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“Akamai delivered another solid quarter, highlighted by continued momentum in security and cloud computing. Together, these solutions grew 17% on a year-over-year basis and now account for nearly 70% of our total revenue," said Dr. Tom Leighton, Akamai’s Chief Executive Officer. “This quarter also marks a significant milestone as we surpassed the billion-dollar quarterly revenue threshold for the first time. Looking forward, we remain confident in the traction we see from our new products and our continued commitment to strong bottom-line performance.”

Restructuring charge: Third quarter 2024 GAAP income from operations, GAAP net income and GAAP EPS in the paragraphs below were impacted by the $82 million restructuring charge recognized in the third quarter of 2024. This charge primarily related to severance costs in connection with a workforce reduction with the primary intent of redeploying resources to support the Company's strategic investments and impairments of certain assets as a result of recent acquisitions.



	Three Months Ending December 31, 2024						Year Ending December 31, 2024
	Low End			High End			Low End			High End
Revenue (in millions)	$	995		$	1,020		$	3,966		$	3,991


Non-GAAP operating margin *	27		%	28		%	29		%	29		%
Non-GAAP net income per diluted share *	$	1.49		$	1.56		$	6.31		$	6.38
Non-GAAP tax rate*	19		%	19		%	19		%	19		%
Shares used in non-GAAP per diluted share calculations * (in millions)	153			153			154			154
Capex as a percentage of revenue *	18		%	19		%	17		%	17		%

This guidance is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures. For example, stock-based compensation is unpredictable for Akamai’s performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets. Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, Akamai excludes certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items Akamai excludes and to estimate certain discrete tax items, such as the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode Akamai Technologies Call. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-877-344-7529 (or 1-412-317-0088 for international calls) and using passcode 1443103. The archived webcast of this event may be accessed through the Akamai website.

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 about Akamai’s cloud computing, security and content delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on X, formerly known as Twitter, and LinkedIn.


(in thousands)	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	569,749	$	489,468
Marketable securities	1,129,456		374,971
Accounts receivable, net	696,493		724,302
Prepaid expenses and other current assets	238,732		216,114
Total current assets	2,634,430		1,804,855
Marketable securities	279,411		1,431,354
Property and equipment, net	1,948,799		1,825,944
Operating lease right-of-use assets	1,006,132		908,634
Acquired intangible assets, net	586,247		536,143
Goodwill	3,154,351		2,850,470
Deferred income tax assets	431,318		418,297
Other assets	149,769		124,340
Total assets	$	10,190,457	$	9,900,037
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	106,629	$	146,927
Accrued expenses	288,619		352,181
Deferred revenue	138,929		107,544
Convertible senior notes	1,148,471		—
Operating lease liabilities	251,596		222,944
Other current liabilities	48,779		6,442
Total current liabilities	1,983,023		836,038
Deferred revenue	24,316		23,006
Deferred income tax liabilities	27,387		24,622
Convertible senior notes	2,395,439		3,538,229
Operating lease liabilities	854,740		774,806
Other liabilities	111,414		106,181
Total liabilities	5,396,319		5,302,882
Total stockholders' equity	4,794,138		4,597,155
Total liabilities and stockholders' equity	$	10,190,457	$	9,900,037


	Three Months Ended						Nine Months Ended
(in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Revenue	$	1,004,679	$	979,580	$	965,484	$	2,971,229	$	2,816,903
Costs and operating expenses:
Cost of revenue (1) (2)	408,806		402,888		383,075		1,206,437		1,117,666
Research and development (1)	120,347		113,352		105,942		350,631		296,846
Sales and marketing (1)	138,551		139,039		132,309		412,160		397,970
General and administrative (1) (2)	159,957		153,854		147,326		466,241		445,276
Amortization of acquired intangible assets	24,368		21,076		18,108		66,467		49,918
Restructuring charge	82,013		1,385		2,595		83,942		56,675
Total costs and operating expenses	934,042		831,594		789,355		2,585,878		2,364,351
Income from operations	70,637		147,986		176,129		385,351		452,552
Interest and marketable securities income, net	23,065		26,628		11,412		77,534		21,213
Interest expense	(6,735)		(6,829)		(4,987)		(20,382)		(10,825)
Other expense, net	(13,161)		(949)		(3,161)		(13,599)		(6,654)
Income before provision for income taxes	73,806		166,836		179,393		428,904		456,286
Provision for income taxes	(15,899)		(35,148)		(20,326)		(63,891)		(71,297)
Gain from equity method investment	—		—		1,475		—		1,475
Net income	$	57,907	$	131,688	$	160,542	$	365,013	$	386,464

