Akamai Technologies (AKAM) 10-K risk factor changes: FY2021 vs FY2020

We experienced a significant increase in revenue from our media solutions in 2020 due in [removed: significant] [added: large] part to greater consumption of online media and games during the [added: onset of the] COVID-19 pandemic and associated stay-at-home orders across the globe.

Numerous other factors impact our [added: revenue and] traffic growth including:

- the pace of introduction of over-the-top [removed: (often referred to as OTT)] video delivery initiatives by our customers;

- media and other customers utilizing their own data centers and implementing delivery approaches that limit or eliminate reliance on [removed: third party] [added: third-party] providers like us; [removed: and]

- general macro-economic [added: and geopolitical] conditions and industry pressures.

To maintain or accelerate growth in security revenue, we must increase our industry recognition as a security solutions provider and develop [added: or acquire] new [added: solutions in a rapidly-changing environment where security threats are constantly evolving.]

We have experienced revenue declines in recent quarters from our web performance solutions and expect this trend to continue because of increasing pricing pressure [removed: in certain verticals and geographies] due to competition and business conditions affecting many of our [removed: customers, particularly in travel and hospitality.][added: customers.]

- retain existing customers, including [added: by] maintaining the levels of existing services they [removed: buy;][added: buy and by delivering consistent and quality performance levels;]

- counteract multi-vendor policies that could cause customers to reduce their reliance on [removed: Akamai;][added: us;]

We base our decisions about expense levels and investments on estimates of our future revenue and future anticipated [removed: rate] [added: rates] of growth; however, many of our expenses are fixed [removed: cost in nature] [added: costs] for [removed: some minimum] [added: a certain] amount of time so it may not be possible to reduce costs in a timely manner or without incurring fees to exit certain obligations early.

If we are required to significantly reduce expenses to maintain or improve profitability, such actions may negatively affect our ability to invest in our business for innovation, systems [removed: improvement] [added: improvements] and other initiatives.

If we do not develop [added: or acquire] new solutions that are attractive to enterprises, our revenue and operating results could be adversely affected.

In particular, as security solutions have become, and are expected to continue [removed: to, be] [added: to be,] an increasingly important part of our business, we must be particularly adept at developing new security services that [removed: meet the constantly-changing threat landscape.]

- offer lower prices than ours, including at levels that may not be [removed: profitable;][added: profitable for us to match;]

- in some cases, use funds from [removed: recent] public securities offerings or private financings to strengthen their business to enable them to better compete with us; and

We and other companies that compete in this industry and these markets experience continually shifting business relationships, [added: reputations,] commercial focuses and business priorities, all of which occur in reaction to industry and market forces and the emergence of new opportunities.

These shifts have led or could lead to our customers or partners becoming our competitors; network suppliers no longer seeking to work with us; and large technology companies that previously did not [removed: appear to show interest in the markets we seek to address entering into those markets as our competitors.]

We are reliant on large media and other customers to direct [removed: significant amounts of] traffic to our network for a significant part of our revenues.

In the past, some of those customers have determined that it is better for them to employ a “do-it-yourself” or “DIY” strategy by putting in place equipment, software and other technology solutions for content and application delivery [added: and security protection within their internal systems instead of using our solutions for some or all of their needs.]

Cybersecurity breaches and attacks on us, as well as steps we need to take [added: in an effort] to prevent them, [removed: could] [added: can] lead to significant costs and disruptions that [added: would] harm our business, financial results and reputation.

These attempts take a variety of forms, including [removed: DDoS] [added: Distributed Denial of Service] attacks, infrastructure attacks, botnets, malicious file uploads, [removed: cross-site scripting,] [added: application abuse,] credential abuse, ransomware, bugs, viruses, worms and malicious software programs.

[removed: To date, cyber threats and] other attacks have not resulted in any material adverse impact to our business or operations, but such threats are constantly evolving, increasing the difficulty of detecting and successfully defending against them.

These vulnerabilities, resident in either software or configurations, may [added: require significant operational efforts to mitigate and may] persist for extended periods of [removed: time.][added: time and the effects of any such vulnerability could be exacerbated.]

Our ability to detect vulnerabilities could be particularly limited during extraordinary events, such as the [added: ongoing] COVID-19 pandemic, where more staff are working remotely and dealing with unusual distractions.

Any actual, alleged or perceived breach of network security in our systems or networks, or any other actual, alleged or perceived data security incident [removed: we] [added: we, our customers] or our third-party suppliers suffer, [removed: could] [added: can] result in damage to our reputation; negative publicity; loss of channel partners, customers and sales; loss of competitive advantages; increased costs to remedy any problems and otherwise respond to any incident; regulatory investigations and enforcement actions; costly litigation; and other [removed: liability.][added: liabilities.]

From time to time, we have needed to correct errors and defects in the [added: proprietary and open-source] software that underlies our platform that have given rise to service [removed: incidents] [added: incidents, outages and disruptions] or otherwise impacted our operations.

We have also periodically experienced customer dissatisfaction with the quality of some of our media delivery and other services, which has led to [added: a] loss of business and could lead to [added: a] loss of customers in the future.

While we have robust quality control processes in place, there may be additional errors and defects in our software [added: and open-source software] that [added: we leverage that] may adversely affect our operations.

We may not have in place adequate quality assurance procedures to ensure that we detect errors in our software [added: and open-source software we use] in a timely manner, and we may have insufficient resources to efficiently address multiple service incidents happening simultaneously or in rapid succession.

If we are unable to efficiently and cost-effectively fix errors or other problems that [removed: may be identified] [added: we identify] and improve the quality of our solutions or systems, or if there are unidentified errors that allow persons to improperly access our services or systems, we could experience [added: litigation, the need to issue credits to customers,] loss of [added: revenue and market share, damage to our reputation, diversion of management attention, increased expenses and reduced profitability.]

All of these systems have become increasingly complex due to the complexity of our business, [added: use of third-party software and services,] acquisitions of new businesses with different systems, and increased regulation over controls and procedures.

As a result, these systems could generate errors that impact traffic measurement or invoicing, revenue recognition and financial [removed: forecasting.][added: forecasting or other parts of our business.]

In addition, we could face strains on, or failures of, our internal IT systems if [added: governmental restrictions or vaccine or other mandates due to] the [added: ongoing] COVID-19 pandemic [removed: persists for a longer period or governmental restrictions] limit the ability of our command center personnel to work in our physical locations.

A significant portion of our [added: employee increases, customer additions and] revenue growth in recent quarters has been attributable to revenue gains outside the U.S. Our operations in foreign countries subject us to risks that may increase our costs, [added: disrupt our operations or] make our operations less efficient and require significant management attention.

- difficulty in staffing, [added: training,] developing and managing foreign operations as a result of distance, language, cultural differences or [removed: regulations such as those implemented in connection with the COVID-19 pandemic;][added: regulations;]

- managing the costs and processes necessary to comply with export control, sanctions, anti-corruption, data protection and competition laws and [removed: regulations;][added: regulations or other regulatory or contractual limitations on our ability to sell or develop our products and services in certain foreign markets;]

- [removed: geo-political developments] [added: geopolitical developments, including any] that impact our [added: or our] customers’ ability to operate or deliver content to a country;

- other circumstances outside of our control such as trade disputes, political unrest, [added: the imposition of sanctions, export controls, warfare, military or armed conflict, such as the Russian invasion of Ukraine, terrorist attacks,] public health emergencies such as the [added: ongoing] COVID-19 [removed: outbreak] [added: pandemic] and natural disasters that could disrupt our ability to provide services or limit customer purchases of them;

- reliance on [added: one or more] channel partners over which we have limited control or influence on a day-to-day basis; and

We are subject to laws and regulations worldwide that differ among jurisdictions, affecting our operations in areas such as intellectual property ownership and infringement; tax; anti-corruption; [added: internet and technology regulations;] foreign exchange controls and cash repatriation; data privacy; competition; and employment.

In 2021, our revenue growth from media solutions declined as stay-at-home orders were lifted.

- the adoption of permanent hybrid or work from home policies by employees; and

We are dependent upon the overall economic health of our current and prospective customers and the continued growth and evolution of information technology.

In addition, in 2021, some of our customers continued to experience disruptions to their businesses following the emergence of COVID-19 variants.

These disruptions or changes in international, national, regional and local economic conditions, such as inflation, increasing energy prices, recessionary economic cycles, protracted economic slowdowns or any deterioration in the economy could adversely affect our business.

- successfully integrate our recent acquisitions into our business;

meet the constantly-changing threat landscape.

We have also experienced, and may in the future experience, delays in developing and releasing new products and product enhancements.

appear to show interest in the markets we seek to address entering into those markets as our competitors.

For example, during the summer of 2021, we experienced service incidents that interrupted the availability of some of our customers' websites.

We could face the loss of customers as a result of recent and any future incidents as they seek alternative or supplemental providers.

Furthermore, most of our customer agreements contain service level commitments.

If we fail to meet these contractual commitments, we could be obligated to provide credits for future service, or face contract termination with refunds of prepaid amounts, which could harm our business.

We continue to invest in improving our processes and systems.

We also rely on third-party software for certain essential operational services and a failure or disruption in these services could materially and adversely affect our ability to manage our business effectively.

We may not be able to anticipate the techniques used in such attacks, as they change frequently and may not be recognized until launched.

To date, cyber threats and

We have discovered vulnerabilities in software used in our technology, such as the vulnerability in Apache Log4j 2 referred to as “Log4Shell” identified in late 2021 that impacted a large portion of the internet ecosystem, and may have other undiscovered vulnerabilities.

See also the risk factor captioned *We utilize third-party technology in our business, and failures or vulnerabilities, and/or litigation, related to these technologies may adversely affect our business* below.

If we cannot maintain compatibility with our customers’ IT infrastructure, including their chosen third-party applications, our business will be harmed.

Our products interoperate with our customers' IT infrastructure, that often has different specifications, utilizes diverse technology, and requires compatibility with multiple communication protocols.

Therefore, the functionality of our technology often needs to have, and maintain, compatibility with our customers' technology environment, including their chosen third-party technology.

Customers, and in particular these chosen third-party applications, may change features, restrict our access to, or alter their applications in a manner that causes incompatibilities or causes us significant costs to maintain compatibility, and as a result our business could be adversely affected.

Such changes could functionally limit or prevent the compatibility of our products with our customers’ IT infrastructure, which would negatively affect adoption of our products and harm our business.

If we fail to update our products to achieve compatibility with new third-party applications that our customers use, we may not be able to offer the functionality that our customers need, which would harm our business.

- difficulties in enforcing contracts, collecting accounts and longer payment cycles in certain countries;

Global supply chain constraints in the wake of the COVID-19 pandemic continue to increase lead times for equipment components, which adds risk to our ability to flex to meet future business needs.

- lawsuits resulting from an acquisition or disposition;

Like other companies in our industry, we have experienced, and we expect to continue to experience, difficulty in hiring and retaining highly skilled employees with appropriate qualifications, and, if we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects could suffer.

In addition, effective succession planning is important to our long-term success and our failure to ensure effective transfer of knowledge and smooth transitions involving our officers and other key personnel could hinder our strategic planning and execution.

In addition, our future success will depend upon our ability to attract and retain employees.

This competition results in increased costs in the form of cash and stock-based compensation and can have a dilutive impact on our stock.

