Fourth quarter highlights
- Revenue of $995 million, up 7%
year-over-year and when adjusted for foreign exchange*
- Security and compute revenue represented 61% of total revenue
in the fourth quarter and grew 18% year-over-year and 17% when
adjusted for foreign exchange*
- GAAP net income per diluted share of $1.03, up 26% year-over-year and up 24% when
adjusted for foreign exchange*, and non-GAAP net income per diluted
shared* of $1.69, up 23%
year-over-year and up 22% when adjusted for foreign exchange*
Full-year highlights
- Revenue of $3.812 billion, up 5%
year-over-year and up 6% when adjusted for foreign exchange*
- Security and compute revenue represented 60% of total revenue
in 2023 and grew 17% year-over-year and when adjusted for foreign
exchange*
- GAAP net income per diluted share of $3.52, up 8% year-over-year and up 9% when
adjusted for foreign exchange*, and non-GAAP net income per diluted
share * of $6.20, up 15%
year-over-year and up 16% when adjusted for foreign exchange*
CAMBRIDGE, Mass., Feb. 13,
2024 /PRNewswire/ -- Akamai Technologies, Inc.
(NASDAQ: AKAM), the cloud company that powers and protects life
online, today reported financial results for the fourth quarter and
full-year ended December 31,
2023.
"Akamai's fourth quarter financial performance capped off an
excellent year for the company highlighted by very strong
profitability," said Dr. Tom
Leighton, Akamai's Chief Executive Officer. "We were very
pleased with our Security and Cloud Computing results in 2023 which
now represent 60% of total revenue. Looking to 2024, we plan to
continue driving profitability in delivery, expanding our market
leading security offerings, and extending our cloud computing
platform to the edge to provide customers with better performance
at a lower cost."
Akamai delivered the following results for the fourth quarter
and full-year ended December 31,
2023:
Revenue: Revenue for the fourth quarter was $995 million, a 7% increase over fourth quarter
2022 revenue of $928 million and a 7%
increase when adjusted for foreign exchange.* Total revenue for
2023 was $3.812 billion compared to
$3.617 billion for 2022, up 5%
year-over-year and up 6% when adjusted for foreign exchange.*
Revenue by solution:
- Security revenue for the fourth quarter was $471 million, up 18% year-over-year and up 17%
when adjusted for foreign exchange.* Security revenue for 2023 was
$1.765 billion, up 14% year-over-year
and up 15% when adjusted for foreign exchange.*
- Delivery revenue for the fourth quarter was $389 million, down 6% year-over-year and down 7%
when adjusted for foreign exchange.* Delivery revenue for 2023 was
$1.542 billion, down 8%
year-over-year and down 7% when adjusted for foreign
exchange.*
- Compute revenue for the fourth quarter was $135 million, up 20% year-over-year and when
adjusted for foreign exchange.* Compute revenue for 2023 was
$504 million, up 24% year-over-year
and up 25% when adjusted for foreign exchange.*
Revenue by geography:
- U.S. revenue for the fourth quarter was $516 million, up 7% year-over-year. U.S. revenue
for 2023 was $1.969 billion, up 4%
year-over-year.
- International revenue for the fourth quarter was $479 million, up 8% year-over-year and up 6% when
adjusted for foreign exchange.* International revenue for 2023 was
$1.843 billion, up 7% year-over-year
and up 8% when adjusted for foreign exchange.*
Income from operations: GAAP income from operations for
the fourth quarter was $185 million,
a 10% increase from fourth quarter 2022 income from operations of
$167 million. GAAP operating margin
for the fourth quarter was 19%, up 1 percentage point from the same
period last year. GAAP income from operations for 2023 was
$637 million, a 6% decrease from the
prior year's GAAP income from operations of $676 million. Full-year GAAP operating margin was
17%, down 2 percentage points from the same period last year.
Non-GAAP income from operations* for the fourth quarter was
$303 million, a 17% increase from
fourth quarter 2022 non-GAAP income from operations of $258 million. Non-GAAP operating margin* for the
fourth quarter was 30%, up 2 percentage points from the same period
last year. Non-GAAP income from operations* for 2023 was
$1.136 billion, a 10% increase from
the prior year's non-GAAP income from operations of $1.033 billion. Full-year non-GAAP operating
margin* was 30%, up 1 percentage point from the same period last
year.
Net income: GAAP net income for the fourth quarter was
$161 million, a 25% increase from
fourth quarter 2022 GAAP net income of $129
million. GAAP net income for 2023 was $548 million, a 5% increase from the prior year's
GAAP net income of $524 million.
Non-GAAP net income* for the fourth quarter was $263 million, a 21% increase from fourth quarter
2022 non-GAAP net income of $216
million. Non-GAAP net income* for 2023 was $960 million, a 12% increase from the prior
year's non-GAAP net income of $858
million.
EPS: GAAP net income per diluted share for the fourth
quarter was $1.03, a 26% increase
from fourth quarter 2022 GAAP net income per diluted share of
$0.82 and a 24% increase when
adjusted for foreign exchange.* GAAP net income per diluted share
for 2023 was $3.52, an 8% increase
from the prior year's GAAP net income per diluted share of
$3.26 and a 9% increase when adjusted
for foreign exchange.*
Non-GAAP net income per diluted share* for the fourth quarter
was $1.69, a 23% increase from fourth
quarter 2022 non-GAAP net income per diluted share of $1.37 and a 22% increase when adjusted for
foreign exchange.* Non-GAAP net income per diluted share* for 2023
was $6.20, a 15% increase from the
prior year's non-GAAP net income per diluted share of $5.37 and a 16% increase when adjusted for
foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA* for the fourth quarter
was $426 million, a 12% increase from
fourth quarter 2022 Adjusted EBITDA of $382
million. Adjusted EBITDA* for 2023 was $1.608 billion, a 5% increase from the prior
year's Adjusted EBITDA of $1.530
billion.
Supplemental cash information: Cash from operations for
the fourth quarter was $389 million,
or 39% of revenue. Cash from operations for 2023 was $1.348 billion, or 35% of revenue. Cash, cash
equivalents and marketable securities was $2.3 billion as of December 31, 2023.
