Akamai Technologies, a leader in cybersecurity and cloud computing, reported its first quarter 2025 financial results, with revenue reaching $1.015 billion, marking a 3% year-over-year increase and a 4% rise when adjusted for foreign exchange. This financial update was released on May 8, 2025, covering the quarter ending March 31, 2025. The solid revenue growth is primarily driven by the company’s expanding security and cloud computing segments, which accounted for 69% of total revenue and grew 10% and 11% respectively when adjusted for exchange rates.
Key financial highlights include: - Security revenue rose to \(531 million, up 8% year-over-year and 10% adjusted for foreign exchange. - Cloud computing revenue increased 14% year-over-year, with a 15% increase when adjusted for foreign exchange, reaching \)165 million. - Delivery revenue declined by 9%, reflecting a shift in the business mix. - GAAP net income per diluted share fell 26% to \(0.82, impacted by various non-cash adjustments, while non-GAAP net income per diluted share increased 4% to \)1.70. - Operating margin was 15%, down from 17% in FY 2024, with non-GAAP operating margin stable at 30%. - Adjusted EBITDA showed a healthy 6% increase to \(441 million, representing a 43% margin. - Cash from operations amounted to \)251 million, equating to 25% of revenue. - Akamai repurchased 6.2 million shares at an average price of \(81.19, spending \)500 million in the quarter.
From a geographic perspective, U.S. revenue increased by 3%, totaling \(529 million, while international revenue grew 2% to \)486 million, with a 5% increase when adjusted for foreign exchange. Akamai’s CEO, Dr. Tom Leighton, expressed satisfaction with the company’s performance and emphasized the strong momentum in segmentation, API security, and cloud solutions, reinforcing Akamai’s transformation into a top cybersecurity and cloud company.
Taking into account the recent fiscal year 2024 operating margin of 15.39%, the slight margin compression in Q1 2025 to 15% reflects operational pressures, yet non-GAAP margins remain robust. Akamai’s growth in strategic segments like security and cloud computing aligns with trends highlighted in their previous earnings calls about focusing on profitable growth and transformation.
Looking forward, Akamai provided financial guidance for Q2 and FY 2025, forecasting revenues between \(1.012 billion and \)1.032 billion for Q2, and between \(4.05 billion to \)4.2 billion for the full year. Non-GAAP earnings per diluted share are expected between \(1.52 and \)1.58 in Q2, and \(6.10 to \)6.40 for the year, with non-GAAP operating margins steady at 28%. Capex is projected at 19-23% of revenue, highlighting ongoing investments in infrastructure.
In conclusion, Akamai’s Q1 2025 results demonstrate stable revenue growth with a strong emphasis on security and cloud computing, supported by disciplined financial management and strategic share repurchases. This provides a positive outlook for investors looking at technology sector leaders with resilient growth profiles.
For detailed financial information, access the source document: Akamai Technologies Q1 2025 8-K.
Tags: AkamaiQ12025, CybersecurityGrowth, CloudComputingRevenue, FinancialGuidance2025, TechEarningsAnalysis