Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Akamai Technologies Inc. (AKAM): Compute and Security Powering a New Growth Era—What’s the Impact, Outlook & Its 5 Key Catalysts ?
Akamai achieved a milestone in Q3 2024, surpassing $1 billion in revenue, driven by its pivot to security and cloud compute solutions. Compute and Security now account for 68% of revenue, growing 17% YoY in constant currency. Compute revenue surged 28% YoY to $167M, supported by demand in retail, SaaS, and gaming, while Security revenue rose 14% YoY to $519M, fueled by Zero Trust and API Security growth. Adjusted EPS of $1.59 met expectations, reflecting operational stability, though GAAP EPS missed due to higher charges. Strategic initiatives include workforce realignment, channel partnerships, and innovations like Kubernetes integration and the Akamai App Platform, which enhance hybrid and multi-cloud capabilities. While Delivery revenue declined 16% YoY amid macro challenges, it remains integral to Akamai’s ecosystem, supporting cross-selling and threat detection. FY2024 guidance reflects 4%-5% revenue growth, driven by Security (+15%-17%) and Compute (+25%). With $2B in cash reserves and $2.1B in buyback authorizations, Akamai balances reinvestment and shareholder returns. Key catalysts include compute adoption, AI-driven innovation, and stabilization in Delivery. As Akamai scales its high-growth offerings, can it sustain margin expansion and competitive differentiation while navigating macro pressures and Delivery headwinds?