Share repurchases: The Company spent $55 million in the fourth quarter of 2023 to
repurchase 0.5 million shares of its common stock at an average
price of $110.75 per share. For the
full-year 2023, the Company spent $654
million to repurchase 7.8 million shares of its common stock
at an average price of $83.83 per
share. The Company had 151 million shares of common stock
outstanding as of December 31,
2023.
Financial guidance: The Company reports the following
financial guidance for the three months ending March 31, 2024:
|
Three Months
Ending March 31,
2024
|
|
Low End
|
|
High End
|
Revenue (in
millions)
|
$ 980
|
|
$
1,000
|
Non-GAAP operating
margin*
|
29 %
|
|
30 %
|
Non-GAAP net income per
diluted share*
|
$ 1.59
|
|
$ 1.64
|
Non-GAAP tax
rate*
|
18.5 %
|
|
19.0 %
|
Shares used in non-GAAP
per diluted share calculations* (in millions)
|
155
|
|
155
|
Capex as a percentage
of revenue*(1)
|
15 %
|
|
15 %
|
The Company reports the following financial guidance for the
year ending December 31, 2024, of
which the revenue and earnings guidance has been adjusted to use a
constant foreign currency exchange rate:
|
Year
Ending December 31,
2024
|
|
Low End
|
|
High End
|
Revenue growth rates
year-over-year*(2)
|
6 %
|
|
8 %
|
Security revenue
growth rates year-over-year*(2)
|
14 %
|
|
16 %
|
Compute revenue growth
rates year-over-year*(2)
|
20 %
|
|
20 %
|
Non-GAAP operating
margin*(2)
|
30 %
|
|
30 %
|
Non-GAAP net income per
diluted share growth rates year-over-year*(2)
|
7 %
|
|
11 %
|
Non-GAAP tax
rate*
|
18.5 %
|
|
19.0 %
|
Shares used in non-GAAP
per diluted share calculations* (in millions)
|
155
|
|
155
|
Capex as a percentage
of revenue*(1)
|
15 %
|
|
15 %
|
This guidance is provided on a non-GAAP basis and cannot be
reconciled to the closest GAAP measures without unreasonable effort
because of the unpredictability of the amounts and timing of events
affecting the items Akamai excludes from non-GAAP measures. For
example, stock-based compensation is unpredictable for Akamai's
performance-based awards, which can fluctuate significantly based
on current expectations of the future achievement of
performance-based targets. Amortization of intangible assets,
acquisition-related costs and restructuring costs are all impacted
by the timing and size of potential future actions, which are
difficult to predict. In addition, from time to time, Akamai
excludes certain items that occur infrequently, which are also
inherently difficult to predict and estimate. It is also difficult
to predict the tax effect of the items Akamai excludes and to
estimate certain discrete tax items, such as the resolution of tax
audits or changes to tax laws. As such, the costs that are being
excluded from non-GAAP guidance are difficult to predict and a
reconciliation or a range of results could lead to disclosure that
would be imprecise or potentially misleading. Material changes to
any one of the exclusions could have a significant effect on our
guidance and future GAAP results.
*
|
See Use of Non-GAAP
Financial Measures below for definitions
|
(1)
|
This guidance includes
the capex* associated with the Gecko product launch in
2024
|
(2)
|
This guidance has been
calculated using the December 31, 2023 month end foreign currency
exchange rates. 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 5593330. 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. Akamai Connected Cloud, a
massively distributed edge and cloud platform, puts apps and
experiences closer to users and keeps threats farther away. Learn
more about Akamai's cloud computing, security, and content delivery
solutions at akamai.com and akamai.com/blog, or follow Akamai
Technologies on X, formerly known as Twitter, and LinkedIn.
AKAMAI TECHNOLOGIES,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands)
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
489,468
|
|
$
542,337
|
Marketable
securities
|
374,971
|
|
562,979
|
Accounts receivable,
net
|
724,302
|
|
679,206
|
Prepaid expenses and
other current assets
|
216,114
|
|
185,040
|
Total current
assets
|
1,804,855
|
|
1,969,562
|
Marketable
securities
|
1,431,354
|
|
320,531
|
Property and equipment,
net
|
1,825,944
|
|
1,540,182
|
Operating lease
right-of-use assets
|
908,634
|
|
813,372
|
Acquired intangible
assets, net
|
536,143
|
|
441,716
|
Goodwill
|
2,850,470
|
|
2,763,838
|
Deferred income tax
assets
|
418,297
|
|
337,677
|
Other assets
|
124,340
|
|
116,522
|
Total
assets
|
$ 9,900,037
|
|
$ 8,303,400
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
146,927
|
|
$
145,420
|
Accrued
expenses
|
352,181
|
|
367,017
|
Deferred
revenue
|
107,544
|
|
105,109
|
Operating lease
liabilities
|
222,944
|
|
196,094
|
Other current
liabilities
|
6,442
|
|
5,228
|
Total current
liabilities
|
836,038
|
|
818,868
|
Deferred
revenue
|
23,006
|
|
22,117
|
Deferred income tax
liabilities
|
24,622
|
|
18,400
|
Convertible senior
notes
|
3,538,229
|
|
2,285,258
|
Operating lease
liabilities
|
774,806
|
|
693,265
|
Other
liabilities
|
106,181
|
|
105,305
|
Total
liabilities
|
5,302,882
|
|
3,943,213
|
Total stockholders'
equity
|
4,597,155
|
|
4,360,187
|
Total liabilities and
stockholders' equity
|
$ 9,900,037
|
|
$ 8,303,400
|
AKAMAI TECHNOLOGIES,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in thousands,
except per share data)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Revenue
