $57M, 19% rate  **[AKAM_3406728_6]**  (lowered from $59M to $60M, 19%-20% rate  **[AKAM_3397538_6]** )  
- **Fully Diluted Share Count**: 153M  **[AKAM_3406728_6]**  (lowered from 154M  **[AKAM_3397538_6]** )

**Annual guidance for FY 2024:**
- **Revenue**: $3.966B to $3.991B  **[AKAM_3406728_6]**  (lowered from $3.970B to $4.010B  **[AKAM_3397538_6]** )  
- **Foreign Exchange Impact**: Negative $22M  **[AKAM_3406728_6]**  (lowered from Negative $20M  **[AKAM_3397538_6]** )  
- **Security Growth**: 15% to 17%  **[AKAM_3406728_6]**  (no change from 15% to 17%  **[AKAM_3397538_6]** )  
- **Compute Revenue Growth**: ~25%  **[AKAM_3406728_6]**  (no change from 23%-25%  **[AKAM_3397538_6]** )  
- **Non-GAAP Operating Margin**: 29%  **[AKAM_3406728_6]**  (no change from 29%  **[AKAM_3397538_6]** )  
- **Non-GAAP EPS**: $6.31 to $6.38  **[AKAM_3406728_6]**  (lowered from $6.34 to $6.47  **[AKAM_3397538_6]** )  
- **Non-GAAP Effective Tax Rate**: 19%  **[AKAM_3406728_6]**  (lowered from 19%-20%  **[AKAM_3397538_6]** )  
- **Fully Diluted Share Count**: 154M  **[AKAM_3406728_6]**  (no change from 154M  **[AKAM_3397538_6]** )  
- **CapEx**: ~17% of revenue  **[AKAM_3406728_6]**  (raised from ~16% of revenue  **[AKAM_3397538_6]** )  

47afff2b45877af0a14b664339cc7ac56e0781f1d2f3c0c65ed75e7aa6c8f6c0

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1998  **[0001086222-24-000040_akam-20231231.htm:82]**    | Present  | Current auditor   |

694a06f64aff99ca755396f4ea1b4dcdb8dee87f279ea2041f12fc7be5cdec89

b48d252896097c524c7e0445b104fefc10ad0400ac12cff817480936683d580a

- Total Revenue: $1,004.68 million (+4% YoY)  **[0001086222-23-000285_akam-20230930.htm:21]** **[0001086222-24-000216_akam-20240930.htm:29]**   
- Security: $518.67 million (**+14%** YoY)  **[0001086222-23-000285_akam-20230930.htm:21]** **[0001086222-24-000216_akam-20240930.htm:29]**   
- Compute: $166.88 million (**+28%** YoY)  **[0001086222-23-000285_akam-20230930.htm:21]** **[0001086222-24-000216_akam-20240930.htm:29]**   
- Delivery: $319.13 million (-16% YoY)  **[0001086222-23-000285_akam-20230930.htm:21]** **[0001086222-24-000216_akam-20240930.htm:29]**   
- U.S. Revenue: $524.611 million (+5% YoY)  **[0001086222-23-000285_akam-20230930.htm:33]** **[0001086222-24-000216_akam-20240930.htm:30]**   
- Operating Income: $70.637 million (**-60%** YoY)  **[0001086222-23-000285_akam-20230930.htm:2]** **[0001086222-24-000216_akam-20240930.htm:42]**   
- Net Income: $57.907 million (**-64%** YoY)  **[0001086222-23-000285_akam-20230930.htm:2]** **[0001086222-24-000216_akam-20240930.htm:42]**   
- EPS (Basic): $0.38 (-64% YoY)  **[0001086222-23-000285_akam-20230930.htm:2]** **[0001086222-24-000216_akam-20240930.htm:42]**   

