1. Q1 revenue reached $1.015 billion, a 3% YOY increase. 2. Security and cloud revenues grew 10% and 14% YOY respectively. 3. GAAP net income per share decreased 26% to $0.82 from last year. 4. Share repurchases totaled $500 million, reducing outstanding shares. 5. Financial guidance for Q2 and full year shows moderate revenue growth.
While GAAP profits declined, strong revenue growth in key segments demonstrates resilience. Historical trends show that such performance often leads to sustained stock interest, despite earnings declines.
With significant year-over-year growth in core segments, this report influences investor perception and future investment decisions for AKAM.
The immediate financial results and guidance influence short-term investor sentiment. Past trends reveal that quarterly financials directly impact stock price in the weeks following an earnings release.
First quarter revenue of $1.015 billion, up 3% year-over-year and up 4% when adjusted for foreign exchange.
Security and cloud computing revenue represented 69% of total revenue in the first quarter and combined grew 10% year-over-year and 11% when adjusted for foreign exchange.
GAAP net income per diluted share of $0.82, down 26% year-over-year and down 23% when adjusted for foreign exchange, and non-GAAP net income per diluted share of $1.70, up 4% year-over-year and up 6% when adjusted for foreign exchange.
CAMBRIDGE, Mass., May 8, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial results for the first quarter ended March 31, 2025.
"Akamai delivered a solid start to the year with our results meeting or exceeding expectations," said Dr. Tom Leighton, Akamai's Chief Executive Officer. "We were particularly pleased with the continued momentum of our fast-growing segmentation, API security and cloud solutions. Looking ahead, we remain focused on driving profitable growth that powers our transformation into a leading cybersecurity and cloud computing company."
Revenue: Revenue was $1.015 billion, a 3% increase over first quarter 2024 revenue of $987 million and a 4% increase when adjusted for foreign exchange.
Income from operations: GAAP income from operations was $155 million, a 7% decrease from first quarter 2024. GAAP operating margin for the first quarter was 15%, down 2 percentage points from the same period last year.
Non-GAAP income from operations was $307 million, up 5% from first quarter 2024. Non-GAAP operating margin for the first quarter was 30%, flat from the same period last year.
Net income: GAAP net income was $123 million, a 30% decrease from first quarter 2024. Non-GAAP net income was $256 million, flat from first quarter 2024.
EPS: GAAP net income per diluted share was $0.82, a 26% decrease from first quarter 2024 and a 23% decrease when adjusted for foreign exchange. Non-GAAP net income per diluted share was $1.70, a 4% increase from first quarter 2024 and a 6% increase when adjusted for foreign exchange.
Adjusted EBITDA: Adjusted EBITDA was $441 million, a 6% increase from first quarter 2024.
Cash from operations for the first quarter of 2025 was $251 million, or 25% of revenue. Cash, cash equivalents and marketable securities was $1.344 billion as of March 31, 2025.
The Company spent $500 million in the first quarter of 2025 to repurchase 6.2 million shares of its common stock at an average price of $81.19 per share. The Company had 146 million shares of common stock outstanding as of March 31, 2025.
The Company reports the following financial guidance for the second quarter and full year 2025:
| Three Months Ending | Year Ending |
|---|---|
| June 30, 2025 | December 31, 2025 |
| Low End | $1,012 million |
| High End | $1,032 million |
| Low End | $4,050 million |
| High End | $4,200 million |
The guidance that is provided on a non-GAAP basis cannot be reconciled to the closest GAAP measures without unreasonable effort due to various unpredictable factors.
For further information, please visit www.akamai.com.