Net income per share:
Basic	$	0.38	$	0.86	$	1.06	$	2.40	$	2.53
Diluted	$	0.38	$	0.86	$	1.04	$	2.36	$	2.50

Shares used in per share calculations:
Basic	151,435		152,265		151,359		151,776		153,020
Diluted	153,240		153,588		154,976		154,765		154,855


	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Cash flows from operating activities:
Net income	$	57,907	$	131,688	$	160,542	$	365,013	$	386,464
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	165,729		158,549		148,560		480,461		423,142
Stock-based compensation	102,607		98,466		87,017		294,333		236,344
(Benefit) provision for deferred income taxes	(2,541)		13,946		(10,172)		938		(9,763)
Amortization of debt issuance costs	1,591		1,660		1,404		4,933		3,600

Other non-cash reconciling items, net	41,733		1,962		6,438		45,757		44,891
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	11,290		17,538		(23,484)		28,092		(46,262)
Prepaid expenses and other current assets	(717)		1,253		1,994		(25,480)		(16,103)
Accounts payable and accrued expenses	(31,765)		19,523		23,615		(79,191)		(60,170)
Deferred revenue	(8,719)		(11,619)		(12,905)		13,978		24,146
Other current liabilities	41,370		624		(13,855)		42,350		2,290
Other non-current assets and liabilities	14,057		(2,627)		(9,718)		4,199		(29,333)
Net cash provided by operating activities	392,542		430,963		359,436		1,175,383		959,246
Cash flows from investing activities:
Cash (paid) received for business acquisitions, net of cash acquired	—		(434,066)		155		(434,066)		(106,171)
Cash paid for asset acquisition	(66)		(4,796)		(36,348)		(4,862)		(36,348)

Purchases of property and equipment and capitalization of internal-use software development costs	(185,117)		(163,537)		(197,619)		(522,408)		(596,153)
Purchases of short- and long-term marketable securities	(15,519)		(16,103)		(1,050,016)		(201,641)		(1,184,837)
Proceeds from sales, maturities and redemptions of short- and long-term marketable securities	84,849		337,220		106,330		604,324		398,535
Other, net	(375)		(5,400)		13,335		4,160		(7,431)
Net cash used in investing activities	(116,228)		(286,682)		(1,164,163)		(554,493)		(1,532,405)


	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023


























Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	—		—		—		—		90,000
Repayment from borrowings under revolving credit facility	—		—		(20,000)		—		(90,000)
Proceeds from the issuance of convertible senior notes, net of issuance costs	—		—		1,247,388		—		1,247,388
Proceeds from the issuance of warrants related to convertible senior notes	—		—		90,195		—		90,195
Purchases of note hedges related to convertible senior notes	—		—		(236,555)		—		(236,555)

Proceeds from the issuance of common stock under stock plans	19,442		7,956		18,222		47,708		49,553
Employee taxes paid related to net share settlement of stock-based awards	(15,868)		(31,914)		(11,304)		(157,115)		(50,910)

Repurchases of common stock	(165,839)		(127,809)		(113,197)		(419,097)		(599,155)
Other, net	(104)		(8,678)		(104)		(10,291)		(360)
Net cash (used in) provided by financing activities	(162,369)		(160,445)		974,645		(538,795)		500,156
Effects of exchange rate changes on cash, cash equivalents and restricted cash	9,494		(5,293)		(7,019)		188		(7,729)
Net increase (decrease) in cash, cash equivalents and restricted cash	123,439		(21,457)		162,899		82,283		(80,732)
Cash, cash equivalents and restricted cash at beginning of period	449,314		470,771		299,391		490,470		543,022
Cash, cash equivalents and restricted cash at end of period	$	572,753	$	449,314	$	462,290	$	572,753	$	462,290


	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Security	$	518,670		$	498,708		$	455,792		$	1,508,059		$	1,294,290
Delivery	319,132			329,399			379,304			1,000,289			1,153,386
Compute	166,877			151,473			130,388			462,881			369,227
Total revenue	$	1,004,679		$	979,580		$	965,484		$	2,971,229		$	2,816,903
Revenue growth rates year-over-year:
Security	14		%	15		%	20		%	17		%	13		%
Delivery	(16)			(13)			(4)			(13)			(8)
Compute	28			23			19			25			26
Total revenue	4		%	5		%	9		%	5		%	5		%
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (1):
Security	14		%	16		%	19		%	17		%	14		%
Delivery	(16)			(12)			(4)			(13)			(7)
Compute	28			24			19			26			27
Total revenue	4		%	6		%	9		%	6		%	6		%


