1 00:00:02,759 --> 00:00:14,560 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Keep an eye on 2 00:00:14,600 --> 00:00:18,560 Speaker 1: Akamai shares today, somewhat volatile after posting second quarter results 3 00:00:19,040 --> 00:00:21,880 Speaker 1: that across the board in general beat estimates. But you 4 00:00:21,920 --> 00:00:23,920 Speaker 1: have to read between the lines as to where there 5 00:00:23,960 --> 00:00:26,240 Speaker 1: was perhaps a bit of a pullback or a miss 6 00:00:26,239 --> 00:00:28,560 Speaker 1: when it came to compute, for example, but there fully 7 00:00:28,720 --> 00:00:31,880 Speaker 1: forecast that was raised. Tom Layton, Akami CEO, joins us 8 00:00:31,880 --> 00:00:34,920 Speaker 1: now to demiss the five for us, Tom, because it's interesting. 9 00:00:35,000 --> 00:00:38,040 Speaker 1: You have Paybisana here really talking about lots of moving 10 00:00:38,080 --> 00:00:42,320 Speaker 1: parts and ultimately they see fairly cloudy still of what 11 00:00:42,400 --> 00:00:45,239 Speaker 1: the ultimate positioning is of the business. Can you tell 12 00:00:45,240 --> 00:00:48,960 Speaker 1: it you're really going in on well, cloud infrastructure here, 13 00:00:49,159 --> 00:00:51,360 Speaker 1: not just content delivery, not just security. 14 00:00:52,400 --> 00:00:58,520 Speaker 2: Oh yeah, security majority of our revenue cloud infrastructure services. 15 00:00:58,600 --> 00:01:01,520 Speaker 2: My goodness. We were up thirty percent year every year, 16 00:01:02,000 --> 00:01:04,560 Speaker 2: and we think that's going to accelerate. So by the 17 00:01:04,640 --> 00:01:07,000 Speaker 2: end of this year will be up forty percent plus 18 00:01:07,120 --> 00:01:12,000 Speaker 2: year over year. Tremendous market opportunity there, strong tailwinds of 19 00:01:12,040 --> 00:01:16,600 Speaker 2: course from jen Ai. So I think very exciting results 20 00:01:16,600 --> 00:01:19,080 Speaker 2: for Akamai. You know, a strong beat on the quarter, 21 00:01:19,920 --> 00:01:23,039 Speaker 2: very profitable earnings, per share up nine percent and a 22 00:01:23,080 --> 00:01:26,520 Speaker 2: dollar and seventy three cents, and I think a very 23 00:01:26,520 --> 00:01:28,360 Speaker 2: good outlook, raising guidance for the year. 24 00:01:29,120 --> 00:01:31,959 Speaker 1: So maybe just a little bit of a pause for investors. 25 00:01:31,959 --> 00:01:34,759 Speaker 1: I mean, the shads are still down over the year 26 00:01:34,840 --> 00:01:37,880 Speaker 1: or twelve months. Tom, I'm sort of interested therefore, on 27 00:01:37,959 --> 00:01:40,440 Speaker 1: what they're not getting. What is it about the opportunity 28 00:01:40,600 --> 00:01:44,360 Speaker 1: in for example, cloud infrastructure. Why take on the hyperscals. 29 00:01:45,000 --> 00:01:48,640 Speaker 2: Well, it's a tremendous market opportunity. Our customers have asked 30 00:01:48,720 --> 00:01:52,200 Speaker 2: us to do that. You know, we with our distributed platform, 31 00:01:52,240 --> 00:01:55,200 Speaker 2: which is unique in the marketplace. We're in seven hundred 32 00:01:55,200 --> 00:01:58,400 Speaker 2: and fifty cities. With our points of presence, we can 33 00:01:58,480 --> 00:02:04,440 Speaker 2: get enterprise computer instances. They're containers closer to the end users, 34 00:02:04,840 --> 00:02:08,400 Speaker 2: and that gives you lower latency and better performance and 35 00:02:08,440 --> 00:02:12,079 Speaker 2: for a lot of applications that matters. Also we could 36 00:02:12,120 --> 00:02:14,440 Speaker 2: do it at a lower price point. In fact, one 37 00:02:14,440 --> 00:02:17,079 Speaker 2: of the hyperscalers is an early adopter of our new 38 00:02:17,120 --> 00:02:20,880 Speaker 2: managed container service. They want to have their compute instances 39 00:02:20,919 --> 00:02:23,680 Speaker 2: and hundreds of cities around the world, which is something 40 00:02:23,680 --> 00:02:24,720 Speaker 2: Allly Akamai can do. 41 00:02:25,240 --> 00:02:28,080 Speaker 1: Interesting. I mean, maybe people are looking at what drove 42 00:02:28,200 --> 00:02:30,160 Speaker 1: some of the revenue beat and they're looking at FX, 43 00:02:30,160 --> 00:02:33,280 Speaker 1: but they're also looking at TikTok inclusion. Have you decided 44 00:02:33,320 --> 00:02:35,120 Speaker 1: that the risk of being band is just off the 45 00:02:35,160 --> 00:02:37,840 Speaker 1: table and you're going to really be starting talking about 46 00:02:37,840 --> 00:02:38,680 Speaker 1: this client once again? 