|
$
995,017
|
|
$
965,484
|
|
$
927,779
|
|
$ 3,811,920
|
|
$ 3,616,654
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue
(1) (2)
|
393,397
|
|
383,075
|
|
357,968
|
|
1,511,063
|
|
1,383,819
|
Research and
development (1)
|
109,202
|
|
105,942
|
|
105,382
|
|
406,048
|
|
391,434
|
Sales and marketing
(1)
|
135,256
|
|
132,309
|
|
129,090
|
|
533,226
|
|
502,409
|
General and
administrative (1) (2)
|
155,575
|
|
147,326
|
|
150,300
|
|
600,851
|
|
584,206
|
Amortization of
acquired intangible
assets
|
16,833
|
|
18,108
|
|
16,993
|
|
66,751
|
|
64,983
|
Restructuring
(benefit) charge
|
(32)
|
|
2,595
|
|
571
|
|
56,643
|
|
13,529
|
Total costs and
operating expenses
|
810,231
|
|
789,355
|
|
760,304
|
|
3,174,582
|
|
2,940,380
|
Income from
operations
|
184,786
|
|
176,129
|
|
167,475
|
|
637,338
|
|
676,274
|
Interest and
marketable securities
income, net
|
23,981
|
|
11,412
|
|
5,018
|
|
45,194
|
|
3,258
|
Interest
expense
|
(6,884)
|
|
(4,987)
|
|
(2,684)
|
|
(17,709)
|
|
(11,096)
|
Other expense,
net
|
(5,642)
|
|
(3,161)
|
|
(1,409)
|
|
(12,296)
|
|
(10,433)
|
Income before provision
for income taxes
|
196,241
|
|
179,393
|
|
168,400
|
|
652,527
|
|
658,003
|
Provision for income
taxes
|
(35,076)
|
|
(20,326)
|
|
(39,638)
|
|
(106,373)
|
|
(126,696)
|
Gain (loss) from
equity method
investment
|
—
|
|
1,475
|
|
—
|
|
1,475
|
|
(7,635)
|
Net income
|
$
161,165
|
|
$
160,542
|
|
$
128,762
|
|
$
547,629
|
|
$
523,672
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.07
|
|
$
1.06
|
|
$
0.82
|
|
$
3.59
|
|
$
3.29
|
Diluted
|
$
1.03
|
|
$
1.04
|
|
$
0.82
|
|
$
3.52
|
|
$
3.26
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
|
Basic
|
150,979
|
|
151,359
|
|
157,109
|
|
152,510
|
|
159,089
|
Diluted
|
157,024
|
|
154,976
|
|
157,451
|
|
155,397
|
|
160,467
|
|
(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
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
$
161,165
|
|
$
160,542
|
|
$
128,762
|
|
$
547,629
|
|
$
523,672
|
Adjustments to
reconcile net income to
net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
147,634
|
|
148,560
|
|
148,570
|
|
570,776
|
|
592,754
|
Stock-based
compensation
|
92,123
|
|
87,017
|
|
58,374
|
|
328,467
|
|
217,185
|
Benefit for deferred
income taxes
|
(13,224)
|
|
(10,172)
|
|
(22,368)
|
|
(22,987)
|
|
(104,971)
|
Amortization of debt
issuance costs
|
1,741
|
|
1,404
|
|
1,099
|
|
5,341
|
|
4,395
|
(Gain) loss on
investments
|
—
|
|
(110)
|
|
—
|
|
(311)
|
|
15,895
|
Other non-cash
reconciling items, net
|
5,019
|
|
6,548
|
|
5,969
|
|
50,221
|
|
31,063
|
Changes in operating
assets and
liabilities, net of effects of
acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(2,941)
|
|
(23,484)
|
|
(48,063)
|
|
(49,203)
|
|
(21,214)
|
Prepaid expenses and
other
current assets
|
(2,623)
|
|
1,994
|
|
22,746
|
|
(18,726)
|
|
(20,125)
|
Accounts payable and
accrued
expenses
|
20,345
|
|
23,615
|
|
38,228
|
|
(39,825)
|
|
(26,499)
|
Deferred
revenue
|
(24,098)
|
|
(12,905)
|
|
(6,790)
|
|
48
|
|
16,713
|
Other current
liabilities
|
(774)
|
|
(13,855)
|
|
(1,510)
|
|
1,516
|
|
(5,318)
|
Other non-current
assets and
liabilities
|
4,826
|
|
(9,718)
|
|
16,481
|
|
(24,507)
|
|
51,126
|
Net cash provided by
operating
activities
|
389,193
|
|
359,436
|
|
341,498
|
|
1,348,439
|
|
1,274,676
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Cash received (paid)
for business
acquisitions, net of cash acquired
|
—
|
|
155
|
|
—
|
|
(106,171)
|
|
(872,091)
|
Cash paid for asset
acquisitions
|
(84,637)
|
|
(36,348)
|
|
—
|
|
(120,985)
|
|
—
|
Purchases of property
and equipment
and capitalization of internal-use
software development costs
|
(133,887)
|
|
(197,619)
|
|
(110,788)
|
|
(730,040)
|
|
(458,302)
|
Purchases of short-
and long-term
marketable securities
|
(277,053)
|
|
(1,050,016)
|
|
(17,975)
|
|
(1,461,890)
|
|
(17,975)
|
Proceeds from sales,
maturities and
redemptions of short- and long-term
marketable securities
|
178,382
|
|
106,330
|
|
36,225
|
|
576,917
|
|
732,180
|
Other, net
|
1,362
|
|
13,335
|
|
(2,119)
|
|
(6,069)
|
|
(6,122)
|
Net cash used in
investing
activities
|
(315,833)
|
|
(1,164,163)
|
|
(94,657)
|
|
(1,848,238)
|
|
(622,310)
|
AKAMAI TECHNOLOGIES,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS,
continued
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings under
revolving credit facility
|
—
|
|
—
|
|
—
|
|
90,000
|
|
125,000
|
Repayment of
borrowings under
revolving credit facility
|
—
|
|
(20,000)
|
|
—
|
|
(90,000)
|
|
(125,000)
|
Proceeds from the
issuance of
convertible senior notes, net of issuance
costs
|
—
|
|
1,247,388
|
|
—
|
|
1,247,388
|
|
—
|
Proceeds from the
issuance of warrants
related to convertible senior notes
|
—
|
|
90,195
|
|
—
|
|
90,195
|
|
—
|
Purchases of note
hedges related to
convertible senior notes
|
—
|
|
(236,555)
|
|
—
|
|
(236,555)
|
|
—
|
Proceeds from the
issuance of common
stock under stock plans
|
13,426
|
|
18,222
|
|
10,473
|
|
62,979
|
|
56,462
|
Employee taxes paid
related to net
share settlement of stock awards
|
(15,312)
|
|
(11,304)
|
|
(10,580)
|
|
(66,222)
|
|
(82,236)
|
Repurchases of common
stock
|
(54,891)
|
|
(113,197)
|
|
(177,741)
|
|
(654,046)
|
|
(608,010)
|
Other, net
|
—
|
|
(104)
|
|
(112)
|
|
(360)
|
|
(393)
|
Net cash (used in)
provided by
financing activities
|
(56,777)
|
