Edwyn
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | $3,198 | $3,461 | $3,617 | $3,812 | $3,991 |
| Gross Profit | $2,065 | $2,192 | $2,233 | $2,301 | $2,370 |
| Operating Income | $659 | $783 | $676 | $637 | $533 |
| Net Income | $557 | $652 | $524 | $548 | $505 |
Over the five-year period from 2020 to 2024, Akamai Technologies’ revenue increased steadily from approximately USD 3.20 billion to USD 3.99 billion. This consistent growth, averaging around 5% per year, reflects a positive demand in its content delivery and cloud services market. Correspondingly, gross profit showed a similar upward trend, rising from USD 2.07 billion in 2020 to USD 2.37 billion in 2024, indicating maintained pricing power and effective cost control at the production level. However, the margins at the operating level indicate emerging challenges. Operating income peaked in 2021 at around USD 783 million before declining to USD 533 million in 2024—a drop of roughly 32% from the peak. Net income exhibited a comparable trend, reaching a high of approximately USD 652 million in 2021 and then decreasing to about USD 505 million by 2024. Notably, none of these year-over-year changes surpassed a 20% swing, which suggests that while there isn’t any abrupt shift in performance, there is a gradual compression in profitability. This might be due to rising operational expenses or competitive pressures in the technology and content delivery industry. Overall, the company’s financial health appears stable given its consistent revenue and gross profit growth, even though the declining operating and net margins indicate a need to manage rising costs or reposition operational efficiencies to sustain long-term profitability.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.