47 00:02:39,760 --> 00:02:44,040 Speaker 2: Oh, there's always risk, though it seems that from what 48 00:02:44,080 --> 00:02:47,040 Speaker 2: we're hearing from public sources that you know, a deal 49 00:02:47,080 --> 00:02:50,760 Speaker 2: has basically been structured, and you know, there's obviously caught 50 00:02:50,840 --> 00:02:55,360 Speaker 2: up in trade negotiations, but at this point it seems 51 00:02:55,440 --> 00:02:59,840 Speaker 2: like the ban has been postponed several times and so 52 00:03:00,440 --> 00:03:03,720 Speaker 2: we're not seeing anything that suggests that that's going to 53 00:03:03,800 --> 00:03:05,000 Speaker 2: change in the near future. 54 00:03:05,440 --> 00:03:08,160 Speaker 1: You do that content delivery for them. It's interesting that 55 00:03:08,440 --> 00:03:10,760 Speaker 1: security is where a lot of your growth and as 56 00:03:10,760 --> 00:03:12,600 Speaker 1: you say, the most part of your revenue has been 57 00:03:12,639 --> 00:03:17,000 Speaker 1: coming from. What insecurity is driving that growth? Where are 58 00:03:17,000 --> 00:03:17,880 Speaker 1: people coming to you? 59 00:03:19,120 --> 00:03:22,680 Speaker 2: Yeah, we have the market leading solutions for web apt firewall, 60 00:03:23,400 --> 00:03:30,160 Speaker 2: for bought management, for API security, for stopping ransomware with segmentation, 61 00:03:30,760 --> 00:03:33,280 Speaker 2: and of course the attack rates have been going way up, 62 00:03:33,320 --> 00:03:36,080 Speaker 2: the penetrations have been going way up, and we have 63 00:03:36,200 --> 00:03:40,520 Speaker 2: the solution. It stops the damage caused by those attacks. 64 00:03:40,520 --> 00:03:43,600 Speaker 2: So if the ransomware gets in, we identify it quickly, 65 00:03:43,640 --> 00:03:46,880 Speaker 2: we don't let it spread, and that protects our customers 66 00:03:46,880 --> 00:03:50,640 Speaker 2: so they don't have these huge costs associated with being 67 00:03:50,640 --> 00:03:52,040 Speaker 2: shut down by ransomware. 68 00:03:52,560 --> 00:03:54,680 Speaker 1: Of course, Jeneral to AI in many ways, making the 69 00:03:54,800 --> 00:03:59,720 Speaker 1: field of security ever more evolving and nimble is what's crucial. Tom. 70 00:04:00,080 --> 00:04:02,120 Speaker 1: What I'm also so interested in is the way in 71 00:04:02,160 --> 00:04:04,880 Speaker 1: which you're thinking about education here in the United States, 72 00:04:04,880 --> 00:04:07,600 Speaker 1: skills in particular and upskilling. This is something that the 73 00:04:07,760 --> 00:04:09,800 Speaker 1: US government is calling for a lot, and I'm particularly 74 00:04:09,800 --> 00:04:12,920 Speaker 1: in the era of Generator Ai. How are you seeing 75 00:04:13,280 --> 00:04:15,600 Speaker 1: the skill set and the pool of talent? Is it 76 00:04:15,640 --> 00:04:16,279 Speaker 1: good enough for you? 77 00:04:17,600 --> 00:04:22,760 Speaker 2: It's going to change with Jenai. We're seeing tremendous efficiencies 78 00:04:22,800 --> 00:04:28,240 Speaker 2: across most job types at Akamai, so that our employees 79 00:04:28,279 --> 00:04:30,960 Speaker 2: can do more in the same amount of time by 80 00:04:31,040 --> 00:04:36,160 Speaker 2: leveraging Genai. And I think you'll see training. We're doing 81 00:04:36,200 --> 00:04:40,560 Speaker 2: training ourselves so that employees will change maybe how they 82 00:04:40,600 --> 00:04:44,159 Speaker 2: do certain things, and they'll be more efficient by learning 83 00:04:44,200 --> 00:04:46,400 Speaker 2: how to use the Genai tools. I think it's really 84 00:04:46,480 --> 00:04:48,200 Speaker 2: very exciting and it probably is going to be a 85 00:04:48,240 --> 00:04:50,359 Speaker 2: sea change over time and education. 86 00:04:51,200 --> 00:04:53,520 Speaker 1: Tom Layton a Akamai is always great to have you 87 00:04:53,600 --> 00:04:55,479 Speaker 1: on after your numbers. Thank you very much for joining 88 00:04:55,480 --> 00:04:55,800 Speaker 1: the show.