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- **CIS Explosion**: 39% YoY growth to $81M, with hyperscalers and enterprise customers signing multiyear deals. 2025 ARR growth 40%-45%.
- **AI Edge Leader**: Akamai Inference Cloud launched with 17 locations, targeting $50M+ deals with hyperscalers for low-latency AI inference.
- **Security Dominance**: API Security on track for $100M run rate, Zero Trust up 35% YoY. 74% of customers use both security & delivery services.
- **Q4 Guidance**: Revenue $1.065B-$1.085B, EPS $1.65-$1.85. CapEx $171M-$181M for AI expansion.

**【CEO Summary Section】**
- **Q3 Revenue Growth**: $1.055 billion, up 5% YoY (4% in constant currency), driven by 39% YoY growth in Cloud Infrastructure Services (CIS) to $81 million.
- **Akamai Inference Cloud Launch**: 17 global locations with partnerships like NVIDIA, targeting low-latency AI inference at the edge. Early wins include a European sports tech company and a media giant.
- **Security Momentum**: High-growth security products (API & Zero Trust) grew 35% YoY to $77 million, with API Security on track for $100 million run rate by year-end.
- **Hyperscaler Expansion**: All three major cloud providers now use Akamai's distributed compute, with one signing a multiyear renewal for managed container services.

**【CFO Financial Commentary】**
- **Q3 Financial Highlights**: Non-GAAP EPS of $1.86 (17% YoY), GAAP net income $269 million. Compute revenue ($180M) up 8% YoY, Security ($568M) up 10% YoY.
- **Q4 Guidance**: Revenue $1.065B-$1.085B (4%-6% YoY), non-GAAP EPS $1.65-$1.85. CapEx $171M-$181M (16% of revenue) for AI Inference Cloud expansion.
- **Full Year 2025**: Revenue +4% to +5% (constant currency), non-GAAP EPS $6.93-$7.13.

**【Q&A Highlights】**
- **CIS Growth**: Accelerating to 40%-45% ARR growth in 2025, with multi-million dollar deals from hyperscalers and enterprise customers.
- **Inference Cloud Demand**: Early pipeline shows $50M-$100M+ deals, with CapEx tightly aligned to customer demand. Margins expected to improve as scale builds.
- **Security Synergy**: API Security and AI Firewall adoption accelerating, with 74% of customers using both security and delivery services.
- **Delivery Stabilization**: Q3 down 4% YoY but better than expected, with stabilization driven by media traffic and pricing discipline.

Akamai Technologies, Inc. (AKAM) Q3 2025 Earnings Call Transcript

- **CIS Growth Acceleration**: CIS revenue up 30% YoY to $71M, with 40-45% ARR growth expected by year-end.
- **AI Innovation**: AI Gateway optimizes edge AI performance, while AI Firewall protects against prompt injection attacks.
- **Security Strength**: API security and Zero Trust solutions grow 48% YoY, driving $67M in Q2 revenue.
- **Financial Confidence**: 2025 guidance of $4.135-4.205B revenue and $6.60-6.80 EPS reflects strong execution and pipeline visibility.
- **Delivery Recovery**: Sequential traffic growth in Q1/Q2 signals stabilization of the CDN market post-competitor exits.

**【CEO Summary Section】**
- Q2 revenue reached $1.043 billion, up 7% YoY, driven by 30% YoY growth in Cloud Infrastructure Services (CIS) to $71 million.
- Introduced AI Gateway solution to optimize AI application performance, security, and cost efficiency at the edge.
- Secured major contracts including a $16 million 3-year renewal with a leading AI company and a $28 million 2-year deal with a travel firm.
- Security revenue grew 11% YoY, with API security and Zero Trust solutions up 48% YoY, reflecting strong demand for enterprise-grade protection against ransomware and AI-based attacks.

