Akamai Technologies Inc. (AKAM) 2024年年度報告「NASDAQ」.pdf

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1、Annual Report20242023$3,8122022$3,6172024$3,991$Millions2022$6762023$637$Millions2024$5332022$1,2752024$1,5192023$1,348$Millions202420232022$3.26$3.27$3.52REVENUEINCOME FROM OPERATIONSComparison of 5-Year Cumulative Total ReturnCASH FROM OPERATIONSEARNINGS PER SHAREFinancial HighlightsStock Performa

2、nce$0$50$150$100$200$250$300$35012/19 3/206/20 9/20 12/20 3/216/219/2112/213/226/229/22 12/22 3/236/239/23 12/23 3/246/249/24 12/24Akamai Technologies,IncNASDAQ CompositeS&P Information TechnologyUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURS

3、UANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF1934For the fiscal year ended December 31,2024orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF1934Commission file number:0-27275Akamai Technologies,Inc.(Exact name of registrant as specified in its charte

4、r)Delaware04-3432319(State or other jurisdiction ofincorporation or organization)(I.R.S.Employer Identification No.)145 BroadwayCambridge,Massachusetts 02142(Address of principle executive offices)(Zip Code)Registrants telephone number,including area code:(617)444-3000Securities registered pursuant

5、to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock-par value$0.01 per shareAKAMNasdaq Global Select MarketSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned

6、issuer,as defined in Rule 405 of the SecuritiesAct.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d)of the Act.Yes No Indicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the

7、 SecuritiesExchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file suchreports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically ev

8、ery Interactive Data File required to be submittedpursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period thatthe registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated

9、 filer,an accelerated filer,a non-accelerated filer,a smallerreporting company,or an emerging growth company.See the definitions of large accelerated filer,accelerated filer,smallerreporting company,and emerging growth company in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated file

10、rNon-accelerated filerSmaller reportingcompanyEmerging growthcompanyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a)of th

11、e Exchange Act.oIndicate by check mark whether the registrant has filed a report on and attestation to its managements assessment ofthe effectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting fir

12、m that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of theregistrant included in the filing reflect the correction of an error to previously issued financial statements.oIndicate by check

13、mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to240.10D-1(b).oIndicate by check mark whether the registrant is a shell c

14、ompany(as defined in Rule 12b-2 of the Act).YesNo The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant wasapproximately$13,428.8 million based on the last reported sale price of the Common Stock on the Nasdaq Global Select Marketon June 28,20

15、24.For the purposes of this disclosure only,the registrant has assumed that its directors and executive officers(asdefined in Rule 3b-7 under the Exchange Act)are the affiliates of the registrant.The number of shares outstanding of the registrants Common Stock,par value$0.01 per share,as of February

16、 20,2025:150,317,536 shares.DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrants definitive proxy statement to be filed with the Securities and Exchange Commission relative to theregistrants 2025 Annual Meeting of Stockholders are incorporated by reference into Items 10,11,12,13 and 14 of

17、Part III of thisannual report on Form 10-K.Auditor name:PricewaterhouseCoopers LLPAuditor location:Boston,MassachusettsPCAOB ID:238AKAMAI TECHNOLOGIES,INC.ANNUAL REPORT ON FORM 10-KFOR THE FISCAL YEAR ENDED DECEMBER 31,2024TABLE OF CONTENTSPART IItem 1.Business4Item 1A.Risk Factors11Item 1B.Unresolv

18、ed Staff Comments25Item 1C.Cybersecurity25Item 2.Properties26Item 3.Legal Proceedings26Item 4.Mine Safety Disclosures26PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of EquitySecurities26Item 6.Reserved27Item 7.Managements Discussion and Analysis

19、of Financial Condition and Results of Operations27Item 7A.Quantitative and Qualitative Disclosures About Market Risk47Item 8.Financial Statements and Supplementary Data49Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure90Item 9A.Controls and Procedures91Item

20、 9B.Other Information92Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections92PART IIIItem 10.Directors,Executive Officers and Corporate Governance92Item 11.Executive Compensation92Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Ma

21、tters92Item 13.Certain Relationships and Related Transactions,and Director Independence92Item 14.Principal Accounting Fees and Services93PART IVItem 15.Exhibits,Financial Statement Schedules93Item 16.Form 10-K Summary96SIGNATURES97Forward-Looking StatementsThis annual report on Form 10-K contains“fo

22、rward-looking statements”within the meaning of the Private SecuritiesLitigation Reform Act of 1995 regarding future events and the future results of Akamai Technologies,Inc.,which we refer to as“we,”“us,”or the“Company.”All statements other than statements of historical facts are statements that cou

23、ld be deemedforward-looking statements.These statements are subject to risks and uncertainties and are based on the beliefs andassumptions of our management as of the date hereof based on information currently available to our management.Use ofwords such as“believes,”“could,”“expects,”“anticipates,”

24、“intends,”“plans,”“seeks,”“projects,”“estimates,”“should,”“would,”“forecasts,”“if,”“continues,”“goal,”“likely,”“may,”“will,”variations of such words or similarexpressions are intended to identify a forward-looking statement.Forward-looking statements are not guarantees of futureperformance and invol

25、ve risks,uncertainties and assumptions.Actual results may differ materially from the forward-lookingstatements we make as a result of various factors,including,but not limited to:potential slowing revenue growth,globaleconomic and geopolitical conditions,including changes in customer spending and in

26、flation,our ability to acquire or developnew solutions,our ability to compete effectively,including our ability to continue to grow our compute services and solutions,security risks stemming from ineffective information technology systems or cybersecurity breaches,risks of maintaining globaloperatio

27、ns,regulatory developments,intellectual property claims or disputes,investment related risks and maintaining aneffective system of internal controls.See“Risk Factors”elsewhere in this annual report on Form 10-K and in our other reportsfiled with the Securities and Exchange Commission for a discussio

28、n of certain risks associated with our business.We disclaimany obligation to update any forward-looking statements as a result of new information,future events or otherwise,includingthe potential impact of any mergers,acquisitions,divestitures or other events that may be announced after the date her

29、eof.PART IItem 1.BusinessOverviewAkamais mission is to power and protect life online.Since 1998,Akamai has developed and provided solutions for global enterprises to build,secure and accelerate theirapplications and digital experiences.Our massively distributed global network is comprised of core an

30、d distributed computesites,more than 4,300 edge points-of-presence in approximately 130 countries and over 700 cities,and our underlying globalnetwork integrated with roughly 1,200 network partners.With this scale and distribution,Akamai has visibility and insight intotraffic volumes,congestion,atta

31、ck patterns,vulnerabilities and other activities across the internets complex intersections ofnetworks and systems.Leveraging these insights,Akamai offers solutions designed to protect our customers from threats andattacks,along with full-stack compute solutions to build and deliver distributed,low-

32、latency applications on our globallydistributed network.Today,billions of people work,learn,shop,bank,communicate and do more online globally.We firmly believe that theinternets role in transforming the way we exchange ideas and information and conduct business is more vital than ever.Ourstrategy is

33、 to help continue to power and protect business online by offering security and compute services with the industry-leading reliability,scale and expertise our customers need to grow their business with confidence.Our SolutionsWe provide solutions in three core offerings:security,delivery and compute

34、.We also provide services and support for ourcustomers as they utilize our solutions.As part of our mission to make life better for millions of businesses,trillions of timesper day,Akamai is committed to enabling our customers to benefit from the latest technology developments.In recent years,artifi

35、cial intelligence(AI)has been a major focus of corporate initiatives for enterprises in multiple verticals and across theglobe.To help our customers seize on the power and potential of AI,we provide cloud computing infrastructure that they canuse to build AI-powered applications;cybersecurity soluti

36、ons,powered by AI and automation,designed to defend againstprompt injections,data exfiltration and toxic outputs;generative AI to improve the speed and efficiency of identifying andinvestigating malicious or suspect activity;and throughput on our global intelligent network to enable the large volume

37、s of datarequired to power AI-powered applications and facilitate effective real-time protections.SecurityOur security solutions,threat intelligence and global operations team work to provide defense in depth to safeguardenterprise data and applications.Customers trust Akamai to help keep infrastruc

38、ture,websites,applications,application4programming interfaces(APIs),networks and users safe from a multitude of cyberattacks and online threats while improvingperformance.With insight and automation derived from the worlds most distributed global network,our solutions blend robustautomation with cus

39、tomizable protections and managed security services to enable businesses to effectively manage risk andmaximize protections.Akamais web application and API protection solutions protect web,API and mobile app traffic fromattacks that take advantage of security flaws,protection from malicious automate

40、d attacks,credential abuse and accounttakeover,client-side protections that protect end customers from malicious or vulnerable first-and third-party client-side scriptsthat can lead to audience hijacking and distributed denial of service(DDoS)mitigation.As adversaries relentlessly refinetheir evasio

41、n techniques,it requires continuous innovation in threat detection and specialized defenses to stay ahead ofadvanced bot and abuse attacks.Our Bot&Abuse portfolio provides tailored,specialized solutions to help customers protectagainst these threats.Akamai Account Protector offers full account lifec

42、ycle protections including the ability to defend againstaccount takeover and opening abuse,adversarial bot protection,protection against credential stuffing,inventory scalping andhoarding.Akamai Content Protector also helps businesses protect their intellectual property,reputation and revenue potent