|
974,645
|
|
(177,960)
|
|
443,379
|
|
(634,177)
|
Effects of exchange
rate changes on cash,
cash equivalents and restricted cash
|
11,597
|
|
(7,019)
|
|
14,319
|
|
3,868
|
|
(12,918)
|
Net increase (decrease)
in cash, cash
equivalents and restricted cash
|
28,180
|
|
162,899
|
|
83,200
|
|
(52,552)
|
|
5,271
|
Cash, cash equivalents
and restricted cash
at beginning of period
|
462,290
|
|
299,391
|
|
459,822
|
|
543,022
|
|
537,751
|
Cash, cash equivalents
and restricted cash
at end of period
|
$
490,470
|
|
$
462,290
|
|
$
543,022
|
|
$
490,470
|
|
$
543,022
|
AKAMAI TECHNOLOGIES,
INC. SUPPLEMENTAL REVENUE DATA – REVENUE BY
SOLUTION
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Security
|
$ 470,977
|
|
$ 455,792
|
|
$ 400,201
|
|
$
1,765,267
|
|
$
1,541,941
|
Delivery
|
389,048
|
|
379,304
|
|
415,183
|
|
1,542,434
|
|
1,669,257
|
Compute
|
134,992
|
|
130,388
|
|
112,395
|
|
504,219
|
|
405,456
|
Total
revenue
|
$ 995,017
|
|
$ 965,484
|
|
$ 927,779
|
|
$
3,811,920
|
|
$
3,616,654
|
Revenue growth rates
year-over-year:
|
|
|
|
|
|
|
|
|
|
Security
|
18 %
|
|
20 %
|
|
10 %
|
|
14 %
|
|
16 %
|
Delivery
|
(6)
|
|
(4)
|
|
(12)
|
|
(8)
|
|
(11)
|
Compute
|
20
|
|
19
|
|
61
|
|
24
|
|
60
|
Total
revenue
|
7 %
|
|
9 %
|
|
2 %
|
|
5 %
|
|
4 %
|
Revenue growth rates
year-over-year,
adjusted for the impact of foreign
exchange rates (1):
|
|
|
|
|
|
|
|
|
|
Security
|
17 %
|
|
19 %
|
|
14 %
|
|
15 %
|
|
20 %
|
Delivery
|
(7)
|
|
(4)
|
|
(8)
|
|
(7)
|
|
(8)
|
Compute
|
20
|
|
19
|
|
65
|
|
25
|
|
64
|
Total
revenue
|
7 %
|
|
9 %
|
|
6 %
|
|
6 %
|
|
8 %
|
AKAMAI TECHNOLOGIES,
INC. SUPPLEMENTAL REVENUE DATA – REVENUE BY
GEOGRAPHY
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
U.S.
|
$ 516,348
|
|
$ 498,536
|
|
$ 482,803
|
|
$
1,968,779
|
|
$
1,902,051
|
International
|
478,669
|
|
466,948
|
|
444,976
|
|
1,843,141
|
|
1,714,603
|
Total
revenue
|
$ 995,017
|
|
$ 965,484
|
|
$ 927,779
|
|
$
3,811,920
|
|
$
3,616,654
|
Revenue growth rates
year-over-year:
|
|
|
|
|
|
|
|
|
|
U.S.
|
7 %
|
|
8 %
|
|
1 %
|
|
4 %
|
|
4 %
|
International
|
8
|
|
11
|
|
4
|
|
7
|
|
6
|
Total
revenue
|
7 %
|
|
9 %
|
|
2 %
|
|
5 %
|
|
4 %
|
Revenue growth rates
year-over-year,
adjusted for the impact of foreign
exchange rates (1):
|
|
|
|
|
|
|
|
|
|
U.S.
|
7 %
|
|
8 %
|
|
1 %
|
|
4 %
|
|
4 %
|
International
|
6
|
|
9
|
|
12
|
|
8
|
|
13
|
Total
revenue
|
7 %
|
|
9 %
|
|
6 %
|
|
6 %
|
|
8 %
|
|
(1) See Use of
Non-GAAP Financial Measures below for a definition
|
AKAMAI TECHNOLOGIES,
INC. SUPPLEMENTAL OPERATING EXPENSE DATA
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
General and
administrative expenses:
|
|
|
|
|
|
|
|
|
|
Payroll and related
costs
|
$
53,735
|
|
$
55,030
|
|
$
53,769
|
|
$ 218,272
|
|
$ 213,772
|
Stock-based
compensation
|
25,902
|
|
25,125
|
|
16,210
|
|
94,316
|
|
62,926
|
Depreciation and
amortization
|
16,668
|
|
16,197
|
|
17,442
|
|
65,817
|
|
74,225
|
Facilities-related
costs
|
21,384
|
|
21,805
|
|
23,981
|
|
90,061
|
|
103,473
|
Provision (benefit) for
doubtful accounts
|
1,241
|
|
(1,500)
|
|
4,046
|
|
1,649
|
|
7,042
|
Acquisition-related
costs
|
360
|
|
1,716
|
|
2,767
|
|
8,050
|
|
19,071
|
Software and related
service costs
|
14,801
|
|
13,516
|
|
13,445
|
|
55,714
|
|
50,320
|
Other
expenses
|
21,484
|
|
15,437
|
|
18,640
|
|
66,972
|
|
53,377
|
Total general and
administrative
expenses
|
$ 155,575
|
|
$ 147,326
|
|
$ 150,300
|
|
$ 600,851
|
|
$ 584,206
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses–
functional (1):
|
|
|
|
|
|
|
|
|
|
Global
functions
|
$
66,558
|
|
$
61,187
|
|
$
56,545
|
|
$ 246,753
|
|
$ 212,674
|
As a percentage of
revenue
|
7 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
Infrastructure
|
87,416
|
|
85,923
|
|
86,942
|
|
344,399
|
|
345,391
|
As a percentage of
revenue
|
9 %
|
|
9 %
|
|
9 %
|
|
9 %
|
|
10 %
|
Other
|
1,601
|
|
216
|
|
6,813
|
|
9,699
|
|
26,141
|
Total general and
administrative
expenses
|
$ 155,575
|
|
$ 147,326
|
|
$ 150,300
|
|
$ 600,851
|
|
$ 584,206
|
As a percentage of
revenue
|
16 %
|
|
15 %
|
|
16 %
|
|
16 %
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
11,898
|
|
$
11,236
|
|
$
7,750
|
|
$
43,802
|
|
$
28,354
|
Research and
development
|
36,428
|
|
33,366
|
|
21,778
|
|
123,896
|
|
78,116
|
Sales and
marketing
|
17,895
|
|
17,290
|
|
12,636
|
|
66,453
|
|
47,789
|
General and
administrative
|
25,902
|
|
25,125
|
|
16,210
|
|
94,316
|
|
62,926
|
Total stock-based
compensation
|
$
92,123
|
|
$
87,017
|
|
$
58,374
|
|
$ 328,467
|
|
$ 217,185
|
|
|
(1)
|
Global functions
expense includes payroll, stock-based compensation and other
employee-related costs for administrative functions, including
finance, purchasing, order entry, human resources, legal,
information technology and executive personnel, as well as
third-party professional service fees. Infrastructure expense
includes payroll, stock-based compensation and other
employee-related costs for our network infrastructure functions, as
well as facility rent expense, depreciation and amortization of
facility and IT-related assets, software and related service costs,
business insurance and taxes. Our network infrastructure function
is responsible for network planning, sourcing, architecture
evaluation and platform security. Other expense includes
acquisition-related costs and provision (benefit) for doubtful
accounts.