	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
U.S.	$	524,611		$	508,696		$	498,536		$	1,545,654		$	1,452,431
International	480,068			470,884			466,948			1,425,575			1,364,472
Total revenue	$	1,004,679		$	979,580		$	965,484		$	2,971,229		$	2,816,903

Revenue growth rates year-over-year:
U.S.	5		%	6		%	8		%	6		%	2		%
International	3			3			11			4			7
Total revenue	4		%	5		%	9		%	5		%	5		%

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (1):
U.S.	5		%	6		%	8		%	6		%	2		%
International	3			5			9			6			9
Total revenue	4		%	6		%	9		%	6		%	6		%


	Three Months Ended									Nine Months Ended
(in thousands, except end of period statistics)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Stock-based compensation:
Cost of revenue	$	16,566		$	15,864		$	11,236		$	45,048		$	31,904
Research and development	39,275			36,951			33,366			114,271			87,468
Sales and marketing	21,076			18,976			17,290			58,863			48,558
General and administrative	25,690			26,675			25,125			76,151			68,414
Total stock-based compensation	$	102,607		$	98,466		$	87,017		$	294,333		$	236,344

Depreciation and amortization:
Network-related depreciation	$	72,546		$	68,936		$	60,887		$	207,157		$	168,275
Capitalized internal-use software development amortization	41,973			42,407			45,030			128,012			132,756
Other depreciation and amortization	15,998			15,983			15,709			48,011			47,690
Depreciation of property and equipment	130,517			127,326			121,626			383,180			348,721
Capitalized stock-based compensation amortization (1)	10,740			10,048			8,710			30,500			24,169
Capitalized interest expense amortization (1)	104			99			116			314			334
Amortization of acquired intangible assets	24,368			21,076			18,108			66,467			49,918
Total depreciation and amortization	$	165,729		$	158,549		$	148,560		$	480,461		$	423,142

Capital expenditures, excluding stock-based compensation and interest expense (2) (3):
Purchases of property and equipment	$	91,600		$	94,463		$	86,382		$	260,698		$	378,759
Capitalized internal-use software development costs	72,391			72,653			65,895			222,535			196,271
Total capital expenditures, excluding stock-based compensation and interest expense	$	163,991		$	167,116		$	152,277		$	483,233		$	575,030
Capex as a percentage of revenue (3)	16		%	17		%	16		%	16		%	20		%


End of period statistics:
Number of employees	10,947			10,920			10,111

(1) Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized related to cloud-computing arrangements and contract fulfillment costs. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).


	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Income from operations	$	70,637		$	147,986		$	176,129		$	385,351		$	452,552
GAAP operating margin	7		%	15		%	18		%	13		%	16		%
Amortization of acquired intangible assets	24,368			21,076			18,108			66,467			49,918
Stock-based compensation	102,607			98,466			87,017			294,333			236,344
Amortization of capitalized stock-based compensation and capitalized interest expense	11,089			10,434			9,077			31,646			25,207
Restructuring charge	82,013			1,385			2,595			83,942			56,675
Acquisition-related costs	5,036			2,179			3,048			7,387			12,156



Operating adjustments	225,113			133,540			119,845			483,775			380,300
Non-GAAP income from operations	$	295,750		$	281,526		$	295,974		$	869,126		$	832,852
Non-GAAP operating margin	29		%	29		%	31		%	29		%	30		%


Net income	$	57,907		$	131,688		$	160,542		$	365,013		$	386,464
Operating adjustments (from above)	225,113			133,540			119,845			483,775			380,300
Amortization of debt issuance costs	1,591			1,660			1,404			4,933			3,600
Loss (gain) on investments	—			66			(110)			66			(311)
Gain from equity method investment	—			—			(1,475)			—			(1,475)
Income tax effect of above non-GAAP adjustments and certain discrete tax items	(41,097)			(24,306)			(29,135)			(112,130)			(71,202)
Non-GAAP net income	$	243,514		$	242,648		$	251,071		$	741,657		$	697,376






















GAAP tax rate	22		%	21		%	11		%	15		%	16		%
Income tax effect of non-GAAP adjustments and certain discrete tax items	(3)			(1)			5			4			1
Non-GAAP tax rate	19		%	20		%	16		%	19		%	17		%


	Three Months Ended						Nine Months Ended
(in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023























