Akamai Technologies, Inc. (AKAM) Q1 2023 Earnings Call Transcript

Akamai Technologies, Inc. (NASDAQ:AKAM) Q1 2023 Earnings Conference Call May 9, 2023 4:30 PM ET

Company Participants

Tom Barth - Head, IR

Tom Leighton - Co-Founder, CEO & Director

Ed McGowan - CFO

Conference Call Participants

Keith Weiss - Morgan Stanley

James Fish - Piper Sandler

Jonathan Ho - William Blair

Rudy Kessinger - D.A. Davidson

Ray McDonough - Guggenheim Securities

Operator

Good day. And welcome to the Akamai Technologies First Quarter 2023 Earnings Conference Call. All participants are in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today's 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. Good afternoon, everyone, and thank you for joining Akamai's first 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 May 9, 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, let me turn the call over to Tom.

Tom Leighton

Thanks, Tom, and thank you all for joining us today. I'm pleased to report that despite the challenging macroeconomic environment, Akamai delivered strong results in the first quarter, with both revenue and earnings exceeding the high end of our guidance range.

Revenue grew to $916 million, and non-GAAP operating margin expanded to 29% in Q1. Non-GAAP earnings per share was $1.40. In what has been a good start to the year for Akamai, we've continued to invest in the key areas that we expect to drive our future growth while also taking actions to improve margins.