43、ialwith solutions designed to stop persistent scrapers from stealing content that can be used for malicious purposes likecompetitive intelligence/espionage,inventory manipulation,site performance degradation and counterfeiting.In May 2023,Akamai acquired Neosec,Inc.(Neosec),which enabled us to offer

44、 a solution we refer to as API Securitythat works to discover and audit APIs and monitor API activity.API Security complements our application and API securityportfolio by extending our visibility into the growing API threat landscape to detect and respond to threats and abuse detectionand operates

45、using a response platform based on data and behavioral analytics.In June 2024,Akamai acquired NonameSecurity Ltd.(Noname Security),one of the top API security vendors in the market.This enhanced Akamais API Securitysolution and accelerated our ability to meet growing customer demand and market requi

46、rements as the use of APIs continues toexpand.Akamai also expects to gain greater scale with Noname Securitys additional sales and marketing resources andestablished channel and alliance relationships.As a result of the acquisition,Akamai expects to offer a complete API securitysuite enabling custom

47、ers to better discover“shadow”APIs and detect vulnerabilities and attacks.Akamais enhanced offeringexpects to have greater deployment choices for customers and access to a portfolio of technology integrations that we believe isunrivaled in the market.We also offer microservice and application compon

48、ent protection that analyzes and protects application traffic that movesbetween application components like containers,APIs and workloads.This is part of a growing set of solutions designed to helpbusinesses implement a Zero Trust security architecture.Our acquisition of Guardicore Ltd.(Guardicore)i

49、n October 2021 hasenabled us to deliver the Akamai Guardicore Platform,which simplifies enterprise security with broad visibility and granularcontrols through one console.The Akamai Guardicore Platform simply and efficiently enables Zero Trust through a fullyintegrated combination of microsegmentati

50、on,Zero Trust Network Access,multi-factor authentication,domain name system(DNS)firewall and threat hunting.Guardicores microsegmentation solution helps our customers prevent malicious lateralmovement in their network through precise segmentation policies,visuals of activity within their IT environm

51、ent and networksecurity alerts.The platform leverages AI to simplify user experience,vulnerability assessments,compliance and incidentresponse,helping to protect businesses from the threat of ransomware.AI network labeling examines how assets are behavingand suggests labels to help security teams ap

52、ply appropriate controls,and generative AI allows security professionals to asknatural language questions of their network,instead of manually poring through logs,to drastically expedite a variety of usecases like compliance scoping and incident response.ComputeAkamais cloud computing services,which

53、 we sometimes refer to as compute,include compute,storage,networking,database and container management services that are required to build,deploy and secure applications and workloads.Thecloud computing services running on Akamais compute platform enable companies to distribute workloads and applica

54、tionsacross our core to edge infrastructure to help solve the cost,performance and scale challenges that centralized cloud computingplatforms present today.In March 2022,Akamai acquired Linode Limited Liability Company(Linode),an established cloud computing platform.This acquisition was a significan

55、t milestone in our expansion into cloud computing.While Linode was traditionally focused onindividual developers,we are leveraging the Linode cloud computing services for enterprise customers by building newenterprise-grade core computing regions and connecting them to the Akamai network,which we be

56、lieve will give Akamai anadvantage over its bigger cloud rivals.Akamai provides a continuum of compute solutions for developers to build and deliverdistributed,low-latency applications.We empower businesses to build and deploy massively scalable applications,distributethem to reduce latency and reac

57、h underserved locations and work to optimize and secure experiences and data from the core tothe digital touchpoint.Akamais compute solutions include a broad set of distributed cloud and edge computing services,including virtual machines,graphical processing units,cloud storage and databases,network

58、 optimization and security services5and lightweight serverless functions to help businesses build,deploy and manage applications and workloads with superiorperformance and affordability on the worlds most distributed platform.In 2024,we expanded Akamais compute platform to span 41 datacenters in 36

59、locations.This includes upgrades to 5existing datacenters and the introduction of 11 datacenters.The locations of these datacenters include Denver,Colorado;Houston,Texas;Quertaro,Mexico;Bogot,Colombia;Santiago,Chile;Marseille,France;Hamburg,Germany;Johannesburg,South Africa;Auckland,New Zealand;Kual

60、a Lumpur,Malaysia;and Melbourne,Australia.Distributed compute regionsprovide access to powerful dedicated compute,storage and networking services in major metros that lack cloud computingoptions and availability,enabling organizations to place compute-intensive workloads as close as possible to end

61、users.Theseregions act as an extension of primary infrastructure deployed in core compute regions for organizations that aim to improveapplication performance to attract new customers in new or target regions,and/or stabilize performance to meet userexpectations.We also introduced new NVIDIA graphic

62、s processing units(GPUs)to provide better productivity andeconomics for companies in the media and entertainment industry that are challenged with processing video content faster andmore efficiently,and for organizations seeking to deploy AI inferencing workloads closer to end users.These GPUs are w

63、ell-suited for video transcoding and live video streaming,virtual reality and augmented reality content,gaming and graphicsrendering,training and inference with neural networks,data analysis and scientific computing and high-performance computingapplications,such as modeling and simulation,that requ

64、ire fast and efficient processing of large amounts of data.In November 2024,we launched the Akamai App Platform,a ready-to-run solution that makes it easy to deploy,manageand scale highly distributed applications.The Akamai App Platform is built on top of the cloud native Kubernetes technologyOtomi,

65、which Akamai acquired from Red Kubes Holding B.V.and its subsidiary earlier in the year.The application platformprovides ready-to-run templates that address common challenges in deploying,managing and scaling Kubernetes clusters atscale.Instead of relying on multiple departments and spending months

66、sourcing,connecting and configuring the softwareneeded to operate Kubernetes fleets,Akamais solution automates the provisioning process,allowing developers to build anddeploy highly distributed applications in a few clicks.This can cut deployment time from months to less than an hour andprovides nea

67、r-instant scaling as production workloads grow.DeliveryOur delivery solutions consist primarily of web and mobile performance focused solutions and media delivery solutions.Our web and mobile performance solutions are architected to enable dynamic websites and applications to have rapid responsetime

68、s,no matter where the user is,what device or browser they are using or how they are connected to the internet.Theseservices leverage intelligent performance optimization and real-time monitoring,origin offload and network reliability andinsights that enable enterprises to identify and address perfor

69、mance issues.Akamai web and mobile performance capabilitiesalso include global traffic management,site acceleration,application load balancing,large-scale load testing and real-usermonitoring.Our media delivery solutions are designed to enable enterprises to execute their digital media distribution

70、strategies byaddressing volume and global reach requirements,improving the end-user experience,boosting reliability and reducing the costof internet-related infrastructure.Underlying these solutions is technology to address variable connection speeds and devicetypes,facilitate access to disparate lo

71、cations around the world,accelerate large file downloads,reliably deliver high-quality livecontent across various devices and platforms and enable comprehensive insights and real-time online video monitoring.Akamaimedia delivery solutions include video streaming and video player services,game and so

72、ftware delivery,broadcast operations,authoritative DNS,resolution and data and analytics.Services and SupportWe provide an array of service and support offerings across our core offerings.Through our service and support offeringswe work closely with our customers to develop creative and tailored sol

73、utions to assist them with integrating,configuring,optimizing and managing our core offerings.Customers can rely on our professional services and security experts forcustomized solutions,problem resolution and 24/7 customer support.Additional features are available to enterprises thatpurchase our pr

74、emium and managed security solutions,including a dedicated technical account team,proactive servicemonitoring,custom technical support handling,security traffic monitoring,technical security reviews,threat advisories andemergency support for security events.6Human CapitalOur employees our human capi

75、tal are our most valuable resources as they are fundamental to our innovation,theoperation and ongoing enhancement of Akamais solutions and global network,the fostering and maintenance of relationshipswith our customers and the management of our operations.The importance of our workforce to our succ

76、ess is underscored bythe inclusion of corporate mission critical goals centered on our employees.In 2024,we continued to focus on fostering acommunity that enables employees to be productive,and continuing to deliver a positive experience for both employees andcustomers by living our values each day

77、.Different aspects of our human capital management are overseen by our board ofdirectors as well as its Talent,Leadership and Compensation Committee and Environmental,Social and GovernanceCommittee.As of December 31,2024,we had over 10,700 employees located in more than 30 countries(with approximate

78、ly 65%ofthose employees located outside of the U.S.)and representing over 100 nationalities,all of which we believe helps bring aglobal perspective to our operations.Our employees are grouped across the following roles,with the approximate percentage ofthe overall population noted:engineering and re

79、search and development(36%),services and support(27%),sales andmarketing(17%)and administrative functions(20%).EngagementWe continue to recognize that an engaged employee workforce is key to having the productive,ethical and high-performing workplace needed to successfully compete in todays marketpl

80、ace.We conduct quarterly surveys of our entireemployee population to assess a variety of key metrics related to important topics,such as engagement,inclusion and overalljob satisfaction.Results from these surveys have consistently shown a strong sense of engagement and confidence in Akamaisfuture.We

81、 have been acknowledged in respected publications across the U.S.,India and Poland,among other countries,as agreat place to work.Continuing in 2024,all employees were able to participate in a company-wide program,developed by abehavioral research organization,that was intended to help us increase in

82、clusive behaviors,become more open to change andaccelerate our innovation.In addition,we work closely with the Akamai Foundation,to provide community service andcharitable matching fund opportunities for Akamai employees,endeavors that have been shown to increase employeeengagement.The Akamai Compas

83、sion Fund was created in 2020,by employees for employees,with support from the AkamaiFoundation,and continues to provide a way for Akamai employees to unite and support global colleagues and their familiesduring times of unexpected hardships following a catastrophic event,such as climate events(e.g.

