Akamai Technologies, Inc. (NASDAQ:AKAM) Q3 2023 Earnings Call Transcript

Probably at the fringes, it’s getting harder. But for companies that we have an interest in, I’d not say it’s made a lot of improvement yet. That may change with time. We just have to see. It’s something we keep a close eye on. Of course, we’re always looking, but we’re very disciplined buyers. So it really has to make very good sense for our customers and for our shareholders. Operator, we have time for one more, please.

Operator: The last question is from Jeff Van Rhee of Craig Hallum.

Jeff Van Rhee: Just one quick one on compute, Kind of getting to the inflection or the acceleration in growth. I have a couple of questions. Just on sales cycles there, refractory, what is the typical sales cycle for a compute deal? And then secondly, with the bulk of the build-out done, and it sounds like functionality isn’t the limiter, then it’s really just getting to maturity of these sales cycles. The sales force has trained the functionalities there, the infrastructure is there. So it looks like Q4 builds in organic growth roughly similar to Q3. So just trying to get a sense of timing of acceleration there.

Tom Leighton: Yes. Good question. There is the sales cycle. But when you close the deal, then there’s the effort to actually port it and then the time to grow it. And so it’s not like maybe one of a normal service or sell delivery were very quick to to port the business and turn it up. It can — that can happen in a period of days to weeks. Here, probably it’s more months to actually get the app corded. And then all the traffic or all the compute won’t move over all at once. You wouldn’t be growing it over time. So it will — this is something you’ll see, I think, throughout next year as we close customers and then we grow their revenue. And the early signings we did this year, that’s exactly what we’re seeing, initially very small amounts of revenue, relatively speaking, and then grows over time.

Jeff Van Rhee: Okay. Well, thank you, everyone. In closing, we will be presenting at a number of investor conferences and events throughout the rest of the year. Details of these can be found in the Investor Relations section of Rockmy.con. Again, thank you for joining us, and all of us here at Akamai wish you and yours a wonderful rest of the year. Have a nice evening.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.+