U.S. Markets closed
  • S&P 500

    4,070.56
    +10.13 (+0.25%)
     
  • Dow 30

    33,978.08
    +28.68 (+0.08%)
     
  • Nasdaq

    11,621.71
    +109.31 (+0.95%)
     
  • Russell 2000

    1,911.46
    +8.40 (+0.44%)
     
  • Crude Oil

    79.38
    -0.30 (-0.38%)
     
  • Gold

    1,943.90
    -1.70 (-0.09%)
     
  • Silver

    23.73
    +0.10 (+0.44%)
     
  • EUR/USD

    1.0871
    -0.0021 (-0.1957%)
     
  • 10-Yr Bond

    3.5180
    +0.0250 (+0.72%)
     
  • Vix

    18.51
    -0.22 (-1.17%)
     
  • GBP/USD

    1.2399
    -0.0008 (-0.0608%)
     
  • USD/JPY

    129.6640
    -0.4890 (-0.3757%)
     
  • BTC-USD

    23,818.05
    +825.15 (+3.59%)
     
  • CMC Crypto 200

    526.66
    +9.65 (+1.87%)
     
  • FTSE 100

    7,765.15
    +4.04 (+0.05%)
     
  • Nikkei 225

    27,382.56
    +19.76 (+0.07%)
     

AKAMAI REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS

Third quarter revenue of $882 million, up 3% year-over-year and up 7% when adjusted for foreign exchange*

Security and compute revenue represented 55% of total revenue in the third quarter and grew 23% year-over-year and 28% when adjusted for foreign exchange*

GAAP EPS of $0.68, down 37% year-over-year and down 29% when adjusted for foreign exchange*, and non-GAAP EPS* of $1.26, down 13% year-over-year and down 7% when adjusted for foreign exchange*

CAMBRIDGE, Mass., Nov. 8, 2022 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, today reported financial results for the third quarter ended September 30, 2022.

Akamai Technologies, Inc. logo (PRNewsfoto/Akamai Technologies, Inc.)
Akamai Technologies, Inc. logo (PRNewsfoto/Akamai Technologies, Inc.)

"Akamai delivered another quarter of solid results despite global macroeconomic challenges, including foreign exchange headwinds," said Dr. Tom Leighton, Akamai's chief executive officer. "Our performance continued to be led by the strong growth of our security and compute product groups, which collectively grew 23% year-over-year and 28% when adjusted for foreign exchange* comprising 55% of our overall revenue."

Akamai delivered the following financial results for the third quarter ended September 30, 2022:

Revenue: Revenue was $882 million, a 3% increase over third quarter 2021 revenue of $860 million and a 7% increase when adjusted for foreign exchange.*

Revenue by solution:

  • Security revenue was $380 million, up 13% year-over-year and up 19% when adjusted for foreign exchange*

  • Delivery revenue was $393 million, down 15% year-over-year and down 11% when adjusted for foreign exchange*

  • Compute revenue was $109 million, up 72% year-over-year and up 77% when adjusted for foreign exchange*

Revenue by geography:

  • U.S. revenue was $461 million, up 3% year-over-year

  • International revenue was $421 million, up 2% year-over-year and up 12% when adjusted for foreign exchange*

Income from operations: GAAP income from operations was $160 million, a 22% decrease from third quarter 2021. GAAP operating margin for the third quarter was 18%, down 6 percentage points from the same period last year.

Non-GAAP income from operations* was $243 million, a 12% decrease from third quarter 2021. Non-GAAP operating margin* for the third quarter was 28%, down 4 percentage points compared to the same period last year.

Net income: GAAP net income was $108 million, a 40% decrease from third quarter 2021. Non-GAAP net income* was $200 million, a 16% decrease from third quarter 2021.

EPS: GAAP EPS was $0.68 per diluted share, a 37% decrease from third quarter 2021 and a 29% decrease when adjusted for foreign exchange.* Non-GAAP EPS* was $1.26 per diluted share, a 13% decrease from third quarter 2021 and a 7% decrease when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA* was $368 million, a 7% decrease from third quarter 2021.

Supplemental cash information: Cash from operations for the third quarter of 2022 was $369 million, or 42% of revenue. Cash, cash equivalents and marketable securities was $1.4 billion as of September 30, 2022.

Share repurchases: Akamai spent $163 million in the third quarter of 2022 to repurchase 1.8 million shares of its common stock at an average price of $90.93 per share. Akamai had 158 million shares of common stock outstanding as of September 30, 2022.

*      See Use of Non-GAAP Financial Measures below for definitions

Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode: Akamai Technologies call. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-877-344-7529 (or 1-412-317-0088 for international calls) and using passcode: 6562695. The archived webcast of this event may be accessed through the Akamai website.