84、,hurricane,mudslide,wildfire)and ongoing wars and armed conflicts around the world.RepresentationAkamai is an equal opportunity employer that values the strength that diverse perspectives bring to the workplace.We donot tolerate discrimination on the basis of gender,gender identity,sexual orientatio

85、n,race or ethnicity,protected veteran status,disability,or other protected group status.Akamai supports a variety of programs and practices designed to support an optimalworking environment.We have eight employee resource groups(ERGs)that offer opportunities for employees to cometogether for mutual

86、support,education and development.ERGs encompass different racial and ethnic groups,persons withdifferent physical or cognitive abilities,parents,military veterans,the LGBTQIA+community and women and are open to allemployees.RetentionWe have a demonstrated history of investing in our workforce by of

87、fering competitive salaries,wages and benefits.Ourcompensation and benefits philosophy is to maximize the effectiveness of pay and benefits programs to attract and retain thehigh caliber individuals needed to drive the success of our business,while balancing cost-effectiveness and competitive factor

88、s.Our benefits programs(which vary by country and region)include healthcare and insurance benefits,health savings andflexible spending accounts,paid time off,family leave,family care resources,flexible work schedules and locations,adoptionand fertility assistance,employee assistance programs,tuition

89、 assistance and holistic wellness programs.Our wellnessprograms include educational offerings on healthy lifestyles,access to mental health experts,access to ergonomic advice andequipment and financial wellness support.To foster a stronger sense of ownership and align the interests of employees with

90、shareholders,stock awards are held by the vast majority of our employees under our broad-based stock incentive programs andmost employees are eligible to participate in our employee stock purchase plan.We monitor voluntary attrition in assessing ouroverall human capital.Attrition was slightly up in

91、2024 when compared to 2023.7We conduct annual internal pay equity analyses(with the assistance of a nationally-recognized outside consultant),and wetake action to remedy identified discrepancies when we believe it is appropriate.To date,no widespread patterns of disparityhave been identified.In addi

92、tion,succession planning is an ongoing priority for our leadership.We conduct annual succession planning forsenior leadership,which is overseen by our board of directors,including development plans for the next level of our seniorleaders.Annual talent reviews focus on both high performers as well as

93、 those with high potential to keep a full pipeline oftomorrows leaders.DevelopmentWe invest significant resources in professional development,career advancement and training for our global workforce.Allemployees are eligible to participate in our Akamai Elevation performance review program,which pro

94、vides guidance aroundsetting annual performance objectives,developing competencies and receiving feedback.Where appropriate,we offerleadership training workshops,360-degree feedback and succession planning exercises to encourage and enable internalpromotion and advancement.As a result of these inves

95、tments and others,nearly 15%of open positions were filled with internalcandidates in 2024.All employees are required to complete annual ethics and compliance and data security training.In additionto these required trainings,nearly all of our employees and contractors completed at least one training

96、in our Akamai Universityprogram during 2024.FlexBaseIn May 2022,we launched FlexBase,which is a flexible work arrangement that allows over 95%of employees to choose towork from their home office,a Company office,an approved workspace or a combination.We believe that a focus on employeechoice makes u

97、s a more attractive employer,increases productivity,enables us to recruit from a broader and more varied poolof applicants and presents additional growth and development opportunities for our employees.Since 2022,we have rolled outa number of tools and resources to support this program,such as suppo

98、rting employees with guidance on maximizing ourinternal tools to deliver great virtual meeting experiences.In addition,we have invested in ensuring that workplace connectionremains strong and developed a framework for understanding,measuring and optimizing workplace connection,named CLEARConnections

99、.CLEAR stands for Colleague,Leader,Employer and Role.We measure each dimension in a quarterly anonymoussurvey,which allows us to track and report on workplace connection around the world.CustomersOur customers include many of the worlds leading corporations,such as Adobe,Aflac,Airbnb,Asus,Autodesk,C

100、arnivalCorporation,The Coca-Cola Company,Comcast,Daiwa Institute of Research,eBay,Electronic Arts,Epic Games,FidelityInvestments,Honda,Japan Airlines,Liberty Mutual,Maersk Transportation&Logistics,Marriott,NBCUniversal,Panasonic,Panera Bread,Paramount Global,Philips,Rabobank,Riot Games,Sony Interact

101、ive Entertainment,RTL,Spotify,Telefonica,Toshiba,Ubisoft,WarnerMedia and The Washington Post.We also actively sell to government agencies.As of December 31,2024,our public-sector customers included the U.S.Census Bureau,the U.S.Department of Defense,the U.S.Department ofLabor,the U.S.Department of T

102、ransportation and the U.S.Department of the Treasury.No customer accounted for 10%or more of total revenue for any of the years ended December 31,2024,2023 and 2022.Less than 10%of our total revenue in each of the years ended December 31,2024,2023 and 2022 was derived from contractsor subcontracts t

103、erminable at the election of the federal government.Sales,Services and MarketingWe market and sell our solutions globally through our field sales and services organization and through many channelpartners,including Apukay,AT&T,Avant,BV Tech,Carahsoft,CPD,Deloitte,Deutsche Telecom,Doyen,Kyndryl,Macni

104、ca,Microsoft Azure,Netpoleon,Telefonica Group and WWT.In addition to entering into agreements with resellers,we haveseveral other types of sales and marketing focused alliances with entities such as system integrators,application serviceproviders,technology solution distributors,referral partners an

105、d marketplaces.By aligning with these partners,we believe weare better able to market our solutions and leverage partners to add valuable services to complement our offerings and improvethe customer experience.Our sales,services and marketing professionals are based in locations across the Americas,

106、Europe,the Middle East and Asia-Pacific and focus on direct and channel sales,sales operations,professional services,accountmanagement and technical consulting.8To support our sales efforts and promote the Akamai brand,we conduct comprehensive marketing programs to shapeperception and drive awarenes

107、s and consideration of our solutions.Our integrated marketing strategies include public relations,digital programmatic advertising,paid search and SEO marketing,content marketing,social media,strategic alliances,e-mailmarketing programs,events and webinars,participation at industry trade shows and o

108、ngoing training and sales enablement.CompetitionThe market for our solutions is intensely competitive and characterized by rapidly changing technology,evolving industrystandards and frequent new product and service innovations.We expect competition for our offerings to increase both fromexisting com

109、petitors and new market entrants.We compete primarily on the basis of:the performance and reliability of our solutions;massive distribution and availability of our network;return on investment in terms of cost savings and new revenue opportunities for our customers;reduced infrastructure complexity;

110、sophistication and functionality of our offerings;our long-term product roadmaps and ability to quickly innovate;scalability;security;ease of implementation and use of service;first-party global services and support across products;customer support;andprice.We compete with companies offering product

111、s and services that provide internet content delivery and hosting services,security and cloud computing solutions,technologies used by carriers to improve the efficiency of their systems,streamingcontent delivery services and equipment-based solutions for internet performance problems,such as load b

112、alancers and serverswitches.Other companies offer online distribution of digital media assets through advertising-based billing or revenue-sharingmodels that may represent an alternative method for charging for the delivery of content and applications over the internet.Inaddition,existing and potent

113、ial customers may decide to purchase or develop their own hardware,software or other technologysolutions rather than rely on a third-party provider like us.Our security solutions compete with those offered by both hardwareand software providers.While our compute solutions have historically competed

114、with alternative cloud computing platformsfocused on individual developers,we anticipate that going forward our compute solutions will increasingly compete with thelarge so-called“hyper-scaler”cloud computing providers.We believe that we compete favorably with other companies in our industry through

115、 our global scale,reliability andexpertise,which we believe provides the most effective means of meeting the needs of enterprise customers and is unique to us.In our view,we also benefit from the high quality of our offerings,our customer service and the information we can provide toour customers ab

116、out their online operations and value.Government RegulationAs a global technology company,Akamai is subject to complex foreign and U.S.laws and regulations in areas such as dataprivacy and localization,cybersecurity,liability for content delivered over our network,various internet regulations,briber

117、y,sanctions,export controls,competition,tax and foreign exchange controls.Privacy laws,such as the European Union General Data Protection Regulation and the California Consumer Privacy Act of2018,impact how we use data generated from our network as well as our ability to reach current and prospectiv

118、e customers,understand how our solutions are being used,transfer data about our employees and respond to customer requests allowedunder the applicable laws.Other laws and regulations that apply to the internet related to,among other things,content liability,security and disclosure requirements,criti

119、cal infrastructure designations,internet resiliency,law enforcement access toinformation,net neutrality,so-called fair share or internet content taxes,data localization requirements,industry regulationsapplicable to key suppliers to some of our customers and restrictions on social media or other con

120、tent can have an impact on ourbusiness.For instance,regulations have been enacted or proposed in a number of countries that limit the delivery of certaintypes of content into those countries.As an example,restrictions were adopted in India in 2020 prohibiting access to identifiedChinese-owned applic

121、ations.Enactment and expansion of such laws and regulations in other jurisdictions would negativelyimpact our revenues or cause us to incur costs to redesign our systems to ensure compliance.In addition,in April 2024,the U.S.government passed legislation that prohibited the provision of certain type

122、s of services to a Chinese application if the9application was not sold to a neutral third party by January 19,2025.The Chinese application was not sold to a neutral thirdparty by the January 19th deadline,but President Trump subsequently signed an executive order instructing the U.S.AttorneyGeneral