|
AKAMAI TECHNOLOGIES,
INC. OTHER SUPPLEMENTAL DATA
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in thousands,
except end of period statistics)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
Network-related
depreciation
|
$
63,225
|
|
$
60,887
|
|
$
65,265
|
|
$ 231,500
|
|
$ 259,359
|
Capitalized
internal-use software
development amortization
|
43,919
|
|
45,030
|
|
41,816
|
|
176,675
|
|
165,330
|
Other depreciation and
amortization
|
16,170
|
|
15,709
|
|
16,974
|
|
63,860
|
|
72,220
|
Depreciation of
property and equipment
|
123,314
|
|
121,626
|
|
124,055
|
|
472,035
|
|
496,909
|
Capitalized stock-based
compensation
amortization (1)
|
7,379
|
|
8,710
|
|
7,407
|
|
31,548
|
|
30,400
|
Capitalized interest
expense
amortization
(1)
|
108
|
|
116
|
|
115
|
|
442
|
|
462
|
Amortization of
acquired intangible assets
|
16,833
|
|
18,108
|
|
16,993
|
|
66,751
|
|
64,983
|
Total depreciation and
amortization
|
$ 147,634
|
|
$ 148,560
|
|
$ 148,570
|
|
$ 570,776
|
|
$ 592,754
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures, excluding stock-
based compensation and interest
expense (2) (3):
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
$
80,408
|
|
$
86,382
|
|
$
93,547
|
|
$ 459,167
|
|
$ 275,578
|
Capitalized
internal-use software
development costs
|
62,355
|
|
65,895
|
|
50,956
|
|
258,626
|
|
199,894
|
Total capital
expenditures, excluding
stock-based compensation and interest
expense
|
$ 142,763
|
|
$ 152,277
|
|
$ 144,503
|
|
$ 717,793
|
|
$ 475,472
|
Capex as a
percentage of revenue (3)
|
14 %
|
|
16 %
|
|
16 %
|
|
19 %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
End of period
statistics:
|
|
|
|
|
|
|
|
|
|
Number of
employees
|
10,281
|
|
10,111
|
|
9,811
|
|
|
|
|
|
|
(1)
|
Amortization of
capitalized stock-based compensation and interest expense in this
table excludes amortization of capitalized stock-based compensation
and interest expense capitalized as part of the implementation of
cloud-computing arrangements and contract fulfillment costs.
However, the amounts are included in our total amortization of
capitalized stock-based compensation and interest expense that is
excluded from our non-GAAP measures (see reconciliations of GAAP to
non-GAAP measures).
|
(2)
|
Capital expenditures
presented in this table are reported on an accrual basis, which
differs from the cash-basis presentation in the statements of cash
flows. The primary difference between the two is the change in
purchases of property and equipment and capitalization of
internal-use software development costs accrued for, but not paid,
at period end versus prior periods.
|
(3)
|
See Use of Non-GAAP
Financial Measures below for a definition.