49c81426b918010f50fa809a271743ffd85eba49fe33848ccf869100bab2d111

| Year | Amount Due (in millions) | Debt Type           | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | $1,150.0                    | Convertible Senior Notes | 0.125                | 32.3% = (1,150.0 / 3,565.0) * 100 **[0001086222-24-000216_akam-20240930.htm:75]** **[0001086222-24-000216_akam-20240930.htm:15]** **[0001086222-24-000216_akam-20240930.htm:13]**                         |
| 2027     | $1,150.0                    | Convertible Senior Notes | 0.375                | 32.3% = (1,150.0 / 3,565.0) * 100 **[0001086222-24-000216_akam-20240930.htm:75]** **[0001086222-24-000216_akam-20240930.htm:15]** **[0001086222-24-000216_akam-20240930.htm:13]**                         |
| 2029     | $1,265.0                    | Convertible Senior Notes | 1.125                | 35.5% = (1,265.0 / 3,565.0) * 100 **[0001086222-24-000216_akam-20240930.htm:75]** **[0001086222-24-000216_akam-20240930.htm:15]** **[0001086222-24-000216_akam-20240930.htm:13]**                         |

3c3a9b2e3a36f281af386ac09c09b295dae13d25b07ac353e3c10a156c6a4a6a

7af42c9efff66491404f97900416689015b73ec508f1fd5cd0186951d2f32a0a

1. **Compute Revenue Growth**  
   **Q:** When will Akamai Connected Cloud revenue accelerate further?  
   **A:** Akamai is pleased with the rapid early adoption of Akamai Connected Cloud, aiming to reach **$100 million ARR** by year-end.  **[AKAM_3397538_7]**  They started selling in earnest this year and will provide guidance for next year in February.  **[AKAM_3397538_7]**  They're optimistic about strong compute growth driven by enterprise customers, tapping into an enormous market.  **[AKAM_3397538_7]** 

2. **Delivery Business Headwinds**  
   **Q:** Are current delivery headwinds cyclical or structural?  
   **A:** Akamai believes the delivery headwinds are **not long-term**.  **[AKAM_3397538_8]**  Traffic will continue to grow, albeit slower than during COVID.  **[AKAM_3397538_8]**  Delivery remains profitable and synergistic with security and compute businesses.  **[AKAM_3397538_8]**  They don't see these headwinds persisting over the long term, though geopolitical considerations are a concern for next year.  **[AKAM_3397538_8]** 

3. **Margin Expansion from Hyperscaler Savings**  
   **Q:** When will hyperscaler savings boost operating margins?  
   **A:** Akamai has been reinvesting the **$100 million savings** from moving in-house.  **[AKAM_3397538_10]**  As they continue to add compute and security customers, margins will improve.  **[AKAM_3397538_10]**  While new security products are initially dilutive, each new customer enhances margins.  **[AKAM_3397538_10]**  Over time, they see potential to exceed their **30% operating margin** goal.  **[AKAM_3397538_10]** 

4. **Noname Security Acquisition Impact**  
   **Q:** Is guidance adjusted for Noname Security's $20M revenue?  
   **A:** Noname Security was included in guidance last quarter, so there's no change.  **[AKAM_3397538_9]**  The business has slightly improved, and guidance has increased to reflect that.  **[AKAM_3397538_9]** 

5. **Guardicore Zero Trust Strategy**  
   **Q:** How does Guardicore fit into Zero Trust and channels?  
   **A:** Segmentation is essential for Zero Trust, and Guardicore provides software-based, fine-grained controls.  **[AKAM_3397538_11]**  They combined Guardicore with other security features into a single platform with a single agent, which is important for customers.  **[AKAM_3397538_11]**  Guardicore is sold entirely through channels, allowing partners to add value and generate revenue.  **[AKAM_3397538_11]** 

6. **AI Workloads on Compute Platform**  
   **Q:** What AI models run on your cloud platform?  
   **A:** Akamai sees AI workloads as a small but growing fraction of ARR.  **[AKAM_3397538_14]**  Customers run smaller, focused models rather than giant ones like GPT.  **[AKAM_3397538_14]**  These applications include deep learning for security, chatbots, tailored content, and recommendation engines.  **[AKAM_3397538_14]** 

7. **Compute Growth Drivers**  
   **Q:** Where is compute growth coming from?  
   **A:** Growth is from both existing and new customers.  **[AKAM_3397538_16]**  The biggest users are large media customers by design.  **[AKAM_3397538_16]**  They're also seeing non-media enterprises adopt compute services, with observability being a significant capability.  **[AKAM_3397538_16]**  The pipeline is growing globally, and new workloads are emerging.  **[AKAM_3397538_16]** 