123、to not take any action to enforce the passed legislation for a period of 75 days from January 20,2025.The AttorneyGeneral has since determined that our provision of services to this customer has not violated the law and that we can continueproviding services as contemplated by the Executive Order wi

124、thout violating the law and without incurring any legal liability.Itis difficult to predict whether the passed legislation will ultimately be enforced and whether any future judicial challengesbrought against the executive order will be successful.Even though President Trump has extended the enforce

125、ment deadline fora ban on the Chinese application,there is no assurance that we will not be exposed to liability and we may be exposed tosignificant fines,litigation,indemnification claims,negative publicity,reputational harm,diversion of management attention,interruptions in our operations,financia

126、l loss and other similar harms by continuing to provide services to the Chineseapplication.We are subject to the U.S.Foreign Corrupt Practices Act and similar anti-bribery laws,which generally prohibit companiesand their intermediaries from offering payments or inducements to foreign government offi

127、cials for the purpose of obtaining orretaining business.To the extent we export technical services,data,products or other technology outside of the U.S.,we aresubject to U.S.and international laws and regulations governing international trade and exports,including,but not limited to,the Internationa

128、l Traffic in Arms Regulations,the Export Administration Regulations and sanctions against embargoedcountries and other designated entities and individuals.Many of these laws and regulations are evolving and could be interpreted and applied in a manner that is inconsistent fromcountry to country and

129、inconsistent with our current policies and practices and in ways that could harm our business.Forexample,while we are generally not subject to regulations applicable to telecommunications companies,new or differentinterpretations of laws or regulations could subject us to regulatory supervision.In g

130、eneral,the nature and breadth of laws andregulations governing the internet may increase in the future;accordingly,we are unable to assess the possible effect ofcompliance with future requirements or whether our compliance with such regulations will materially impact our business,results of operatio

131、ns or financial condition.For further discussion of how government regulations may affect our business,see the related discussion below in Item 1A.Risk Factors Financial and Operational Risks We face risks associated with global operations that could harm our business;Legal and Regulatory Risks Evol

132、ving privacy regulations could negatively impact our profitability and business operations;and Legal and Regulatory Risks Other regulatory developments could negatively impact our business.Intellectual PropertyOur success and ability to compete are dependent on developing and maintaining the proprie

133、tary aspects of our technologyand operating without infringing on the proprietary rights of others.We rely on a combination of patent,trademark,trade secretand copyright laws and contractual restrictions to protect the proprietary aspects of our technology.As of December 31,2024,we owned,or had excl

134、usive rights to,over 560 U.S.patents covering our technology as well as patents issued by othercountries.Our U.S.-issued patents have terms extendable to various dates between 2025 and 2043.We do not believe that theexpiration of any particular patent in the near future would be materially detriment

135、al to our business.We seek to limitdisclosure of our intellectual property by requiring employees and consultants with access to our proprietary information toexecute confidentiality agreements with us and by restricting access to our source code.Additional InformationOur internet website address is

136、 .We make available,free of charge,on or through our internet website,our annual reports on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K and amendments thereto thatwe have filed or furnished with the Securities and Exchange Commission(the Commission)as soon as reasonably prac

137、ticableafter we electronically file them with the Commission.We also use our https:/ website as a means ofdisclosing material non-public information and for complying with our disclosure obligations under Regulation FD.We are not,however,including the information contained on our website,or informat

138、ion that may be accessed through links on ourwebsite,as part of,or incorporating such information by reference into,this annual report on Form 10-K.10Item 1A.Risk FactorsThe following are important factors that could cause our actual operating results to differ materially from those indicated orsugg

139、ested by forward-looking statements made in this annual report on Form 10-K or presented elsewhere by managementfrom time to time.Financial and Operational RisksSlowing revenue growth has in the past and may continue to negatively impact our profitability and stock price.The overall revenue growth w

140、e have enjoyed in recent years may not continue in future periods and could decline,whichcould negatively impact our profitability and stock price.Our ability to generate revenue depends on the amount of services wedeliver,continued growth in demand for our security,delivery and compute solutions an

141、d our ability to maintain the prices wecharge for them.Revenue we generate from our delivery solutions is impacted by pricing pressure due to competition and fluctuations incontent traffic as a result of,among other factors,changes in the popularity of our customers content including video deliverya

142、nd gaming,and economic pressures on our customers that can cause them to take steps to optimize their platforms,includingthrough do-it-yourself,or DIY,initiatives.For example,revenue from our delivery solutions increased significantly in 2020due in large part to greater consumption of online media a

143、nd games during the onset of the COVID-19 pandemic and theassociated stay-at-home orders.However,as these orders were lifted and more return-to-work policies were adopted,ourrevenue from delivery solutions declined.In addition,a large social media company has recently taken steps to lower costs andr

144、educe reliance on U.S.providers,including a DIY component,which we believe is in part a reaction to certain geopoliticalpressures,and which has reduced traffic on our network and negatively impacted revenue in 2024.Other customers have andmay continue to reduce their traffic with us,negatively impac

145、ting revenue.We have continued to experience revenue declinesin our delivery solutions and expect this trend to continue in the near future.Our security solutions currently generate the largest portion of our revenue.Our ability to generate revenue in our securitybusiness depends on our ability to i

146、ncrease our industry recognition as a provider of security solutions,develop or acquire newsolutions in a rapidly-changing environment where security threats are constantly evolving and ensure that our solutions operateeffectively and are competitive with products offered by others.Further,security

147、revenue for some products is impacted bytraffic levels on our network and recently has,and may continue to be,negatively impacted by reduced traffic on our network,including the reduced traffic from a large social media company among other customers.In addition,an increasing proportion of our revenu

148、e has recently been generated by our compute solutions.Our ability togenerate revenue in our compute business is dependent on our ability to successfully continue building our compute platform,attract a customer base that has traditionally partnered with more established companies in the compute ind

149、ustry,and developeffective,price competitive and attractive solutions.If we are unable to increase revenues,our profitability and stock price could suffer.See the risk factor titled,Globalconditions have in the past and may in the future harm our industry,business and results of operations below.Glo

150、bal conditions have in the past and may in the future harm our industry,business and results of operations.We operate globally and as a result,our business,revenues and profitability are impacted by global macroeconomicconditions.The success of our activities is affected by general economic and mark

151、et conditions,including,among others,inflation,foreign exchange rates,interest rates,tax rates,economic uncertainty,political instability,warfare,changes in laws,trade barriers,the actual or perceived failure or financial difficulties of financial institutions,reduced consumer confidence andspending

152、 and economic and trade sanctions.Global economic and geopolitical conditions can impact our customers,causingthem to take cost-savings measures that can include optimization and do-it-yourself,or DIY,initiatives,which can impact ourrevenues.For example,a large social media company has recently take

153、n steps to lower costs and reduce reliance on U.S.providers by optimizing its platform,including a DIY component,which reduced traffic on our network and negativelyimpacted our revenue in 2024.The U.S.capital markets have experienced and may continue to experience extreme volatilityand disruption in

154、 the recent past.Furthermore,inflation rates in the U.S.have been elevated compared to historical rates andhave fluctuated.In addition,the Trump administration has indicated an intention to impose tariffs on certain countries thatcould adversely impact trade relations,result in higher costs and decr

155、eased purchasing power of our customers,put increasedpressure on supply chains and create general market instability.Such economic volatility has in the past and could in the futureadversely affect our business,financial condition,results of operations and cash flows and future market disruptions co

156、uldnegatively impact us.For example,these unfavorable economic conditions could increase our operating costs,which could11negatively impact our profitability.Geopolitical destabilization and warfare have impacted and could continue to impact globalcurrency exchange rates,resources from our suppliers

157、 and our ability to operate or grow our business.Additionally,we have offices and employees located in regions that historically have and may again experience periods ofpolitical instability,warfare,changes in laws,trade barriers and economic and trade sanctions.Adverse conditions in thesecountries

158、have in the past and may in the future affect our operations,including disruptions to our workforce,supply chains,networks,financial systems and other critical infrastructure,which could adversely affect our business,results of operations,financial condition and cash flows.For example,approximately

159、six percent of our global employees are located in Israel andsome of our employees have been mobilized as members of the Israeli military reserves.Should the Isreal-Hamas war continue,it could cause harm to our employees or otherwise impair their ability to work for extended periods of time.Failure

160、to control expenses could reduce our profitability,which would negatively impact our stock price.Maintaining or improving our profitability depends both on our ability to increase our revenue and limit our expenses.Webase our decisions about expense levels and investments on estimates of our future

161、revenue and future anticipated rates ofgrowth and may incur varying levels of expense based on strategic initiatives,including acquisitions and the build out of ournetwork to support our compute solutions.In addition,many of our expenses are fixed costs for a certain amount of time whichmay impact o

162、ur ability to reduce costs in a timely manner or without incurring additional costs.If we are unable to increaserevenue and limit expenses,our results of operations will suffer.We have in the past and may in the future take certain steps toreduce expenses,however,there are no assurances that we will

163、 be able to effectively reduce our expenses and such actions maynegatively affect our ability to invest in our business for innovation,systems improvements and other initiatives.If we do not develop or acquire new solutions that are attractive to our customers,our revenue and operating results could

164、be adversely affected.Innovation is important to our future success.In particular,as security and compute solutions have become,and areexpected to continue to be,an important part of our business,we must be particularly adept at developing new securitysolutions that meet the constantly-changing thre

