Akamai launched 13 new core computing regions in 2023, expanding its cloud computing services. The acquisitions of Linode, Neosec, and StorageOS are intended to enhance Akamai's cloud computing and security offerings.

Management commentary indicates a strategic shift towards security and compute solutions, with less emphasis on traditional delivery services. This is evidenced by increased investment in these areas and declining revenue in delivery solutions.

Revenue from international operations has generally been growing at a faster pace than from U.S. operations, particularly from new customer acquisition and cross-selling of incremental solutions.

Management is implementing cost management initiatives, including migrating third-party cloud services to Akamai's own cloud solutions and improving network efficiencies. These efforts aim to mitigate rising expenses and improve profitability.

Restructuring activities, including workforce reductions and facility consolidations, have resulted in restructuring charges. These actions are intended to improve operational efficiencies and prioritize investments.

The company faces challenges related to supply chain disruptions, geopolitical instability (e.g., the war in Ukraine, Israel-Hamas war), and rising energy costs, which could negatively impact operations and financial results.

The company acknowledges that slowing revenue growth could negatively impact profitability and stock price. The ability to generate revenue depends on continued demand for security, delivery, and compute solutions, as well as maintaining competitive pricing.

The company faces risks associated with global macroeconomic conditions, including inflation, interest rates, and geopolitical instability. These conditions could adversely affect business, financial condition, and results of operations.

The company acknowledges the increasing sophistication and frequency of cybersecurity attacks, which could lead to significant costs and disruptions. Protecting corporate and deployed networks requires continuous engineering and mitigation efforts.

The company operates in intensely competitive markets characterized by rapidly changing technology and frequent new product innovations. Competition is expected to increase from existing competitors and new market entrants.

The company's compute solutions face significant competition from large, established cloud computing providers with greater financial, technical, and marketing resources.

The company is reliant on some of its larger customers to direct traffic to its network for a significant part of its revenues. In the past, some of our customers have determined that it is better for them to employ a "do-it-yourself" or "DIY" strategy by putting in place equipment, software and other technology solutions for content and application delivery and security protection within their internal systems instead of using our solutions for some or all of their needs.

The company's profitability is impacted by its expenses, including direct costs to support its revenue such as bandwidth and co-location costs. Historically, the company has been able to mitigate increases in these costs by reducing its network bandwidth costs per unit and investing in internal-use software development to improve the performance and efficiency of its network.

As the company continues to build out its new compute locations to provide it with the ability to scale its platform, it expects to enter into longer term leases that include certain financial commitments in order to achieve more favorable unit economics.

The FlexBase program, which allows employees to work remotely, is intended to reduce real estate expenses. The company continues to evaluate its facility footprint and sublease excess space.

The company must be particularly adept at developing new security solutions that meet the constantly-changing threat landscape and compute and compute-to-edge solutions that meet the needs of professional users and enterprises looking to increase the utility of the internet for their business.

With the acquisition of Linode, the company is investing significant resources in its compute solutions and platform, working on expanding the capacity of these facilities, adding additional sites and developing increased compute features and functionality.

The company continues to improve internal-use software and remain disciplined in managing its hardware deployments, particularly for its delivery platform, which enables it to use servers more efficiently.

The board of directors authorized a share repurchase program that is effective from January 2022 through December 2024. The company's goal for the share repurchase program is to offset the dilution created by its employee equity compensation programs over time and provide the flexibility to return capital to shareholders as business and market conditions warrant.

In August 2023, the company issued $1,265.0 million in principal amount of convertible senior notes due 2029 and entered into related convertible note hedge and warrant transactions. The company intends to use a portion of the net proceeds to repay at maturity its $1,150.0 million outstanding aggregate principle amount of convertible senior notes due in 2025.

The company expects to continue to pursue acquisitions and other types of strategic relationships that involve technology sharing or close cooperation with other companies. Acquisitions and other complex transactions are accompanied by a number of risks.

The company focuses on fostering an inclusive community that supports the success of its employees and continuing to deliver a positive experience for both employees and customers by living its values each day. The company also supports varied programs and practices designed to promote a diverse and inclusive working environment.

As a signatory to the White House Equal Pay Pledge, the company is committed to monitoring its pay practices regularly and making adjustments, as necessary, to deliver on this pledge.

In response to concerns about global climate change, governments may adopt new regulations affecting the use of fossil fuels or requiring the use of alternative fuel sources which could adversely impact the company's business. The company has invested in projects to support renewable energy development.

Global macroeconomic and geopolitical conditions continue to impact the company's business and revenue growth rates. The company, along with its customers, continue to manage through an uncertain period of fluctuating inflation, economic uncertainty, uncertain energy supplies, heightened geopolitical tensions, potential for supply chain disruptions, changes in international tax laws, fluctuations in foreign exchange rates and elevated interest rates.

Evolving privacy regulations, content regulations, and other regulatory developments could negatively impact the company's business. Compliance with these regulations may require changes in services, business practices, or internal systems.

Disruptions in the company's supply chain have occurred in the past and could prevent it from purchasing needed equipment at attractive prices or at all. Failure to have adequate equipment, including server equipment, could harm the quality of the company's services, which could lead to the loss of customers and revenue.