Akamai Technologies Inc (AKAM)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	2,395,279	2,384,734	2,366,283	2,348,880	2,315,172	2,258,223	2,213,462	2,207,924	2,224,423	2,234,567	2,227,229	2,188,265	2,138,252	2,100,737	2,067,496	2,053,371	2,013,699	1,985,632	1,945,236	1,899,928
Revenue (ttm)	US$ in thousands	4,016,072	3,984,572	3,940,389	3,893,373	3,826,238	3,733,857	3,652,471	3,620,307	3,608,242	3,585,821	3,548,899	3,483,286	3,407,208	3,348,137	3,281,469	3,224,148	3,146,371	3,072,207	2,995,310	2,915,391
Gross profit margin		59.64%	59.85%	60.05%	60.33%	60.51%	60.48%	60.60%	60.99%	61.65%	62.32%	62.76%	62.82%	62.76%	62.74%	63.01%	63.69%	64.00%	64.63%	64.94%	65.17%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,395,279K ÷ $4,016,072K
= 59.64%

Akamai Technologies Inc's gross profit margin has shown a gradual decline from 65.17% as of March 31, 2020, to 59.64% as of December 31, 2024. This trend indicates a decrease in the percentage of revenue retained by the company after accounting for the cost of goods sold. The decreasing gross profit margin could be a result of various factors such as increasing production costs, pricing pressure, or changes in product mix.

It is important for investors and stakeholders to closely monitor the gross profit margin as it provides insights into the company's pricing strategy, cost efficiency, and overall profitability. A declining gross profit margin may raise concerns about the company's ability to maintain sustainable profitability in the long term and could warrant further analysis into the underlying reasons for the trend.