**【CFO Financial Commentary】**
- Non-GAAP EPS of $1.73 exceeded guidance by $0.15, driven by higher-than-expected revenue and lower bandwidth costs.
- Compute revenue grew 13% YoY to $171 million, with CIS ARR expected to expand 40-45% YoY by year-end.
- Security revenue reached $552 million, up 11% YoY, with API security and Zero Trust solutions contributing $67 million (48% YoY growth).
- Q3 guidance: $1.035-1.050 billion revenue, 29% non-GAAP operating margin, and $6.60-6.80 EPS for 2025.

**【Q&A Highlights】**
- **Compute Growth**: CIS contracts signed this year will drive accelerated revenue in H2, with 40-45% ARR growth by year-end. Delays in customer application migration could modestly impact 2025 compute growth.
- **Delivery Recovery**: Sequential traffic growth in Q1 and Q2 reflects improved industry trends, with video and software download traffic leading the rebound.
- **Edgio Impact**: Edgio acquisition contributed to delivery recovery, with seamless traffic migration and potential upsell opportunities.
- **Security Momentum**: API security and Zero Trust solutions are key growth drivers, with 30-35% ARR growth expected in 2025.
- **AI Security**: New AI Firewall solution addresses prompt injection attacks and model compromise, with early customer interest.


Akamai Technologies, Inc. (AKAM) Q2 2025 Earnings Call Transcript

- **Revenue Beat**: Q1 revenue $1.015B (+3% YoY), Non-GAAP EPS $1.07 (+6% in CC), driven by security (10% YoY) and compute (14% YoY).
- **AI Security Breakthrough**: Firewall for AI protects against GenAI threats, winning early customer praise. Akamai named Gartner Emerging Leader for GenAI infrastructure.
- **Delivery Recovery**: Traffic growth in video, gaming, and commerce. Q1 delivery revenue up 1% in CC, with cautious optimism on stabilization.
- **Compute Growth**: Cloud infrastructure ARR to grow 40-45%, offsetting legacy compute decline. Edge AI solutions deliver 30% faster response times vs hyperscalers.
- **Guidance 2025**: Revenue $4.05-4.2B (1-5% YoY), security +10%, compute +15%. Watch for tariff ($10M/yr) and U.S. federal sector risks ($2-4M H2 impact).

**【CEO Summary Section】**
- **Revenue Growth**: Q1 revenue reached $1.015 billion, up 3% YoY (4% in constant currency), driven by strong performance in security and compute. Non-GAAP EPS was $1.07, exceeding the high end of guidance by 6% in constant currency.
- **Security Highlights**: Security and compute combined for 69% of total revenue, growing 10% YoY. Guardicore segmentation solution saw competitive takeaways at major banks and government agencies. API security solution won a global Infosec Award, with contracts signed with leading fintech, banks, and retailers.
- **AI Firewall Innovation**: Introduced Firewall for AI to protect against GenAI threats, generating strong interest from financial services firms. Akamai was named a Gartner Emerging Leader for GenAI infrastructure.
- **Delivery Recovery**: Delivery revenue exceeded expectations, with improved traffic growth across video, gaming, and software downloads. Encouraging trends suggest potential stabilization, though cautious on declaring a bottom.
- **Compute Momentum**: Compute revenue grew 14% YoY, with Akamai Cloud Inference achieving 30% faster response times vs hyperscalers. New Managed Container Service (MCS) and VPU-based solutions enhance edge computing capabilities.

**【CFO Financial Commentary】**
- **Profitability**: Non-GAAP net income of $256 million ($1.70 EPS) reflected better-than-expected revenue, lower TSA costs, and bandwidth savings. Q1 CapEx was $226 million (22% of revenue), slightly below guidance due to timing.
- **Guidance Update**: Full-year 2025 revenue expected $4.05-4.2 billion (1-5% YoY growth). Security revenue to grow 10% in constant currency, compute at 15%. Non-GAAP operating margin forecast 8% (based on current FX rates). Q2 EPS guidance $1.52-1.58, driven by $1.012-1.032 billion revenue range.
- **Risk Management**: $10 million annualized tariff impact, with $1.15 billion convertible notes repaid post-quarter. Monitoring potential U.S. federal sector revenue impact ($2-4 million in H2 2025).