8. **Delivery Guidance Factors**  
   **Q:** Why is delivery business worsening in H2?  
   **A:** Akamai doesn't expect the usual Q4 traffic spike due to lower traffic growth.  **[AKAM_3397538_17]**  Tough comparisons from last year's acquisitions of StackPath and Lumen affect year-over-year growth.  **[AKAM_3397538_17]**  There's also an expected impact from one large social media customer.  **[AKAM_3397538_19]** 

9. **CapEx Constraints in Compute Growth**  
   **Q:** Are you capital constrained in compute expansion?  
   **A:** Akamai is **not capital constrained**.  **[AKAM_3397538_23]**  They produce significant free cash flow and can support growth.  **[AKAM_3397538_23]**  While compute is more capital-intensive, they've reduced CapEx in the core business and remain efficient.  **[AKAM_3397538_23]** 

10. **Pricing Pressure in Delivery**  
    **Q:** Are you seeing increased pricing pressure in delivery?  
    **A:** Akamai sees typical pricing pressure, nothing significantly worse.  **[AKAM_3397538_19]**  The issue is slower traffic growth, not a shift to lower-cost providers.  **[AKAM_3397538_19]**  They have been selective with peak traffic to maintain efficiency.  **[AKAM_3397538_22]** 

295be314e3e835fe301c1c955e3ce7653b10c34c066c3072f2a52d12075b3a2a

- **Strong growth in security products with high customer adoption:** Akamai's security business continues to deliver strong performance, with exceptional growth in products like Guardicore segmentation solution and the new API security solution. The company sees robust demand and high average revenue per user (ARPU) in these areas, contributing to their confidence in sustaining mid-teens growth in security revenue for 2024.  **[AKAM_3373078_10]** **[AKAM_3373078_16]**
- **Launch of Project Gecko differentiates Akamai in edge computing:** Akamai is expanding its cloud computing capabilities to the edge with Project Gecko, embedding compute power into their edge network across 100 cities by the end of the year. This offers a unique value proposition compared to competitors like Cloudflare, which do not offer full-stack cloud computing with support for virtual machines or containers at the edge. Early customer feedback has been very positive, positioning Akamai for significant growth in this area.  **[AKAM_3373078_23]** **[AKAM_3373078_24]** **[AKAM_3373078_27]**
- **Disciplined focus on profitability while investing in growth areas:** Akamai is optimizing its delivery business by shedding less profitable traffic and focusing on higher-margin opportunities, which is expected to enhance profitability. Despite significant investments in new growth areas like security and compute, the company maintains a healthy operating margin of around **30%** and continues to generate strong free cash flow, reflecting disciplined management and operational efficiency.  **[AKAM_3373078_12]** **[AKAM_3373078_7]** **[AKAM_3373078_27]**

2fe14335599545030ff130b322ee1743e337fe47fde7bb769fe8db07741c769f

- **Strong Growth in Compute Services**: Akamai is experiencing substantial growth in its compute services, with a significant increase in customers across various verticals beyond its initial focus on media workflow. The company is on track to achieve a **$100 million** annual revenue run rate in enterprise compute by year-end.  **[AKAM_3406728_19]** **[AKAM_3406728_17]** **[AKAM_3406728_10]**
- **Rapid Expansion of Security Offerings**: Akamai's security products, particularly API Security and Guardicore, are showing impressive momentum. **API Security is expected to reach an ARR of $50 million by year-end**, up from near zero last year, indicating strong market demand.  **[AKAM_3406728_10]**
- **Market Consolidation Benefits**: The consolidation and shakeout in the delivery market are expected to benefit Akamai. The company's disciplined pricing strategy and market leadership position it to capitalize on market stabilization and potential business growth **in the medium to long term**.  **[AKAM_3406728_9]**

a86498d8ca45f038fc13c71b6f75f894f90476095ae5da1831559453cc4387d5

- **Delivery revenue is expected to deteriorate in the back half of the year**, with a more muted Q4 seasonality due to **weaker traffic in gaming and retail verticals** and tough year-over-year comparisons from previous acquisitions. This suggests ongoing challenges in their traditional business segment.  **[AKAM_3397538_17]** **[AKAM_3397538_26]**
- **Security revenue growth is slowing down**, with organic growth (excluding the Noname acquisition) projected at **11% to 12%** in the second half, compared to higher growth rates in previous quarters. This indicates potential hurdles in maintaining high growth in this segment.  **[AKAM_3397538_24]**
- There are **concerns about margin and CapEx efficiency** as the delivery business declines and the compute business, which is more capital-intensive, grows. This could lead to **deleveraging effects** and impact overall profitability.  **[AKAM_3397538_22]**

