Akamai Technologies, Inc. reported a revenue of $3.99 billion for the fiscal year ending December 31, 2024, marking a 4.7% increase from $3.81 billion in 2023. The company's net income for the year was $504.9 million, a decrease from $547.6 million in the previous year, resulting in a diluted earnings per share of $3.27 compared to $3.52 in 2023. The decline in profitability was attributed to increased operational costs, including a significant rise in stock-based compensation and restructuring charges, which totaled $95.4 million in 2024, up from $56.6 million in 2023.
Akamai's revenue growth was primarily driven by a 15.7% increase in security solutions revenue, which reached $2.04 billion, and a 25% increase in compute solutions revenue, totaling $630.4 million. However, the delivery solutions segment experienced a decline of 14.5%, generating $1.32 billion, largely due to reduced traffic from a major social media customer that shifted towards cost optimization and "do-it-yourself" solutions. The company noted that geopolitical and economic challenges have led to slower traffic growth across various sectors, particularly media and gaming.
Strategically, Akamai has made several acquisitions to enhance its service offerings. In June 2024, the company acquired Noname Security for $452.3 million, aimed at expanding its API security capabilities. Additionally, the company acquired Neosec in May 2023 and StorageOS in March 2023, further strengthening its security and compute portfolios. As of December 31, 2024, Akamai's employee count stood at over 10,700, with a focus on enhancing its workforce to support growth in security and compute solutions.
Looking ahead, Akamai anticipates continued challenges in revenue growth due to competitive pricing pressures and the ongoing shift of some customers to internal solutions. The company expects to recognize approximately 60% of its remaining performance obligations, valued at $4.3 billion, as revenue over the next 12 months. Akamai's management remains committed to investing in its security and compute solutions while navigating the complexities of the current economic landscape.
About AKAMAI TECHNOLOGIES INC
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