Akamai leans into security and cloud as delivery declines

Transcript intelligence

What changed

Akamai’s mix is shifting further toward security and cloud. The call highlighted security revenue above $2 billion, cloud infrastructure ARR of $259 million, a new managed container service, and a large Scandinavian cloud contract, while delivery revenue continues to decline.

Guidance delta

Maintained: 2025 guidance calls for revenue of $4–4.2 billion and non-GAAP EPS of $6–6.40, with cloud infrastructure ARR targeted to grow 40–45% in constant currency.

Key takeaways

• Security is the primary revenue driver, with 16% year-over-year growth and revenue exceeding $2 billion.
• Cloud computing ARR reached $259 million, with 40–45% constant-currency growth targeted for 2025.
• Delivery revenue remains under pressure, although management expects the decline to narrow to about 10% this year.
• A managed container service is planned across 4,300 POPs in more than 700 cities.
• A $100 million multi-year cloud infrastructure contract in Scandinavia supports the cloud expansion narrative.

Management priorities

• Launch the managed container service across global POPs.
• Scale Guardicore and API security product lines.
• Expand data-center capacity, especially in Europe and Scandinavia.
• Enable Deloitte and other channel partners.
• Pursue selective tuck-in acquisitions in security and compute.