**【Q&A Key Takeaways】**
- **Delivery Growth**: Traffic-driven recovery in video, gaming, and commerce. April trends positive, but cautious on declaring a bottom.
- **Security Expansion**: API security and Guardicore ARR to grow 30-35% YoY. Channel sales (80-90% of new logos) driving expansion, with partners like Presidio, Optiv, and IBM.
- **Compute Scale**: Cloud infrastructure ARR expected 40-45% growth, offsetting legacy compute decline. Edge AI solutions offer cost savings vs hyperscalers.
- **Geopolitical Risks**: Reassuring customers of Akamai's neutrality amid U.S.-China tensions. Minimal direct impact from tariffs, but monitoring macroeconomic conditions.
- **Sales Transformation**: 1/3 of way through sales restructure, with focus on hunters for new customer acquisition. Incentivizing multi-year contracts, early success seen.


Akamai Technologies, Inc. (AKAM) Q1 2025 Earnings Call Transcript

- **Record Growth**: Q4 2024 revenue of $1.02 billion, with security and compute driving 17% constant currency growth. Non-GAAP EPS of $1.66 beat expectations.
- **Security Leadership**: Guardicore ARR up 31% YoY to $190 million, API security ARR surpasses $50 million goal. Combined ARR of $247 million targets 30-35% YoY growth in 2025.
- **Compute Acceleration**: Cloud infrastructure services ARR grows 35% YoY to $259 million, with 40-45% YoY growth expected in 2025. New $100 million+ enterprise contract validates edge compute strategy.
- **Profitability Goals**: 28% operating margin in 2025, targeting 30%+ by decade end. Security CAGR of 10%, compute CAGR of 20% over 3-5 years.
- **Edge AI Potential**: Early-stage AI inferencing adoption, leveraging unique edge network for cost-effective performance. ISV partnerships expand compute use cases beyond media.


**【CEO Summary Section】**
- Q4 2024 revenue reached $1.02 billion, with non-GAAP EPS of $1.66, exceeding guidance. Security revenue surpassed $2 billion annually, growing 16% YoY, while cloud computing revenue reached $630 million, up 25% YoY.
- **Security Growth**: Guardicore platform ARR hit $190 million (31% YoY), API security ARR reached $57 million (exceeding $50 million goal). Combined ARR for these solutions is $247 million, targeting 30-35% YoY growth in 2025.
- **Cloud Infrastructure Services**: ARR grew to $259 million (35% YoY), with a new $100 million+ multi-year contract. Compute revenue is expected to grow 40-45% YoY in 2025, driven by enterprise adoption.
- **Delivery Business**: Revenue decline moderated to 18% YoY, with stabilization expected in 2025. A five-year committed agreement with the largest customer reduces headwinds.

**【CFO Financial Commentary】**
- Q4 2024 non-GAAP net income: $254 million ($1.66 EPS), up 3% in constant currency. 2025 guidance: $4.0-4.2 billion revenue (flat to +5% as reported), 28% non-GAAP operating margin.
- **CapEx**: 19% of revenue in 2025, front-loaded due to Edgio integration and new customer builds. Interest income decline expected due to debt repayment and lower rates.
- **Long-Term Goals**: 10% CAGR for security (2025-2030), 20% CAGR for compute, 30%+ operating margin by end of decade.

**【Q&A Highlights】**
- **Largest Customer Impact**: 1-2% annual headwind from DIY strategy, mitigated by a $100 million+ multi-year agreement. 2025 delivery decline expected to slow to 10% YoY.
- **Compute Pricing Advantage**: 5x-10x performance improvement vs hyperscalers, with lower egress costs. New managed container service expands edge compute capabilities.
- **AI Inferencing**: Early-stage adoption, with potential for cost-effective edge-based solutions. ISV partnerships drive compute growth beyond traditional use cases.
- **Go-To-Market Transformation**: Hunters-to-farmers ratio increasing, specialized sales teams for Guardicore, API security, and cloud infrastructure services. 2025 ARR for cloud infrastructure services expected to grow 40-45% YoY.


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