Executive Summary
Akamai Technologies reported Q3 2024 revenue of $1.0047 billion, up 4.1% year-over-year and 2.6% quarter-over-quarter, with gross margin of 59.31% and operating margin of 7.03%. Net income came in at $57.9 million (net margin 5.76%), and earnings per share were $0.38 (basic) / $0.37 (diluted). While topline growth remained modest, profitability deteriorated vs. prior-year periods, driven by a higher operating expense base and mix adjustments within the cost structure. Free cash flow remained robust at $207.4 million, supported by $392.5 million of cash from operations and a moderate capital expenditure program of $185.1 million. The company replicated a disciplined capital allocation approach, including a substantial share repurchase of $165.8 million, and ended the period with a debt burden that remains meaningful but serviceable given operating cash flow and interest coverage. As Akamai continues to invest in security, edge compute, and multi-cloud delivery capabilities, the near-term focus is on enhancing operating leverage, sustaining free cash flow, and navigating a competitive CDN/security market with a high valuation multiple.
Key Performance Indicators
QoQ: -52.27% | YoY:-59.89%
QoQ: -56.03% | YoY:-63.93%
QoQ: -55.81% | YoY:-64.15%
Key Insights
Revenue: $1.0047B; YoY +4.06%, QoQ +2.56% | Gross Profit: $595.9M; Gross Margin 59.31% | Operating Income: $70.64M; Operating Margin 7.03% | EBITDA: $244.32M; EBITDA Margin 24.32% | Net Income: $57.91M; Net Margin 5.76% | EPS (basic/diluted): $0.38 / $0.37 | R&D: $120.35M; SG&A: $275.50M | Cash from Operations: $392.54M | Free Cash Flow: $207.43M | Capex: $185.12M | Net Cash from Financing: -$162.37M; Share Repurchases: -$165.84M | Cash at End of Period: $572.75M | Total Debt: $4.650B; N...
Financial Highlights
Revenue: $1.0047B; YoY +4.06%, QoQ +2.56% | Gross Profit: $595.9M; Gross Margin 59.31% | Operating Income: $70.64M; Operating Margin 7.03% | EBITDA: $244.32M; EBITDA Margin 24.32% | Net Income: $57.91M; Net Margin 5.76% | EPS (basic/diluted): $0.38 / $0.37 | R&D: $120.35M; SG&A: $275.50M | Cash from Operations: $392.54M | Free Cash Flow: $207.43M | Capex: $185.12M | Net Cash from Financing: -$162.37M; Share Repurchases: -$165.84M | Cash at End of Period: $572.75M | Total Debt: $4.650B; Net Debt: $4.080B | Current Ratio: 1.30; Quick Ratio: 1.30
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.00B |
4.06% |
2.56% |
| Gross Profit |
595.87M |
2.31% |
3.33% |
| Operating Income |
70.64M |
-59.89% |
-52.27% |
| Net Income |
57.91M |
-63.93% |
-56.03% |
| EPS |
0.38 |
-64.15% |
-55.81% |
Key Financial Ratios
operatingProfitMargin
15.7%
operatingCashFlowPerShare
$2.59
freeCashFlowPerShare
$1.37
Management Commentary
N/A — No earnings call transcript was provided for QQ3 2024 in the supplied data.
Forward Guidance
No explicit forward guidance was issued in the QQ3 2024 filing for full-year 2024. Given the lack of formal targets, investors should monitor: (1) trajectory of operating leverage as revenue grows, (2) progression of core CDN/security offerings and edge compute adoption, (3) capital allocation cadence (share repurchases vs. potential deleveraging), and (4) competitive dynamics and pricing pressure in CDN and cloud security markets. In a scenario where Akamai can modestly improve operating margins through mix shift and cost discipline, EBITDA and FCF growth could outpace revenue gains.