165、at landscape and compute and compute-to-edge solutions that meet the needs ofprofessional users and enterprises looking to increase the utility of the internet for their business.The process of developing new solutions and product enhancements is complex,lengthy and uncertain and has becomeincreasin

166、gly complex due to the sophistication of our customers needs.The development timetable is uncertain and we maycommit significant resources to developing solutions for which a viable market may not ultimately develop.For example,weare investing significant resources in our compute solutions and platf

167、orm,working on expanding the capacity of these facilities,adding additional sites and developing increased compute features and functionality.Success in these efforts is not guaranteedand will largely depend on our ability to create products that are competitive in the enterprise market,source addit

168、ional co-location facilities,manage an uncertain supply chain for server related hardware and adapt our offerings to new or emergingtechnologies and changes in customer requirements,including those related to artificial intelligence workloads.In addition,wehave experienced,and may in the future expe

169、rience,delays in developing and releasing new products and productenhancements.This could cause our expenses to grow more rapidly than our revenue.Trying to innovate through acquisition can be costly and with uncertain prospects for success;we may find that attractiveacquisition targets are too expe

170、nsive for us to pursue which could cause us to pursue more time-consuming internaldevelopment.Failure to develop,on a cost-effective basis,innovative or enhanced solutions that are attractive to customers and profitableto us could have a material detrimental effect on our business,results of operati

171、ons,financial condition and cash flows.If we are unable to compete effectively and adapt to changing market conditions,our business will be adversely affected.We compete in markets that are intensely competitive and rapidly changing.Our current and potential competitors vary bysize,product offerings

172、 and geographic region and range from start-ups that offer solutions competing with a discrete part of ourbusiness to large technology or telecommunications companies that offer,or may be planning to introduce,products andservices that are broadly competitive with what we do.The primary competitive

173、factors in our market are differentiation oftechnology,global presence,quality of solutions,reliability,long-term product roadmap,customer service,technical expertise,security,ease-of-use,breadth of services offered,price and financial strength.Many of our current and potential competitors have subs

174、tantially greater financial,technical and marketing resources,larger customer bases,broader product portfolios,longer operating histories,greater brand recognition and more established12relationships in the industry than we do.This is particularly true with respect to our compute solutions,as a smal

175、l number ofvery large competitors have established themselves as leaders in the compute business.As a result,some competitors have inthe past and may in the future be able to:develop superior products or services;leverage better name recognition,particularly inthe security and compute markets;enter

176、new markets more easily or better manage the impact of changes in general economicconditions,geopolitical conditions and industry pressures;gain greater market acceptance for their products and services;enterinto long-term contracts with our potential customers;increase their points of presence and

177、proximity to enterprise data centersand end users faster than us;expand their offerings more efficiently and more rapidly;bundle their products that are competitivewith ours with other solutions they offer in a way that makes our offerings less appealing to,or more costly for,current andpotential cu

178、stomers;more quickly adapt to new or emerging technologies and changes in customer requirements;takeadvantage of acquisition,investment and other opportunities more readily;offer lower prices than ours,including at levels thatmay not be profitable for us to match;spend more money on the promotion,ma

179、rketing and sales of their products and services;offer higher salaries to talented professionals which may impact our ability to hire or retain engineering and other personnel;and implement shorter sales cycles with customers and prospects.Smaller and more nimble competitors may be able to:attract c

180、ustomers by offering less sophisticated versions of productsand services than we provide at lower prices than those we charge;develop new business models that are disruptive to us;andrespond more quickly than we can to new or emerging technologies,changes in customer requirements and market and indu

181、strydevelopments,resulting in superior offerings.Ultimately,any type of increased competition could result in price and revenue reductions,loss of customers and loss ofmarket share or inability to penetrate new markets,each of which could materially impact our business,profitability,financialconditi

182、on,results of operations and cash flows.We and other companies that compete in this industry and these markets experience continually shifting businessrelationships,reputations,commercial focuses and business priorities,all of which occur in reaction to industry and marketforces and the emergence of

183、 new opportunities.These shifts have led or could lead to our customers or partners becoming ourcompetitors;customers implementing multi-vendor policies and seeking out one or more of our competitors to provide contentand application delivery or security protection services;network suppliers no long

184、er seeking to work with us;and technologycompanies that previously did not appear to show interest in the markets we seek to address entering into those markets as ourcompetitors.With this constantly changing environment,we may face operational difficulties in adjusting to the changes or ourcore str

185、ategies could become obsolete.Any of these or other developments could harm our business.Defects or disruptions in our products and IT systems could require us to increase spending on upgrading systems,diminishdemand for our solutions or subject us to substantial liability.Our solutions are highly c

186、omplex and are designed to be deployed in and across numerous large and complex networks thatwe do not control.From time to time,we have needed to correct errors and defects in the proprietary and open-source softwarethat underlies our platform that have given rise to service incidents,outages and d

187、isruptions or otherwise impacted ouroperations.We have in the past and could in the future face the loss of customers from these incidents as they seek alternativeor supplemental providers.We have also periodically experienced customer dissatisfaction with the quality of some of ourdelivery,security

188、,compute and other services,which has led to a loss of business and could lead to a loss of customers in thefuture.Furthermore,most of our customer agreements contain service level commitments.If we fail to meet these contractualcommitments,we could be obligated to provide credits for future service

189、,or face contract termination with refunds of prepaidamounts,which could harm our business.We may not have in place adequate quality assurance procedures to ensure that we detect errors in our hardware,softwareand open-source components that we use in a timely manner,and we may have insufficient res

190、ources to efficiently addressmultiple service incidents happening simultaneously or in rapid succession.If we are unable to efficiently and cost-effectivelyfix errors or other problems that we identify and improve the quality of our solutions or systems,or if there are unidentifiederrors that allow

191、persons to improperly access our services or systems,we could experience litigation,the need to issue creditsto customers,loss of revenue and market share,damage to our reputation,diversion of management attention,increasedexpenses,reduced profitability and other negative consequences which could ha

192、rm our business.Defects in our security solutions or human error could lead to negative publicity,loss of business,damages payments tocustomers,diminishing customer appeal and other negative consequences which could harm our business.As our solutions areadopted by an increasing number of enterprises

193、 and governments,it is possible that the adversaries behind advanced maliciousactions will specifically focus on finding ways to defeat our products and services.If they are successful,we could experience aserious impact on our reputation and financial condition as a provider of security solutions.1

194、3We are devoting significant resources to develop and deploy our own competing compute offering.The rapid developmentand deployment of new compute infrastructure bears the risk of bugs and unforeseen failures that could affect our reputationand ability to execute our strategies.The risks of such bug

195、s and unforeseen failures introduced to our compute platform by ourcustomers who control many aspects of their use of our compute services and experimental technologies could affect ourreputation,ability to execute our strategies and our financial condition.It is also uncertain whether our strategie

196、s to develop anddeploy our own competing compute offering will attract additional customers or generate enough revenue required to besuccessful.The costs related to these efforts may also reduce the gross and operating margins we have previously achieved.Failure to adequately and rapidly deploy addi

197、tional points of presence,increased proximity to enterprise data centers and endusers and develop competitive offerings could result in negative publicity,loss of business,diminishing customer appeal andother negative consequences which could harm our business.Our business relies on our data systems

198、,traffic measurement systems,billing systems,ordering processes and otheroperational and financial reporting and control systems.We also rely on third-party software for certain essential operationalservices and a failure or disruption in these services could materially and adversely affect our abil

199、ity to manage our businesseffectively.All of these systems have become increasingly complex due to the complexity of our business,use of third-partysoftware and services,acquisitions of new businesses with different systems and changing regulation over controls andprocedures.As a result,these system

200、s have in the past and could in the future generate errors that impact traffic measurement orinvoicing,revenue recognition and financial forecasting or other parts of our business.We will need to continue to upgrade andimprove our data systems,traffic measurement systems,billing systems,ordering pro

201、cesses and other operational and financialsystems,procedures and controls.These upgrades and improvements may be difficult and costly.If we are unable to adapt oursystems and organization in a timely,efficient and cost-effective manner to accommodate changing circumstances,our businessmay be adverse

202、ly affected.Cybersecurity breaches and attacks on us,our contractors or our third-party vendors,as well as steps we need to take in aneffort to prevent them,can lead to significant costs and disruptions that would harm our business,financial results andreputation.We regularly face attempts to gain u

203、nauthorized access or deliver malicious software to Akamais platforms,products andservices and our internal IT systems,with the goal of stealing proprietary information related to our business,products,employees and customers;disrupting our systems and services or those of our customers or others;or

204、 demanding ransom toreturn control of such systems and services.These attempts take a variety of forms,including Distributed Denial of Service(DDoS)attacks,infrastructure attacks,botnets,malicious file uploads,application abuse,credential abuse,social engineering,ransomware,bugs,viruses,worms and ma

205、licious software programs.Additionally,the use of artificial intelligence by badactors has heightened the sophistication and effectiveness of these types of attacks,and may be used to create attacks thatcurrent processes and technologies are unable to adequately address.There have in the past and co

206、uld in the future be attemptsto infiltrate our systems through our supply chain and contractors.Malicious actors are known to attempt to fraudulently induceemployees and suppliers to disclose sensitive information through illegal electronic spamming,phishing or other tactics.Otherparties may attempt

207、 to gain unauthorized physical access to our facilities in order to infiltrate our internal-use informationsystems.Furthermore,nation state and hacktivist attacks against us or our customers have in the past and may in the futureintensify during periods of heightened geopolitical tensions or armed c