|
AKAMAI TECHNOLOGIES,
INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM
OPERATIONS, NET INCOME AND TAX RATE
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Income from
operations
|
$ 184,786
|
|
$ 176,129
|
|
$ 167,475
|
|
$ 637,338
|
|
$ 676,274
|
GAAP operating
margin
|
19 %
|
|
18 %
|
|
18 %
|
|
17 %
|
|
19 %
|
Amortization of
acquired intangible
assets
|
16,833
|
|
18,108
|
|
16,993
|
|
66,751
|
|
64,983
|
Stock-based
compensation
|
92,123
|
|
87,017
|
|
58,374
|
|
328,467
|
|
217,185
|
Amortization of
capitalized stock-based
compensation and capitalized interest
expense
|
7,774
|
|
9,077
|
|
7,786
|
|
32,981
|
|
31,768
|
Restructuring
(benefit) charge
|
(32)
|
|
2,595
|
|
571
|
|
56,643
|
|
13,529
|
Acquisition-related
costs
|
1,189
|
|
3,048
|
|
6,439
|
|
13,345
|
|
29,049
|
Operating
adjustments
|
117,887
|
|
119,845
|
|
90,163
|
|
498,187
|
|
356,514
|
Non-GAAP income from
operations
|
$ 302,673
|
|
$ 295,974
|
|
$ 257,638
|
|
$
1,135,525
|
|
$
1,032,788
|
Non-GAAP operating
margin
|
30 %
|
|
31 %
|
|
28 %
|
|
30 %
|
|
29 %
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 161,165
|
|
$ 160,542
|
|
$ 128,762
|
|
$ 547,629
|
|
$ 523,672
|
Operating adjustments
(from above)
|
117,887
|
|
119,845
|
|
90,163
|
|
498,187
|
|
356,514
|
Amortization of debt
issuance costs
|
1,741
|
|
1,404
|
|
1,099
|
|
5,341
|
|
4,395
|
(Gain) loss on
investments
|
—
|
|
(110)
|
|
—
|
|
(311)
|
|
8,260
|
(Gain) loss from
equity method
investment
|
—
|
|
(1,475)
|
|
—
|
|
(1,475)
|
|
7,635
|
Income tax effect of
above non-GAAP
adjustments and certain discrete tax
items
|
(18,162)
|
|
(29,135)
|
|
(3,579)
|
|
(89,364)
|
|
(42,768)
|
Non-GAAP net
income
|
$ 262,631
|
|
$ 251,071
|
|
$ 216,445
|
|
$ 960,007
|
|
$ 857,708
|
|
|
|
|
|
|
|
|
|
|
GAAP tax
rate
|
18 %
|
|
11 %
|
|
24 %
|
|
16 %
|
|
19 %
|
Income tax effect of
non-GAAP
adjustments and certain discrete tax
items
|
(1)
|
|
5
|
|
(7)
|
|
1
|
|
(3)
|
Non-GAAP tax
rate
|
17 %
|
|
16 %
|
|
17 %
|
|
17 %
|
|
16 %
|
AKAMAI TECHNOLOGIES,
INC. RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER
DILUTED SHARE
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in thousands,
except per share data)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
GAAP net income per
diluted share
|
$
1.03
|
|
$
1.04
|
|
$
0.82
|
|
$
3.52
|
|
$
3.26
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangible
assets
|
0.11
|
|
0.12
|
|
0.11
|
|
0.43
|
|
0.40
|
Stock-based
compensation
|
0.59
|
|
0.56
|
|
0.37
|
|
2.11
|
|
1.35
|
Amortization of
capitalized stock-based
compensation and capitalized interest
expense
|
0.05
|
|
0.06
|
|
0.05
|
|
0.21
|
|
0.20
|
Restructuring
(benefit) charge
|
—
|
|
0.02
|
|
—
|
|
0.36
|
|
0.08
|
Acquisition-related
costs
|
0.01
|
|
0.02
|
|
0.04
|
|
0.09
|
|
0.18
|
Amortization of debt
issuance costs
|
0.01
|
|
0.01
|
|
0.01
|
|
0.03
|
|
0.03
|
(Gain) loss on
investments
|
—
|
|
—
|
|
—
|
|
—
|
|
0.05
|
(Gain) loss from
equity method
investment
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
|
0.05
|
Income tax effect of
above non-GAAP
adjustments and certain discrete tax
items
|
(0.12)
|
|
(0.19)
|
|
(0.02)
|
|
(0.58)
|
|
(0.27)
|
Adjustment for shares
(1)
|
0.02
|
|
0.01
|
|
—
|
|
0.02
|
|
0.02
|
Non-GAAP net income per
diluted share
|
$
1.69
|
|
$
1.63
|
|
$
1.37
|
|
$
6.20
|
|
$
5.37
|
|
|
|
|
|
|
|
|
|
|
Shares used in GAAP per
diluted share
calculations
|
157,024
|
|
154,976
|
|
157,451
|
|
155,397
|
|
160,467
|
Impact of benefit from
note hedge
transactions (1)
|
(1,755)
|
|
(544)
|
|
—
|
|
(574)
|
|
(720)
|
Shares used in non-GAAP
per diluted
share calculations (1)
|
155,269
|
|
154,432
|
|
157,451
|
|
154,823
|
|
159,747
|
|
|
(1)
|
Shares used in non-GAAP
per diluted share calculations have been adjusted for the three
months ended December 31, 2023 and September 30, 2023 and for the
years ended December 31, 2023 and 2022 for the benefit of Akamai's
note hedge transactions. During these periods, Akamai's average
stock price was in excess of $95.10, which is the initial
conversion price of Akamai's convertible senior notes due in 2025.
See Use of Non-GAAP Financial Measures below for further
definition.
|
AKAMAI TECHNOLOGIES,
INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA
|
|
|
Three Months
Ended
|
|
Year Ended
|
(in
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Net income
|
$ 161,165
|
|
$ 160,542
|
|
$ 128,762
|
|
$ 547,629
|
|
$ 523,672
|
Net income
margin
|
16 %
|
|
17 %
|
|
14 %
|
|
14 %
|
|
14 %
|
Interest and
marketable securities
income, net
|
(23,981)
|
|
(11,412)
|
|
(5,018)
|
|
(45,194)
|
|
(3,258)
|
Provision for income
taxes
|
35,076
|
|
20,326
|
|
39,638
|
|
106,373
|
|
126,696
|
Depreciation and
amortization
|
123,314
|
|
121,626
|
|
124,055
|
|
472,035
|
|
496,909
|
Amortization of
capitalized stock-based
compensation and capitalized interest
expense
|
7,774
|
|
9,077
|
|
7,786
|
|
32,981
|
|
31,768
|
Amortization of
acquired intangible
assets
|
16,833
|
|
18,108
|
|
16,993
|
|
66,751
|
|
64,983
|
Stock-based
compensation
|
92,123
|
|
87,017
|
|
58,374
|
|
328,467
|
|
217,185
|
Restructuring
(benefit) charge
|
(32)
|
|
2,595
|
|
571
|
|
56,643
|
|
13,529
|
Acquisition-related
costs
|
1,189
|
|
3,048
|
|
6,439
|
|
13,345
|
|
29,049
|
Interest
expense
|
6,884
|
|
4,987
|
|
2,684
|
|
17,709
|
|
11,096
|
(Gain) loss on
investments
|
—
|
|
(110)
|
|
—
|
|
(311)
|
|
8,260
|
(Gain) loss from
equity method
investment
|
—
|
|
(1,475)
|
|
—
|
|
(1,475)
|
|
7,635
|
Other expense,
net
|
5,642
|
|
3,271
|
|
1,409
|
|
12,607
|
|
2,173
|
Adjusted
EBITDA
|
$ 425,987
|
|
$ 417,600
|
|
$ 381,693
|
|
$
1,607,560
|
|
$
1,529,697
|
Adjusted EBITDA
margin
|
43 %
|
|
43 %
|
|
41 %
|
|
42 %
|
|
42 %
|
Use of Non-GAAP Financial Measures
In addition to providing financial measurements based on
generally accepted accounting principles in the United States of America (GAAP), Akamai
provides additional financial metrics that are not prepared in
accordance with GAAP (non-GAAP financial measures). Management uses
non-GAAP financial measures, in addition to GAAP financial
measures, to understand and compare operating results across
accounting periods, for financial and operational decision making,
for planning and forecasting purposes, to measure executive
compensation and to evaluate Akamai's financial performance. These
non-GAAP financial measures are non-GAAP income from operations,
non-GAAP operating margin, non-GAAP net income, non-GAAP net income
per diluted share, Adjusted EBITDA, Adjusted EBITDA margin,
non-GAAP tax rate, capital expenditures and impact of foreign
currency exchange rates, as discussed below.
