The following is a summary of the Akamai Technologies, Inc. (AKAM) Q3 2024 Earnings Call Transcript:
Financial Performance:
Akamai Technologies reported a solid Q3, with a total annual revenue run rate exceeding $4 billion, and security annual revenue surpassing $2 billion.
Q3 total revenue hit $1.005 billion, marking a 4% year-over-year increase.
Non-GAAP earnings per share reached $1.59, aligning with guidance.The compute sector saw significant growth with revenue of $167 million, up 28% year-over-year.
Business Progress:
Akamai is transitioning from a content delivery pioneer to a cybersecurity and cloud computing powerhouse.
Significant contracts signed include a $70 million agreement encompassing several security solutions and a $6 million upgrade focusing on increased ransomware protection.
Introduced an innovative behavioral DDoS engine and expanded object storage capabilities, enhancing Akamai's competitive advantage.
Strategic partnership formed with a large video workflow ISV, including a $17 million commitment.
Opportunities:
Strong market traction for new API security solutions with expectations to reach an annualized revenue run rate of $50 million by year-end.
Guardicore, part of the Zero Trust segment, is projected to achieve an annualized revenue run rate of over $180 million.
Increased demand for Prolexic service due to persistent DDoS attacks.
Risks:
Continued macroeconomic headwinds impacting the delivery solutions sector, expected persistent weak traffic growth.
Significant industry competition and operational pressures in the delivery domain.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
