Latest news with #AKAM
Yahoo
10-06-2025
- Business
- Yahoo
AKAM Q1 Earnings Call: Security and Compute Drive Growth as Delivery Stabilizes
Web content delivery and security company Akamai (NASDAQ:AKAM) met Wall Street's revenue expectations in Q1 CY2025, with sales up 2.9% year on year to $1.02 billion. The company expects next quarter's revenue to be around $1.02 billion, coming in 1.1% above analysts' estimates. Its non-GAAP profit of $1.70 per share was 8.6% above analysts' consensus estimates. Is now the time to buy AKAM? Find out in our full research report (it's free). Revenue: $1.02 billion vs analyst estimates of $1.01 billion (2.9% year-on-year growth, in line) Adjusted EPS: $1.70 vs analyst estimates of $1.57 (8.6% beat) Adjusted Operating Income: $307 million vs analyst estimates of $285.2 million (30.2% margin, 7.7% beat) The company slightly lifted its revenue guidance for the full year to $4.13 billion at the midpoint from $4.1 billion Management slightly raised its full-year Adjusted EPS guidance to $6.25 at the midpoint Operating Margin: 15.2%, down from 16.9% in the same quarter last year Market Capitalization: $11.42 billion Akamai's first quarter performance was shaped by continued momentum in its security and compute businesses, which together accounted for 69% of total revenue. CEO Tom Leighton attributed growth in security to strong demand for Guardicore segmentation and API security solutions, highlighting notable competitive wins in the financial services and public sector. The company also saw better-than-expected results in its delivery segment, with CFO Ed McGowan noting improved traffic across video, gaming, and software downloads. Both executives emphasized the company's ongoing transformation from a content delivery network provider into a diversified cybersecurity and cloud computing platform. Management acknowledged that operating margin declined year-over-year, but attributed non-GAAP earnings outperformance to lower transition costs, improved bandwidth expenses, and lower payroll taxes. Looking ahead, Akamai's leadership expects security and compute to remain key drivers, with management maintaining guidance for double-digit growth in these segments. Tom Leighton pointed to the early interest in newly launched products, such as the firewall for AI, as a sign of emerging demand for advanced cybersecurity solutions as generative AI and AI agents proliferate in enterprise settings. Ed McGowan cautioned that operating expenses will rise in the next quarter due to higher marketing spend, merit cycle impacts, and currency fluctuations, but reiterated confidence in the company's ability to deliver annual growth. Management is closely monitoring global economic volatility, potential tariff impacts, and evolving customer preferences, especially among international and U.S. public sector clients. As Leighton stated, 'Our job is to make sure that [customers] understand they can continue to rely on Akamai, no matter what happens with the geopolitics and the rhetoric.' Management attributed Q1 growth to strong demand for security and compute products, improved delivery traffic, and initial traction from sales realignment, while acknowledging margin pressures and macroeconomic risks. Security product momentum: Akamai's Guardicore segmentation and API security solutions saw robust adoption, with management citing competitive wins at major banks, government agencies, and global manufacturers. Enterprises increasingly value segmentation as ransomware and malware threats escalate, and Akamai's ability to identify undocumented APIs has led to significant new customer wins. New product launches: The firewall for AI, launched during the quarter, is designed to protect AI-powered applications and large language models (LLMs) from emerging threats such as data leaks and model manipulation. Early customer feedback highlighted its ability to provide visibility into AI-agent interactions and prevent misuse, with management expecting increasing enterprise adoption as AI deployment grows. Delivery segment stabilization: After multiple periods of decline, delivery revenue benefitted from improved traffic across video, gaming, and commerce, supplemented by new customer accounts from the Edgio acquisition. Management remains cautious about declaring a turnaround in delivery, but noted sequential stabilization and broad-based traffic improvements as positive trends. Cloud computing advances: Akamai continued to scale its compute business, introducing new edge capabilities such as the Akamai Cloud inference solution and managed container services (MCS) that enable customers to run workloads closer to end users. Management emphasized proof-of-concept wins, faster response times, and cost savings for customers migrating from legacy or hyperscaler platforms. Sales transformation progress: The ongoing shift to a 'hunter' sales model—targeting new customers for high-growth products—has begun to show results. Management estimates they are about one-third through this transition, with early signs of improved new account acquisition and incentives for longer-term contracts. Akamai's outlook is anchored in continued security and compute growth, tempered by delivery trends, macroeconomic uncertainty, and rising operating expenses. Security and compute expansion: Management expects