As a result of the diversification of our business, personnel growth, increased usage of alternative working arrangements, including the designation of over 90% of roles as flexible and able to work remotely, including after the pandemic, acquisitions and international expansion in recent years, many of our employees are now based

We plan to roll out our FlexBase program in May 2022, which will allow the more than 90% of our workforce designated as flexible to choose whether they want to work from an Akamai office or their home office.

In addition, certain security systems in homes or other remote workplaces may be less secure than those used in our offices, which may subject us to increased security risks, including cybersecurity-related events, and expose us to risks of data or financial loss and associated disruptions to our business operations.

Members of our workforce who access company data and systems remotely may not have access to technology that is as robust as that in our offices, which could cause the networks, information systems, applications and other tools available to those remote workers to be more limited or less reliable than in our offices.

We may also be exposed to risks associated with the locations of remote workers, including compliance with local laws and regulations or exposure to compromised internet infrastructure.

Allowing members of our workforce to work remotely may create intellectual property risk if employees create intellectual property on our behalf while residing in a jurisdiction with unenforced or uncertain intellectual property laws.

Further, if employees fail to inform us of changes in their work location, we may be exposed to additional risks without our knowledge.

If we are unable to effectively transition to a hybrid workforce, manage the cybersecurity and other risks of remote work, and maintain our corporate culture and workforce morale, our business could be harmed or otherwise negatively impacted.

We saw traffic levels on our network begin to stabilize in the fourth quarter of 2020.

Accordingly, we do not expect traffic growth in 2021 to continue at the same levels we saw earlier in 2020 absent other significant industry developments.

solutions in a rapidly-changing environment where security threats are constantly evolving.

In 2020, many of these customers faced significant disruptions to their business as a result of the international public health emergency associated with the COVID-19 pandemic.

The economic fallout from the pandemic has continued into 2021 and can be expected to have far-reaching consequences across many industries, including additional bankruptcies, continued reductions in technology spending and economic recession.

Continuing restrictions on the ability of our developers and other employees to work in our facilities as a result of restrictions imposed by governments to combat the COVID-19 pandemic could reduce their effectiveness including, for example, by making it more difficult for them to collaborate as effectively in the development of new solutions.

and security protection within their internal systems instead of using Akamai solutions for some or all of their needs.

revenue and market share, damage to our reputation, increased expenses and delayed payments and be exposed to legal actions by our customers.

The loss of the services of a

Most of our government contracts are subject to legislative approval of appropriations to fund the expenditures under these contracts.

Catastrophic natural disasters could negatively impact our office locations.

We have introduced new billing models over the years, including recently offering a zero overage plan that eliminates surcharges for certain traffic.

In addition, if we are unable to make cash payments upon conversion of the notes, we would be required to issue significant amounts of our common stock, which would be dilutive to the stock of existing stockholders.

We [removed: provide solutions for securing, delivering] [added: are currently organized] and [added: operate in one reportable and operating segment: providing cloud services for delivering,] optimizing [added: and securing] content and business applications over the internet.

Seasonal variations that impact traffic on our network, such as [removed: holiday shopping,] [added: holiday-related activities,] can cause revenue fluctuations from quarter to quarter.

- We have experienced increases in the amount of traffic delivered for customers that use our solutions for video, gaming downloads and social [removed: media, contributing to an increase in our revenue in 2020 as compared to 2019.][added: media.]

[removed: -] While we have increased committed recurring revenue from our solutions by upselling incremental solutions to our existing customers and adding new [removed: customers,] [added: customers to offset the negative trends,] we [removed: have also experienced slower] [added: expect] revenue [removed: growth in recent quarters in] [added: challenges from] our [removed: web] [added: website and application] performance [removed: solutions.][added: solutions to continue in 2022.]

- The prices paid by some of our customers have [removed: declined, particularly in the context of contract renewals and large media consolidations, reflecting the impact of] [added: declined due to] competition and [removed: volume discounts.][added: contract renewals.]

- Revenue from our international operations has been growing at a faster pace than from our U.S. operations, particularly in terms of [added: traffic,] new customer acquisition and cross-selling of incremental solutions.

Conversely, a [removed: continuing] weaker dollar would benefit our reported results.

In addition, we experience quarterly variations in revenue attributable to, among other things, the nature and timing of software and gaming releases by our customers; whether there are large live sporting or other events or situations [removed: (like the COVID-19 pandemic)] that impact the amount of media traffic on our network; and the frequency and timing of purchases of custom solutions or licensed software.

- Our profitability improved in [added: 2021 and] 2020 as compared to [removed: 2019] [added: prior periods] due to higher [added: overall] revenue [removed: and] [added: as well as] the effects of cost savings and efficiency initiatives we have [removed: undertaken in recent years, as well as from lower travel and marketing expenses in 2020 due to pandemic-related shutdowns and restrictions.][added: undertaken.]

[removed: In order to maintain our current levels of profitability, we] [added: We] will need to continue to undertake efforts intended to improve the efficiency of operations [removed: and ensure that] [added: to manage] our expense growth [removed: does not exceed our revenue growth.][added: and profitability.]

We [removed: expect] [added: plan] to continue to hire employees in support of our strategic [removed: initiatives] [added: initiatives, including through our anticipated acquisition,] but do not expect overall headcount to increase significantly in [removed: 2021.][added: 2022.]

We plan to continue to invest in our network in [removed: 2021, although not at the same levels we experienced in 2020,] [added: 2022] which will further increase our capital expenditures and resulting depreciation expense.

While we [added: have incurred and] expect to [added: continue to] incur expenses associated with enabling remote [removed: work and] [added: work,] reconfiguring work spaces to help ensure the safety and [removed: well being] [added: well-being] of employees accessing our [removed: locations,] [added: locations and re-thinking our facility footprint and the way] we [added: utilize office space, we] do not currently believe those costs will materially impact our financial condition or results of operations.

| | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | | | [removed: 35.4] [added: 36.7] | | | | | | [removed: 34.1] [added: 35.4] | | | | | | [removed: 35.1] [added: 34.1] | | |

| Research and development | | | [removed: 8.4] [added: 9.7] | | | | | | [removed: 9.0] [added: 8.4] | | | | | | [removed: 9.1] [added: 9.0] | | |

| Sales and marketing | | | [removed: 16.0] [added: 13.3] | | | | | | [removed: 18.1] [added: 16.0] | | | | | | [removed: 19.1] [added: 18.1] | | |

| General and administrative | | | [removed: 17.1] [added: 16.0] | | | | | | [removed: 17.8] [added: 17.1] | | | | | | [removed: 21.1] [added: 17.8] | | |

| Amortization of acquired intangible assets | | | [removed: 1.3] [added: 1.4] | | | | | | 1.3 | | | | | | [removed: 1.2] [added: 1.3] | | |

| Restructuring charge | | | [removed: 1.2] [added: 0.3] | | | | | | [removed: 0.6] [added: 1.2] | | | | | | [removed: 1.0] [added: 0.6] | | |

| Total costs and operating expenses | | | [removed: 79.4] [added: 77.4] | | | | | | [removed: 80.9] [added: 79.4] | | | | | | [removed: 86.6] [added: 80.9] | | |

| Income from operations | | | [removed: 20.6] [added: 22.6] | | | | | | [removed: 19.1] [added: 20.6] | | | | | | [removed: 13.4] [added: 19.1] | | |

| Interest income | | | [removed: 0.9] [added: 0.5] | | | | | | [removed: 1.2] [added: 0.9] | | | | | | [removed: 1.0] [added: 1.2] | | |

| Interest expense | | | [removed: (2.2)] [added: (2.1)] | | | | | | [removed: (1.7)] [added: (2.2)] | | | | | | [removed: (1.6)] [added: (1.7)] | | |

| Other [removed: expense,] [added: income (expense),] net | | | [removed: (0.1)] [added: 0.1] | | | | | | [removed: —] [added: (0.1)] | | | | | | [removed: (0.1)] [added: —] | | |

| Income before provision for income taxes | | | [removed: 19.2] [added: 21.1] | | | | | | [removed: 18.6] [added: 19.2] | | | | | | [removed: 12.7] [added: 18.6] | | |

| Provision for income taxes | | | [removed: (1.4)] [added: (1.8)] | | | | | | [removed: (1.8)] [added: (1.4)] | | | | | | [removed: (1.6)] [added: (1.8)] | | |

| Loss from equity method investment | | | (0.4) | | | | | | [removed: —] [added: (0.4)] | | | | | | — | | |

| Net income | | | [removed: 17.4] [added: 18.9] | | % | | | | [removed: 16.8] [added: 17.4] | | % | | | | [removed: 11.1] [added: 16.8] | | % |

| | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | % Change | | | | | | % Change at Constant Currency | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | | | | | % Change | | | | | | % Change at Constant Currency | | |

| Total revenue | | | $ | [removed: 3,198,149] [added: 3,461,223] | | | | | $ | [removed: 2,893,617] [added: 3,198,149] | | | | | [removed: 10.5] [added: 8.2] | | % | | | | [removed: 10.6] [added: 7.3] | | % | | | | $ | [removed: 2,893,617] [added: 3,198,149] | | | | | $ | [removed: 2,714,474] [added: 2,893,617] | | | | | [removed: 6.6] [added: 10.5] | | % | | | | [removed: 7.8] [added: 10.6] | | % |

The increase in our revenue in 2020 as compared to 2019 was primarily the result of higher media traffic volumes due in part to behavioral changes prompted by the COVID-19 pandemic and continued strong growth in sales of our [removed: Cloud] Security [removed: Solutions.][added: Technology Group solutions.]

| U.S. | | | $ | [removed: 1,777,435] [added: 1,837,508] | | | | | $ | [removed: 1,694,211] [added: 1,777,435] | | | | | [removed: 4.9] [added: 3.4] | | % | | | | [removed: 4.9] [added: 3.4] | | % | | | | $ | [removed: 1,694,211] [added: 1,777,435] | | | | | $ | [removed: 1,683,272] [added: 1,694,211] | | | | | [removed: 0.6] [added: 4.9] | | % | | | | [removed: 0.6] [added: 4.9] | | % |

| International | | | [removed: 1,420,714] [added: 1,623,715] | | | | | | [removed: 1,199,406] [added: 1,420,714] | | | | | | [removed: 18.4] [added: 14.3] | | | | | | [removed: 18.5] [added: 12.3] | | | | | | [removed: 1,199,406] [added: 1,420,714] | | | | | | [removed: 1,031,202] [added: 1,199,406] | | | | | | [removed: 16.3] [added: 18.4] | | | | | | [removed: 19.6] [added: 18.5] | | |

The U.S. revenue growth [removed: rate] [added: rates] for [added: 2021 and] 2020 [removed: was] [added: were] positively impacted by the increase in traffic on our network in [added: 2021 and] 2020, including from our U.S.-based large internet platform customers.

Internationally, during [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] we continued to see strong revenue growth from our operations in the Asia-Pacific region.

Changes in foreign currency exchange rates [removed: negatively] [added: positively] impacted our revenue by [removed: $1.2] [added: $28.8] million in [removed: 2020] [added: 2021] as compared to [removed: 2019,] [added: 2020,] and negatively impacted our revenue by [removed: $33.9] [added: $1.2] million in [removed: 2019] [added: 2020] as compared to [removed: 2018.][added: 2019.]

