Akamai Technologies, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total revenue for the three months reached $1,004.7 million, a 4.1% increase from $965.5 million in the same period of 2023. For the nine months, revenue rose 5.5% to $2,971.2 million from $2,816.9 million year-over-year. The growth was primarily driven by increased sales in security solutions, which saw a 13.8% rise in the third quarter, and compute solutions, which grew by 28.0%.

Despite the revenue growth, profitability declined significantly. Net income for the third quarter fell to $57.9 million, down from $160.5 million in the same quarter of 2023. For the nine months, net income decreased to $365.0 million from $386.5 million. This decline in profitability was reflected in the basic net income per share, which dropped to $0.38 from $1.06 for the third quarter and to $2.40 from $2.53 for the nine months.

Total costs and operating expenses for the third quarter increased to $934.0 million, up from $789.4 million in the prior year, leading to a decrease in the income from operations to $70.6 million from $176.1 million. The operating margin also contracted, with GAAP operating margin for the third quarter at 7.0%, down from 18.2% in 2023.

Akamai's balance sheet showed significant changes, with total current assets rising to $2.6 billion from $1.8 billion at the end of 2023, largely due to an increase in marketable securities. Goodwill also increased to $3.2 billion, reflecting the acquisition of Noname Security for $452.3 million in June 2024, aimed at enhancing the company's API security offerings.

The company incurred restructuring charges of $54.3 million in the third quarter, primarily related to employee severance and acquisition-related costs. Additionally, Akamai's cash and cash equivalents increased to $569.7 million from $489.5 million at the end of 2023, while total stockholders' equity rose to $4.8 billion from $4.6 billion.

Akamai's strategic focus remains on enhancing its security and compute solutions, with expectations of continued revenue growth despite challenges such as increased competition and economic pressures affecting customer traffic. The company anticipates recognizing approximately 65% of its remaining performance obligations as revenue over the next 12 months.