security and compute segments to deliver double-digit annual growth, supported by strong demand for Guardicore, API security, and cloud infrastructure services. The company is confident in 30–35% annual recurring revenue growth for its Zero Trust and API security offerings, as well as 40–45% growth in cloud infrastructure ARR. Operating margin headwinds: While Akamai projects healthy non-GAAP margins, rising operating expenses from planned marketing, merit increases, and currency impacts are expected to pressure margins in the near term. Management highlighted that margin improvement will depend on scaling compute, further security growth, and delivery stabilization. External risks and customer sentiment: Leadership is monitoring geopolitical tensions, tariffs, and potential U.S. public sector budget cuts. Some international customers have expressed concerns about relying on U.S.-based infrastructure, though management believes Akamai's security capabilities and reliability continue to set it apart. In the coming quarters, the StockStory team will be watching (1) the pace of security and compute revenue growth, especially the adoption of new products like firewall for AI; (2) whether delivery segment trends continue to stabilize or return to decline; and (3) the impact of the ongoing sales transformation on new customer acquisition. We will also track how Akamai manages operating expenses and monitors macroeconomic and geopolitical developments that could influence customer sentiment and budget decisions. Akamai currently trades at a forward price-to-sales ratio of 2.8×. Should you double down or take your chips? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
DDoS Attackers Increase Targeting of Global Financial Sector, According to FS-ISAC and Akamai Report
Financial sector is the top industry for volumetric DDoS attacks; sophisticated, precision-targeted threats are growing RESTON, Va., June 10, 2025 /PRNewswire/ -- FS-ISAC, the member-driven, not-for-profit organization that advances cybersecurity and resilience in the global financial system, and Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today released their joint annual report analyzing the strategic threat posed by the escalating number and sophistication of distributed denial-of-service (DDoS) attacks and their impact on customer trust, operations, and profitability in the financial services sector. The report, From Nuisance to Strategic Threat: DDoS Attacks Against the Financial Sector found that in 2024, the financial services sector was the top target of volumetric DDoS attacks, which aim to overwhelm the target with sheer traffic. DDoS attacks on financial firms' application programming interfaces (APIs) and customer-facing websites are on the rise as well. These precision-targeted attacks are difficult to detect because they mimic legitimate user behavior, which indicates a new level of skill among cybercriminals. The joint report details attack data by region, with profiles of the sector's most prolific attackers. It also provides a DDoS Maturity Model that financial firms can leverage to evaluate their current capabilities and practices to prepare for DDoS attacks, as well as fundamental cyber practices for managing DDoS threats. "DDoS attacks are becoming increasingly sophisticated, evolving from simple network flooding to targeted, multidimensional assaults that exploit intricate vulnerabilities across the entire supply chain," said Teresa Walsh, FS-ISAC's Chief Intelligence Officer and Managing Director, EMEA. "As threat tactics continue to evolve, we must ensure our technical defenses evolve and our people, tools, and processes work seamlessly together. It is critical that we harden our infrastructure, and foster a culture of continuous vigilance and collaboration, to protect continuity and customer trust." Key findings highlight the shifting dynamics of DDoS threats — from the increasing use of DDoS-for-hire services to regional surges in activity — underscoring the urgent need for advanced, adaptive defense strategies. Highlights of the report include: DDoS attacks on the financial sector have increased disproportionately compared to other industries. The sector remained the leading target for volumetric DDoS attacks year over year, with a major spike in October 2024. DDoS attacks are increasing in frequency, and cybercriminals are exploiting today's high bandwidths and greater computational resources to launch more adaptable, powerful, and cost-effective DDoS attacks. Application-layer DDoS attacks against the financial sector increased 23% between 2023 and 2024. The adoption of APIs in financial services has expanded the sector's threat surface, and malicious actors have evolved their tactics in response. The widespread use of DDoS-for-hire services targeting the financial sector disguises attackers, making it difficult to identify the cybercriminal's motivation and develop mitigation plans. Ongoing geopolitical tensions, particularly the Israel-Hamas and Russia-Ukraine wars, have fueled a surge in hacktivism. DDoS attacks on the financial services sector increased significantly in the Asia-Pacific region, accounting for 38% of all volumetric DDoS attacks, up from 11% in 2023. Together, FS-ISAC and Akamai developed a five-level DDoS Maturity Model detailing DDoS-relevant