Management believes that these non-GAAP financial measures
reflect Akamai's ongoing business in a manner that allows for
meaningful comparisons and analysis of trends in the business, as
they facilitate comparison of financial results across accounting
periods and to those of our peer companies. Management also
believes that these non-GAAP financial measures enable investors to
evaluate Akamai's operating results and future prospects in the
same manner as management. These non-GAAP financial measures may
exclude expenses and gains that may be unusual in nature,
infrequent or not reflective of Akamai's ongoing operating
results.
The non-GAAP financial measures do not replace the presentation
of Akamai's GAAP financial measures and should only be used as a
supplement to, not as a substitute for, Akamai's financial results
presented in accordance with GAAP. Akamai has provided a
reconciliation of each non-GAAP financial measure used in its
financial reporting and investor presentations to the most directly
comparable GAAP financial measure. This reconciliation captioned
"Reconciliation of GAAP to Non-GAAP Financial Measures" can be
found on the Investor Relations section of Akamai's website.
The non-GAAP adjustments, and Akamai's basis for excluding them
from non-GAAP financial measures, are outlined below:
- Amortization of acquired intangible assets – Akamai has
incurred amortization of intangible assets, included in its GAAP
financial statements, related to various acquisitions Akamai has
made. The amount of an acquisition's purchase price allocated to
intangible assets and term of its related amortization can vary
significantly and is unique to each acquisition; therefore, Akamai
excludes amortization of acquired intangible assets from its
non-GAAP financial measures to provide investors with a consistent
basis for comparing pre- and post-acquisition operating
results.
- Stock-based compensation and amortization of capitalized
stock-based compensation – Although stock-based compensation is
an important aspect of the compensation paid to Akamai's employees,
the grant date fair value varies based on the stock price at the
time of grant, varying valuation methodologies, subjective
assumptions and the variety of award types. This makes the
comparison of Akamai's current financial results to previous and
future periods difficult to interpret; therefore, Akamai believes
it is useful to exclude stock-based compensation and amortization
of capitalized stock-based compensation from its non-GAAP financial
measures in order to highlight the performance of Akamai's core
business and to be consistent with the way many investors evaluate
its performance and compare its operating results to peer
companies.
- Acquisition-related costs – Acquisition-related costs
include transaction fees, advisory fees, due diligence costs and
other direct costs associated with strategic activities, as well as
certain additional compensation costs payable to employees acquired
from the Linode acquisition if employed for a certain period of
time. The additional compensation cost was initiated by and
determined by the seller, and is in addition to normal levels of
compensation, including retention programs, offered by Akamai.
Acquisition-related costs are impacted by the timing and size of
the acquisitions, and Akamai excludes acquisition-related costs
from its non-GAAP financial measures to provide a useful comparison
of operating results to prior periods and to peer companies because
such amounts vary significantly based on the magnitude of the
acquisition transactions and do not reflect Akamai's core
operations.
- Restructuring charge – Akamai has incurred restructuring
charges from programs that have significantly changed either the
scope of the business undertaken by the Company or the manner in
which that business is conducted. These charges include severance
and related expenses for workforce reductions, impairments of
long-lived assets that will no longer be used in operations
(including right-of-use assets, other facility-related property and
equipment and internal-use software) and termination fees for any
contracts cancelled as part of these programs. Akamai excludes
these items from its non-GAAP financial measures when evaluating
its continuing business performance as such items vary
significantly based on the magnitude of the restructuring action
and do not reflect expected future operating expenses. In addition,
these charges do not necessarily provide meaningful insight into
the fundamentals of current or past operations of its
business.
- Amortization of debt issuance costs and capitalized interest
expense – Akamai has convertible senior notes outstanding that
mature in 2029, 2027 and 2025. The issuance costs of the
convertible senior notes are amortized to interest expense and are
excluded from Akamai's non-GAAP results because management believes
the non-cash amortization expense is not representative of ongoing
operating performance.
- Gains and losses on investments – Akamai has recorded
gains and losses from the disposition, changes to fair value and
impairment of certain investments. Akamai believes excluding these
amounts from its non-GAAP financial measures is useful to investors
as the types of events giving rise to these gains and losses are
not representative of Akamai's core business operations and ongoing
operating performance.
- Gains and losses from equity method investment – Akamai
records income or losses on its share of earnings and losses from
its equity method investment, and any gains from returns of
investments or impairments. Akamai excludes such income and losses
because it does not have direct control over the operations of the
investment and the related income and losses are not representative
of its core business operations.
- Income tax effect of non-GAAP adjustments and certain
discrete tax items – The non-GAAP adjustments described above
are reported on a pre-tax basis. The income tax effect of non-GAAP
adjustments is the difference between GAAP and non-GAAP income tax
expense. Non-GAAP income tax expense is computed on non-GAAP
pre-tax income (GAAP pre-tax income adjusted for non-GAAP
adjustments) and excludes certain discrete tax items (such as the
impact of intercompany sales of intellectual property related to
acquisitions), if any. Akamai believes that applying the non-GAAP
adjustments and their related income tax effect allows Akamai to
highlight income attributable to its core operations.
Akamai's definitions of its non-GAAP financial measures are
outlined below:
Non-GAAP income from operations – GAAP income from
operations adjusted for the following items: amortization of
acquired intangible assets; stock-based compensation; amortization
of capitalized stock-based compensation; amortization of
capitalized interest expense; acquisition-related costs;
restructuring charges; and other non-recurring or unusual items
that may arise from time to time.
Non-GAAP operating margin – Non-GAAP income from
operations stated as a percentage of revenue.