GAAP net income per diluted share	$	0.38	$	0.86	$	1.04	$	2.36	$	2.50
Adjustments to net income:
Amortization of acquired intangible assets	0.16		0.14		0.12		0.43		0.32
Stock-based compensation	0.67		0.64		0.56		1.90		1.53
Amortization of capitalized stock-based compensation and capitalized interest expense	0.07		0.07		0.06		0.20		0.16
Restructuring charge	0.54		0.01		0.02		0.54		0.37
Acquisition-related costs	0.03		0.01		0.02		0.05		0.08



Amortization of debt issuance costs	0.01		0.01		0.01		0.03		0.02
Loss (gain) on investments	—		—		—		—		—
Gain from equity method investment	—		—		(0.01)		—		(0.01)
Income tax effect of above non-GAAP adjustments and certain discrete tax items	(0.27)		(0.16)		(0.19)		(0.72)		(0.46)
Adjustment for shares (1)	—		—		0.01		0.03		0.01
Non-GAAP net income per diluted share	$	1.59	$	1.58	$	1.63	$	4.82	$	4.51

Shares used in GAAP per diluted share calculations	153,240		153,588		154,976		154,765		154,855
Impact of benefit from note hedge transactions (1)	(294)		(199)		(544)		(869)		(181)
Shares used in non-GAAP per diluted share calculations (1)	152,946		153,389		154,432		153,896		154,674


	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net income	$	57,907		$	131,688		$	160,542		$	365,013		$	386,464
Net income margin	6		%	13		%	17		%	12		%	14		%
Interest and marketable securities income, net	(23,065)			(26,628)			(11,412)			(77,534)			(21,213)
Provision for income taxes	15,899			35,148			20,326			63,891			71,297
Depreciation and amortization	130,517			127,326			121,626			383,180			348,721
Amortization of capitalized stock-based compensation and capitalized interest expense	11,089			10,434			9,077			31,646			25,207
Amortization of acquired intangible assets	24,368			21,076			18,108			66,467			49,918
Stock-based compensation	102,607			98,466			87,017			294,333			236,344
Restructuring charge	82,013			1,385			2,595			83,942			56,675
Acquisition-related costs	5,036			2,179			3,048			7,387			12,156



Interest expense	6,735			6,829			4,987			20,382			10,825
Loss (gain) on investments	—			66			(110)			66			(311)
Gain from equity method investment	—			—			(1,475)			—			(1,475)
Other expense, net	13,161			883			3,271			13,533			6,965
Adjusted EBITDA	$	426,267		$	408,852		$	417,600		$	1,252,306		$	1,181,573
Adjusted EBITDA margin	42		%	42		%	43		%	42		%	42		%

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP financial measures). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes, to measure executive compensation and to evaluate Akamai's financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP tax rate, capital expenditures and impact of foreign currency exchange rates, as discussed below.

Management believes that these non-GAAP financial measures reflect Akamai's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparison of financial results across accounting periods and to those of our peer companies. Management also believes that these non-GAAP financial measures enable investors to evaluate Akamai's operating results and future prospects in the same manner as management. These non-GAAP financial measures may exclude expenses and gains that may be unusual in nature, infrequent or not reflective of Akamai's ongoing operating results.

The non-GAAP financial measures do not replace the presentation of Akamai's GAAP financial measures and should only be used as a supplement to, not as a substitute for, Akamai's financial results presented in accordance with GAAP. Akamai has provided a reconciliation of each non-GAAP financial measure used in its financial reporting and investor presentations to the most directly comparable GAAP financial measure. This reconciliation captioned “Reconciliation of GAAP to Non-GAAP Financial Measures” can be found on the Investor Relations section of Akamai's website.

•Amortization of acquired intangible assets – Akamai has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions Akamai has made. The amount of an acquisition's purchase price allocated to intangible assets and term of its related amortization can vary significantly and is unique to each acquisition; therefore, Akamai excludes amortization of acquired intangible assets from its non-GAAP financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.

•Stock-based compensation and amortization of capitalized stock-based compensation – Stock-based compensation is an important aspect of the compensation paid to Akamai's employees which includes long-term incentive plans to encourage retention, performance-based plans to encourage achievement of specified financial targets and also short-term incentive awards with a one year vest. The grant date fair value of the stock-based compensation awards varies based on the stock price at the time of grant, varying valuation methodologies, subjective assumptions and the variety of award types. This makes the comparison of Akamai's current financial results to previous and future periods difficult to interpret; therefore, Akamai believes it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from its non-GAAP financial measures in order to highlight the performance of Akamai's core business and to be consistent with the way many investors evaluate its performance and compare its operating results to peer companies.

•Acquisition-related costs – Acquisition-related costs include transaction fees, advisory fees, due diligence costs and other direct costs associated with strategic activities, as well as certain additional compensation costs payable to employees acquired from the Linode acquisition if employed for a certain period of time. The additional compensation cost was initiated by and determined by the seller, and is in addition to normal levels of compensation, including retention programs, offered by Akamai. Acquisition-related costs are impacted by the timing and size of the acquisitions, and Akamai excludes acquisition-related costs from its non-GAAP financial measures to provide a useful comparison of operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the acquisition transactions and do not reflect Akamai's core operations.

•Restructuring charge – Akamai has incurred restructuring charges from programs that have significantly changed either the scope of the business undertaken by the Company or the manner in which that business is conducted. These charges include severance and related expenses for workforce reductions, impairments of long-lived assets that will no longer be used in operations (including acquired intangible assets, right-of-use assets, other facility-related property and equipment and internal-use software) and termination fees for any contracts cancelled as part of these programs. Akamai excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In

•Income tax effect of non-GAAP adjustments and certain discrete tax items – The non-GAAP adjustments described above are reported on a pre-tax basis. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments) and excludes certain discrete tax items (such as the impact of intercompany sales of intellectual property related to acquisitions), if any. Akamai believes that applying the non-GAAP adjustments and their related income tax effect allows Akamai to highlight income attributable to its core operations.

Non-GAAP net income – GAAP net income adjusted for the following tax-affected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; amortization of debt issuance costs; amortization of capitalized interest expense; certain gains and losses on investments; gains and losses from equity method investment; and other non-recurring or unusual items that may arise from time to time.

Non-GAAP net income per diluted share, or EPS – Non-GAAP net income divided by weighted average diluted common shares outstanding. Diluted weighted average common shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transactions entered into in connection with the issuances of $1,265 million of convertible senior notes due 2029 and the issuances of $1,150 million of convertible senior notes due 2027 and 2025, respectively. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully-diluted share calculation until they are delivered. However, Akamai would receive a benefit from the note hedge transactions and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of operating performance. With respect to the convertible senior notes due in each of 2029, 2027 and 2025, unless Akamai's weighted average stock price is greater than $126.31, $116.18 and $95.10, respectively, the initial conversion prices, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.

Adjusted EBITDA – GAAP net income excluding the following items: interest and marketable securities income and losses; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; foreign exchange gains and losses; interest expense; amortization of capitalized interest expense; certain gains and losses on investments; gains and losses from equity method investment; and other non-recurring or unusual items that may arise from time to time.

Capital expenditures, or capex, excluding stock-based compensation and interest expense – Purchases of property and equipment and capitalization of internal-use software development costs presented on an accrual basis, which differs from the cash-basis presentation included in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

Impact of foreign currency exchange rate – Revenue and earnings from international operations have historically been important contributors to Akamai's financial results. Consequently, Akamai's financial results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of our international subsidiaries weaken, our consolidated results stated in U.S. dollars are negatively impacted.

Because exchange rates are a meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchange rates on revenue and earnings enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. The dollar impact of changes in foreign currency exchange rates presented is calculated by translating current period results using monthly average foreign currency exchange rates from the comparative period and comparing them to the reported amount. The percentage growth rate impacted by foreign currency exchange rates, sometimes referred to as constant currency, is calculated by comparing the prior period amounts as reported and the current period amounts translated using the same monthly average foreign currency exchange rates from the comparative period.

This release and/or our quarterly earnings conference call scheduled for later today contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected future financial performance, expectations, plans and prospects of Akamai. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to continue to generate cash at the same level as prior years; failure of our investments in innovation to generate solutions that are accepted in the market; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; effects of competition, including pricing pressure and changing business models; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, rising and fluctuating interest rates, foreign currency exchange rate fluctuations, securities market volatility and monetary supply fluctuations; conditions and uncertainties in the geopolitical environment, including sanctions and disruptions resulting from the ongoing war in Ukraine and the Israel-Hamas war; continuing supply chain and logistics costs, constraints, changes or disruptions; defects or disruptions in our products or IT systems, including cyber-attacks, data breaches or malware; failure to realize the expected benefits of any of our acquisitions or reorganizations; changes to economic, political and regulatory conditions in the United States and internationally; our ability to attract and retain key personnel; delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents filed with the SEC.

In addition, the statements in this press release and on our quarterly earnings conference call represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release.


Contacts:
Christine Simeone						Mark Stoutenberg
Media Relations						Investor Relations
Akamai Technologies						Akamai Technologies
AkamaiPR@akamai.com						mstouten@akamai.com