characteristics, defensive capabilities, and risks to help financial institutions assess their ability to withstand DDoS attacks. Institutions at any level of cyber maturity can use it to identify areas for improvement and improve their resilience, prioritize investments, and facilitate ongoing enhancement. "Threat actors will continue to leverage DDoS attacks to exploit the security of our institutions," said Steve Winterfeld, Advisory CISO of Akamai. "These attacks strive to exhaust an institution's network infrastructure and in turn, drain the resources used to defend against them. The implementation of mitigation strategies, robust cyber hygiene fundamentals, and industry best practices can help the sector defend against the evolving risk." The collaboration on this report is a product of Akamai's founding participation in FS-ISAC's Critical Providers Program, which was launched in 2022 to bolster the financial sector's supply chain security. Download the full report. About FS-ISAC FS-ISAC is the member-driven, not-for-profit organization that advances cybersecurity and resilience in the global financial system, protecting the financial institutions and the people they serve. Founded in 1999, the organization's real-time information-sharing network amplifies the intelligence, knowledge, and practices of its members for the financial sector's collective security and defenses. Member financial firms represent $100 trillion in assets in 75 countries. About Akamai Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at and or follow Akamai Technologies on X and LinkedIn. Contacts for Media media@ jlubinsk@ View original content to download multimedia: SOURCE Akamai Technologies, Inc.
Yahoo
03-06-2025
- Business
- Yahoo
3 Low-Volatility Stocks Skating on Thin Ice
A stock with low volatility can be reassuring, but it doesn't always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere. Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead. Rolling One-Year Beta: 0.69 Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers. Why Are We Out on AKAM? Sales trends were unexciting over the last three years as its 4.5% annual growth was well below the typical software company Bad unit economics and steep infrastructure costs are reflected in its gross margin of 59.1%, one of the worst among software companies Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment Akamai is trading at $76.17 per share, or 2.8x forward price-to-sales. Read our free research report to see why you should think twice about including AKAM in your portfolio, it's free. Rolling One-Year Beta: 0.87 Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans. Why Are We Wary of FTDR? Number of home service plans has disappointed over the past two years, indicating weak demand for its offerings Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.4 percentage points Waning returns on capital imply its previous profit engines are losing steam At $55.95 per share, Frontdoor trades at 18.5x forward P/E. If you're considering FTDR for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.58 Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE:USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services. Why Should You Sell USM? Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years Adjusted operating margin profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term U.S. Cellular's stock price of $62.78 implies a valuation ratio of 5.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than USM. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Hindustan Times
22-05-2025
- Business
- Hindustan Times
Kalagram — a mini India of crafts and culture to come up in Dwarka Sector 7
Artistically designed huts dedicated to the culture of different states and regions across India, with space for artisans to exhibit and sell their handicrafts, an amphitheatre for screenings and musical performances, and a culinary centre — an elaborate village habitat-themed hub for all things art and heritage is set to come up in the city soon, officials aware of the matter said. Named Kalagram (which translates to village of art, adhering to the established theme), the Central Public Works Department will develop the cultural complex in Dwarka's Sector 7 within the campus of the Centre for Cultural Resources and Training (CCRT). The project, which was cleared by the Union ministry of culture in 2023, has already received a funding sanction of ₹1 crore. The construction work is expected to complete within a year, said officials. CPWD has already floated tenders for the same. 