Akamai Technologies, Inc (AKAM) – Navigating challenges while upholding profitability

Akamai Technologies, Inc (AKAM) (Q2FY23)

Stock Performance: Over the past three months, Akamai Technologies’ stock price has been consistently increasing and yielded a return of 8.36%. However, in the last year, the price has declined by 16.29%. The stock’s 52-week high is $109.24 and its 52-week low is $70.65. The reason for the stock’s decline in the past year can be attributed to the moderating revenue growth of AKAM and Marco’s headwinds.

Q2FY23 Performance: Revenue was $936mn, a 4% increase over Q2FY22 revenue of $903.3mn and the increase was due to was driven by continued strong demand for security products, fast-growing compute business and by higher-than-expected delivery traffic.

Non-GAAP operating margin in Q2 was 29%. Q2 non-GAAP EPS was $1.49 per diluted share, up 10% year-over-year.

Guidance: For Q3FY23, Akamai anticipates revenues between $937mn and $952mn. Non-GAAP earnings are expected to be $1.48-$1.52 per share. Non-GAAP operating margin is expected to be 29%.

For FY23, AKAM anticipates revenues between $3.765bn and $3.795mn. Non-GAAP earnings are expected between $5.87 and $5.95. Non-GAAP operating margin is expected to be 29%.

Highlights

Akamai Technologies has reported a slow growth in revenue and a decline in margins during Q2FY23. The company has attributed the declining margins to increasing costs, competition, and the shift to cloud computing.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value-Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 35

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