Akamai Technologies (AKAM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $1.02 billion, up 3% year-over-year; full-year revenue was $3.991 billion, up 5% year-over-year, with non-GAAP EPS at $1.66 for Q4 and $6.48 for FY'24.

• Security became the largest revenue contributor in 2024, surpassing $2 billion and growing 16% year-over-year, while compute revenue reached $630 million, up 25%.

• Security and compute solutions represented up to 69% of Q4 revenue and grew 17% year-over-year.

• The company is transforming from CDN to security and cloud computing, leveraging AI and seeing strong enterprise adoption.

• Delivery revenue declined to $1.32 billion in 2024, down 15%, but remains strategic for cash flow and partnerships.

Financial highlights

• FY'24 total revenue was $3.991 billion, up from $3.812 billion in FY'23; non-GAAP EPS was $6.48, up from $6.20.

• Q4 security revenue was $535 million, up 14% year-over-year; compute revenue was $167 million, up 24%.

• Cloud infrastructure services ARR was $259 million at year-end, up 35% year-over-year.

• International Q4 revenue was $490 million, up 2% year-over-year, representing 48% of total Q4 revenue.

• Q4 CapEx was $193 million, or 19% of revenue; $557 million spent on share repurchases in 2024.

Outlook and guidance

• Q1 2025 revenue projected at $1.00–$1.02 billion; full-year 2025 revenue guidance is $4.00–$4.20 billion.

• Security revenue expected to grow ~10% in constant currency in 2025; compute revenue to grow ~15%.

• Cloud infrastructure services ARR projected to grow 40–45% in 2025.

• Non-GAAP EPS for 2025 expected in the range of $6.00–$6.40; non-GAAP operating margin ~28%.

• 3–5 year goals include total revenue growth of 10%+ year-over-year and non-GAAP operating margin target of 30%+.