NASDAQ$AKAM

Akamai Technologies · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Akamai delivered excellent results driven by the strength of security solutions and continued improvements in operating efficiency.

Akamai reported a 4% year-over-year revenue increase to $936 million, driven by strong security solutions and compute growth. The company increased guidance for full-year revenue and non-GAAP net income per diluted share.

  • Second quarter revenue was $936 million, up 4% year-over-year and up 4% when adjusted for foreign exchange.
  • Security and compute revenue represented 59% of total revenue and grew 14% year-over-year and 15% when adjusted for foreign exchange.
  • GAAP diluted EPS was $0.84, down 1% year-over-year and up 1% when adjusted for foreign exchange, and non-GAAP diluted EPS was $1.49, up 10% year-over-year and up 11% when adjusted for foreign exchange.
  • Guidance increased for full-year revenue and non-GAAP net income per diluted share.

Headline financials

Total Revenue

$936M

Previous: $903M+3.6%
EPS (adj)

$1.49

Previous: $1.35+10.4%
Capital Expenditures

-$254M

Previous: -$125M-102.8%
Free Cash Flow

-$125M

Previous: -$5.68M-2102.9%
Net Income

$129M

Previous: $120M+7.8%
Operating Income

$150M

Previous: $175M-14.4%
Gross Profit

$562M

Previous: $557M+1.0%
Cash & Equivalents

$299M

Previous: $427M-30.0%
Total Assets

$8.35B

Previous: $8.21B+1.6%
Stock-Based Comp

$87.4M

Previous: $51.9M+68.5%

Revenue & EPS history

Akamai · Revenue · Quarterly

$936M

Q2 2023+3.6%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Akamai · $813M total across 2 segments · Q2 2023

  • Security Revenue
    $433M+13.6%
  • Delivery Revenue
    $380M-8.9%

Forward guidance

The Company reports the following financial guidance for the third quarter and full year 2023:

Tailwinds

  • Revenue (in millions): $937 - $952 (Three Months Ended September 30, 2023)
  • Revenue (in millions): $3,765 - $3,795 (Year Ended December 31, 2023)
  • Non-GAAP operating margin: 29% (Three Months Ended September 30, 2023)
  • Non-GAAP operating margin: 29% (Year Ended December 31, 2023)
  • Non-GAAP net income per diluted share: $1.48 - $1.52 (Three Months Ended September 30, 2023)

Headwinds

  • Non-GAAP net income per diluted share: $5.87 - $5.95 (Year Ended December 31, 2023)
  • Non-GAAP tax rate: 16% (Three Months Ended September 30, 2023)
  • Non-GAAP tax rate: 17% (Year Ended December 31, 2023)
  • Shares used in non-GAAP per diluted share calculations (in millions): 155 (Three Months Ended September 30, 2023)
  • Shares used in non-GAAP per diluted share calculations (in millions): 155 (Year Ended December 31, 2023)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-0.5%

Avg return

30 days after

56%

40 / 71 earnings

Positive

+23.4%

Q2 2012

Best reaction

-21.7%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+4.8%-4.5%
Q4 2025-13.5%+37.2%+27.9%
Q3 2025+14.7%+23.4%+14.4%
Q1 2025-10.6%-9.3%-9.8%
Q4 2024-21.7%-18.8%-17.3%
Q3 2024-14.6%-14.0%-6.4%
Q2 2024+9.6%+9.0%+4.2%
Q1 2024-10.7%-8.8%-12.7%
Q4 2023-10.4%-14.8%-15.0%
Q3 2023+2.0%+2.1%+6.0%
Q2 2023+8.0%+9.5%+9.2%
Q1 2023+7.8%+7.5%+16.7%
Q4 2022-10.6%-12.1%-17.6%
Q3 2022+6.2%+11.3%+7.2%
Q2 2022-0.4%-0.4%-6.4%
Q1 2022-8.5%-15.1%-8.5%
Q4 2021-5.2%-9.3%+4.1%
Q3 2021+5.2%+1.8%+5.3%
Q2 2021-5.5%-3.6%-5.0%
Q1 2021+1.4%+3.5%+7.0%
Q4 2020-10.4%-13.4%-17.3%
Q3 2020-8.2%-10.3%-2.2%
Q2 2020-3.5%-1.9%-0.5%
Q1 2020-5.0%-7.0%-0.2%
Q4 2019+1.8%+4.1%-16.4%
Q3 2019-1.4%-1.9%-2.1%
Q2 2019+5.5%+5.7%+7.0%
Q1 2019+2.1%+0.9%-3.2%
Q4 2018+2.7%+2.3%+6.1%
Q3 2018+17.1%+15.8%+12.3%
Q2 2018-4.9%-0.9%-0.8%
Q1 2018-0.4%+1.3%+7.0%
Q4 2017+2.7%+2.1%+19.5%
Q3 2017+4.9%+3.0%+8.2%
Q2 2017-13.1%-10.5%-13.6%
Q1 2017-14.1%-15.2%-21.4%
Q4 2016-8.8%-8.3%-7.9%
Q3 2016+15.1%+18.8%+13.0%
Q2 2016-12.8%-12.7%-5.8%
Q1 2016+7.4%
Q4 2015+17.0%
Q3 2015-16.5%
Q2 2015+2.2%
Q1 2015-2.5%
Q4 2014+4.6%
Q3 2014+4.7%
Q2 2014+0.0%
Q1 2014+0.2%
Q4 2013+23.0%
Q3 2013-13.7%
Q2 2013+2.1%
Q1 2013+19.8%
Q4 2012-14.1%
Q3 2012+5.6%
Q2 2012+23.4%
Q1 2012+4.6%
Q4 2011-2.2%
Q3 2011-4.9%
Q2 2011+0.7%
Q1 2011-1.3%
Q4 2010+1.5%
Q3 2010-4.2%
Q2 2010+8.1%
Q1 2010-0.6%
Q4 2009+4.4%
Q4 2007+4.4%
Q3 2008+2.5%
Q3 2009+2.5%
Q4 2008+0.1%
Q2 2008+0.1%
Q2 2009+0.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro