Stockholders' Equity

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Share Repurchase Program

Effective January 2022, the board of directors of the Company authorized a $1.8 billion share repurchase program through December 2024. During the three and six months ended June 30, 2023, the Company repurchased 1.6 million and 6.2 million shares of its common stock, respectively, for $137.4 million and $486.0 million, respectively. 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 stockholders as business and market conditions warrant, while still preserving its

ability to pursue other strategic opportunities.

Stock-Based Compensation

Components of total stock-based compensation included in the Company’s interim condensed consolidated statements of income for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands):

 

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	11,339	$	7,134	$	20,668	$	13,367
Research and development	32,258		17,408		54,102		37,640
Sales and marketing	17,723		11,452		31,268		23,778
General and administrative	26,124		15,888		43,289		33,324
Total stock-based compensation	87,444		51,882		149,327		108,109
Provision for income taxes	(18,808)		(12,861)		(30,221)		(26,904)
Total stock-based compensation, net of income taxes	$	68,636	$	39,021	$	119,106	$	81,205

During 2023, the Company redesigned one of its non-executive short-term incentive compensation programs from a cash-based to a stock-based program that vests in one year. The Company also introduced a non-executive incentive program tied to its initiative to migrate certain applications from third-party cloud platforms onto the Akamai Connected Cloud that vests over two years. These programs, headcount growth and expected achievement of our executive performance-based compensation plans increased stock-based compensation for the three and six months ended June 30, 2023.

In addition to the amounts of stock-based compensation reported in the table above, the Company’s interim condensed consolidated statements of income for the three and six months ended June 30, 2023 include stock-based compensation reflected as a component of amortization primarily consisting of capitalized internal-use software of $7.9 million and $15.4 million, respectively, before taxes, and for the three and six months ended June 30, 2022 include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $7.7 million and $15.3 million, respectively, before taxes.