Akamai Technologies's gross profit for the
three
months ended in Dec. 2023 was $602 Mil. Akamai Technologies's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $2,301 Mil.
Akamai Technologies had a gross margin of 60.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Akamai Technologies was 68.89%. The lowest was 60.36%. And the median was 64.84%.
Warning Sign:
Akamai Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
Akamai Technologies Gross Profit Historical Data
The historical data trend for Akamai Technologies's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Akamai Technologies's Gross Profit
For the Software - Infrastructure subindustry, Akamai Technologies's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Akamai Technologies's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, Akamai Technologies's Gross Profit distribution charts can be found below:
* The bar in red indicates where Akamai Technologies's Gross Profit falls into.
Akamai Technologies Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Akamai Technologies's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,301 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Akamai Technologies had a gross margin of 60.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Akamai Technologies Gross Profit Related Terms
Thank you for viewing the detailed overview of Akamai Technologies's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Akamai Technologies (Akamai Technologies) Business Description
Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core delivery and computing businesses to protect customers from cyberthreats.
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