For the year ended December 31, [removed: 2020,] [added: 2021,] approximately [removed: 44%] [added: 47%] of our revenue was derived from our operations located outside of the U.S., compared to [removed: 41%] [added: 44%] for the year ended December 31, [removed: 2019] [added: 2020] and [removed: 38%] [added: 41%] for the year ended December 31, [removed: 2018.][added: 2019.]

| | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | % Change | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | | | | | % Change | | |

| Bandwidth fees | | | $ | [removed: 200,167] [added: 209,288] | | | | | $ | [removed: 165,335] [added: 200,167] | | | | | [removed: 21.1] [added: 4.6] | | % | | | | $ | [removed: 165,335] [added: 200,167] | | | | | $ | [removed: 154,853] [added: 165,335] | | | | | [removed: 6.8] [added: 21.1] | | % |

We provide solutions to power and protect digital experiences.

The purpose of this discussion and analysis section is to provide material information relevant to an assessment of our financial condition and results of operations from management’s perspective, including to describe and explain key trends, events and other factors that impacted our reported results and that are reasonably likely to impact our future performance.

During 2020, we saw a dramatic increase in traffic growth on our network related to the shutdowns and restrictions from the novel coronavirus, or COVID-19, pandemic.

Primarily as a result of the rollback of many pandemic-related restrictions, we have seen the rate of traffic growth moderate during 2021.

We do not expect the events of 2020, and its impact to our revenue growth rates, to repeat in the foreseeable future.

During 2021 as compared to 2020, we experienced a decline in revenue from website and application delivery solutions due to the above factors, particularly in the U.S. commerce vertical.

We have also benefited from lower travel expenses because of pandemic-related shutdowns and restrictions.

- Network build-out and supporting service costs represent another significant portion of our cost of revenue.

These costs include maintenance and supporting services incurred as we continue to build-out our global network.

We have seen these costs increase in 2021 and 2020, as a result of our network expansion and pricing pressure from vendors.

As we continue to invest in our network, we will need to effectively manage our network build-out and supporting costs.

- Our employees are core to the operations of our business, and payroll and related costs, including stock-based compensation, is one of our largest expenses.

It is important to the success of operations that we offer competitive compensation packages.

However, we need to ensure we continue to focus on the right investments and maintain operational efficiencies to mitigate the cost of talent.

During 2021, as compared to 2020, we saw higher depreciation expense due to accelerated deployment of equipment in 2020 to help meet the increased traffic demands arising during the ongoing COVID-19 pandemic.

*Acquisitions*

In February 2022, we announced our intention to acquire Linode Limited Liability Company, or Linode, for approximately $900.0 million, net of cash acquired and subject to post-closing adjustments.

Linode is an infrastructure-as-a-service platform provider that allows for developer-friendly cloud computing capabilities.

The acquisition is intended to enhance our edge computing services by creating a unique cloud platform to build, run and secure applications from the cloud to the edge.

The acquisition is expected to close in March 2022.

Linode has approximately 250 employees, and the acquisition is expected to be accretive to our earnings per share in 2022.

In October 2021, we acquired Guardicore Ltd., or Guardicore, for $610.4 million in cash.

Guardicore's micro-segmentation solution is designed to limit user access to only those applications that are authorized to communicate with each other, thereby limiting the spread of malware and protecting the flow of enterprise data across the network.

Guardicore has approximately 270 employees, and the acquisition is expected to be dilutive to our earnings per share at least through 2022.

*Reorganization*

Effective on March 1, 2021, we reorganized into two groups, both of which utilize the Akamai Intelligent Edge Platform and our global sales organization: the Security Technology Group and the Edge Technology Group.

These groups are aligned with our product offerings.

Revenue from the Security Technology Group was previously reported as revenue from Cloud Security Solutions, and revenue from the Edge Technology Group was previously reported as revenue from content delivery network services and all other solutions.

The Security Technology Group includes solutions that are designed to keep infrastructure, websites, applications and users safe, while the Edge Technology Group includes solutions that enable business online, including media delivery, web performance and edge computing solutions.

*Remote Work*

We have a rigorous process for assessing whether any office can reopen (and remain open) based on local government regulations, local health trends and business needs.

For most locations, our facilities are expected to be closed to employees whose job responsibilities do not require in-office work.

We have begun to selectively and safely reopen offices in a limited capacity for employees who would prefer to work from one of our offices.

Safety protocols include, but are not limited to, mandatory training, personal protective equipment, reduced capacity, social distancing, an increased cleaning schedule and, in certain jurisdictions, vaccination requirements and/or testing protocols.

We have a rigorous process for assessing whether any office can reopen (and remain open) based on local government regulations, local health trends and business needs.

Except for employees whose job responsibilities require in-office work, none of our employees are required to fully return to the office, even those that are currently open.

In addition, we plan to roll out our FlexBase program in May 2022, which will allow the more than 90% of our workforce designated as flexible to choose whether they want to work from an Akamai office or their home office, even after we decide it is safe to open all of our offices in light of the COVID-19 pandemic.

| Security Technology Group | | | $ | 1,334,836 | | | | | $ | 1,061,622 | | | | | 25.7 | | % | | | | 24.6 | | % | | | | $ | 1,061,622 | | | | | $ | 848,733 | | | | | 25.1 | | % | | | | 25.3 | | % |

| Edge Technology Group | | | 2,126,387 | | | | | | 2,136,527 | | | | | | (0.5) | | | | | | (1.2) | | | | | | 2,136,527 | | | | | | 2,044,884 | | | | | | 4.5 | | | | | | 4.4 | | |

The increase in our revenue in 2021 as compared to 2020 was primarily the result of continued strong growth in sales of solutions offered by our Security Technology Group.

In addition, as a result of the COVID-19 outbreak and resultant pandemic-related shutdowns and restrictions in various locations around the world during some of 2020, the rate of growth in traffic in 2020, as compared to prior years, accelerated significantly due to increased consumption of streaming media and games online and online commerce.

We expect this year-over-year growth to moderate in 2021, assuming the restrictions experienced in 2020 do not continue.

We expect the trend of slower revenue growth in our web solutions to continue in 2021 as our customers, particularly in the commerce and travel and hospitality industries, continue to experience financial pressure, especially in light of the negative impacts of the COVID-19 pandemic on these customers' operations.

Our revenue would have been higher absent these price declines.

- We expect to continue to manage our headcount and payroll costs in the future to focus investments on certain areas of the business while maintaining efficient operations in others.

During the last three quarters of 2020, we accelerated our purchases of servers and other equipment used in our network to help meet the increased traffic demands arising during the COVID-19 pandemic and to make up for supply chain issues we experienced in the first quarter.

We expect to see higher depreciation expense in 2021 to reflect the deployment of this equipment.

We currently report our revenue by division, which is a customer-focused reporting view that reflects revenue from customers that are managed by the division.

We report our revenue in two divisions: the Web Division and the Media and Carrier Division.

As the purchasing patterns and required account expertise of customers change over time, we may reassign a customer from one division to another.

In 2020, we reassigned some of our customers between the Media and Carrier Division and the Web Division and revised historical results in order to reflect the most recent categorization and to provide a comparable view for all periods presented.

In March 2021, we will reorganize into two groups: the Edge Technology Group, or ETG, and the Security Technology Group, or STG.

The reorganization will align leaders of the two groups around our product offerings, with support from a single global sales organization, and is intended to position us to become more agile in delivering our solutions.

Beginning in 2021, we will report revenue from the STG (previously Cloud Security Solutions revenue) and the ETG (revenue from our remaining solutions), separately.

Nearly all of our employees are working remotely due to the COVID-19 pandemic, and we are not requiring employees whose roles do not require in-person presence to perform their jobs to return to offices before January 1, 2022.

We have implemented a comprehensive evaluation process to determine whether offices in different locations should be open or closed.

| Web Division | | | $ | 1,666,305 | | | | | $ | 1,556,252 | | | | | 7.1 | | % | | | | 7.2 | | % | | | | $ | 1,556,252 | | | | | $ | 1,439,772 | | | | | 8.1 | | % | | | | 9.4 | | % |

| Media and Carrier Division | | | 1,531,844 | | | | | | 1,337,365 | | | | | | 14.5 | | | | | | 14.5 | | | | | | 1,337,365 | | | | | | 1,274,702 | | | | | | 4.9 | | | | | | 6.1 | | |

Cloud Security Solutions revenue for the year ended December 31, 2020 was $1,061.6 million, compared to $848.7 million for the year ended December 31, 2019, which represents a 25.1% increase.

The increase in our revenue in 2019 as compared to 2018 was primarily the result of higher media traffic volumes, including from our large internet platform customers, and continued strong growth in sales of our Cloud Security Solutions.

Cloud Security Solutions revenue for the year ended December 31, 2019 was $848.7 million, compared to $658.7 million for the year ended December 31, 2018, which represents a 28.8% increase.

The increase in Web Division revenue for 2020 as compared to 2019, and 2019 as compared to 2018, was primarily the result of increased sales of both new and existing Cloud Security Solutions to this customer base.

Customers that have been experiencing financial difficulties as a result of the COVID-19 pandemic, specifically those in the commerce, retail and travel and hospitality verticals, are primarily assigned to our Web Division.

Accordingly, Web Division revenue was negatively impacted during 2020 as a result of this pandemic.

It is difficult to predict the length of time and amount by which the Web Division will continue to be impacted by the pandemic given its uncertain nature.

The increase in Media and Carrier Division revenue for 2020 as compared to 2019 was primarily the result of increased customer traffic volumes from video delivery, gaming and social media usage, due in part to behavioral changes tied to the COVID-19 and higher sales of Cloud Security Solutions.

The increase in Media and Carrier Division revenue for 2019 as compared to 2018 was primarily the result of increased customer traffic volumes from video delivery and gaming customers and higher sales of Cloud Security Solutions.

The U.S. revenue growth rate for 2019 was negatively impacted by a reduction in prices paid by some of our customers, partially offset by an increase in revenue from large internet platform companies, as these companies are based in the U.S.

The increase in total cost of revenue for 2019 as compared to 2018 was primarily due to increases in amortization of internal-use software as we continued to release internally-developed software onto our network related to new product launches and significant enhancements to our existing services, network build-out and supporting service costs due to investments in network expansion and bandwidth fees to support the increase in traffic served on our network.

These increases were partially offset by lower depreciation expense of network equipment of $31.5 million for the year ended December 31, 2019, due to software and hardware initiatives we implemented to manage our global network more efficiently, resulting in an increase in the expected average useful lives of our network assets, primarily servers, from four to five years effective January 1, 2019.

We anticipate depreciation of network equipment to increase in 2021 due to increased investments in our network to address expected traffic increases.

network scaling.

These increases were partially offset by increases in capitalized salaries and related costs due to continued investment in internal-use software deployed on our network.

We expect research and development costs to increase in 2021 as we plan to maintain our focus on innovation; however, we do not expect these costs to increase as a percentage of revenue as we continue to manage costs.

We expect the decreased level of marketing and travel related expenditures to continue into 2021 as we continue to be impacted by the COVID-19 pandemic.

| Legal and stockholder matter costs | | | 275 | | | | | | 10,000 | | | | | | (97.3) | | | | | | 10,000 | | | | | | 23,091 | | | | | | (56.7) | | |

| Professional fees and other expenses | | | 79,024 | | | | | | 94,785 | | | | | | (16.6) | | | | | | 94,785 | | | | | | 104,312 | | | | | | (9.1) | | |

The decrease in general and administrative expenses in 2019 as compared to 2018 was primarily due to the 2018 contribution to the Akamai Foundation, a reduction in legal and stockholder matter costs and a decrease in other expenses due to a decrease in non-income tax reserves.

