Q2 2024 Akamai Technologies Inc Earnings Call Transcript
Key Points
- Akamai Technologies Inc (AKAM) reported strong growth in its security portfolio, with revenue reaching $499 million in Q2, up 15% year-over-year.
- The company's compute revenue grew to $151 million, marking a 23% increase year-over-year, indicating strong early momentum in its cloud offerings.
- Akamai Technologies Inc (AKAM) achieved a non-GAAP operating margin of 29%, maintaining robust profitability.
- The company successfully integrated Noname Security, enhancing its API security solutions and expanding its market presence.
- Akamai Technologies Inc (AKAM) is experiencing strong customer interest in its new Akamai Guardicore platform, which offers a comprehensive zero trust security solution.
- Delivery revenue declined by 13% year-over-year, reflecting ongoing challenges in this segment due to macroeconomic and geopolitical headwinds.
- The company faces a challenging macroeconomic environment and geopolitical tensions, which could impact future business performance.
- Akamai Technologies Inc (AKAM) anticipates a modest uptick in traffic in Q3, but expects a more muted seasonal impact in Q4 compared to previous years.
- The integration of Noname Security is expected to be dilutive to non-GAAP EPS by approximately $0.04 to $0.05 for the full year 2024.
- Foreign exchange fluctuations had a negative impact on revenue, with a $10 million year-over-year impact.
Good day, and welcome to the second quarter 2024 Akamai Technology earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mark Stoutenberg, Head of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining Akamai's second quarter 2024 earnings call. Speaking today will be Tom Leighton, Akamai's Chief Executive Officer, and Ed McGowan, Akamai's Chief Financial Officer.
Please note that today's comments include forward-looking statements, including statements regarding revenue and earnings guidance. These forward-looking statements are subject to risks and uncertainties and involve a number of factors that could cause actual results to differ materially from those expressed or implied by such statements. The factors include any impact from macro-economic trends, the integration of any acquisition, and any impact from geopolitical
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