Akamai Technologies, Inc. · NASDAQ:AKAM
Akamai Technologies — Investor Presentation (February 2025)
37 slides from Akamai Technologies's investor presentation, Feb 20, 2025
Slide 1: Investor Overview
Investor Overview February 20, 2025
Slide 2: Safe Harbor
Safe Harbor This presentation and related materials contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to: statements
Slide 3: Safe Harbor (Cont'd)
Safe Harbor (Cont’d) In addition to Akamai’s GAAP financial information, this presentation includes certain non-GAAP financial measures such as non-GAAP EPS, non-GAAP operating margin, revenue growth rates in constant currency and capital expenditures. The non-GAAP measures have limitations as analy
Slide 4: Akamai is the cybersecurity and cloud computing company that powers and protects business online
Akamai is the cybersecurity and cloud computing company that powers and protects business online Cloud ComputingCybersecurity Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence + Content Delivery+ Massive
Slide 5: Akamai's Business Evolution
Akamai’s Business Evolution 2014 2019 2024 2030 Percentages based on Full Year Total Revenue. Content DeliveryCybersecurity Cloud Computing 5© Akamai | Published on February 20, 2025 6% 9% 85% 6% 29% 65% 16% 51% 33%
Slide 6: Cybersecurity
Cybersecurity Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere 6© Akamai | Published on February 20, 2025
Slide 7: Akamai's Key Cybersecurity Solutions
7© Akamai | Published on February 20, 2025 Akamai’s Key Cybersecurity Solutions Infrastructure Security Application Security Zero Trust Enterprise Security API Security Services Packages: Managed Security Services, Managed Detection & Response, Managed Network Cloud Firewall, Security Event Support,
Slide 8: Cybersecurity Business Problems We Solve
8© Akamai | Published on February 20, 2025 Cybersecurity Business Problems We Solve Infrastructure Security Zero Trust Enterprise Security API Security Services to help with: security architecture and vulnerability assessment, implementing security controls, real-time event support, and fully manage
Slide 9: Product Spotlight: Guardicore Platform
Product Spotlight: Guardicore Platform Why We’re Excited Akamai’s Guardicore Platform accelerates implementation with a single agent and AI-powered capabilities that provide context while providing more robust protections against ransomware, insider threats, and compromised accounts. Akamai eliminat
Slide 10: Product Spotlight: API Security
Product Spotlight: API Security Why Akamai Wins Akamai API Security provides automated discovery, profiling and prioritization, along with powerful real-time security tools to manage or block malicious API traffic for externally-facing applications and their network infrastructure. 10© Akamai | Publ
Slide 11: Cybersecurity Product Penetration
Cybersecurity Product Penetration 70% 36% 20% Buy 1+ Security Product Buy 2+ Security Products Buy 3+ Security Products ~ 800 Customers Buy 4+ Security Products 11© Akamai | Published on February 20, 2025Based on Total Akamai customers at 12/31/24.
Slide 12: Cloud Computing
Cloud Computing Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform 12© Akamai | Published on February 20, 2025
Slide 13: Akamai's Key Cloud Computing Offerings
Solves For: • Full stack cloud computing Solves For: • Connecting to and optimizing cloud workloads Akamai’s Key Cloud Computing Offerings FY’24: $630M, 25% Y/Y Cloud Infrastructure Services FY’24: $230M, 32% Y/Y Other Cloud Applications FY’24: $400M, 22% Y/Y Key Products: • Linode Kubernetes Engine
Slide 14: Akamai Cloud: Compute Anywhere You Need It
Core (IaaS, FaaS, PaaS) Edge (FaaS, PaaS) Currently live in > 700 cities and 4,300+ locations Provides maximum flexibility and control Customer fully manages infrastructure Provides support for customer business logic Akamai automatically manages infrastructure on-demand (serverless) Akamai Cloud: C
Slide 15: Common Cloud Computing Use Cases
Observability Low Latency Multi-Cloud Edge Native Apps AI Inference Common Cloud Computing Use Cases Actively optimize business results with real-time data, retained longer, with superior total cost of ownership Manage customer data at scale to improve SEO, performance, personalization, and more Lev
Slide 16: Our Acquisition of Linode is Proving to Be a Great Success
16© Akamai | Published on February 20, 2025 Our Acquisition of Linode is Proving to Be a Great Success End of Year 2021 End of Year 2024 $127M (+14% Y/Y)11 $259M (+35% Y/Y)41 4,300+ 23 Cloud Infrastructure Services (CIS) ARR Core Locations Edge PoPs ISV Partners Forecasting Y/Y CIS ARR growth accele
Slide 17: Cloud Infrastructure Services Customers at YE 2024
Cloud Infrastructure Services Customers at YE 2024 ~300 $100K ARR 15 $1M+ ARR CUSTOMERS AT CUSTOMERS AT We’ve Seen Significant Traction in our Largest Accounts in 2024 17© Akamai | Published on February 20, 2025 Cloud Infrastructure Services Customers are defined as customers who purchase the Cloud
Slide 18: Content Delivery
Content Delivery Akamai is the world’s leading application delivery platform with superior scale, performance, reliability, and efficiency 18© Akamai | Published on February 20, 2025