These decreases were partially offset by cessation of payments to us under the terms of the litigation settlement agreement with Limelight.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Our portfolio of cash equivalents and short- and long-term investments is maintained in a variety of securities, including U.S. government agency obligations, high-quality corporate debt securities, commercial paper, mutual [removed: funds, money market] funds and [removed: municipal securities.][added: money market funds.]

Changes in the fair value of these derivatives, as well as re-measurement gains and losses, are recognized in our consolidated statements of income within other [removed: expense,] [added: income (expense),] net.

Foreign currency transaction gains and losses from these forward contracts were determined to be immaterial during the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018.][added: 2019.]

As of December 31, [removed: 2020 and 2019,] [added: 2020,] no customer had an accounts receivable balance of 10% or more of our accounts receivable.

We believe that at December 31, [removed: 2020,] [added: 2021,] the concentration of credit risk related to accounts receivable was insignificant.

If market interest rates were to increase by 100 basis points from December 31, 2021 levels, the fair value of our available-for-sale portfolio would decline by approximately $17.7 million.

In August 2019, we issued $1,150.0 million aggregate principal amount of 0.375% convertible senior notes due 2027.

In May 2018, we issued $1,150.0 million aggregate principal amount of 0.125% convertible senior notes due 2025.

As these notes have a fixed annual interest rate, we have no financial or economic interest exposure associated with changes in interest rates.

However, the fair value of fixed rate debt instruments fluctuates when interest rates change.

Additionally, the fair value can be affected when the market price of our common stock fluctuates.

We carry the notes at face value less an unamortized discount on our consolidated balance sheet, and we present the fair value for required disclosure purposes only.

A hypothetical 10% strengthening or weakening in the value of the U.S. dollar relative to the foreign currencies in which our revenues and expenses are denominated would not result in a material impact to our consolidated financial statements.

As of December 31, 2021, there was one customer with an accounts receivable balance greater than 10% of our accounts receivable.

[removed: This] [added: Our] approach [removed: affords] [added: has provided] us [added: with] unique [removed: insight and] visibility [added: and insight] into traffic volumes, congestion, attack patterns, vulnerabilities and other activities across [removed: this] [added: the internet's] complex cloud of networks and systems.

Leveraging these insights and our position at the edge, we offer [removed: our customers] solutions designed to protect [removed: them] [added: our customers] from threats and attacks, while empowering them to securely deliver their business as they engage, entertain and interact with their customers; [added: and] extend their internal systems beyond their corporate perimeters to control access and better leverage the [removed: cloud; and help them compete and operate with the scale, resilience and security that businesses demand.][added: cloud.]

The [added: ongoing] COVID-19 pandemic, which [removed: has caused global disruption over the last year,] [added: shifted how millions of people work and communicate globally,] has reinforced our belief [removed: in] [added: that] the internet’s [removed: vital] role in transforming the way we exchange ideas and information and conduct [removed: business.][added: business is more vital than ever.]

- identify, absorb and [removed: block] [added: manage] security threats;

- help our customers implement a zero trust security [removed: model as described below;][added: model;]

- provide our [removed: customers] [added: customer] with business, technical and analytical insights into their online [removed: operations; and][added: operations.]

- understand different types of traffic visiting websites so that customers can respond to [removed: it.][added: it; and]

[removed: Akamai’s] [added: Our] cloud [removed: and enterprise] security solutions are designed to keep infrastructure, websites, applications, application programming interfaces, or APIs, and users safe from a multitude of cyberattacks and online threats while improving performance.

[removed: Additional Akamai] [added: Akamai’s cloud] security [removed: capabilities] [added: solutions] include [added: web application and] API [removed: security,] [added: protection, bot management and mitigation to protect against] credential abuse [removed: mitigation, protection against] [added: and account takeover, customer identity and access management,] distributed denial of [removed: service, or DDoS, attacks, identity management,] [added: service (DDoS) mitigation, protection from] in-browser [removed: threat protection, web application firewall] [added: threats to protect against supply chain compromise] and [removed: secure web gateway.][added: audience hijacking.]

[removed: Akamai’s] [added: Our] media delivery solutions are designed to enable enterprises to execute their digital media distribution strategies by addressing volume and global reach requirements, improving the end-user experience, boosting reliability and reducing the cost of internet-related infrastructure.

[removed: Akamai’s] [added: Our] carrier offerings are designed to help customers operate a cost-efficient network that capitalizes on traffic growth and new subscriber services for security, traffic management and content delivery.

Our solutions help carriers sell easy-to-deploy [removed: cyberthreat] [added: cybersecurity] protection offerings to their subscriber base; offerings include protection from phishing, viruses, malware and ransomware.

In this approach, insights and learnings are integrated across the broader platform in support of our entire solution [removed: portfolio.][added: portfolio to enable us to:]

[removed: The Akamai Intelligent Edge Platform] [added: It] leverages more than [removed: 325,000] [added: 350,000] servers deployed in [removed: more than] [added: nearly] 1,400 networks ranging from large, backbone network providers to medium and small internet service providers, or ISPs, to cable modem and satellite providers to universities and other networks.

[removed: To make this wide-reaching deployment effective, we use] [added: Our platform leverages] specialized technologies, such as advanced routing, load balancing, data collection and monitoring.

As of December 31, [removed: 2020,] [added: 2021,] we had [removed: 8,368] [added: over 8,700] employees [removed: worldwide,] located in more than 30 countries [added: (with approximately 60% of those employees located outside of the U.S.)] and representing over [removed: 85] [added: 90] nationalities, which we believe helps bring a global perspective to our operations.

Our employees are grouped across the following roles, with the approximate percentage of the overall population noted: engineering and research and development [removed: (29%),] [added: (32%),] services and support (28%), sales and marketing [removed: (23%)] [added: (20%)] and administrative functions (20%).

Results from these surveys have consistently shown a strong sense of engagement and confidence in Akamai's future; [removed: scoring us in the top 20% of top-performing companies] [added: as Akamai,] in [added: 2021, outperformed] the [added: high performing benchmark] comparative index used by our third-party survey provider, [removed: a nationally-recognized] [added: an internationally-recognized] consulting firm specializing in corporate culture.

This approach was amplified [removed: in 2020] because of the [added: ongoing] COVID-19 pandemic.

[removed: Our] [added: Since the onset of the COVID-19 pandemic, our] Chief Executive Officer [added: has] conducted [removed: more than 70] [added: over 80] employee town halls and all hands meetings (most of which were [removed: virtual),] [added: virtual) in 2020] and [added: 2021, and] our Chief Human Resources Officer [added: has] provided [removed: weekly] [added: regular] updates on pandemic-related developments and available resources to assist employees.

[removed: In 2020,] [added: Continuing into 2021,] all employees were invited to participate in a company-wide program, developed by a behavioral research organization, that was intended to help us increase inclusivity, become more open to change and accelerate our innovation.

[removed: We] [added: In addition, we] also work closely with the Akamai Foundation to provide community service and charitable matching fund opportunities for Akamai employees, endeavors that have been shown to increase employee engagement.

[removed: All qualified applicants for employment with us receive consideration for employment, and we] [added: We] do not tolerate discrimination on the basis of gender, gender identity, sexual orientation, race or ethnicity, protected veteran status, disability or other protected group status.

We have eleven employee resource groups, or ERGs, that offer opportunities for [removed: groups of] employees to come together for mutual support, education and development.

ERGs encompass different racial and ethnic groups, persons with different physical [added: or cognitive] abilities, parents, military veterans, those supporting the LGBTQ community and women.

At December 31, [removed: 2020,] [added: 2021,] global female representation was [removed: 26.2%,] [added: 27.3%,] up from [removed: 25.8%] [added: 26.2%] at the end of [removed: 2019,] [added: 2020,] and racial and ethnic minority representation in the U.S. was [removed: 40.6%,] [added: 41.4%,] up from [removed: 39.6%] [added: 40.6%] at the end of [removed: 2019.][added: 2020.]

To help us improve the diversity of our workforce, we participate in or sponsor professional development and recruiting [removed: forums such as the Massachusetts Conference for Women, National Society of Black Engineers, Society of Hispanic Engineers and Hack.Diversity.][added: forums.]

We also offer the Akamai Technical Academy, a [added: global] technical training program for diverse individuals (gender, ethnicity, experiential, generational, veterans) who are interested in pursuing a technical career path, but may not be formally educated in science, mathematics or engineering.

The program consists of Akamai-specific [removed: classroom] training, after which participants are placed in a variety of contract roles across our organization with the potential to become [removed: full time] [added: full-time] employees.

Our benefits programs (which vary by country and region) include healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, family care resources, flexible work [removed: schedules,] [added: schedules and locations,] adoption and fertility assistance, employee assistance programs, tuition assistance and holistic wellness programs.

As a signatory to the White House Equal Pay Pledge, [removed: Akamai believes in fair and equitable pay for all of our employees, and] we are committed to monitoring our pay practices regularly and making adjustments, as necessary, to deliver on this pledge.

[removed: Our most recent] [added: We periodically conduct] internal pay equity analyses [removed: (conducted with] [added: (with] the assistance of a nationally-recognized outside consultant), covering gender globally and race and gender in the [removed: U.S., found no patterns of disparity.][added: U.S. We take action to remedy identified discrepancies as appropriate.]

[removed: We] [added: For select employees, we] offer leadership training workshops, [removed: 360 review initiatives] [added: 360-degree feedback] and succession planning exercises to encourage and enable internal promotion and advancement.

We also provided [removed: four] [added: seven] paid wellness days in [removed: 2020] [added: 2021] to allow additional paid time off for employees, specifically to encourage mental and physical health.

In addition to support for full- and part-time employees, we guaranteed sick pay for [removed: contractors we retain.][added: contractors.]

[removed: As of December 31, 2020, our] [added: Our] customers [removed: included] [added: include] many of the world's leading corporations, [removed: including] [added: such as] Adobe, Airbnb, Alibaba, Autodesk, Capital Group, Carnival Corporation, The Coca-Cola Company, Comcast, Concur, Crate & Barrel, eBay, Electronic Arts, Epic Games, FedEx, Fidelity Investments, General Electric, Honda, IKEA, Japan Airlines, Lufthansa, Maersk Transportation & Logistics, Marriott, NBCUniversal, Panasonic, Panera Bread, PayPal, Philips, Qualcomm, Rabobank, Riot Games, Sony Interactive Entertainment, Spotify, Telefonica, Toshiba, Ubisoft, Viacom, WarnerMedia and The Washington Post.

As of December 31, [removed: 2020,] [added: 2021,] our public-sector customers included the U.S. Census Bureau, the U.S. Department of Defense, the U.S. Department of Labor, the U.S. Department of State, the U.S. Department of Transportation 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, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018.][added: 2019.]

Less than 10% of our total revenue in each of the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] was derived from contracts or subcontracts terminable at the election of the federal government, and we do not expect such contracts to account for more than 10% of our total revenue in [removed: 2021.][added: 2022.]

We market and sell our solutions globally through our direct sales and services organization and through many channel [removed: partners] [added: partners,] including AT&T, Deutsche Telecom, IBM, Microsoft, Orange Business Services and Telefonica Group.

Akamai provides solutions to power and protect digital experiences.

For more than 20 years, Akamai has managed the Akamai Intelligent Edge Platform to create a worldwide network of servers located at the “edge” of the internet.

Our strategy is to help continue to drive this transformation by using our technology and intelligence to offer solutions that empower our customers to compete and operate with the scale, resilience and efficiency that their businesses demand.

