Akamai Reports Third Quarter 2021 Financial Results

Third quarter revenue of $860 million, up 9% year-over-year and up 8% when adjusted for foreign exchange*

Akamai Technologies, Inc., the world’s most trusted solution to power and protect digital experiences, today reported financial results for the third quarter ended September 30, 2021.

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“Akamai delivered another excellent quarter, highlighted by the continued very strong growth of our security business, which now accounts for nearly 40% of our overall revenue,” said Dr. Tom Leighton, Akamai’s Chief Executive Officer. “We’re particularly excited about our recent acquisition of Guardicore, a market leader in helping enterprises stop the spread of ransomware.”

Akamai delivered the following financial results for the third quarter ended September 30, 2021:

Revenue: Revenue was $860 million, a 9% increase over third quarter 2020 revenue of $793 million and an 8% increase when adjusted for foreign exchange.*

Revenue by Product Group:

  • Security Technology Group revenue was $335 million, up 26% year-over-year and up 25% when adjusted for foreign exchange*
  • Edge Technology Group revenue was $526 million, flat year-over-year and down 1% when adjusted for foreign exchange*

Revenue by Geography:

  • U.S. revenue was $449 million, up 3% year-over-year
  • International revenue was $412 million, up 16% year-over-year and up 15% when adjusted for foreign exchange*

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Income from operations: GAAP income from operations was $205 million, a 13% increase from third quarter 2020. GAAP operating margin for the third quarter was 24%, up 1 percentage point from the same period last year.

Non-GAAP income from operations* was $277 million, a 10% increase from third quarter 2020. Non-GAAP operating margin* for the third quarter was 32%, flat compared to the same period last year.

Net income: GAAP net income was $179 million, a 13% increase from third quarter 2020. Non-GAAP net income* was $239 million, an 11% increase from third quarter 2020.

EPS: GAAP EPS was $1.08 per diluted share, a 14% increase from third quarter 2020 and a 12% increase when adjusted for foreign exchange.* Non-GAAP EPS* was $1.45 per diluted share, an 11% increase from third quarter 2020 and a 10% increase when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA* was $396 million, a 13% increase from third quarter 2020. Adjusted EBITDA margin* for the third quarter was 46%, up 2 percentage points from the same period last year.

Supplemental cash information: Cash from operations for the third quarter of 2021 was $390 million, or 45% of revenue. Cash, cash equivalents and marketable securities was $2.8 billion as of September 30, 2021.

Share repurchases: Akamai spent $97 million in the third quarter of 2021 to repurchase 0.8 million shares of its common stock at an average price of $114.40 per share. The Company had 162 million shares of common stock outstanding as of September 30, 2021.

Share repurchase program: The Company also announces today that its Board of Directors has authorized a new, $1.8 billion share repurchase program, effective from January 1, 2022 through December 31, 2024. The new authorization is in addition to the Company’s remaining stock purchase authorization of $321 million (as of September 30, 2021), which expires at the end of 2021. The Company’s goals for the share repurchase program are to offset the dilution created by its employee equity compensation programs over time and provide the flexibility to return capital to shareholders as business and market conditions warrant, while still preserving its ability to pursue other strategic opportunities.

The timing and amount of any shares repurchased will be determined by the Company’s management based upon the evaluation of market conditions and other factors. Repurchases will be executed in the open market subject to Rule 10b-18, and may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. Other structured repurchase programs may be considered from time to time. The Company may choose to suspend, expand or discontinue the repurchase program at any time.

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