AKAM - Akamai stock dives 12% on Q1 miss cuts FY outlook

Akamai Technologies (NASDAQ:AKAM) shares plunged 12% in response to the cloud services firm's Q1 results that was followed by a string of ratings and PT cuts. The company generated adj. EPS of $1.39 on revenue of $904M (+7 Y/Y) - both metrics fell short of consensus estimates. Revenue by solution: Security revenue was $382M, up 23% Y/Y; compute revenue grew 32% Y/Y to $78M, while Delivery revenue fell 6% Y/Y to $444M. GAAP net income fell 23% Y/Y to $119M, while adj. net income dropped 1% to $225M primarily due to an adverse tax impact of $0.03. CEO Tom Leighton stated, "Despite a challenging global environment and the headwinds associated with the strengthening U.S. dollar, Akamai delivered results in line with our Q1 guidance." The company noted in the earnings call that it expects a much greater foreign exchange headwind for the remainder of 2022. Non-GAAP effective tax rate is seen at ~16%,

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Akamai stock dives 12% on Q1 miss, cuts FY outlook