As we continue to pursue our strategy in the future and to expand the ways we can help our customers, we regularly evaluate our portfolio of solutions and potential strategic acquisitions.

We plan to continue to pursue potential strategic acquisitions that complement our existing business, represent a strong strategic fit and are consistent with our overall growth strategy.

We may also target future acquisitions to expand or add functionality and capabilities to our existing portfolio of solutions.

Our business is organized into two groups, both of which utilize the Akamai Intelligent Edge Platform and our global sales organization: the Security Technology Group and the Edge Technology Group.

The Security Technology Group includes solutions that are designed to keep infrastructure, websites, applications and users safe, while the Edge Technology Group includes solutions that enable business online, including media delivery, web performance and edge computing solutions.

*Security*

Our solutions blend robust automation with customizable protections and managed security services to enable businesses to effectively manage risk and maximize the protections of their infrastructure, networks, applications, and APIs.

We also offer a growing set of solutions designed to help businesses implement a “zero trust” approach to security.

Based on the concept of least privilege, which dictates that users, applications and services utilize the bare minimum amount of access needed to perform their function, these tools are intended to shift protections from a legacy approach based on establishing a corporate perimeter, to a more modern, risk-based approach.

Solutions in this category include Zero Trust Network Access, or ZTNA, and multi-factor authentication, or MFA, which replace legacy virtual private networks, or VPNs, micro-segmentation which replaces legacy network firewalls and helps protect businesses from the threat of ransomware and Secure Web Gateway, or SWG, that helps protect against the threat of malware and phishing attacks.

*Content Delivery Solutions*

The importance of our workforce to our success is underscored by the inclusion of corporate mission critical goals centered on our employees – in 2021 we focused on further developing a diverse, productive and flexible work environment supported by the tenets of inclusion, technology, collaboration, a growth mindset and our One Akamai culture.

*Engagement*

*Diversity*

*Retention*

We monitor voluntary attrition in assessing our overall human capital.

While attrition was higher in 2021 as compared to 2020, we believe our attrition rate is lower than the global average for technology companies.

To date, no widespread patterns of disparity have been identified.

In addition, succession planning is an ongoing priority for our leadership.

We conduct annual succession planning for senior leadership, which is overseen by our board of directors, including development plans for the next level of our senior

leaders.

Annual talent reviews focus on both high performers as well as those with high potential to keep our pipeline of tomorrow’s leaders full.

*Development*

In addition to these required trainings, nearly all of our employees and contractors completed at least one training in our Akamai University program during 2021.

*COVID-19*

We have begun to selectively and safely reopen offices in a limited capacity for employees who would prefer to work from one of our offices.

Safety protocols include, but are not limited to, mandatory training, personal protective equipment, reduced capacity, social distancing, an increased cleaning schedule and, in certain jurisdictions, vaccination requirements and/or testing protocols.

Except for employees whose job responsibilities require in-office work, none of our employees are required to fully return to the office, even those that are currently open.

In 2021, we continued many of the programs we instituted in 2020 to support our employees and contractors, including our productivity reimbursement program to assist all employees with purchasing equipment to better enable remote work; our expanded wellness program offerings to offer courses on pandemic related topics; providing employees with licenses to a digital health platform; and developing manager guidance on enabling flexible work arrangements.

*FlexBase*

Given our ability to deliver results while working virtually, we have designated over 90% of roles as flexible and able to successfully work remotely.

We believe flexible workforce positions will make us a more attractive employer, increase productivity, enable us to recruit from a more diverse pool of applicants and present additional growth and development opportunities for our employees.

To support this workforce of the future, we plan to roll out our FlexBase program in May 2022, which will allow the more than 90% of our workforce designated as flexible to choose whether they want to work from an Akamai office or their home office.

In order to roll out the FlexBase program, we are designing and developing a number of tools and resources to support this program.

As an example, restrictions were

adopted in India in 2020 prohibiting access to identified Chinese applications.

Akamai provides solutions for securing and delivering content and business applications over the internet.

At the core of our solutions is our globally-distributed Akamai Intelligent Edge Platform, which is designed to help our customers leverage the power and reach of the internet while protecting them from malicious threats to their business.

We deploy servers and technology at the “edge” of the internet – establishing touch points on its perimeter in more than 130 countries and nearly 1,400 networks around the world.

Our Strategy

Across the world, there has been a shift to remote work that must be done securely and reliably.

Media consumption over the internet – movies, TV shows and games – has dramatically increased.

At the same time, security threats have continued to grow more sinister and advanced.

These trends are not new; while they may have been accelerated by the global health crisis, it is our view that the internet will play an increasingly important role in our lives going forward.

Our strategy is to meet the needs of this transformation by offering security, performance and delivery solutions that give our customers the competitive edge they need.

The Akamai Intelligent Edge Platform is central to our approach; positioning us at the edge of the internet for more than 20 years.

Our platform is deployed across approximately 4,100 locations around the world, tied together with sophisticated software and algorithms.

Through this uniquely pervasive presence at the edge, we bring applications, experiences and business decisions closer to users — and help keep attacks and threats away.

We believe the strategic proximity enabled by this distributed approach makes us well situated to empower our customers to cost effectively deliver superior user experiences that are interactive, rich and secure.

More specifically, key features of the platform include capabilities to:

- secure and manage customer identity;

We believe that our scale, unique technology, highly-skilled workforce, industry-leading security capabilities, strong relationships with thousands of major brands and relentless and personalized attention to customer and partner needs create significant value for stockholders, provide a meaningful advantage over competitors and position us well for the future.

*Cloud and Enterprise Security*

Our solutions provide customizable protections for organizations that are seeking more control over their web and application security as well as easy-to-implement solutions for organizations without robust expertise.

We also offer frameworks and tools to enable new models for remote corporate access to replace the traditional virtual private network (VPN) approach and facilitate users and devices safely connecting to the internet; in particular, we enable a “zero trust” approach to network security that specifies, on an application by application basis, which users and devices can access applications and data.

With zero trust, enterprises can proactively identify, block and mitigate threats including malware, ransomware and phishing attacks.

We intend to focus much of our investment in innovation on security solutions, which we believe present revenue growth opportunities.

*Web and Mobile Performance*

*Media Delivery*

The importance of our workforce to our success is underscored by centering two of our 2020 corporate mission critical goals on our employees: (1) making Akamai a globally diverse, inclusive and great place to work and (2) delivering a superior end-to-end employee experience through the modernization and improvement of our technologies.

Akamai’s focus on the development of our human capital is reflected in our approach to engagement, compensation and benefits, training and development and health and safety procedures.

Across these areas, we emphasize maintaining a corporate culture rooted in meritocracy — recognizing and rewarding individuals who bring innovation, creativity, diligence, intelligence, diverse ideas and positive perspectives to their work.

To address a small number of anomalous discrepancies impacting both male and female employees, we made adjustments to the compensation of the affected individuals in 2020.

More than 1,100 employees received promotions last year, an promotion rate of 16%, and over 300 individuals transferred to new opportunities in the company.

In 2020, approximately 8,600 of our employees and contractors at year end (more than 97%) completed at least one training in our Akamai University program; overall, we recorded completion of more than 350,000

training courses by our employees and contractors.

At year end, approximately 99% of our employees were working remotely.

We have temporarily suspended all Akamai-led or -organized in-person events and eliminated nearly all business-related travel.

To support our workforce, we introduced new collaboration tools and techniques and instituted a productivity reimbursement program to assist all employees with purchasing equipment to better enable remote work.

We expanded our wellness programs to offer courses on, among other things, caregiving during the pandemic and vaccine information; provided employees with licenses to a digital health platform; and developed manager guidance on enabling flexible work arrangements.

Health and safety protocols have been adopted in all of our offices to protect the well-being of those employees who need to access an Akamai location in person.

For most locations, our facilities are expected to be closed to employees whose job responsibilities do not require in-office work through December 31, 2021.

compliance with future requirements or whether our compliance with such regulations will materially impact our business, results of operations, or financial condition.

We are party to [added: various] litigation [added: matters, governmental proceedings, investigations, claims and disputes] that we consider routine and incidental to our business.

We do not currently expect the results of any of these [removed: litigation] matters to have a material effect on our business, results of operations, financial condition or cash flows.

For the fiscal year ended December 31, [removed: 2020][added: 2021]

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately [removed: $17,181.1] [added: $18,726.5] million based on the last reported sale price of the Common Stock on the Nasdaq Global Select Market on June 30, [removed: 2020.][added: 2021.]

The number of shares outstanding of the registrant’s Common Stock, par value $0.01 per share, as of February [removed: 23, 2021: 163,220,270] [added: 22, 2022: 160,346,656] shares.

Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission relative to the registrant’s [removed: 2021] [added: 2022] Annual Meeting of Stockholders are incorporated by reference into Items 10, 11, 12, 13 and 14 of Part III of this annual report on Form 10-K.

FOR THE FISCAL YEAR ENDED DECEMBER 31, [removed: 2020][added: 2021]

| Item 1. | | | [removed: [Business](#i54c4913552c74068a75ac882a7bb8adb_13)] [added: [Business](#i3b067f3fb23d442cae02253229e3471d_13)] | | | [removed: [4](#i54c4913552c74068a75ac882a7bb8adb_13)] [added: [3](#i3b067f3fb23d442cae02253229e3471d_13)] | | |

| Item 1A. | | | [Risk [removed: Factors](#i54c4913552c74068a75ac882a7bb8adb_16)] [added: Factors](#i3b067f3fb23d442cae02253229e3471d_22)] | | | [removed: [10](#i54c4913552c74068a75ac882a7bb8adb_16)] [added: [9](#i3b067f3fb23d442cae02253229e3471d_22)] | | |

| Item 1B. | | | [Unresolved Staff [removed: Comments](#i54c4913552c74068a75ac882a7bb8adb_19)] [added: Comments](#i3b067f3fb23d442cae02253229e3471d_25)] | | | [removed: [21](#i54c4913552c74068a75ac882a7bb8adb_19)] [added: [22](#i3b067f3fb23d442cae02253229e3471d_25)] | | |

| Item 2. | | | [removed: [Properties](#i54c4913552c74068a75ac882a7bb8adb_22)] [added: [Properties](#i3b067f3fb23d442cae02253229e3471d_28)] | | | [removed: [21](#i54c4913552c74068a75ac882a7bb8adb_22)] [added: [22](#i3b067f3fb23d442cae02253229e3471d_28)] | | |

| Item 3. | | | [Legal [removed: Proceedings](#i54c4913552c74068a75ac882a7bb8adb_25)] [added: Proceedings](#i3b067f3fb23d442cae02253229e3471d_31)] | | | [removed: [22](#i54c4913552c74068a75ac882a7bb8adb_25)] [added: [22](#i3b067f3fb23d442cae02253229e3471d_31)] | | |

| Item 4. | | | [Mine Safety [removed: Disclosures](#i54c4913552c74068a75ac882a7bb8adb_28)] [added: Disclosures](#i3b067f3fb23d442cae02253229e3471d_34)] | | | [removed: [22](#i54c4913552c74068a75ac882a7bb8adb_28)] [added: [22](#i3b067f3fb23d442cae02253229e3471d_34)] | | |

| Item 5. | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i54c4913552c74068a75ac882a7bb8adb_34)] [added: Securities](#i3b067f3fb23d442cae02253229e3471d_40)] | | | [removed: [22](#i54c4913552c74068a75ac882a7bb8adb_34)] [added: [23](#i3b067f3fb23d442cae02253229e3471d_40)] | | |

