NASDAQ$AKAM

Akamai Technologies · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Akamai's Q4 2023 financial performance was reported, highlighting strong profitability and growth in security and cloud computing revenues.

Akamai reported Q4 2023 revenue of $995 million, a 7% year-over-year increase. Security and compute revenue grew by 18% and represented 61% of total revenue. GAAP net income per diluted share was $1.03, a 26% increase year-over-year, while non-GAAP net income per diluted share was $1.69, a 23% increase year-over-year.

  • Q4 revenue reached $995 million, up 7% year-over-year.
  • Security and compute revenue accounted for 61% of total revenue, growing 18% year-over-year.
  • GAAP net income per diluted share increased by 26% to $1.03.
  • Non-GAAP net income per diluted share rose by 23% to $1.69.

Headline financials

Total Revenue

$995M

Previous: $928M+7.2%
EPS (adj)

$1.69

Previous: $1.37+23.4%
Capital Expenditures

-$255M

Previous: $65.2M-490.6%
Net Income

$161M

Previous: $129M+24.8%
Operating Income

$185M

Previous: $167M+10.7%
Gross Profit

$568M

Previous: $570M-0.3%
R&D Expense

$109M

No prior period
Stock-Based Comp

$92.1M

Previous: $58.4M+57.8%

Revenue & EPS history

Akamai · Revenue · Quarterly

$995M

Q4 2023+7.2%vs Q4 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 three months ending March 31, 2024:

Tailwinds

  • Revenue (in millions) $980 - $1,000
  • Non-GAAP operating margin 29% - 30%
  • Non-GAAP net income per diluted share $1.59 - $1.64
  • Non-GAAP tax rate 18.5% - 19.0%
  • Shares used in non-GAAP per diluted share calculations (in millions) 155

Headwinds

  • Capex as a percentage of revenue 15%
  • This guidance is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures.
  • Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.
  • This guidance includes the capex associated with the Gecko product launch in 2024
  • This guidance has been calculated using the December 31, 2023 month end foreign currency exchange rates.

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 Q4 2023

Historical avgQ4 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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