Akamai reported $1.005 billion in revenue for the quarter ended September 30, 2024, up 4% year over year and its first quarter above $1 billion. Security and compute grew, while delivery revenue fell. An $82 million restructuring charge also widened the gap between GAAP and Akamai’s adjusted results. The company announced the results on November 7, 2024.
Revenue crossed $1 billion as security and compute grew
Total revenue was $1.005 billion, up 4% from the third quarter of 2023. Security and compute together made up 68% of revenue and grew 17% year over year, according to Akamai’s November 7, 2024 results release. CEO Tom Leighton called the milestone the company’s first quarter above the billion-dollar revenue threshold.
| Solution | Q3 2024 revenue | Year-over-year change |
|---|---|---|
| Security | $519 million | +14% |
| Delivery | $319 million | -16% |
| Compute | $167 million | +28% |
The figures show that growth was uneven: security and compute gains more than offset the contraction in delivery. The release also reported U.S. revenue of $525 million, up 5%, and international revenue of $480 million, up 3% (also 3% adjusted for foreign exchange).
GAAP earnings included an $82 million restructuring charge
Akamai reported GAAP operating income of $71 million, net income of $58 million, and diluted earnings per share (EPS) of $0.38. The company said an $82 million restructuring charge affected these results. It primarily reflected severance associated with a workforce reduction and impairments of certain acquired assets.
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Alongside GAAP figures, Akamai reported company-defined non-GAAP results. These exclude certain items under the company’s stated methodology and should not be treated as interchangeable with GAAP measures.
| Measure | GAAP | Non-GAAP or adjusted |
|---|---|---|
| Operating income | $71 million | $296 million |
| Net income | $58 million | $244 million |
| Diluted EPS | $0.38 | $1.59 |
| Adjusted EBITDA | not stated (Akamai’s November 7, 2024 results release) | $426 million |
Adjusted EBITDA is a non-GAAP measure; the release does not present it as a GAAP counterpart in this comparison. The difference between the operating-income figures is not itself a standalone measure of the restructuring charge: non-GAAP reporting can exclude multiple items, and the measures use different definitions.
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Cash flow, liquidity, and share repurchases
Operating cash flow was $393 million, equal to 39% of revenue. As of September 30, 2024, Akamai held $1.979 billion in cash, cash equivalents, and marketable securities. During the quarter, it repurchased 1.7 million shares for $166 million at an average price of $97.29 per share.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Akamai forecast for Q4 and full-year 2024
The following figures are the outlook Akamai issued on November 7, 2024—not current guidance. The company labeled the outlook non-GAAP. It said it could not reconcile the guidance to the closest GAAP measures without unreasonable effort because excluded items were unpredictable. Full details appear in the results release.
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| Metric | Q4 2024 guidance (three months ending December 31, 2024) | Full-year 2024 guidance |
|---|---|---|
| Revenue | $995 million–$1.020 billion | $3.966 billion–$3.991 billion |
| Non-GAAP operating margin | 27%–28% | 29% |
| Diluted non-GAAP EPS | $1.49–$1.56 | $6.31–$6.38 |
| Non-GAAP tax rate | 19% | 19% |
| Capital expenditure (capex) as a share of revenue | 18%–19% | 17% |
Against the Q4 revenue range, Q3’s $1.005 billion result sat within the range Akamai had forecast for the following quarter. The full-year range was the company’s forecast for the whole of 2024, not a reported full-year result.
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