Akamai Technologies, Inc. (AKAM) Q4 2022 Earnings Call Transcript

Akamai Technologies, Inc. (NASDAQ:AKAM) Q4 2022 Earnings Conference Call February 14, 2023 4:30 PM ET

Company Participants

Tom Barth - Head, IR

Tom Leighton - Co-Founder, CEO & Director

Ed McGowan - CFO

Conference Call Participants

James Fish - Piper Sandler

James Breen - William Blair

Keith Weiss - Morgan Stanley

Tim Horan - Oppenheimer

Mark Murphy - JPMorgan

Rishi Jaluria - RBC

Amit Daryanani - EVercore ISI

Fatima Boolani - Citigroup

Frank Louthan - Raymond James

Rudy Kessinger - D.A. Davidson

Ray McDonough - Guggenheim Securities

Michael Elias - Cowen & Co.

Operator

Good afternoon, and welcome to the Akamai Technologies, Inc. Earnings Q4 Fiscal Year 2022 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

I'd 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 fourth quarter 2022 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 Form 10-Q. The forward-looking statements included in this call represent the company's view on February 14, 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 at 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 Akamai delivered strong results in the fourth quarter, exceeding the high end of our guidance range on both the top and bottom lines, despite ongoing challenges with the global economic environment. Q4 revenue was $928 million, up 6% year-over-year in constant currency. Our revenue growth was driven by continued strong demand for our security products, our fast-growing compute business and by higher-than-expected delivery traffic. Security and compute accounted for 55% of our overall revenue in the fourth quarter and grew a combined 22% year-over-year in constant currency.