208、onflict,such as the ongoing war in Ukraine and theIsrael-Hamas War.We may not be able to anticipate the techniques used in such attacks,as they change frequently and may notbe recognized until launched.The rapidly changing geopolitical landscape may also create new,unexpected,or unknown risksfor whi

209、ch we may not immediately be prepared,requiring increased risk mitigation expenditures.While we have,from time totime,experienced threats to and breaches of our and our third-party vendors data and systems,to date,to our knowledge,cyberthreats and other attacks have not resulted in any material adve

210、rse effect to our business or operations,but such threats areconstantly evolving,increasing the difficulty of detecting and successfully defending against them.The complexities in managing the security profile of a distributed network with vast scale and geographic reach thatevolves to incorporate n

211、ew capabilities expose us to both known and unknown vulnerabilities.We have discoveredvulnerabilities in software and hardware used in our technology,such as the AMD Inception vulnerability identified inmid-2023 that potentially impacted a large portion of the internet ecosystem,and may have other u

212、ndiscovered vulnerabilities.Vulnerabilities,resident in software,hardware or configurations,have in the past and may in the future require significantoperational efforts to mitigate and may persist for extended periods of time and the effects of any such vulnerability could beexacerbated.Similar sec

213、urity risks exist with respect to acquired companies,our business partners and the third-party vendorsthat we rely on for aspects of our information technology support services and administrative functions.As a result,we aresubject to risks that the activities of our business partners and third-part

214、y vendors may adversely affect our business even if anattack or breach does not directly target our systems.14To protect our corporate and deployed networks,we aim to continuously engineer more secure solutions,enhance securityand reliability features,improve the deployment of software updates to ad

215、dress security vulnerabilities,develop mitigationtechnologies that help to secure customers from attacks and maintain the digital security infrastructure that protects the integrityof our network and services.For example,our ongoing efforts to continually enhance the security and reliability of our

216、globallydistributed infrastructure,customer applications and corporate systems comprise various initiatives and mitigation efforts,including but not limited to upgrading access and configuration controls;improving security instrumentation,monitoring,detection and prevention tools;enhancing software

217、inventory and tracking and patching systems;upgrading encryptionprocesses and protections;enhancing authorization methods in applications;enhancing data loss prevention and endpointsecurity management capabilities;upgrading vulnerability identification,assessment and remediation processes andtechnol

218、ogies;and enhancing the security of passwords and other credentials,as applicable and appropriate.Our efforts toengineer more secure solutions are frequently costly,with a negative impact on near-term profitability,and may be unsuccessfulin preventing security incidents that may have an adverse effe

219、ct on our business and reputation.For example,with the acquisition of Linode,we continue to adapt procedures for mitigating risks that have in the past ormay in the future materialize,including any harms that may arise from abuse of our compute products.If we fail to mitigatethese harms or if there

220、is a significant cybersecurity event using our compute products or our compute products are perceived tobe less reliable than our competitors,it could result in loss of customers and reputational damage.Any actual,alleged or perceived breach of network security in our systems or networks,or any othe

221、r actual,alleged orperceived compromise or data security incident we,our customers or our third-party suppliers suffer,has in the past and couldin the future result in damage to our reputation;negative publicity;loss of channel partners,customers and sales;loss ofrevenue;loss of competitive advantag

222、es;increased costs to remedy any problems and otherwise respond to any incident;regulatory investigations and enforcement actions and fines;costly litigation;and other liabilities.If we cannot maintain compatibility with our customers IT infrastructure,including their chosen third-party services,our

223、business will be harmed.Our products interoperate with our customers IT infrastructures that often have different specifications,utilize diversetechnology and require compatibility with multiple communication protocols.Therefore,the functionality of our technologyoften needs to have,and maintain,com

224、patibility with our customers technology environment,including their chosen third-partytechnology.Aspects of our technologys compatibility with our customers technology is dependent on our customers becauseour customers,and in particular those who implement third-party applications within their envi

225、ronments,may change features,restrict our access to,or alter their applications within their discretion and in a manner that causes incompatibilities or causes ussignificant costs to maintain compatibility.Such changes could functionally limit or prevent the compatibility of our productswith our cus

226、tomers IT infrastructure,which would negatively affect adoption of our products and harm our business.If we failto update our products to achieve compatibility with new third-party applications that our customers use,we may not be able tooffer the functionality that our customers need,which would ha

227、rm our business.We face risks associated with global operations that could harm our business.A significant portion of our hiring,new customers and revenue growth in recent years has been attributable to our businessoutside the U.S.Our operations in international countries subject us to risks that ma

228、y increase our costs,impact our financialresults,disrupt our operations or make our operations less efficient and require significant management attention.These risksinclude:foreign exchange rate risks;uncertainty regarding liability for content or services,including uncertainty as a result oflocal

229、laws and lack of legal precedent;loss of revenues if the U.S.or international governments impose limitations on doingbusiness with significant current or potential customers;difficulty in staffing,training,developing and managing internationaloperations as a result of distance,language,cultural diff

230、erences,differences in employee/employer relationships or regulations;theft of intellectual property in high-risk countries where we operate;difficulties in enforcing contracts,collecting accounts andlonger payment cycles in certain countries;difficulties in transferring funds from,or converting cur

231、rencies in,certain countries;managing the costs and processes necessary to comply with export control,sanctions,such as the sanctions imposed inconnection with the Russian invasion of Ukraine,anti-bribery,data protection,cybersecurity and competition laws andregulations or other regulatory or contra

232、ctual limitations on our ability to sell or develop our products and services in certaininternational markets;macroeconomic developments and changes in the labor markets in which we operate;geopoliticaldevelopments,including any that impact our or our customers ability to operate in or deliver conte

233、nt to a country;othercircumstances outside of our control such as trade disputes,including the imposition of tariffs by the United States on importsfrom certain countries and any resulting counter-tariffs or macroeconomic impacts,political unrest,warfare,military or armedconflict,such as the Russian

234、 invasion of Ukraine and the Israel-Hamas War,terrorist attacks,public health emergencies,energycrises and natural disasters that could disrupt our ability to provide services or limit customer purchases of them.15For example,approximately six percent of our global employees are located in Israel an

235、d have been and may continue to beimpacted by the Israel-Hamas War.A number of our employees have been,and more may be,required to report for militaryduty which could impact our ability to operate and successfully complete ongoing initiatives particularly with respect to oursecurity offerings and ou

236、r efforts to move our internal applications from third-party clouds to our compute platform.Furthermore,a widening of the conflict in the Middle East or further escalation could lead to broader geopoliticaldestabilization and macro-economic impacts.In addition,we are subject to laws and regulations

237、worldwide that differ among jurisdictions,affecting our operations inareas such as intellectual property ownership and infringement;tax;anti-bribery;internet and technology regulations;so-calledfair share or internet content taxes;foreign exchange controls and cash repatriation;data privacy;cyber se

238、curity;competition;consumer protection;corporate sustainability;and employment.Compliance with such requirements can be onerous andexpensive and may otherwise impact our business operations negatively.Although we have policies,controls and proceduresdesigned to help ensure compliance with applicable

239、 laws,there can be no assurance that our employees,contractors,suppliers,customers or agents will not violate such laws or our policies.Violations of these laws and regulations can result in fines;additional costs related to governmental investigations;criminal sanctions against us,our officers or o

240、ur employees;prohibitions on the conduct of our business;and damage to our reputation.Our business strategy depends on the ability to source adequate transmission capacity,co-location facilities and theequipment we need to operate our network;failure to have access to those resources could lead to l

241、oss of revenue andservice disruptions.To operate and grow our globally distributed network serving our portfolio of services,we are dependent in part upontransmission capacity provided by third-party telecommunications network providers,the availability of co-location facilities tohouse our servers

242、and equipment to support our operations.We may be unable to purchase the bandwidth and space we needfrom these providers due to limitations on their resources,increasing energy costs or other reasons outside of our control.Inparticular,our efforts to increase the size and scale of our network infras

243、tructure have required and may continue to requireprocuring significant additional space in co-location facilities.Inability to access facilities where we would like to installservers,or perform maintenance on existing servers for any reason impedes our ability to expand or maintain capacity.As ares

244、ult,there can be no assurance that we are adequately prepared for unexpected increases in capacity demands by ourcustomers.Failure to put in place the capacity we require to operate our business effectively could result in a reduction in,ordisruption of,service to our customers and ultimately a loss

245、 of those customers.Akamais platforms,products and services rely on hardware equipment,including hundreds of thousands of serversdeployed around the world.Disruptions in our supply chain have occurred in the past and could prevent us from purchasingneeded equipment at attractive prices or at all.For

246、 example,we are experiencing continued volatility in certain servercomponent costs that support the continued build out of our compute platform.In addition,from time to time,it has been,andmay continue to be,more difficult to purchase equipment that is manufactured in areas that face disruptions to

247、operations due tounrest,trade sanctions or other political activity,public health issues,safety issues,natural disasters or general economicconditions.For example,tariffs imposed by the United States on other countries and any resulting counter-tariffs will likelylead to increasing costs and supply

248、chain disruptions.Failure to have adequate equipment,including server and othernetworking equipment,could harm the quality of our services,which could lead to the loss of customers and revenue.Acquisitions and other strategic transactions could result in operating difficulties,dilution,diversion of

