Akamai Technologies, Inc. (NASDAQ: AKAM), the world’s most trusted solution to power and protect life online, today reported financial results for the second quarter that ended June 30, 2022.
“Despite a continued challenging macro-economic environment and foreign exchange headwinds, Akamai delivered another quarter of solid results,” said Dr. Tom Leighton, Akamai’s Chief Executive Officer. “Our performance continued to be led by the strong growth of our security and compute product groups, which increased 26% year-over-year and increased 30% when adjusted for foreign exchange* and represented 54% of total revenue.”
Akamai delivered the following financial results for the second quarter ended June 30, 2022:
Revenue: Revenue was $903 million, a 6% increase over the second quarter 2021 revenue of $853 million and a 9% increase when adjusted for foreign exchange. *
Revenue by solution:
- Security revenue was $381 million, up 17% year-over-year and up 21% when adjusted for foreign exchange*
- Delivery revenue was $417 million, down 11% year-over-year and down 8% when adjusted for foreign exchange*
- Compute revenue was $106 million, up 74% year-over-year and up 78% when adjusted for foreign exchange*
Revenue by geography:
- U.S. revenue was $477 million, up 6% year-over-year
- International revenue was $426 million, up 6% year-over-year and up 13% when adjusted for foreign exchange*
Income from operations: GAAP income from operations was $175 million, a 12% decrease from the second quarter of 2021. GAAP operating margin for the second quarter was 19%, down 4 percentage points from the same period last year.
Non-GAAP income from operations* was $262 million, a 3% decrease from the second quarter of 2021. Non-GAAP operating margin* for the second quarter was 29%, down 3 percentage points compared to the same period last year.
Net income: GAAP net income was $120 million, a 24% decrease from the second quarter of 2021. Non-GAAP net income* was $216 million, a 7% decrease from the second quarter of 2021.
EPS: GAAP EPS was $0.74 per diluted share, a 21% decrease from the second quarter of 2021 and a 15% decrease when adjusted for foreign exchange. * Non-GAAP EPS* was $1.35 per diluted share, a 5% decrease from the second quarter of 2021 and flat when adjusted for foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA* was $388 million, a 1% increase from second quarter 2021.
Supplemental cash information: Cash from operations for the second quarter of 2022 was $341 million, or 38% of revenue. Cash, cash equivalents and marketable securities was $1.3 billion as of June 30, 2022.
Share repurchases: Akamai spent $165 million in the second quarter of 2022 to repurchase 1.6 million shares of its common stock at an average price of $100.80 per share. The Company had 159 million shares of common stock outstanding as of June 30, 2022.
* See Use of Non-GAAP Financial Measures below for definitions
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode: Akamai. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-877-344-7529 (or 1-412-317-0088 for international calls) and using passcode: 6965820. The archived webcast of this event may be accessed through the Akamai website.