Slide 19: Delivery is Strategic to Akamai as a Whole
19© Akamai | Published on February 20, 2025 Enables deep carrier partnerships and scalability Highly synergistic with our Cybersecurity and Cloud Computing offerings, which improves the performance and the margins of all our services (Delivery, Security, and Edge Computing all run on the same server
Slide 20: Artificial Intelligence
Artificial Intelligence Akamai has used Artificial Intelligence (AI) for many years, and we believe we are well positioned to continue benefiting from it 20© Akamai | Published on February 20, 2025
Slide 21: Akamai is Poised to Benefit from AI in Multiple Ways
Customers can run their AI applications at scale, cost- effectively, and securely with our leading cloud computing for AI and cybersecurity for AI solutions Threat VectorsAI Inference Akamai is Poised to Benefit from AI In Multiple Ways Uses of AI Customers can protect their applications from advanc
Slide 22: Akamai's Cloud Infrastructure is Fueling AI-powered Apps Today
22© Akamai | Published on February 20, 2025 Akamai’s Cloud Infrastructure is Fueling AI-powered Apps Today Kubernetes GPUs Object Storage Vector DB WebAssembly Managed k8s and a ready-to-run app platform for scale Rapidly compute a decision based on fine-tuned models Store input and output data tied
Slide 23: Akamai Cloud Computing Powers AI Needs
23© Akamai | Published on February 20, 2025 Customers are looking for brands that not only meet their AI needs, but who do it in a cost-effective and scalable manner, with low latency and massive throughput. This is where Akamai excels. Akamai Cloud Computing Powers AI Needs Advertising Video Conten
Slide 24: Company Financials
Company Financials February 20, 2025 24© Akamai | Published on February 20, 2025
Slide 25: Company Revenue and EPS
Company Revenue and EPS $3,198 $3,461 $3,617 $3,812 $3,991 2020 2021 2022 2023 2024 Total Revenue ($Millions) $5.22 $5.74 $5.37 $6.20 $6.48 2020 2021 2022 2023 2024 Non-GAAP EPS 25© Akamai | Published on February 20, 2025 See Reconciliation of GAAP to Non-GAAP Financial Measures in the Appendix for
Slide 26: Revenue by Product Category
Revenue by Product Category $1,062 $1,335 $1,542 $1,765 $2,043 2020 2021 2022 2023 2024 Security Revenue ($Millions) $207 $253 $405 $504 $630 2020 2021 2022 2023 2024 Compute Revenue ($Millions) $1,930 $1,873 $1,669 $1,542 $1,318 2020 2021 2022 2023 2024 Delivery Revenue ($Millions) 26© Akamai | Pub
Slide 27: 3-5 Year Goals
Total Revenue Security Revenue Compute Revenue Delivery Revenue Non-GAAP Op Margin Capital Expenditures Reaching 10%+ Y/Y growth ~10% CAGR ~20% CAGR Rate of decline improving over time Reaching 30%+ 17% to 20% of total revenue 27© Akamai | Published on February 20, 2025 3-5 Year Goals See Reconcilia
Slide 28: Company Revenue Growth Rate is Accelerating
Company Revenue Growth Rate is Accelerating $3,812 FY23A $3,991 FY24A $4,100 FY25E FY29E Double Digit Growth Y/Y Growth *Y/Y Growth (Adj. for FX and Top Customer) Total Revenue 28© Akamai | Published on February 20, 2025*2025 Revenue Estimate is based on the mid-point of full year 2025 guidance. * *
Slide 29: Strong Capital Return
Strong Capital Return 178 177 173 170 163 2014 2015 2016 2017 2018 Shares Outstanding and Shares Repurchased by Year 162 163 161 156 2019 2020 2021 2022 151 150 2023 2024 Shares Repurchased (Millions)Shares Outstanding (Millions) 4.6 4.5 7.0 6.9 10.2 4.0 2.0 4.7 6.4 7.8 5.6 29© Akamai | Published on
Slide 30: Measures
30© Akamai | Published on February 20, 2025 Reconciliation of GAAP to Non-GAAP Financial Measures February 20, 2025
Slide 31: Measures
Reconciliation of GAAP to Non-GAAP Financial Measures In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP financi
Slide 32: Measures
32© Akamai | Published on February 20, 2025 Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 33: Measures
33© Akamai | Published on February 20, 2025 Reconciliation of GAAP to Non-GAAP Financial Measures The non-GAAP adjustments, and Akamai’s basis for excluding them from non-GAAP financial measures, are outlined below: Amortization of acquired intangible assets – Akamai has incurred amortization of int
Slide 34: Measures
34© Akamai | Published on February 20, 2025 Reconciliation of GAAP to Non-GAAP Financial Measures Restructuring charge – Akamai has incurred restructuring charges from programs that have significantly changed either the scope of the business undertaken by the Company or the manner in which that busi
Slide 35: Measures
35© Akamai | Published on February 20, 2025 Reconciliation of GAAP to Non-GAAP Financial Measures Endowment of Akamai Foundation – Akamai has incurred expenses to endow the Akamai Foundation, a private corporate foundation dedicated to encouraging the next generation of technology innovators by supp
Slide 36: Measures
36© Akamai | Published on February 20, 2025 Reconciliation of GAAP to Non-GAAP Financial Measures Non-GAAP net income per diluted share, or EPS – Non-GAAP net income divided by weighted average diluted common shares outstanding. Diluted weighted average common shares outstanding are adjusted in non-
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