249、managementattention and other harmful consequences that may adversely impact our business and results of operations.We expect to continue to pursue acquisitions and other types of strategic relationships that involve technology sharing orclose cooperation with other companies.Acquisitions and other

250、complex transactions are accompanied by a number of risks,including the following:difficulty integrating technologies,operations and personnel while maintaining the quality standards;potential disruptions of our ongoing business and distraction of management attention;diversion of financial and busi

251、nessresources from core operations or other attractive investments;financial consequences,such as increased operating expenses,incurrence of material post-closing liabilities,incurrence of additional debt and other dilutive effects on our earnings,particularly in the current environment where we hav

252、e seen relatively high valuations of,and valuation expectations for,manytechnology companies and increasing allocation of risk to acquirors;failure to realize synergies or other expected benefits;lawsuits resulting from an acquisition or disposition;the inability to retain the acquired companys key

253、talent;exposure tocybersecurity risks and the cost associated with remediating those risks in connection with the acquisition of IT systems;increased accounting charges such as impairment of goodwill or intangible assets,amortization of intangible assets acquiredand a reduction in the useful lives o

254、f intangible assets acquired;the need to use substantial portions of available cash or dilutive16issuances of securities to finance large transactions;and potential unknown liabilities and regulatory requirements associatedwith an acquired business.The data practices and technology systems of busine

255、sses that we have acquired,or may acquire,and our efforts to integrateour acquisitions with our existing technologies have in the past and may in the future pose risks,such as cybersecurityvulnerabilities or past cybersecurity or privacy incidents.Following an acquisition,we work to enhance the secu

256、rity andreliability of our systems.As such,there is a period of increased cybersecurity risk during the period between closing anacquisition and the completion of our security upgrades and integration.For example,as part of the integration of the Linodecompute platform into Akamais platform and the

257、migration of certain applications and products from third party cloudproviders onto Akamais compute platform,we have been working to enhance the security and reliability of the integratedsystems.While we continue to make progress on these efforts,the mitigation of a number of risks is ongoing and th

258、us certainunderlying vulnerabilities remain that,if exploited,could negatively impact Akamais platform and our customers.Despite ourefforts to enhance the security and reliability of our systems,our information technology systems and those of third parties withwhom we do business or communicate may

259、be damaged,disrupted,or shut down due to attacks by unauthorized access,malicious software,computer viruses,undetected intrusion,hardware failures,or other events.In addition,our disaster recoveryplans may be ineffective or inadequate.Any inability to integrate completed acquisitions or combinations

260、 in an efficient and timely manner could have an adverseimpact on our results of operations.If current and potential large customers shift to DIY internal solutions for content and application delivery or securityprotection,our business will be negatively impacted.We are reliant on some of our large

261、r customers to direct traffic to our network for a significant part of our revenues.Attimes,some of our customers have determined that it is better for them to employ a“do-it-yourself”or“DIY”strategy byputting in place equipment,software and other technology solutions for content and application del

262、ivery and security protectionwithin their internal systems instead of using our solutions for some or all of their needs.As the amount of money a customerspends with us increases,the risk that they will seek alternative solutions such as DIY or a multi-vendor policy likewiseincreases.While the numbe

263、r of customers implementing a DIY strategy had been decreasing,current global economic andgeopolitical conditions may cause customers to increase their focus on DIY solutions,which could negatively impact traffic onour network,and,as a result,our revenue.For example,a large social media customer has

264、 recently taken steps to lower costsand reduce reliance on U.S.providers by optimizing its platform,including using a DIY component,which has reduced trafficon our network and negatively impacted our revenue in 2024 and is likely to continue to do so in the future.If our customersincrease their use

265、of DIY solutions or if multiple additional large customers shift to this model,traffic on our network and ourcontracted revenue commitments could decrease more significantly,which could negatively impact our business,profitability,financial condition,results of operations and cash flows.If we are un

266、able to recruit and retain key employees and qualified sales,research and development,technical,marketingand support personnel,our ability to compete could be harmed.Our future success depends upon the services of our executive officers and other key technology,sales,research anddevelopment,marketin

267、g and support personnel who have critical industry experience and relationships.Attracting,hiring andretaining highly skilled and qualified employees continues to be a priority and a key dependency for our ongoing success.If wefail to attract new personnel,fail to retain and motivate our current per

268、sonnel or fail to effectively train our employees tosupport our business needs,our business and future growth prospects could suffer.For example,none of our officers or keyemployees are bound by an employment agreement for any specific term,and members of our senior management have left ourcompany o

269、ver the years for a variety of reasons.In addition,effective succession planning is important to our long-term successand our failure to ensure effective transfer of knowledge and smooth transitions involving our officers and other key personnelcould hinder our strategic planning and execution.In ad

270、dition,our future success will depend upon our ability to attract,train and retain employees,particularly in ourexpected areas of growth such as security and cloud computing.Such efforts will require time,expense and attention by ouremployees as there is significant competition for talented individu

271、als.This competition results in increased costs in the form ofcash and stock-based compensation and can have a dilutive impact on our stock.In addition,our ability to hire and retainemployees may be adversely affected by volatility in the price of our stock or our ability to obtain shareholder appro

272、val to offeradditional stock to our employees,because a significant portion of our compensation is in the form of equity grants.We areretasking certain employees to work on our compute solutions which will require the use of our resources and if we are unableto successfully retrain our employees,our

273、 compute business may suffer.Furthermore,geopolitical events may impact our17retention efforts.For example,the Israel-Hamas War has and could continue to impact our workforce in Israel as employeeshave been and may continue to be required to report for military service or have other competing priori

274、ties.The loss of theservices of a significant number of our employees or any of our key employees or our inability to attract and retain new talent ina timely fashion may be disruptive to our operations and overall business.Our failure to maintain our company culture and manage new risks as our busi

275、ness evolves and our work practices changecould harm us.We believe our culture has been a key contributor to our success to date.As a result of the diversification of our business,personnel growth,the deployment of our FlexBase program,acquisitions and international expansion in recent years,most of

276、our employees are now based outside of our Cambridge,Massachusetts headquarters.If we are unable to appropriately increase management depth,enhance succession planning and decentralize our decision-making at a pace commensurate with our actual or desired growth rates,we may not be able to achieve ou

277、r financial oroperational goals.It is also important to our continued success that we hire qualified personnel,properly train them and managepoorly-performing personnel,all while maintaining our corporate culture and spirit of innovation.If we are not successful inthese efforts,our growth and operat

278、ions could be adversely affected.We rolled out our FlexBase program in May 2022,which allows the more than 95%of our workforce designated asflexible to choose to work from an Akamai office,their home office,an approved workspace,or a combination of all three.Thisprogram could,among other things,nega

279、tively impact employee morale and productivity,inhibit our ability to effectively trainnew employees and impede our ability to support customers at the levels they expect.In addition,certain security systems inhomes or other remote workplaces may be less secure than those used in our offices,which m

280、ay subject us to increased securityrisks,including cybersecurity-related events,and expose us to risks of data or financial loss and associated disruptions to ourbusiness operations.Members of our workforce who access company data and systems remotely may not have access totechnology that is as robu

281、st as that in our offices,which could cause the networks,information systems,applications and othertools available to those remote workers to be more limited or less reliable than in our offices.We may also be exposed to risksassociated with the locations of remote workers,including compliance with

282、local laws and regulations or exposure tocompromised internet infrastructure.Further,if employees fail to inform us of changes in their work location,we may beexposed to additional risks without our knowledge.If we are unable to effectively maintain a hybrid workforce,manage thecybersecurity and oth

283、er risks of remote work and maintain our corporate culture and workforce morale,our business could beharmed or otherwise negatively impacted.Our restructuring and reorganization activities may be disruptive to our operations and harm our business.Over the past several years,we have implemented inter

284、nal restructurings and reorganizations designed to reduce the sizeand cost of our operations,improve operational efficiencies and reprioritize investments,enhance our ability to pursue marketopportunities and accelerate our technology development initiatives.During the first quarter of 2023 and the

285、third quarter of2024,management committed to actions to restructure certain parts of the Company,including reducing headcount,to enable itto prioritize investments in the fastest growing areas of the business and redeploy resources to support the Companys strategicinvestments.We may take similar ste

286、ps in the future as we seek to realize operating synergies,optimize our operations toachieve our target operating model and profitability objectives,respond to market forces or better reflect changes in thestrategic direction of our business.Disruptions in operations may occur as a result of taking

287、these actions.Taking these actionsmay also result in significant expense,including with respect to workforce reductions,decreased productivity due to employeedistraction and unanticipated employee turnover.Substantial expense or business disruptions resulting from restructuring andreorganization act

288、ivities could adversely affect our operating results.We may have exposure to greater-than-anticipated tax liabilities.Our future income taxes could be adversely affected by earnings being lower than anticipated in jurisdictions that havelower statutory tax rates and higher than anticipated in jurisd

289、ictions that have higher statutory tax rates,or changes in tax laws,regulations or accounting principles,as well as certain discrete items such as equity-related compensation.The Organisation forEconomic Co-operation and Development(“OECD”)and participating OECD member countries continue to work tow

290、ard theenactment of a 15%global minimum corporate tax rate for large multinational enterprise groups,also known as Pillar Two.Many of the participating countries have enacted legislation that became effective beginning in 2024,while other countriescontinue to work on defining the underlying rules an

291、d administrative procedures.Although the enacted and effective legislationin some countries was applicable to us as of January 1,2024,and increased our effective income tax rate,the increase did not18have a material impact on our overall results of operations or cash flows.We will continue to monito

