Akamai has completed the migration of customers from bankrupt CDN firm Edgio.
The company has successfully moved all the customers it gained after Akamai acquired "select assets" from the CDN company in November 2024.
Revealed during the company's Q1 2025 earnings call, Akamai Technologies' CEO Tom Leighton said that of those customer accounts acquired from Edgio, the company has seen a $16 million commitment over the next three years.
In total, Akamai saw a revenue of $1.015 billion for the quarter, up three percent year-on-year (YoY), of which its security and compute offerings represent 69 percent, up 10 percent YoY.
Compute revenue was $165m, a 14 percent YoY increase.
The previous quarter had a revenue of $1.02bn for the quarter, 69 percent of which was again from security and compute.
Akamai is projecting between $1.012 and $1.032bn in revenue for Q2 of this year.
CEO Leighton noted that the company signed cloud computing deals with customers in the quarter, with "a global live streaming service with hundreds of millions of users, a major cybersecurity provider in the US, a European industrial products company, and a global developer of immersive video games."
The quarter has seen numerous announcements for Akamai's cloud business.
In March, the company teamed up with Vast Data to speed up AI inferencing, launched a cloud inferencing solution, and in February, a managed container service.
Capex for the quarter was $226m, said CFO Ed McGowan, who added that this was slightly lower than its guidance "mostly due to timing as some capex has been pushed from Q1 into Q2.
McGowan said that Akamai expects its capex to be "heavily front-end loaded" and will include around $10m in spending in the first half to help mitigate tariff risks.
The impact of tariffs was reiterated by Leighton, who added that the $10m in capex will be amortized over six years, and that the company has taken "steps to minimize the impact of tariffs on our business."
Leighton added: "That said, there is concern among some of our customers about a possible recession, which could impact bookings later in the year. And some of our customers outside the US have raised concerns about whether they should rely on American companies for critical infrastructure. Neither issue has impacted our business to date, and we’re working to reassure customers that Akamai will continue to serve them as we always have."
Leighton also addressed DOGE-related funding cuts in the US, noting that the company derives less than five percent of its revenue from the US public sector. "Based on our current line of sight, we expect to lose a few million dollars of revenue in the back half of 2025 related to federal cutbacks."
Other key figures from the quarter include GAAP income from operations of $155m, down seven percent YoY, and the operating margin was 15 percent, down two percent YoY.
During the quarter, Akamai spent $500m to repurchase 6.2 million shares of its common stock at an average price of $81.19 per share, and as of the end of March had 146 million shares of common stock outstanding. Speaking on this buy-back scheme, McGowan said that Akamai's intention "remains the same, to continue buying back shares to offset dilution from employee equity programs over time and to be opportunistic in both M&A and share repurchases."