Non-GAAP net income – GAAP net income adjusted for
the following tax-affected items: amortization of acquired
intangible assets; stock-based compensation; amortization of
capitalized stock-based compensation; acquisition-related costs;
restructuring charges; amortization of debt issuance costs;
amortization of capitalized interest expense; certain gains and
losses on investments; gains and losses from equity method
investment; and other non-recurring or unusual items that may arise
from time to time.
Non-GAAP tax rate – GAAP tax rate excluding the tax
effect of non-GAAP adjustments and certain discrete tax items.
Non-GAAP net income per diluted share, or EPS –
Non-GAAP net income divided by weighted average diluted common
shares outstanding. Diluted weighted average common shares
outstanding are adjusted in non-GAAP per share calculations for the
shares that would be delivered to Akamai pursuant to the note hedge
transactions entered into in connection with the issuances of
$1,265 million of convertible senior
notes due 2029 and the issuances of $1,150
million of convertible senior notes due 2027 and 2025,
respectively. Under GAAP, shares delivered under hedge transactions
are not considered offsetting shares in the fully-diluted share
calculation until they are delivered. However, Akamai would receive
a benefit from the note hedge transactions and would not allow the
dilution to occur, so management believes that adjusting for this
benefit provides a meaningful view of operating performance. With
respect to the convertible senior notes due in each of 2029, 2027
and 2025, unless Akamai's weighted average stock price is greater
than $126.31, $116.18 and $95.10,
respectively, the initial conversion prices, there will be no
difference between GAAP and non-GAAP diluted weighted average
common shares outstanding.
Adjusted EBITDA – GAAP net income excluding the following
items: interest and marketable securities income and losses; income
taxes; depreciation and amortization of tangible and intangible
assets; stock-based compensation; amortization of capitalized
stock-based compensation; acquisition-related costs; restructuring
charges; foreign exchange gains and losses; interest expense;
amortization of capitalized interest expense; certain gains and
losses on investments; gains and losses from equity method
investment; and other non-recurring or unusual items that may arise
from time to time.
Adjusted EBITDA margin – Adjusted EBITDA stated as a
percentage of revenue.
Capital expenditures, or capex, excluding stock-based
compensation and interest expense – Purchases of property and
equipment and capitalization of internal-use software development
costs presented on an accrual basis, which differs from the
cash-basis presentation included in the statements of cash flows.
The primary difference between the two is the change in purchases
of property and equipment and capitalization of internal-use
software development costs accrued for, but not paid, at period end
versus prior periods.
Capex as a percentage of revenue – Capital
expenditures, or capex, excluding stock-based compensation and
interest expense, stated as a percentage of revenue.
Impact of foreign currency exchange rate – Revenue
and earnings from international operations have historically been
important contributors to Akamai's financial results. Consequently,
Akamai's financial results have been impacted, and management
expects they will continue to be impacted, by fluctuations in
foreign currency exchange rates. For example, when the local
currencies of our international subsidiaries weaken, our
consolidated results stated in U.S. dollars are negatively
impacted.
Because exchange rates are a meaningful factor in understanding
period-to-period comparisons, management believes the presentation
of the impact of foreign currency exchange rates on revenue and
earnings enhances the understanding of our financial results and
evaluation of performance in comparison to prior periods.
The dollar impact of changes in foreign currency exchange rates
presented is calculated by translating current period results using
monthly average foreign currency exchange rates from the
comparative period and comparing them to the reported amount. The
percentage change at constant currency presented is calculated by
comparing the prior period amounts as reported and the current
period amounts translated using the same monthly average foreign
currency exchange rates from the comparative period.
The financial guidance for the year ended December 31, 2024 is calculated by comparing the
forecasted amounts translated using the December 31, 2023 month end foreign currency
exchange rates. The forecasted growth rates are calculated based
upon the year ended December 31, 2023
as reported results.
Akamai Statement Under the Private Securities Litigation
Reform Act
This release and/or our quarterly earnings
conference call scheduled for later today contain statements that
are not statements of historical fact and constitute
forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995, including, but not limited to, statements about expected
future financial performance, expectations, plans and prospects of
Akamai. Actual results may differ materially from those indicated
by these forward-looking statements as a result of various
important factors including, but not limited to, inability to
continue to generate cash at the same level as prior years; failure
of our investments in innovation to generate solutions that are
accepted in the market; inability to increase our revenue at the
same rate as in the past and keep our expenses from increasing at a
greater rate than our revenues; effects of competition, including
pricing pressure and changing business models; impact of
macroeconomic trends, including economic uncertainty, turmoil in
the financial services industry, the effects of inflation, rising
and fluctuating interest rates, foreign currency exchange rate
fluctuations, securities market volatility and monetary supply
fluctuations; conditions and uncertainties in the geopolitical
environment, including sanctions and disruptions resulting from the
ongoing war in Ukraine; continuing
supply chain and logistics costs, constraints, changes or
disruptions; defects or disruptions in our products or IT systems,
including cyber-attacks, data breaches or malware; failure to
realize the expected benefits of any of our acquisitions or
reorganizations; changes to economic, political and regulatory
conditions in the United States
and internationally; our ability to attract and retain key
personnel; impact of the COVID-19 pandemic; delay in developing or
failure to develop new service offerings or functionalities, and if
developed, lack of market acceptance of such service offerings and
functionalities or failure of such solutions to operate as
expected, and other factors that are discussed in our Annual Report
on Form 10-K, quarterly reports on Form 10-Q, and other documents
filed with the SEC.
In addition, the statements in this press release and on our
quarterly earnings conference call represent Akamai's expectations
and beliefs as of the date of this press release. Akamai
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. However, while Akamai may elect
to update these forward-looking statements at some point in the
future, it specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Akamai's expectations or beliefs as of any date
subsequent to the date of this press release.
Contacts:
|
Gina Sorice
|
|
Tom Barth
|
Media
Relations
|
|
Investor
Relations
|
Akamai
Technologies
|
|
Akamai
Technologies
|
646-320-4107
|
|
617-274-7130
|
gsorice@akamai.com
|
|
tbarth@akamai.com
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/akamai-reports-fourth-quarter-2023-and-full-year-2023-financial-results-302061095.html
SOURCE Akamai Technologies, Inc.