'Once operational, the complex is expected to become a major attraction not only for Delhi residents but also for tourists and artists from across the country. It will serve as a platform for rural artisans to gain urban exposure, create economic opportunities, and enable cross-cultural learning,' said CCRT chairman, Vinod Narayan Indurkar. The initiative is part of the government's larger Azadi Ka Amrit Mahotsav (AKAM) campaign — a tribute to 75 years of Indian independence — and is being developed with a vision of showcasing the country's diverse traditional and contemporary art forms, Indurkar added. According to minutes from the 2023 board meeting, Kalagram's focus will be on 'imbibing architectural, aesthetic, historic, environmental, archaeological and even spiritual and symbolic values embedded in our heritage.' Spanning over 2.3 acres, Kalagram is being envisioned as a 'mini India', offering a panoramic view of the cultural mosaic that defines the nation. The complex will house 12 artistically designed huts, each dedicated to a different region of India and reflecting its unique craft, textile, and art traditions. These huts will provide space to artisans from across the country to exhibit and sell their handicrafts. In addition to these permanent structures, it will also feature temporary kiosks, an amphitheatre with a seating capacity of 400 people, and spaces for exhibitions, workshops, and live performances. It will be functional throughout the year to maintain consistent footfall and public engagement. There are also provisions for multiple conference rooms, and in the next phase of development, a hostel facility is expected to be added to accommodate artists and participants. 'We are in contact with artistes and performers from across the country, who will be invited for live performances and shows every day. We want to develop Kalagram as a lively and active space where people can spend time. That is why we are also developing a large open cafeteria,' said Indurkar. He added that the walls and other spaces within Kalagram will be adorned with handicraft and folk art from different regions across the country. The Delhi Urban Art Commission (DUAC) last month granted design and development approval for the project. Officials familiar with the matter said the project has been carefully designed to blend into the urban character of Dwarka while adding a distinct cultural identity to the area. The detailed project report (DPR) states that the project has been conceived on the theme of a 'village habitat'. From the entrance structures to the material used, all elements will be in sync with a typical village environment, officials said, which will include walls finished with mud plaster, and roof of huts made with corrugated bamboo sheets. 'The exhibition huts have been placed at different levels in such a way to have the OAT as a contiguous part of the display area, thus enabling the visitors to enjoy cultural activities being arranged in the OAT from time-to-time. Site planning has been done in such a way that minimum trees will have to be cut,' the DPR mentions. Officials from the culture ministry said that Kalagram will not just be a tourist destination, but a functional cultural hub, serving students, art practitioners, scholars, and general visitors as a 'living ecosystem of culture and learning', adding that the project will draw from India's ancient gurukul system in its layout and learning modules. Established in 1979, CCRT has been promoting India's intangible heritage through educational programmes, scholarships for young artists, and its popular Virasat Kamaladevi Festival, which honours the contributions of cultural stalwart Kamaladevi Chattopadhyay.
Yahoo
08-05-2025
- Business
- Yahoo
Akamai (NASDAQ:AKAM) Posts Q1 Sales In Line With Estimates, Quarterly Revenue Guidance Slightly Exceeds Expectations
Web content delivery and security company Akamai (NASDAQ:AKAM) met Wall Street's revenue expectations in Q1 CY2025, with sales up 2.9% year on year to $1.02 billion. The company expects next quarter's revenue to be around $1.02 billion, coming in 1.1% above analysts' estimates. Its non-GAAP profit of $1.70 per share was 8.6% above analysts' consensus estimates. Is now the time to buy Akamai? Find out in our full research report. Revenue: $1.02 billion vs analyst estimates of $1.01 billion (2.9% year-on-year growth, in line) Adjusted EPS: $1.70 vs analyst estimates of $1.57 (8.6% beat) Adjusted Operating Income: $307 million vs analyst estimates of $285.2 million (30.2% margin, 7.7% beat) The company slightly lifted its revenue guidance for the full year to $4.13 billion at the midpoint from $4.1 billion Management slightly raised its full-year Adjusted EPS guidance to $6.25 at the midpoint Operating Margin: 15.2%, down from 16.9% in the same quarter last year Free Cash Flow Margin: 5.4%, down from 17.7% in the previous quarter Market Capitalization: $12.11 billion "Akamai delivered a solid start to the year with our results meeting or exceeding expectations," said Dr. Tom Leighton, Akamai's Chief Executive Officer. Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Akamai's 4.5% annualized revenue growth over the last three years was weak. This was below our standard for the software sector and is a poor baseline for our analysis. This quarter, Akamai grew its revenue by 2.9% year on year, and its $1.02 billion of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 4.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 3.2% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and suggests its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. Akamai's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Akamai's products and its peers. We enjoyed seeing Akamai beat analysts' EBITDA expectations this quarter. We were also glad its EPS guidance for next quarter exceeded Wall Street's estimates. On the other hand, revenue was just in line. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 1.4% to $84.35 immediately after reporting. Big picture, is Akamai a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