b652af665a284cd7e84b9f4735c6a67b73f9d6822430176534d65dfb19073abb

1. **Delivery Revenue Decline**  
   **Q:** Why is delivery revenue guidance down 6% for 2024?  
   **A:** Ed McGowan explained that the decline is due to the timing of customer renewals, with **seven out of eight major customers** (each over 1% of revenue) renewing in the first half of the year, impacting the delivery business.  **[AKAM_3373078_7]**  Additionally, Akamai is shedding less profitable traffic by being more stringent on peak-to-average ratios, which may reduce traffic but improves profitability.  **[AKAM_3373078_7]** 

2. **Gross Margin Outlook**  
   **Q:** What are the factors affecting gross margins in 2024?  
   **A:** Positive factors include a higher mix of **security business** and cost savings from moving third-party cloud costs onto Akamai's own platform.  **[AKAM_3373078_8]**  Negative factors are additional co-location costs from building out **Gecko sites**, leading to higher expenses before revenue generation.  **[AKAM_3373078_8]** 

3. **Compute Business and Gecko Expansion**  
   **Q:** How will the new Gecko compute capability impact growth?  
   **A:** Tom Leighton described Gecko as a new capability offering **full-stack compute in 100 cities** by year-end, enabling better performance and scalability at lower costs.  **[AKAM_3373078_9]**  It's not a repackaging but adds significant functionality, positioning Akamai uniquely in the market.  **[AKAM_3373078_9]** 

4. **Security Revenue Growth**  
   **Q:** How confident are you in sustaining mid-teens security revenue growth?  
   **A:** Ed McGowan expressed confidence, noting strong performance in **Guardicore** and **API security**, with no significant deal pushouts.  **[AKAM_3373078_10]**  He highlighted broad strength across security products and minimal macroeconomic challenges affecting demand.  **[AKAM_3373078_10]** 

5. **CapEx Investments in Compute**  
   **Q:** Are you overbuilding compute capacity given the current growth rates?  
   **A:** Ed McGowan stated they are investing responsibly, with the majority of CapEx geared toward customer demand.  **[AKAM_3373078_27]**  He emphasized optimism in the compute business and noted that sales reps are now incentivized to sell compute, which could drive growth.  **[AKAM_3373078_27]** 

6. **Competition and Differentiation**  
   **Q:** How does Gecko differ from competitors like Cloudflare?  
   **A:** Tom Leighton pointed out that Gecko supports **full-stack compute with virtual machines and containers**, capabilities that competitors like Cloudflare do not offer.  **[AKAM_3373078_24]**  He emphasized that this positions Akamai uniquely in offering full-stack cloud computing at the edge.  **[AKAM_3373078_24]** 

7. **Currency Impact on Guidance**  
   **Q:** How does currency fluctuation affect your 2024 revenue guidance?  
   **A:** Ed McGowan explained that at current FX rates, revenue growth would still be within the **6%–8%** range provided in constant currency.  **[AKAM_3373078_14]**  He noted that currency movements could introduce headwinds or tailwinds, but the core business remains strong.  **[AKAM_3373078_14]** 

8. **Demand Trends and Sales Cycles**  
   **Q:** Are you seeing elongated sales cycles or challenges in new customer acquisition?  
   **A:** Ed McGowan acknowledged that acquiring new customers is more challenging but noted robust performance in security sales.  **[AKAM_3373078_19]**  He mentioned that security budgets are typically protected and that optimizing cloud spend is a trend benefiting Akamai.  **[AKAM_3373078_19]** 

9. **Compute Revenue Contribution from Gecko**  
   **Q:** Is Gecko expected to contribute significantly to compute revenue in 2024?  
   **A:** Tom Leighton stated that significant revenue from Gecko is expected more in **2025**, as they will be in **100 cities by year-end 2024**.  **[AKAM_3373078_18]**  The 2024 guidance does not factor in substantial revenue from Gecko.  **[AKAM_3373078_18]** 