| Item 7. | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i54c4913552c74068a75ac882a7bb8adb_40)] [added: Operations](#i3b067f3fb23d442cae02253229e3471d_46)] | | | [removed: [23](#i54c4913552c74068a75ac882a7bb8adb_40)] [added: [23](#i3b067f3fb23d442cae02253229e3471d_46)] | | |

| Item 7A. | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i54c4913552c74068a75ac882a7bb8adb_58)] [added: Risk](#i3b067f3fb23d442cae02253229e3471d_64)] | | | [removed: [45](#i54c4913552c74068a75ac882a7bb8adb_58)] [added: [45](#i3b067f3fb23d442cae02253229e3471d_64)] | | |

| Item 8. | | | [Financial Statements and Supplementary [removed: Data](#i54c4913552c74068a75ac882a7bb8adb_61)] [added: Data](#i3b067f3fb23d442cae02253229e3471d_67)] | | | [removed: [46](#i54c4913552c74068a75ac882a7bb8adb_61)] [added: [47](#i3b067f3fb23d442cae02253229e3471d_67)] | | |

| Item 9. | | | [Changes in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#i54c4913552c74068a75ac882a7bb8adb_187)] [added: Disclosure](#i3b067f3fb23d442cae02253229e3471d_166)] | | | [removed: [89](#i54c4913552c74068a75ac882a7bb8adb_187)] [added: [91](#i3b067f3fb23d442cae02253229e3471d_166)] | | |

| Item 9A. | | | [Controls and [removed: Procedures](#i54c4913552c74068a75ac882a7bb8adb_190)] [added: Procedures](#i3b067f3fb23d442cae02253229e3471d_169)] | | | [removed: [89](#i54c4913552c74068a75ac882a7bb8adb_190)] [added: [91](#i3b067f3fb23d442cae02253229e3471d_169)] | | |

| Item 9B. | | | [Other [removed: Information](#i54c4913552c74068a75ac882a7bb8adb_193)] [added: Information](#i3b067f3fb23d442cae02253229e3471d_172)] | | | [removed: [90](#i54c4913552c74068a75ac882a7bb8adb_193)] [added: [92](#i3b067f3fb23d442cae02253229e3471d_172)] | | |

| Item 10. | | | [Directors, Executive Officers and Corporate [removed: Governance](#i54c4913552c74068a75ac882a7bb8adb_199)] [added: Governance](#i3b067f3fb23d442cae02253229e3471d_178)] | | | [removed: [90](#i54c4913552c74068a75ac882a7bb8adb_199)] [added: [92](#i3b067f3fb23d442cae02253229e3471d_178)] | | |

| Item 11. | | | [Executive [removed: Compensation](#i54c4913552c74068a75ac882a7bb8adb_202)] [added: Compensation](#i3b067f3fb23d442cae02253229e3471d_181)] | | | [removed: [90](#i54c4913552c74068a75ac882a7bb8adb_202)] [added: [93](#i3b067f3fb23d442cae02253229e3471d_181)] | | |

| Item 12. | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i54c4913552c74068a75ac882a7bb8adb_205)] [added: Matters](#i3b067f3fb23d442cae02253229e3471d_184)] | | | [removed: [91](#i54c4913552c74068a75ac882a7bb8adb_205)] [added: [93](#i3b067f3fb23d442cae02253229e3471d_184)] | | |

| Item 13. | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i54c4913552c74068a75ac882a7bb8adb_208)] [added: Independence](#i3b067f3fb23d442cae02253229e3471d_187)] | | | [removed: [91](#i54c4913552c74068a75ac882a7bb8adb_208)] [added: [93](#i3b067f3fb23d442cae02253229e3471d_187)] | | |

| Item 14. | | | [Principal Accounting Fees and [removed: Services](#i54c4913552c74068a75ac882a7bb8adb_211)] [added: Services](#i3b067f3fb23d442cae02253229e3471d_190)] | | | [removed: [91](#i54c4913552c74068a75ac882a7bb8adb_211)] [added: [93](#i3b067f3fb23d442cae02253229e3471d_190)] | | |

| Item 15. | | | [Exhibits, Financial Statement [removed: Schedules](#i54c4913552c74068a75ac882a7bb8adb_217)] [added: Schedules](#i3b067f3fb23d442cae02253229e3471d_196)] | | | [removed: [91](#i54c4913552c74068a75ac882a7bb8adb_217)] [added: [93](#i3b067f3fb23d442cae02253229e3471d_196)] | | |

| Item 16. | | | [Form 10-K [removed: Summary](#i54c4913552c74068a75ac882a7bb8adb_220)] [added: Summary](#i3b067f3fb23d442cae02253229e3471d_199)] | | | [removed: [94](#i54c4913552c74068a75ac882a7bb8adb_220)] [added: [96](#i3b067f3fb23d442cae02253229e3471d_199)] | | |

*This annual report on Form 10-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of [removed: 1995.][added: 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 could be deemed forward-looking statements.]

Use of words such as “believes,” [added: "could,"] “expects,” “anticipates,” “intends,” “plans,” [added: "projects,"] “estimates,” “should,” “forecasts,” “if,” “continues,” “goal,” [removed: “likely”] [added: “likely,” "may," variations of such words] or similar expressions [removed: indicates] [added: are intended to identify] a forward-looking statement.

We disclaim any obligation to update any forward-looking statements as a result of new information, future events or [removed: otherwise.*][added: otherwise, including the potential impact of any mergers, acquisitions, divestitures or other events that may be announced after the date hereof.*]

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Auditor name: | | | | | | PricewaterhouseCoopers LLP | | | | | | Auditor location: | | | | | | Boston, Massachusetts | | | | | | PCAOB ID: | | | | | | 238 | | |

| Item 6. | | | [\[](#i3b067f3fb23d442cae02253229e3471d_43)[Reserved\]](#i3b067f3fb23d442cae02253229e3471d_43) | | | [23](#i3b067f3fb23d442cae02253229e3471d_43) | | |

| Item 9C. | | | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i3b067f3fb23d442cae02253229e3471d_1637) | | | [92](#i3b067f3fb23d442cae02253229e3471d_172) | | |

| [SIGNATURES](#i3b067f3fb23d442cae02253229e3471d_202) | | | | | | [97](#i3b067f3fb23d442cae02253229e3471d_202) | | |

Factors that may cause or contribute to such differences include, but are not limited to, those discussed in this annual report on Form 10-K under the section entitled “Risk Factors” and in other reports we file with the U.S. Securities and Exchange Commission.

| Item 6. | | | [Selected Financial Data](#i54c4913552c74068a75ac882a7bb8adb_37) | | | [23](#i54c4913552c74068a75ac882a7bb8adb_37) | | |

| [SIGNATURES](#i54c4913552c74068a75ac882a7bb8adb_223) | | | | | | [95](#i54c4913552c74068a75ac882a7bb8adb_223) | | |

See “Risk Factors” elsewhere in this annual report on Form 10-K for a discussion of certain risks associated with our business.

As of February [removed: 23, 2021,] [added: 22, 2022,] there were [removed: 200] [added: 174] holders of record of our common stock.

The following is a summary of our repurchases of our common stock in the fourth quarter of [removed: 2020] [added: 2021] (in thousands, except share and per share data):

(4)Effective November [added: 1,] 2018, the Board authorized a $1.1 billion repurchase program through December [added: 31,] 2021.

During the year ended December 31, [removed: 2020,] [added: 2021,] we repurchased [removed: 2.0] [added: 4.7] million shares of our common stock for an aggregate of [removed: $193.6] [added: $522.3] million.

| October 1, 2021 – October 31, 2021 | | | | | | 362,034 | | | | | | $ | 105.22 | | | | | 362,034 | | | | | | $ | 282,542 | |

| November 1, 2021 – November 30, 2021 | | | | | | 704,875 | | | | | | 110.45 | | | | | | 704,875 | | | | | | 204,691 | | |

| December 1, 2021 – December 31, 2021 | | | | | | 1,373,341 | | | | | | 112.90 | | | | | | 1,373,341 | | | | | | 49,637 | | |

| Total | | | | | | 2,440,250 | | | | | | $ | 111.05 | | | | | 2,440,250 | | | | | | | | |

In October 2021, our board of directors authorized a new $1.8 billion share repurchase program, effective January 1, 2022 through December 31, 2024.

Beginning January 1, 2022, we have $1.8 billion available for future repurchases of shares.

| October 1, 2020 – October 31, 2020 | | | | | | 76,169 | | | | | | $ | 109.16 | | | | | 76,169 | | | | | | $ | 636,088 | |

| November 1, 2020 – November 30, 2020 | | | | | | 303,703 | | | | | | 100.18 | | | | | | 303,703 | | | | | | 605,664 | | |

| December 1, 2020 – December 31, 2020 | | | | | | 321,946 | | | | | | 104.90 | | | | | | 321,946 | | | | | | 571,892 | | |

| Total | | | | | | 701,818 | | | | | | $ | 103.32 | | | | | 701,818 | | | | | | $ | 571,892 | |

Not applicable.

The following selected consolidated financial data should be read in conjunction with our consolidated financial statements and related notes, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other financial data included elsewhere in this annual report on Form 10-K.

The consolidated statements of income and balance sheet data for all periods presented is derived from the audited consolidated financial statements included elsewhere in this annual report on Form 10-K or in prior year annual reports on Form 10-K on file with the Commission.

The following table sets forth selected financial data for the last five fiscal years (in thousands, except per share data):

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Year ended December 31, | | | | | | 2020 | | | | | | 2019 | | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | |

| Revenue | | | | | | $ | 3,198,149 | | | | | $ | 2,893,617 | | | | | $ | 2,714,474 | | | | | $ | 2,489,035 | | | | | $ | 2,347,988 | |

| Total costs and operating expenses | | | | | | 2,539,615 | | | | | | 2,344,699 | | | | | | 2,351,975 | | | | | | 2,174,746 | | | | | | 1,881,478 | | |

| Income from operations | | | | | | 658,534 | | | | | | 548,918 | | | | | | 362,499 | | | | | | 314,289 | | | | | | 466,510 | | |

| Net income | | | | | | 557,054 | | | | | | 478,035 | | | | | | 298,373 | | | | | | 222,766 | | | | | | 320,727 | | |

| Basic net income per share | | | | | | 3.43 | | | | | | 2.94 | | | | | | 1.78 | | | | | | 1.30 | | | | | | 1.83 | | |

| Diluted net income per share | | | | | | 3.37 | | | | | | 2.90 | | | | | | 1.76 | | | | | | 1.29 | | | | | | 1.82 | | |

| Cash, cash equivalents and marketable securities | | | | | | 2,496,875 | | | | | | 2,372,378 | | | | | | 2,101,171 | | | | | | 1,279,528 | | | | | | 1,616,329 | | |

| Total assets | | | | | | 7,764,130 | | | | | | 7,006,886 | | | | | | 5,461,770 | | | | | | 4,648,916 | | | | | | 4,432,190 | | |

| Convertible senior notes – due 2019 | | | | | | — | | | | | | — | | | | | | 686,552 | | | | | | 662,913 | | | | | | 640,087 | | |

| Convertible senior notes – due 2025 | | | | | | 953,066 | | | | | | 912,719 | | | | | | 874,080 | | | | | | — | | | | | | — | | |

| Convertible senior notes – due 2027 | | | | | | 953,641 | | | | | | 927,072 | | | | | | — | | | | | | — | | | | | | — | | |

| Long-term operating lease liabilities | | | | | | 715,404 | | | | | | 692,181 | | | | | | | | | | | | | | | | | | | | |

| Other long-term liabilities | | | | | | 132,553 | | | | | | 123,620 | | | | | | 185,121 | | | | | | 166,840 | | | | | | 156,329 | | |

| Total stockholders’ equity | | | | | | 4,251,296 | | | | | | 3,657,958 | | | | | | 3,191,860 | | | | | | 3,362,469 | | | | | | 3,270,218 | | |

During the year ended December 31, 2019, we adopted accounting guidance that requires companies to present assets and liabilities arising from leases on the consolidated balance sheet.