292、r and evaluate the impactsof the developing legislation.We have recorded certain tax reserves to address potential exposures involving our income tax and indirect tax positions.These potential tax liabilities result from the varying application of statutes,rules,regulations and interpretations by di

293、fferentjurisdictions.We are currently subject to tax audits in various jurisdictions.If the ultimate outcome of any tax audits are adverseto us,our reserves may not be adequate to cover our total actual liability,and we would need to take a financial charge.Although we believe our estimates,our rese

294、rves and the positions we have taken in all jurisdictions are reasonable,the ultimatetax outcome may differ from the amounts recorded in our financial statements and may materially affect our financial results inthe period or periods for which such determination is made.Fluctuations in foreign curre

295、ncy exchange rates affect our reported operating results in U.S.dollar terms.Because we conduct a substantial portion of our business outside the United States,we face exposure to adversemovements in foreign currency exchange rates,which could have a material adverse impact on our financial results

296、and cashflows.These exposures may change over time as business practices evolve and economic conditions change.The fluctuations of currencies in which we conduct business can both increase and decrease our overall revenue andexpenses for any given period.This exposure is the result of selling in mul

297、tiple currencies,headcount in foreign locations andoperating in countries where the functional currency is the local currency.Revenue generated and expenses incurred by ourinternational subsidiaries are often denominated in their local currencies,but many of our expenses related to our operations in

298、foreign jurisdictions are denominated in U.S.dollars.As a result,our consolidated U.S.dollar financial statements are subject tofluctuations due to changes in exchange rates as the financial results of our international subsidiaries are translated from localcurrencies into U.S.dollars.For example,in

299、 2024,the strength of the U.S.dollar had a negative impact on our revenue and apositive impact on our operating expenses.In addition,our financial results are subject to changes in exchange rates that impactthe settlement of transactions in non-functional currencies.In addition,we have recently expe

300、rienced increased volatility in foreign currency exchange rates,due to a number offactors,including geopolitical and economic developments.We may not be able to effectively manage such volatility,and ourfinancial results have in the past and could in the future be adversely impacted as a result of s

301、uch volatility.In addition,suchvolatility,even when it increases our revenues or decreases our expenses,impacts our ability to accurately predict our futureresults and earnings.Our sales to government clients subject us to risks,including early termination,audits,investigations,sanctions andpenaltie

302、s.We have customer contracts with the U.S.government,as well as international,state and local governments and theirrespective agencies and we may in the future increase sales to government entities.Sales to government entities are subject to anumber of risks.Selling to government entities can be hig

303、hly competitive,expensive and time consuming,often requiringsignificant upfront time and expense without any assurance that these efforts will generate a sale.Such government entitiesoften have the right to terminate these contracts at any time,without cause.There is increased pressure for governmen

304、ts andtheir agencies,both domestically and internationally,to reduce spending and demand and payment for our services may beimpacted by public sector budgetary cycles and funding authorizations.These factors may combine to potentially limit therevenue we derive from government contracts in the futur

305、e.Additionally,government contracts generally have requirementsthat are more complex than those found in commercial enterprise agreements and therefore are more costly to comply with.Such contracts are also subject to audits and investigations that could result in civil and criminal penalties and ad

306、ministrativesanctions,including contract termination,fee refunds,forfeiture of profits,suspension of payments,fines and suspensions ordebarment from future government business.We utilize third-party technology in our business,and failures or vulnerabilities,and/or litigation,related to thesetechnolo

307、gies may adversely affect our business.We utilize third-party technology software,services and other technology to operate critical functions of our business,including the integration of certain of these technologies into our network,products and services.If these software,services,orother technolog

308、y become unavailable,malfunction or contain vulnerabilities,our expenses could increase and our ability tooperate our network,provide our products and our results of operations could be impaired until equivalent software,technology,or services are purchased or developed or any identified vulnerabili

309、ties or malfunctioning are remedied.If we areunable to procure the necessary third-party technology we may need to acquire or develop alternative technology,or we may19have to resort to utilizing alternative technology of lower quality.This could limit and delay our ability to offer new orcompetitiv

310、e products and increase our costs of production.As a result,our business could be significantly harmed.In addition,the use of third-party technology may expose us to third-party claims of intellectual property infringement which could cause usto incur significant costs in defense or alternative sour

311、cing.We rely on certain“open-source”software,which may contain security flaws or other deficiencies,and the use of whichcould result in our having to distribute our proprietary software,including source code,to third parties on unfavorableterms,either of which could materially affect our business.Ce

312、rtain of our offerings use software that is subject to open-source licenses.Open-source code is software that is freelyaccessible,usable and modifiable;however,certain open-source code is governed by license agreements,the terms of whichcould require users of such software to make any derivative wor

313、ks of the software available to others on unfavorable terms or atno cost.Because we use open-source code,we may be required to take remedial action in order to protect our proprietarysoftware.Such action could include replacing certain source code used in our software,discontinuing certain of our pr

314、oducts ortaking other actions that could be expensive and divert resources away from our development efforts.In addition,the termsrelating to disclosure of derivative works in many open-source licenses are unclear and have not been interpreted by U.S.courts.If a court interprets one or more such ope

315、n-source licenses in a manner that is unfavorable to us,we could be required tomake certain of our key software generally available at no cost.We could also be subject to similar conditions or restrictionsshould there be any changes in the licensing terms of the open-source software incorporated int

316、o our products.In either event,we could be required to seek licenses from third parties in order to continue offering our products,to re-engineer our productsor to discontinue the sale of our products in the event re-engineering cannot be accomplished on a timely or successful basis,any of which cou

317、ld adversely affect our business,operating results and financial condition.Furthermore,open-source softwaremay have security flaws and other deficiencies that could make our solutions less reliable and damage our business.We may not be successful in our artificial intelligence initiatives,which coul

318、d adversely affect our business,reputation,orfinancial results.Artificial intelligence(AI),presents new risks and challenges that may affect our business.We have made,andexpect to continue to make investments to integrate AI and machine learning technology into our products and solutions.Giventhe na

319、ture of AI technology,we face significant competition from other companies and an evolving regulatory landscape.OurAI efforts may not be successful and our competitors may incorporate AI into their products more successfully than us,whichcould impair our ability to compete effectively and adversely

320、affect our financial results.The rapid evolution of AI combinedwith the uncertain and often inconsistent regulatory landscape may require significant additional resources and costs and couldin some cases limit our ability to implement AI capabilities in our solutions or to use AI to support business

321、 operations.Further,data used to train AI-based systems may lead to harm to our reputation.Despite our implementation of programs designed tosupport responsible AI use and development,we may not successfully address all issues that may arise.For example,privacyconcerns,user consent,supply chain secu

322、rity,transparency and the accuracy,completeness and suitability of data sets are allpotential issues that could adversely affect our business,reputation,or financial results.Legal and Regulatory RisksEvolving privacy regulations could negatively impact our profitability and business operations.The n

323、ature and breadth of laws and regulations,or expanded interpretation of these laws and regulations,that relate toprivacy on the internet and international data transfer restrictions may increase in the future.Accordingly,we are unable toassess the possible effect of compliance with future requiremen

324、ts or whether our compliance efforts will materially impact ourbusiness,results of operations or financial condition,as well as increase expenses or create other disadvantages to our business.Privacy laws are rapidly proliferating,changing and evolving globally.Governments,private citizens and priva

325、cyadvocates with class action attorneys are increasingly scrutinizing how companies collect,process,use,store,share andtransmit personal data.Numerous laws,such as the European Unions General Data Protection Regulation(GDPR),and theCalifornia Consumer Privacy Act of 2018(CCPA),and industry self-regu

326、latory codes have been enacted,and more laws arebeing considered that may affect how we use data generated from our network as well as our ability to reach current andprospective customers,understand how our solutions are being used and respond to customer requests allowed under the laws.Any percept

327、ion that our business practices,our data collection activities or how our solutions operate represent an invasion ofprivacy or improper practice,whether or not consistent with current regulations and industry practices,may subject us to publiccriticism or boycotts,class action lawsuits,reputational

328、harm,or actions by regulators,or claims by industry groups or otherthird parties,all of which could disrupt our business and expose us to liability.20Engineering efforts to build new capabilities to facilitate compliance with increasing international data transfer restrictionsand new and changing pr

329、ivacy laws and related customer demands could require us to take on substantial expenses and divertengineering resources from other projects.We might experience reduced demand for our offerings if we are unable to engineerproducts that meet our legal duties or help our customers meet their obligatio

330、ns under the GDPR,the CCPA or other applicabledata regulations,or if the changes we implement to comply with such laws and regulations make our offerings less attractive.Our ability to leverage the data generated by our global networks is important to the value of many of the solutions weoffer,our o

331、perational efficiency and future product development opportunities.Our ability to use data in this way may beconstrained by regulatory developments.Compliance with applicable laws and regulations regarding personal data may requirechanges in services,business practices or internal systems that resul

332、t in increased costs,lower revenue,reduced efficiency orgreater difficulty in competing with other companies.Compliance with data regulations might limit our ability to innovate oroffer certain features and functionality in some jurisdictions where we operate.Failure to comply with existing or new r

333、ulesmay result in significant penalties or orders to stop the alleged non-compliant activity,as well as negative publicity anddiversion of management time and effort.Our security controls over personal data,our training of employees and third parties on privacy,data security and otherethical data use practices we follow may not prevent the improper disclosure or misuse of customer or end-user data