10. **Security Product Growth Excluding Guardicore**  
    **Q:** How are security products performing excluding Guardicore?  
    **A:** Ed McGowan revealed that their **App & API Security** segment grew over **20%** in Q4.  **[AKAM_3373078_25]**  Infrastructure and services grew below 10%, and Guardicore, normalized for one-time deals, grew around **6%**.  **[AKAM_3373078_25]** 

caa6af128ce086819948829169c4fbca19c4ff78647db3e1718ef3e9ba28a232

- **Akamai's compute business is experiencing rapid growth**, with enterprise compute revenue growing over **300% year-over-year** to a **$50 million run rate**, now serving over **200 enterprise customers** using their cloud computing solutions.  **[AKAM_3388421_27]**
- **The company is aggressively investing in expanding its compute platform**, having built out **25 core locations** last year, which is expected to drive future margin expansion as utilization increases.  **[AKAM_3388421_25]**
- **Akamai's shift towards higher-margin security and compute services is progressing faster than expected**, contributing to a quicker-than-expected mix shift, and is anticipated to drive future growth and profitability.  **[AKAM_3388421_11]**

b4ba5414798077d014f229fc3b3e7af69e44aad3cd826e33b52151f8411d923d

1. **Delivery Business Decline**  
   **Q:** How confident are you that delivery declines are factored in?  
   **A:** CEO Tom Leighton acknowledged that the delivery business is declining due to lower traffic levels, especially in media and gaming, and the impact of cost-cutting by large customers, including a significant social media company. They have adjusted guidance based on the best available information and believe the business will return to growth, though they can't predict exactly when. Their focus remains on profitable business and investing in higher-growth areas like security and compute.  **[AKAM_3388421_14]** 

2. **Social Media Customer Cutbacks**  
   **Q:** Is the social media customer's reduction due to cost cuts?  
   **A:** Yes, the large social media customer is reducing costs by optimizing usage, doing less prefetching, and potentially increasing their use of DIY solutions. This has been factored into Akamai's lower guidance for this customer.  **[AKAM_3388421_12]** **[AKAM_3388421_16]** 

3. **Margin Guidance Lowered**  
   **Q:** What caused the margin guidance reduction?  
   **A:** CFO Ed McGowan explained that margin guidance was lowered due to the Noname acquisition impacting margins by **50 basis points**, **30 basis points** from FX, and the remainder due to lower delivery revenue. Investments in R&D and building out the compute platform also affect margins. They expect margins to improve as compute grows faster.  **[AKAM_3388421_10]** **[AKAM_3388421_11]** **[AKAM_3388421_25]** 

4. **Noname Acquisition Impact**  
   **Q:** How will the Noname acquisition impact Akamai?  
   **A:** CEO Tom Leighton stated that Noname is a market leader in API security with capabilities Akamai doesn't have, including on-premise and hybrid solutions. The acquisition is strategic, enhancing their security offerings and providing strong growth potential. They expect Noname to contribute about **$20 million** in revenue, with opportunities for revenue synergy as they introduce it to their customer base.  **[AKAM_3388421_13]** **[AKAM_3388421_17]** **[AKAM_3388421_28]** 

5. **Compute Growth and Potential**  
   **Q:** Can you expand on compute growth and customer adoption?  
   **A:** Akamai is seeing significant growth in compute, starting with small engagements and expanding over time. They have customers spending **$100,000 a year**, six at **$1 million**, and one at **$10 million a year**. Akamai itself is a **$100 million a year** customer on their platform, having migrated over half of their workloads, resulting in substantial cost savings and performance improvements. They foresee substantial use of the platform for AI inference and expect continued strong growth.  **[AKAM_3388421_22]** **[AKAM_3388421_23]** **[AKAM_3388421_24]** 

6. **Gross Margins and Investments**  
   **Q:** Why aren't gross margins expanding with the mix shift?  
   **A:** Gross margins are impacted by investments in building out compute locations, including colocation costs and non-cash expenses from long-term leases. While higher-margin security and compute are growing, these investments are masking margin expansion. They expect margins to improve over time as they fill these locations and benefit from economies of scale.  **[AKAM_3388421_25]** **[AKAM_3388421_26]** **[AKAM_3388421_27]** 