The guidance was applied prospectively beginning January 1, 2019.

Accordingly, assets arising from leases are presented above in total assets in 2020 and 2019 only.

In addition, liabilities arising from leases are presented in operating lease liabilities in 2020 and 2019 only.

During the years presented in the table above, various acquisitions occurred, the results of which are presented prospectively from the date of acquisition.

These acquisitions may impact the comparability of the consolidated financial data presented above.

See Note 8 to our consolidated financial statements included elsewhere in this annual report on Form 10-K for more details regarding these acquisitions.

We have audited the accompanying consolidated balance sheets of Akamai Technologies, Inc. and its subsidiaries (the “Company”) as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] including the related notes (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2020] [added: 2021] in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

In July 2020, the Massachusetts Appellate Tax Board ruled in the [removed: Company’s] [added: Company's] favor; [removed: however, the decision is eligible for appeal by] [added: however] the Massachusetts Department of [removed: Revenue.][added: Revenue has appealed the decision in January 2022.]

However, over the next 12 months, [removed: management's] [added: the Company's] current assumptions and positions could change based on [removed: potential] appeal decisions and other events impacting its analysis.

[removed: Management] [added: The Company] has estimated that an adverse ruling related to [removed: the] [added: its] Massachusetts controversy could result in a gross income tax charge of approximately [removed: $41.0] [added: $49.0] million, which could be partially offset by certain state tax credits of [removed: $27.0] [added: $32.0] million which are not currently benefited as a result of the [removed: Company’s] [added: Company's] valuation allowance assessment.

The principal considerations for our determination that performing procedures [removed: related] [added: relating] to the [removed: Massachusetts tax litigation matter] [added: valuation of completed technologies acquired in connection with the Guardicore acquisition] is a critical audit matter are (i) the significant judgment by management when determining the [removed: Company’s uncertain tax position relative to the Massachusetts tax litigation matter, including a high degree of estimation uncertainty relative to numerous and complex tax laws and assessment] [added: fair value] of [removed: judicial precedent;] [added: the completed technologies intangible assets acquired;] (ii) a high degree of auditor judgment, [removed: subjectivity] [added: subjectivity,] and effort in performing procedures [removed: to evaluate] [added: and evaluating] management’s [removed: judgments; (iii) the evaluation of audit evidence available] [added: significant assumptions related] to [removed: support the Massachusetts tax litigation matter is complex] [added: forecasted revenue growth rates] and [removed: resulted in significant auditor judgment as] the [removed: nature of the evidence is often highly subjective;] [added: discount rate;] and [removed: (iv)] [added: (iii)] the audit effort involved the use of professionals with specialized skill and knowledge.

| *(in thousands, except share data)* | | | December 31, [removed: 2020] [added: 2021] | | | | | | December 31, [removed: 2019] [added: 2020] | | |

| Cash and cash equivalents | | | $ | [added: 536,725 | | | | | $ |] 352,917 | | | | | $ | 393,745 | |

| Marketable securities | | | [removed: 745,156] [added: 541,470] | | | | | | [removed: 1,143,249] [added: 745,156] | | |

| Accounts receivable, net of reserves of [removed: $1,822] [added: $1,397] and [removed: $1,880] [added: $1,822] at December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] respectively | | | [removed: 660,052] [added: 675,926] | | | | | | [removed: 551,943] [added: 660,052] | | |

| Prepaid expenses and other current assets | | | [removed: 171,406] [added: 166,313] | | | | | | [removed: 142,676] [added: 171,406] | | |

| Total current assets | | | [removed: 1,929,531] [added: 1,920,434] | | | | | | [removed: 2,231,613] [added: 1,929,531] | | |

| Marketable securities | | | [removed: 1,398,802] [added: 1,088,048] | | | | | | [removed: 835,384] [added: 1,398,802] | | |

| Property and equipment, net | | | [removed: 1,478,272] [added: 1,534,329] | | | | | | [removed: 1,152,153] [added: 1,478,272] | | |

| Operating lease right-of-use assets | | | [removed: 793,945] [added: 815,754] | | | | | | [removed: 758,450] [added: 793,945] | | |

| Acquired intangible assets, net | | | [removed: 234,724] [added: 313,225] | | | | | | [removed: 179,431] [added: 234,724] | | |

| [removed: Goodwill] [added: Beginning balance] | | | [added: $ |] 1,674,371 | | | | | [added: $] | 1,600,265 | | [removed: |]

| Deferred income tax assets | | | [removed: 106,918] [added: 168,342] | | | | | | [removed: 76,528] [added: 106,918] | | |

| Other assets | | | [removed: 147,567] [added: 142,287] | | | | | | [removed: 173,062] [added: 147,567] | | |

| Total assets | | | $ | [removed: 7,764,130] [added: 8,138,673] | | | | | $ | [removed: 7,006,886] [added: 7,764,130] | |

| Accounts payable | | | $ | [removed: 118,546] [added: 109,928] | | | | | $ | [removed: 138,946] [added: 118,546] | |

| Accrued expenses | | | [removed: 380,468] [added: 411,590] | | | | | | [removed: 334,861] [added: 380,468] | | |

| Deferred revenue | | | [removed: 76,600] [added: 86,517] | | | | | | [removed: 71,223] [added: 76,600] | | |

| Operating lease liabilities | | | [removed: 154,801] [added: 175,683] | | | | | | [removed: 139,463] [added: 154,801] | | |

| Other current liabilities | | | [removed: 27,755] [added: 6,623] | | | | | | [removed: 8,843] [added: 27,755] | | |

| Total current liabilities | | | [removed: 758,170] [added: 790,341] | | | | | | [removed: 693,336] [added: 758,170] | | |

| Deferred revenue | | | [removed: 5,262] [added: 25,342] | | | | | | [removed: 4,368] [added: 5,262] | | |

| Deferred income tax liabilities | | | [removed: 37,458] [added: 40,974] | | | | | | [removed: 29,187] [added: 37,458] | | |

| Convertible senior notes | | | [removed: 1,906,707] [added: 1,976,167] | | | | | | [removed: 1,839,791] [added: 1,906,707] | | |

| Operating lease liabilities | | | [removed: 715,404] [added: 707,087] | | | | | | [removed: 692,181] [added: 715,404] | | |

| Other liabilities | | | [removed: 89,833] [added: 68,748] | | | | | | [removed: 90,065] [added: 89,833] | | |

| Total liabilities | | | [removed: 3,512,834] [added: 3,608,659] | | | | | | [removed: 3,348,928] [added: 3,512,834] | | |

| Common stock, $0.01 par value; 700,000,000 shares authorized; [removed: 162,709,720] [added: 160,512,111] and [removed: 162,000,843] [added: 162,709,720] shares issued and outstanding at December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] respectively | | | [removed: 1,627] [added: 1,605] | | | | | | [removed: 1,620] [added: 1,627] | | |

| Additional paid-in capital | | | [removed: 3,664,820] [added: 3,340,822] | | | | | | [removed: 3,653,486] [added: 3,664,820] | | |

| Accumulated other comprehensive loss | | | [removed: (20,201)] [added: (69,105)] | | | | | | [removed: (45,144)] [added: (20,201)] | | |

| Retained earnings | | | [removed: 605,050] [added: 1,256,692] | | | | | | [removed: 47,996] [added: 605,050] | | |

| Total stockholders’ equity | | | [removed: 4,251,296] [added: 4,530,014] | | | | | | [removed: 3,657,958] [added: 4,251,296] | | |

| Total liabilities and stockholders’ equity | | | $ | [removed: 7,764,130] [added: 8,138,673] | | | | | $ | [removed: 7,006,886] [added: 7,764,130] | |

*Valuation of Completed Technologies – Acquisition of Guardicore Ltd.*

As described in Notes 2 and 8 to the consolidated financial statements, in October 2021, the Company acquired Guardicore Ltd. (“Guardicore”) for $610.4 million in cash, which resulted in completed technologies of $79.0 million being recorded.

Management applied (i) the relief-from-royalty method to estimate the fair value of the completed technologies acquired and (ii) significant judgment in estimating the fair value of acquired intangible assets, which involved significant estimates and assumptions with respect to forecasted revenue growth rates and the discount rate.

These procedures included testing the effectiveness of controls relating to the acquisition accounting, including controls over management’s valuation of the completed technologies intangible assets and controls over the development of significant assumptions related to forecasted revenue growth rates and the discount rate.

These procedures also included, among others, (i) reading the purchase agreement; (ii) testing management’s process for determining the fair value of the completed technologies intangible assets; (iii) evaluating the appropriateness of the relief-from-royalty method; (iv) testing the completeness and accuracy of the underlying data used in the method; and (v) evaluating the reasonableness of the significant assumptions used by management related to forecasted revenue growth rates and the discount rate.

Evaluating management’s significant assumptions related to forecasted revenue growth rates involved evaluating whether the significant assumptions used by management were reasonable considering (i) the current and past performance of Guardicore; (ii) consistency with external market and industry data; and (iii) whether these significant assumptions were consistent with evidence obtained in other areas of the audit.

Professionals with specialized skill and knowledge were used to assist in the evaluation of the Company’s relief-from-royalty method and the discount rate assumption.

February 28, 2022

| Goodwill | | | 2,156,254 | | | | | | 1,674,371 | | |

| Net income | | | $ | 651,642 | | | | | $ | 557,054 | | | | | $ | 478,035 | |

| Net income | | | $ | 651,642 | | | | | $ | 557,054 | | | | | $ | 478,035 | |

| Other, net | | | (4,322) | | | | | | 8,121 | | | | | | 399 | | |

| Other, net | | | (268) | | | | | | — | | | | | | (1,558) | | |

| Balance at December 31, 2019 | | | 162,000,843 | | | | | | $ | 1,620 | | | | | $ | 3,653,486 | | | | | $ | — | | | | | $ | (45,144) | | | | | $ | 47,996 | | | | | $ | 3,657,958 | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Repurchases of common stock | | | (4,749,037) | | | | | | | | | | | | | | | | | | (522,255) | | | | | | | | | | | | | | | | | | (522,255) | | |

| Treasury stock retirement | | | | | | | | | (47) | | | | | | (522,208) | | | | | | 522,255 | | | | | | | | | | | | | | | | | | — | | |

| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 651,642 | | | | | | 651,642 | | |

| Balance at December 31, 2021 | | | 160,512,111 | | | | | | $ | 1,605 | | | | | $ | 3,340,822 | | | | | $ | — | | | | | $ | (69,105) | | | | | $ | 1,256,692 | | | | | $ | 4,530,014 | |

Akamai Technologies, Inc. (the “Company”) provides solutions to power and protect digital experiences.

