NASDAQ$AKAM

Akamai Technologies · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Akamai's Q3 2023 financial results were reported, showing revenue growth and increased profitability.

Akamai reported a strong third quarter with revenue of $965 million, up 9% year-over-year. Security and compute revenue grew by 20% and now account for 61% of total revenue. GAAP EPS was $1.04, up 33% year-over-year, and non-GAAP EPS was $1.63, up 29% year-over-year.

  • Third quarter revenue reached $965 million, a 9% increase year-over-year.
  • Security and compute revenue comprised 61% of total revenue, growing 20% year-over-year.
  • GAAP diluted EPS was $1.04, a 33% increase year-over-year.
  • Non-GAAP diluted EPS was $1.63, a 29% increase year-over-year.

Headline financials

Total Revenue

$965M

Previous: $882M+9.5%
EPS (adj)

$1.63

Previous: $1.26+29.4%
Capital Expenditures

-$388M

Previous: -$176M-120.2%
Free Cash Flow

-$227M

Previous: -$67.9M-234.4%
Net Income

$161M

Previous: $108M+48.4%
Operating Income

$176M

Previous: $160M+9.8%
Gross Profit

$582M

Previous: $535M+8.8%
Cash & Equivalents

$460M

Previous: $458M+0.5%
Total Assets

$9.58B

Previous: $8.11B+18.2%
R&D Expense

$106M

No prior period
Stock-Based Comp

$87M

Previous: $50.7M+71.6%

Revenue & EPS history

Akamai · Revenue · Quarterly

$965M

Q3 2023+9.5%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Akamai · $835M total across 2 segments · Q3 2023

  • Security Revenue
    $456M+20.2%
  • Delivery Revenue
    $379M-3.6%

Forward guidance

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

Tailwinds

  • Revenue (in millions) $985 - $1,005
  • Non-GAAP operating margin 29%
  • Non-GAAP net income per diluted share $1.57 - $1.62
  • Non-GAAP tax rate 17 %
  • Shares used in non-GAAP per diluted share calculations (in millions) 155

Headwinds

  • Capex as a percentage of revenue 15 %
  • incremental cost of revenue of $13 million to $14 million for transition service agreements related to the acquired customer contracts
  • negative impact to revenue of $8 million as compared to the third quarter related to foreign currency exchange rate fluctuations.
  • stock-based compensation is unpredictable for Akamai’s performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets.
  • Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict.

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 Q3 2023

Historical avgQ3 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%

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