7. **CapEx and Free Cash Flow**  
   **Q:** Any changes to CapEx and free cash flow expectations?  
   **A:** CFO Ed McGowan indicated no significant changes expected for fiscal '24. Q1 free cash flow was strong, and the year should progress similarly to previous years. CapEx is expected to remain at similar levels as a percentage of revenue, with compute CapEx roughly at **$1 of CapEx for $1 of revenue**.  **[AKAM_3388421_20]** **[AKAM_3388421_27]** 

8. **Zero Trust Platform Reception**  
   **Q:** How are customers reacting to your Zero Trust platform?  
   **A:** Customers are positive about the integrated Zero Trust platform, which simplifies their security infrastructure by combining capabilities like microsegmentation, Zero Trust Network Access, MFA, DNS security, and threat hunting into one solution. This eases management, and new AI-driven capabilities provide better insights into enterprise infrastructure.  **[AKAM_3388421_21]** 

9. **Compute Go-to-Market Leadership**  
   **Q:** What's the impact of new leadership on compute go-to-market?  
   **A:** CEO Tom Leighton stated that hiring Dan brings solid experience and expertise, enhancing their go-to-market efforts in compute. It's about deepening the bench to accelerate the compute business, with no major changes anticipated.  **[AKAM_3388421_15]** 

8d992e97f44db64016ac00e5f9a0f8b6fe155016cdfd025fd6a144d183e43567

1. **Delivery Revenue Decline**  
   **Q:** Why is delivery revenue down over 20% despite traffic growth?  
   **A:** Ed McGowan explained that although traffic is growing very slowly, in low single digits, delivery revenue is declining due to tough year-over-year comparisons from last year's acquisitions and modest price declines of **5–10%**. This results in revenue contraction despite traffic growth.  **[AKAM_3406728_15]** 

2. **Compute Profitability**  
   **Q:** Why isn't compute outperformance leading to higher profitability?  
   **A:** Ed McGowan noted that Akamai is still scaling up the compute business and hasn't reached scale yet. Consequently, despite strong revenue growth, they don't yet see significant operating leverage or margin expansion, which they expect to improve as the business grows.  **[AKAM_3406728_13]** 

3. **Competitor Bankruptcy Impact**  
   **Q:** How will competitor bankruptcies affect Akamai's business?  
   **A:** F. Leighton stated that consolidation in the delivery market, including competitors entering Chapter 11, is long overdue. He believes this shakeout will stabilize the market, reduce unsustainable pricing practices, and benefit Akamai in the medium to long term.  **[AKAM_3406728_9]** 

4. **CapEx Trajectory**  
   **Q:** What is the outlook for CapEx through 2025?  
   **A:** Ed McGowan indicated they aim to maintain CapEx at current levels over the next couple of years unless large deals necessitate additional investment. Large data center builds from prior years are not anticipated going forward.  **[AKAM_3406728_14]** 

5. **Go-to-Market Investments**  
   **Q:** Why is Akamai shifting investments in go-to-market strategies now?  
   **A:** F. Leighton explained they're experiencing strong traction with products like Guardicore and API Security, expecting API Security ARR to reach **$50 million** by year-end, up from near zero last year. This success has prompted increased investment in sales hunters, specialists, and channel partners to capitalize on a broader enterprise market.  **[AKAM_3406728_10]** 

6. **Advanced Security Package Penetration**  
   **Q:** How penetrated is the advanced security package across the install base?  
   **A:** Ed McGowan mentioned that penetration is high, especially with early adopters, and they are at the end of significant upsell opportunities. As a result, year-over-year comparisons now reflect sales in both periods, affecting growth rates.  **[AKAM_3406728_11]** 

7. **Security Performance ex-Guardicore**  
   **Q:** How did security products perform excluding Guardicore and Noname?  
   **A:** Ed McGowan reported strong demand across all security products, including WAF and DDoS protection. DDoS saw acceleration due to increased attacks, leading to new customer sign-ups, though revenue from these will materialize over time.  **[AKAM_3406728_18]** 

