Akamai Technologies: Will The Management Focus on High-Growth Compute and Security Business Pay Off?

Akamai Technologies, Inc. reported its financial results for the third quarter of 2024, revealing several key achievements and ongoing challenges. The company’s total revenue for the quarter surpassed $1 billion for the first time, marking a 4% increase year-over-year, both as reported and in constant currency. A significant milestone was achieved with the company’s total annual revenue run rate exceeding $4 billion and its security revenue crossing $2 billion. Akamai’s focus on transforming from a content delivery network pioneer to a cybersecurity and cloud computing leader appears to be progressing, with security now delivering the majority of its revenue, and compute and security combined accounting for more than two-thirds of total revenue.