Akamai Technologies Inc. Q4 FY2023 results: revenue $995 million, up 7.2% on the year

Akamai Technologies Inc. (AKAM) reported revenue of $995 million for Q4 FY2023, the quarter ended 31 December 2023, up 7.2% on the same quarter a year earlier. Net income was $161 million, up 25.2% on the year, and diluted earnings per share $1.02. The figures are the company's own, from the 10-K it filed with the SEC on 28 February 2024.

Revenue$995 millionup 7.2%

Net income$161 millionup 25.2%

Diluted EPS$1.02

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	995	965	n/a	n/a
Cost of revenue	393	383	n/a	n/a
Gross profit	602	582	n/a	n/a
Gross margin	60.5%	60.3%	n/a
Research and development	109	106	n/a	n/a
Operating income	185	176	n/a	n/a
Operating margin	18.6%	18.2%	n/a
Interest expense	6.9	5.0	n/a	n/a
Pre-tax income	196	179	n/a	n/a
Income tax	35.1	20.3	n/a	n/a
Effective tax rate	17.9%	11.3%	n/a
Net income	161	161	n/a	n/a
Net margin	16.2%	16.6%	n/a
Diluted EPS	$1.02	$1.04	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	389	359	n/a	n/a
Capital expenditure	70.4	134	n/a	n/a
Free cash flow	319	226	n/a	n/a
Free cash flow margin	32.0%	23.4%	n/a
Depreciation and amortisation	148	149	n/a	n/a
Share-based compensation	92.1	87.0	n/a	n/a
Buybacks	54.9	113	n/a	n/a
Diluted shares, weighted	155m	155m	n/a	n/a
Shares outstanding at period end	151m	151m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	9,900	9,582	n/a	n/a
Cash and equivalents	489	460	n/a	n/a
Receivables	724	713	n/a	n/a
Goodwill	2,850	2,843	n/a	n/a
Operating lease liabilities	775	761	n/a	n/a
Shareholders' equity	4,597	4,324	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	965	995	987	980	1,005	1,020	1,015	1,043	1,055	1,095	1,074	1,100
Cost of revenue	383	393	395	403	409	414	419	427	430	453	471	486
Gross profit	582	602	592	577	596	606	596	617	625	642	602	614
Gross margin	60%	60%	60%	59%	59%	59%	59%	59%	59%	59%	56%	56%
R&D	106	109	117	113	120	120	124	126	125	139	142	149
Operating income	176	185	167	148	70.6	148	155	151	166	94.9	114	80.3
Operating margin	18%	19%	17%	15%	7%	15%	15%	15%	16%	9%	11%	7%
Interest expense	5.0	6.9	6.8	6.8	6.7	6.7	6.8	8.2	7.9	7.9	8.3	9.1
Pre-tax income	179	196	188	167	73.8	158	173	152	173	104	122	100
Tax rate	11%	18%	7%	21%	22%	12%	29%	32%	19%	18%	13%	21%
Net income	161	161	175	132	57.9	140	123	104	140	85.1	106	79.4
Net margin	17%	16%	18%	13%	6%	14%	12%	10%	13%	8%	10%	7%
Diluted EPS	$1.04	$1.02	$1.11	$0.86	$0.38	$0.92	$0.82	$0.71	$0.97	$0.57	$0.71	$0.52
Operating cash flow	359	389	352	431	393	344	251	459	442	367	313	326
Capital expenditure	134	70.4	93.8	91.0	113	92.9	118	146	113	132	102	145
Free cash flow	226	319	258	340	280	251	133	314	329	235	211	181
Buybacks	113	54.9	125	128	166	138	500	300	0.0	0.0	206	410
Shares outstanding	151m	151m	152m	152m	151m	150m	146m	143m	144m	145m	146m	144m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 28 February 2024, accession 0001086222-24-000040: the filing on EDGAR. All of Akamai Technologies Inc.'s filings: EDGAR company page.

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