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

U.S.

International

Total Revenue

a144cbd336f32aad0acf8f5f3266c458c1273b6a0915d22952462dc8a66b4578

f435369127054161d4ff119805da994f132cd87ee5a31dc4cacd46345f055ac9

Net income [USD, thousands]

Depreciation and amortization [USD, thousands]

Stock-based compensation [USD, thousands]

Provision (benefit) for deferred income taxes [USD, thousands]

Amortization of debt issuance costs [USD, thousands]

(Gain) loss on investments [USD, thousands]

Other non-cash reconciling items, net [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Cash paid for asset acquisition [USD, thousands]

Purchases of short- and long-term marketable securities [USD, thousands]

Other, net (investing) [USD, thousands]

Net cash used in investing activities [USD, thousands]

Proceeds related to the issuance of common stock under stock plans [USD, thousands]

Employee taxes paid related to net share settlement of stock awards [USD, thousands]

Repurchases of common stock [USD, thousands]

Other, net (financing) [USD, thousands]

Net cash (used in) provided by financing activities [USD, thousands]

Effects of exchange rate changes on cash, cash equivalents and restricted cash [USD, thousands]

Net increase (decrease) in cash, cash equivalents and restricted cash [USD, thousands]

Cash, cash equivalents and restricted cash at beginning of period [USD, thousands]

Cash, cash equivalents and restricted cash at end of period [USD, thousands]

6ff348fe3f48bcd6b4aeb7d05e71f27683093eede506dcc819cf4343590796fc

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?

9bd2bc9247a940207a89b9f746f6dd51ed790d4f601fd7607111dfaebb5a7641

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

Revenue (USD, thousands)

Cost of Revenue (USD, thousands)

Research and Development Expenses (USD, thousands)

Sales and Marketing Expenses (USD, thousands)

General and Administrative Expenses (USD, thousands)

Amortization of Acquired Intangible Assets (USD, thousands)

Restructuring Charge (USD, thousands)

Total Costs and Operating Expenses (USD, thousands)

Income from Operations (USD, thousands)

Interest and Marketable Securities Income, Net (USD, thousands)

Interest Expense (USD, thousands)

Other (Expense) Income, Net (USD, thousands)

Income Before Provision for Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Gain from Equity Method Investment (USD, thousands)

Net Income (USD, thousands)

Net Income per Share, Basic (USD)

Net Income per Share, Diluted (USD)

Weighted Average Shares Outstanding, Basic (thousands)

Weighted Average Shares Outstanding, Diluted (thousands)

ed932c926ab5012c0ce321b33f198a715838466f2aae7873dad506650b7bbd85

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

c679d67358ea59cfde57fc596622a6d00af49a2c273ccddd9f03df5de7d7c0bc

Akamai Technologies Inc (AKAM)

Financials