Akamai's Q1 2025 Earnings Call: Unraveling Contradictions in Compute Growth, AI Impact, and Security Revenue

Compute growth, AI and compute growth, security revenue and performance, compute growth and market position, and growth drivers and market conditions are the key contradictions discussed in Akamai Technologies' latest 2025Q1 earnings call.



Revenue and Earnings Growth:
- Akamai reported revenue of $1.015 billion for Q1 2025, up 3% year-over-year (YoY) and 4% in constant currency.
- The growth was driven by strong performance in security and compute segments, which accounted for 69% of total revenue, growing 10% year-over-year.

Security Segment Growth:
- Security revenue reached $531 million, growing 8% year-over-year (YoY) and 10% in constant currency.
- Growth was driven by demand for products like Guardicore segmentation and API security solutions, with particularly strong interest in Akamai's firewall for AI, launched at RSA.

Delivery Segment Performance:
- Despite a 9% decline in delivery revenue to $319 million, there were signs of improvement with certain subVerticals showing strong traffic growth.
- The improvement was attributed to better-than-expected performance in enterprise web apps and live events, supported by new customer acquisitions from Edgio.

Compute Segment Growth:
- Compute revenue grew to $165 million, up 14% year-over-year (YoY) and 15% in constant currency.
- The growth was driven by increased adoption of cloud infrastructure services, with new capabilities and partnerships enhancing the compute product suite.