About Akamai
Akamai powers and protects life online. Leading companies worldwide choose Akamai to build, deliver, and secure their digital experiences – helping billions of people live, work, and play every day. With the world's most distributed compute platform – from cloud to edge – we make it easy for customers to develop and run applications, while we keep experiences closer to users and threats farther away. Learn more about Akamai's security, compute, and delivery solutions at www.akamai.com, blogs.akamai.com, or follow Akamai Technologies on Twitter and LinkedIn.

 

AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS 


(in thousands)

September 30,
2022


December 31,
2021

ASSETS




Current assets:




Cash and cash equivalents

$         457,816


$         536,725

Marketable securities

406,332


541,470

Accounts receivable, net

622,027


675,926

Prepaid expenses and other current assets

209,398


166,313

Total current assets

1,695,573


1,920,434

Marketable securities

488,526


1,088,048

Property and equipment, net

1,520,428


1,534,329

Operating lease right-of-use assets

803,404


815,754

Acquired intangible assets, net

455,030


313,225

Goodwill

2,753,369


2,156,254

Deferred income tax assets

285,722


168,342

Other assets

105,317


142,287

Total assets

$     8,107,369


$     8,138,673

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$         119,051


$         109,928

Accrued expenses

329,211


411,590

Deferred revenue

109,792


86,517

Operating lease liabilities

187,776


175,683

Other current liabilities

7,181


6,623

Total current liabilities

753,011


790,341

Deferred revenue

22,290


25,342

Deferred income tax liabilities

38,146


40,974

Convertible senior notes

2,284,147


1,976,167

Operating lease liabilities

681,407


707,087

Other liabilities

95,184


68,748

Total liabilities

3,874,185


3,608,659

Total stockholders' equity

4,233,184


4,530,014

Total liabilities and stockholders' equity

$     8,107,369


$     8,138,673

 

AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME



Three Months Ended


Nine Months Ended

(in thousands, except per share data)

September 30,
2022


June 30,
2022


September 30,
2021


September 30,
2022


September 30,
2021

Revenue

$         881,896


$         903,332


$         860,333


$     2,688,875


$     2,555,865

Costs and operating expenses:










Cost of revenue (1) (2)

346,450


346,649


316,866


1,025,851


943,553

Research and development (1)

94,047


92,070


82,899


286,052


242,199

Sales and marketing (1)

123,935


126,665


108,514


373,319


336,762

General and administrative (1) (2)

139,425


141,219


134,265


433,906


405,275

Amortization of acquired intangible assets

17,374


16,972


11,959


47,990


35,446

Restructuring charge

227


4,715


565


12,958


5,567

Total costs and operating expenses

721,458


728,290


655,068


2,180,076


1,968,802

Income from operations

160,438


175,042


205,265


508,799


587,063

Interest and marketable securities income (loss), net

782


(2,331)


2,872


(1,760)


12,186

Interest expense

(2,785)


(2,932)


(18,144)


(8,412)


(54,015)

Other (expense) income, net

(275)


816


3,635


(9,024)


2,007

Income before provision for income taxes

158,160


170,595


193,628


489,603


547,241

Provision for income taxes

(50,006)


(51,058)


(13,648)


(135,114)


(43,555)

Loss from equity method investment



(1,064)


(7,635)


(12,578)

Net income

$         108,154


$         119,537


$         178,916


$         346,854


$         491,108











Net income per share:










Basic

$               0.68


$               0.75


$               1.10


$               2.17


$               3.01

Diluted

$               0.68


$               0.74


$               1.08


$               2.15


$               2.96











Shares used in per share calculations:










Basic

158,715


160,038


162,767


159,749


162,967

Diluted

159,068


161,710


166,318


161,472


166,090



(1)

Includes stock-based compensation (see supplemental table for figures)

(2)

Includes depreciation and amortization (see supplemental table for figures)

 

AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



Three Months Ended


Nine Months Ended

(in thousands)

September 30,
2022


June 30,
2022


September 30,
2021


September 30,
2022


September 30,
2021

Cash flows from operating activities:










Net income

$         108,154


$         119,537


$         178,916


$         346,854


$         491,108

Adjustments to reconcile net income to net cash provided by operating activities:










Depreciation and amortization

150,985


150,604


139,747


444,184


408,933

Stock-based compensation

50,702


51,882


49,018


158,811


153,804

Provision (benefit) for deferred income taxes

8,917


(29,885)


(37,560)


(34,547)


(30,335)

Amortization of debt discount and issuance costs

1,086


1,091


16,567


3,296


49,284

(Gain) loss on investments


(641)


(2,616)


15,895


8,898

Other non-cash reconciling items, net

2,451


10,045


977


25,094


3,117

Changes in operating assets and liabilities, net of effects of acquisitions:










Accounts receivable

30,796


35,251


(10,821)