What drove AKAM's earnings growth in 2024?
4/3/2025 11:32am
Akamai Technologies' earnings growth in 2024 was driven by several key factors:
1. **Revenue Growth**: The company's total revenue grew by 0.05% to $3.99 billion. This steady increase in revenue contributes to the overall earnings growth.
2. **Business Segment Performance**: Akamai's security and cloud computing solutions, which now represent approximately two-thirds of its total business, have been key drivers of performance. These segments are likely contributing to the company's earnings growth due to their growing significance in the company's revenue mix.
3. **Strategic Acquisitions**: The planned acquisition of Noname Security is expected to further enhance Akamai's capabilities in API security, addressing growing customer demands. Such strategic moves can bolster the company's market position and contribute to earnings growth by expanding its service offerings and customer base.
In summary, Akamai's earnings growth in 2024 was primarily driven by revenue growth, particularly in its security and cloud computing segments, and strategic acquisitions that positioned the company for future growth.