Executive Summary
Akamai reported Q2 2024 results that showed resilient revenue growth and margin discipline within a technology services mix heavily weighted toward cloud-based delivery and security. Revenue reached USD 979.58 million, up 4.69% year over year but down 0.75% quarter over quarter. Gross profit was USD 576.69 million with a gross margin of 58.87%, supporting a solid operating margin of 15.11% and an operating income of USD 147.99 million. Net income totaled USD 131.69 million, producing earnings per diluted share of USD 0.86. Free cash flow generation remained robust at USD 267.43 million, backed by USD 430.96 million of operating cash flow and a cash balance of USD 448.04 million at quarter end. Balance sheet liquidity is meaningful, with USD 1.64 billion of liquid assets (cash plus short-term investments) against USD 4.62 billion of total debt and USD 4.17 billion of net debt. The company also reported strong cash flow metrics, including an interest coverage ratio of ~20.8x and a cash-to-debt ratio indicative of healthy operating leverage. Management commentary on the call (where available) was not included in the provided transcript data, so the synthesis below reflects the reported results and industry context. Notwithstanding the solid FCF and margin resilience, the quarter shows modest top-line growth and a valuation that implies premium expectations vs broader software/services benchmarks. Investors should monitor revenue growth trajectory, operating margin expansion opportunities, and debt management as key near-term drivers of upside or downside risk.
Key Performance Indicators
QoQ: -11.24% | YoY:-1.20%
Key Insights
Revenue: USD 979.58m, YoY +4.69%, QoQ -0.75%
Gross Profit: USD 576.69m, Gross Margin 58.87%, YoY +2.53%, QoQ -2.62%
Operating Income: USD 147.99m, Operating Margin 15.11%, YoY -1.20%, QoQ -11.24%
Net Income: USD 131.69m, Net Margin 13.44%, YoY +2.23%, QoQ -24.93%
EPS (Diluted): USD 0.86, YoY +1.18%, QoQ -25.86%
Operating Cash Flow: USD 430.96m
Free Cash Flow: USD 267.43m
Cash and Cash Equivalents: USD 448.04m
Total Debt: USD 4.6155b, Net Debt: USD 4.1675b
Liquidity: Cash + Short-Term Investments...
Financial Highlights
Revenue: USD 979.58m, YoY +4.69%, QoQ -0.75%
Gross Profit: USD 576.69m, Gross Margin 58.87%, YoY +2.53%, QoQ -2.62%
Operating Income: USD 147.99m, Operating Margin 15.11%, YoY -1.20%, QoQ -11.24%
Net Income: USD 131.69m, Net Margin 13.44%, YoY +2.23%, QoQ -24.93%
EPS (Diluted): USD 0.86, YoY +1.18%, QoQ -25.86%
Operating Cash Flow: USD 430.96m
Free Cash Flow: USD 267.43m
Cash and Cash Equivalents: USD 448.04m
Total Debt: USD 4.6155b, Net Debt: USD 4.1675b
Liquidity: Cash + Short-Term Investments USD 1.637b; Current Ratio 1.321x
Balance Sheet (Total Assets / Liabilities): USD 10.0875b / USD 5.3329b
Cash Conversion Cycle: ~36.43 days
P/E: ~26.05x, P/S: ~14.01x, EV/EBITDA: ~66.86x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
979.58M |
4.69% |
-0.75% |
| Gross Profit |
576.69M |
2.53% |
-2.62% |
| Operating Income |
147.99M |
-1.20% |
-11.24% |
| Net Income |
131.69M |
2.23% |
-24.93% |
| EPS |
0.86 |
1.18% |
-25.86% |
Key Financial Ratios
operatingProfitMargin
15.1%
operatingCashFlowPerShare
$2.81
freeCashFlowPerShare
$2.19
Management Commentary
No earnings call transcript data provided in the input. Consequently, there are no management quotes or specific thematic highlights to quote. If a transcript becomes available, key quotes could be grouped by themes (strategy, operations, market conditions) with context and significance for investors.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. In the absence of formal targets, the near-term roadmap hinges on sustaining revenue growth in cloud-delivery and security offerings, pursuing operating leverage through disciplined expense management, and optimizing capital allocation to maintain free cash flow generation. Industry trends suggest continued upside from edge compute, performance optimization, and cybersecurity demand, but investors should monitor: (1) trajectory of revenue growth and product mix (delivery vs. security vs. edge compute), (2) margin expansion opportunities from efficiency gains, and (3) ongoing leverage and funding needs given a net debt position of USD 4.17 billion. If management signals guardrails for capex or R&D spend and outlines a path to improved cash conversion, the investment outlook could tilt toward a more constructive stance.