Akamai Technologies, Inc. (NASDAQ:AKAM) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET

Company Participants

Tom Barth - Investor Relations

Tom Leighton - Chief Executive Officer

Ed McGowan - Chief Financial Officer

Conference Call Participants

James Fish - Piper Sandler

Fatima Boolani - Citi

Ray McDonough - Guggenheim Securities

Frank Louthan - Raymond James

Tim Horan - Oppenheimer

Alex Henderson - Needham & Company

Mark Murphy - JPMorgan

Rishi Jaluria - RBC

Ruby Kessinger - D.A. Davidson

Michael Elias - TD Cowen

Jeff Van Rhee - Craig Hallum

Operator

Good afternoon, and welcome to the Akamai Technology Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Tom Barth, Head of Investor Relations. Please go ahead.

Tom Barth

Thank you, operator. Good afternoon, everyone, and thank you for joining Akamai's third quarter 2023 earnings call. Speaking today will be Tom Leighton, Akamai's Chief Executive Officer; and Ed McGowan, Akamai's Chief Financial Officer. Please note that today's comments include forward-looking statements, including statements regarding revenue and earnings guidance. These forward-looking statements are subject to risks and uncertainties and involve a number of factors that could cause actual results to differ materially from those expressed or implied by such statements. The factors include any impact from macroeconomic trends, the integration of any acquisitions and any impact from geopolitical developments. Additional information concerning these factors is contained in Akamai's filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements included in this call represent the company's view on November 7, 2023. Akamai disclaims any obligation to update these statements to reflect new information, future events or circumstances, except as required by law. As a reminder, we will be referring to some non-GAAP financial metrics during today's call. A detailed reconciliation of GAAP and non-GAAP metrics can be found under the financial portion of the Investor Relations section of akamai.com.

And with that, I'll turn the call over to Tom.

Tom Leighton

Thanks, Tom, and thank you all for joining us today. I'm pleased to report that Akamai delivered excellent results in the third quarter with revenue, operating margin and earnings all exceeding the high end of our guidance range. Revenue grew to $965 million in Q3, up 9% year-over-year. Non-GAAP operating margin was 31%, and non-GAAP earnings per share was $1.63, up 29% year-over-year. Ed will cover the key factors that drove our bottom line performance in his portion of the call. I'll now say a few words about each of our 3 main product areas, starting with security, our largest source of revenue.