8. **Use of GenAI in Security**  
   **Q:** How is GenAI impacting Akamai's security offerings?  
   **A:** F. Leighton explained that Akamai has long used AI and ML in security products for anomaly and bot detection. They are now incorporating GenAI into two security products, enhancing customer management and visibility, while noting that attackers also use GenAI to create sophisticated malware, increasing the need for defenses like Guardicore.  **[AKAM_3406728_8]** 

9. **Lumen CDN Acquisition and AI Collaboration**  
   **Q:** Did Akamai acquire network elements with Lumen CDN, and are there AI collaborations?  
   **A:** Ed McGowan clarified that no network assets were acquired from Lumen, only customer contracts, and he did not disclose any specifics about partnerships regarding AI traffic delivery with Lumen.  **[AKAM_3406728_12]** 

10. **Compute Use Cases and Verticals**  
    **Q:** What are the early compute use cases and verticals?  
    **A:** F. Leighton highlighted strong adoption in media workflows but noted that compute sales span all verticals, including new customers. Use cases include database partners, observability, live encoding, AI inferencing, and more, indicating broad traction across various industries.  **[AKAM_3406728_17]** 

11. **CapEx Increase vs. Compute Guidance**  
    **Q:** Why is CapEx increasing without a significant raise in compute guidance?  
    **A:** Ed McGowan stated that the CapEx increase is due to investments not only in compute but also in delivery where there is outsized demand, as well as infrastructure services. Timing differences between quarters also affect the numbers, and he cautioned against reading too much into it.  **[AKAM_3406728_16]** 

fa723d40196ec8d40d2002a33d7bc3e1bf9390b93f6b697b2dd80433802bd89e

- **Declining delivery revenue due to lower traffic growth and competitive pressures is negatively impacting Akamai's overall revenue and margins. Executives acknowledge that delivery volumes are lower than expected, and they haven't seen the usual uptick in traffic following renewals.**  **[AKAM_3388421_10]** ,  **[AKAM_3388421_7]** ,  **[AKAM_3388421_9]**
- **A significant customer, a large social media company, is reducing spending with Akamai due to cost optimization and potential geopolitical challenges, leading to an expected revenue shortfall of $40 million to $60 million for the full year.**  **[AKAM_3388421_16]** ,  **[AKAM_3388421_4]**
- **Higher investments in R&D, acquisitions, and building out the compute platform are increasing costs, affecting margins despite the shift to higher-margin security and compute businesses. The company is experiencing higher colocation costs and accounting impacts from long-term agreements.**  **[AKAM_3388421_11]** ,  **[AKAM_3388421_4]**

1a12ef5ecc143291302f620b81cc826a60dc3c1063a3cbd5bd2d66238fb43715

- **Akamai's delivery solutions are facing macroeconomic headwinds**, with **slowed traffic growth in streaming and gaming verticals**, which could impact overall revenue growth.  **[AKAM_3406728_3]** **[AKAM_3406728_2]**
- Despite strong performance in compute, **Akamai has not yet achieved operating leverage in this segment**, as they are **still scaling up and haven't reached scale**, potentially affecting profitability in the near term.  **[AKAM_3406728_13]**
- **Increased investments in sales personnel and channels** may lead to **higher operating expenses** before contributing meaningfully to revenue, putting pressure on margins.  **[AKAM_3406728_10]**

acd768af78b77fce3a510094f702ab07cad29c4e3795c1ae218c42c08cf89348

- **Enterprise compute revenue is expected to more than double from $50 million to over $100 million ARR by the end of 2024**, demonstrating strong early momentum in Akamai Connected Cloud and significant future growth potential.  **[AKAM_3397538_7]** ,  **[AKAM_3397538_23]**
- Akamai is **expanding into new market verticals beyond traditional media customers**, with **new customer additions growing very rapidly** and observability capabilities spanning across all verticals, opening up whole new markets.  **[AKAM_3397538_16]**
- Akamai is **not capital constrained** in scaling its compute business and is **building out distributed compute capabilities in more locations**, providing competitive advantages in performance and data sovereignty.  **[AKAM_3397538_21]** ,  **[AKAM_3397538_23]**

edc0c9407594f58ea839c2b6b55bc4fc01c51c08d057328ac609227200ae4bd1

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dd1d9385a091732c2ed16386a3bf16af45f6ae287500fcef71c6270398ea243d

Akamai Technologies Inc (AKAM)

Financials