The Company is currently organized and operates as one reportable and operating segment: providing solutions to power and protect digital experiences.

The Company has certain financial assets and liabilities recorded at fair value, principally cash equivalents

Significant judgment is used in determining fair values of acquired intangibles assets and their estimated useful lives.

Acquired intangible assets consist of completed technologies, customer relationships, trademarks and trade names, non-compete agreements and acquired license rights.

Acquired intangible assets, other than goodwill, are amortized over their estimated useful lives based upon the estimated economic value derived from the related intangible asset.

Significant judgment is used in determining fair values of acquired intangibles assets and their estimated useful lives.

Fair value and useful life determinations may be based on, among other factors, estimates of future expected cash flows, royalty cost savings and appropriate discount rates used in calculating present values.

Based on the typical structure of the Company's contracts, which are generally for monthly

In October 2021, the Financial Accounting Standards Board ("FASB") issued guidance which requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract.

Previously, contract assets and contract liabilities were measured at fair value.

The Company adopted this guidance in the fourth quarter of 2021, which required retrospective adoption to all business combinations completed on or after January 1, 2021, and prospectively to all business combinations occurring after adoption.

The Company adopted this guidance on January 1, 2022 on a modified retrospective basis.

Upon adoption, the convertible senior notes included on the Company's consolidated balance sheet will more closely reflect the principal amounts.

Initially, the Company separated its convertible senior notes into a liability and equity component.

The equity portion will now be eliminated, such that convertible senior notes will increase by $304.7 million, deferred income tax assets will increase by $74.0 million and additional paid-in capital will decrease by $375.4 million on the consolidated balance sheet as of January 1, 2022.

The net effect of these adjustments will be recorded as an increase to retained earnings as of January 1, 2022.

With the elimination of the debt discount created by the equity component, amortization of the debt discount will be eliminated, which will have the impact of decreasing interest expense, and therefore increasing net income and earnings per share, from the period of adoption.

*Change in Accounting Principle*

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2019.

*Massachusetts Tax Litigation Matter*

As described in Note 19 to the consolidated financial statements, the Company is currently involved in litigation related to certain adverse audit determinations.

In the second quarter of 2018, the Company filed an appeal with the Massachusetts Appellate Tax Board contesting the adverse audit findings related to certain tax benefits and exemptions.

The appeal hearing was held in late 2019.

Management has determined that it is more-likely-than-not that it will prevail, and no reserve has been recorded related to these controversies.

These procedures included testing the effectiveness of controls relating to the Company’s identification and recognition of the liability for uncertain tax positions, controls over the evaluation of the technical merits of the Company’s assessment and evaluation of numerous and complex tax laws and judicial precedent relevant to the matter.

These procedures also included, among others, (i) evaluating the reasonableness of management’s assessment that it is more-likely-than-not the Company will prevail in the Massachusetts tax litigation matter, including the potential for an unfavorable outcome of the matter, and (ii) professionals with specialized skill and knowledge were used to assist in the evaluation of management’s assessment of the technical merits of the tax position, including evaluating the reasonableness of management’s assessment of whether the tax position is more-likely-than-not of being sustained and the application of relevant tax laws and assessment of the judicial precedent.

February 26, 2021

| Other non-current assets and liabilities | | | 8,121 | | | | | | 399 | | | | | | (2,066) | | |

| Other non-current assets and liabilities | | | — | | | | | | (1,558) | | | | | | (5,085) | | |

| Balance at January 1, 2018 | | | 169,893,324 | | | | | | $ | 1,699 | | | | | $ | 4,073,362 | | | | | $ | — | | | | | $ | (21,930) | | | | | $ | (690,662) | | | | | $ | 3,362,469 | |

| Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (38,601) | | | | | | (38,601) | | |

| Equity component of convertible senior notes, net of deferred tax of $4,971 and issuance costs of $4,418 | | | | | | | | | | | | | | | 275,836 | | | | | | | | | | | | | | | | | | | | | | | | 275,836 | | |

| Purchase of note hedge related to convertible senior notes | | | | | | | | | | | | | | | (261,740) | | | | | | | | | | | | | | | | | | | | | | | | (261,740) | | |

| Repurchases of common stock | | | (10,197,961) | | | | | | | | | | | | | | | | | | (750,000) | | | | | | | | | | | | | | | | | | (750,000) | | |

| Treasury stock retirement | | | | | | | | | (102) | | | | | | (749,898) | | | | | | 750,000 | | | | | | | | | | | | | | | | | | — | | |

| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 298,373 | | | | | | 298,373 | | |

Akamai Technologies, Inc. (the “Company”) provides solutions for securing, delivering and optimizing content and business applications over the internet.

The Company currently operates in one industry segment: providing cloud services for delivering, optimizing and securing content and business applications over the internet.

Fair

The Company has implemented software and hardware initiatives to manage its global network more efficiently and, as a result, the expected average useful life of its network assets, primarily servers, increased from four years to five years, effective January 1, 2019.

These changes decreased depreciation expense by $22.9 million and increased net income by $19.2 million, or $0.12 per share, for the year ended December 31, 2020 and decreased depreciation expense by $31.5 million and increased net income by $26.1 million, or $0.16 per share, for the year ended December 31, 2019.

In February 2016, the Financial Accounting Standards Board ("FASB") issued guidance that requires companies to present assets and liabilities arising from leases on the consolidated balance sheet.

The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize right of use ("ROU") assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements.

The Company adopted this standard on January 1, 2019 on a modified retrospective basis by applying the new standard to its lease portfolio as of January 1, 2019, while continuing to apply legacy guidance in the comparative periods.

above the stated minimum.

In June 2016, the Financial Accounting Standards Board ("FASB") issued guidance that introduces a new methodology for accounting for credit losses on financial instruments.

The guidance establishes a new "expected credit loss model" that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information.

Any expected credit losses are to be reflected as allowances.

The Company prospectively adopted this standard on January 1, 2020.

In August 2018, the FASB issued guidance that addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract.

The guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance for capitalizing costs associated with developing or obtaining internal-use software.

This guidance will be effective for the Company on January 1, 2022.

The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements related to the accounting for convertible debt arrangements.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Certificates of deposit | | | $ | 150,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 150,000 | | | | | $ | 150,000 | | | | | $ | — | |

| Corporate bonds | | | 1,368,668 | | | | | | 1,840 | | | | | | (378) | | | | | | 1,370,130 | | | | | | 753,538 | | | | | | 616,592 | | |

| U.S. government agency obligations | | | 369,475 | | | | | | 80 | | | | | | (74) | | | | | | 369,481 | | | | | | 165,623 | | | | | | 203,858 | | |

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer (our principal executive officer and principal financial officer, respectively), evaluated the effectiveness of our disclosure controls and procedures as of December 31, [removed: 2020.][added: 2021.]

Based on the evaluation of our disclosure controls and procedures as of December 31, [removed: 2020,] [added: 2021,] our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

Based on our assessment, management, with the participation of our Chief Executive Officer and Chief Financial Officer, concluded that, as of December 31, [removed: 2020,] [added: 2021,] our internal control over financial reporting was effective based on those criteria at the reasonable assurance level.

The effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2020] [added: 2021] has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report, which is included in Item 8 of this annual report on Form 10-K.

No change in our internal control over financial reporting occurred during the fourth quarter ended December 31, [removed: 2020] [added: 2021] that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART III

Not applicable.

PART III

The complete response to this Item regarding the backgrounds of our executive officers and directors and other information required by Items 401, 405 and 407 of Regulation S-K will be contained in our definitive proxy statement for our [removed: 2021] [added: 2022] Annual Meeting of Stockholders under the sections captioned “Executive Compensation Matters,” “Delinquent Section 16(a) Reports” and “Corporate Governance Highlights” and is incorporated by reference herein.

Our executive officers and directors and their positions as of February [removed: 26, 2021,] [added: 28, 2022,] are as follows:

| Edward McGowan | | | | | | [added: Executive Vice President,] Chief Financial Officer [added: and Treasurer] (Principal Financial [removed: and Accounting] Officer) | | |

| Aaron Ahola | | | | | | Executive Vice [removed: President and] [added: President,] General Counsel [added: and Corporate Secretary] | | |

| Robert Blumofe | | | | | | Executive Vice President [removed: Platform] and [removed: GM Enterprise Division] [added: Chief Technology Officer] | | |

| [removed: Monique Bonner] [added: Kim Salem-Jackson] | | | | | | Executive Vice President and Chief Marketing Officer | | |

| [removed: Mani Sundaram] [added: Paul Joseph] | | | | | | Executive Vice [removed: President] [added: President,] Global [removed: Services and Support] [added: Sales] and [removed: Chief Information Officer] [added: Services] | | |

We have adopted a written code of business ethics, as amended, that applies to our principal executive officer, principal financial [added: officer] and [added: principal] accounting officer or persons serving similar functions and all of our other employees and members of our board of directors.

If we amend, or grant a waiver under, our code of business ethics that applies to our principal executive officer, principal financial [added: officer] and [added: principal] accounting officer, or persons performing similar functions, we intend to post information about such amendment or waiver on our website at www.akamai.com.

| Laura Howell | | | | | | Chief Accounting Officer (Principal Accounting Officer) | | |

| Adam Karon | | | | | | Chief Operating Officer and General Manager of the Edge Technology Group | | |

| Mani Sundaram | | | | | | Executive Vice President and General Manager of the Security Technology Group | | |

| Sharon Bowen | | | | | | Director | | |

| Adam Karon | | | | | | Executive Vice President and GM Media and Carrier Divisions | | |

| Rick McConnell | | | | | | President and GM Web Division | | |

| Frederic Salerno | | | | | | Director | | |

The information required by this Item is incorporated by reference herein to our definitive proxy statement for our [removed: 2021] [added: 2022] Annual Meeting of Stockholders under the sections captioned “Executive Compensation Matters,” “Corporate Governance Highlights,” “Compensation Committee Interlocks and Insider Participation” and “Director Compensation.”

The information required by this Item is incorporated by reference herein to our definitive proxy statement for our [removed: 2021] [added: 2022] Annual Meeting of Stockholders under the sections captioned “Executive Compensation Matters,” “Security Ownership of Certain Beneficial Owners and Management” and “Securities Authorized for Issuance Under Equity Compensation Plans.”

The information required by this Item is incorporated by reference herein to our definitive proxy statement for our [removed: 2021] [added: 2022] Annual Meeting of Stockholders under the sections captioned “Certain Relationships and Related Party Transactions; Code of Ethics; Interest in Annual Meeting Matters,” “Corporate Governance Highlights” and “Compensation Committee Interlocks and Insider Participation.”

The information required by this Item is incorporated by reference herein to our definitive proxy statement for our [removed: 2021] [added: 2022] Annual Meeting of Stockholders under the section captioned “Ratification of Selection of Independent Auditors.”

- Consolidated Balance Sheets as of December 31, [removed: 2020] [added: 2021] and [removed: 2019][added: 2020]

- Consolidated Statements of Income for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018][added: 2019]

- Consolidated Statements of Comprehensive Income for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018][added: 2019]

- Consolidated Statements of Cash Flows for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018][added: 2019]

- Consolidated Statements of Stockholders' Equity for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018][added: 2019]

| [removed: 4.4(B)] [added: 4.6(B)] | | | [Description of Registrant's Securities Registered Under Section 12 of the Exchange Act](http://www.sec.gov/Archives/edgar/data/1086222/000108622220000045/exhibit4410k2019.htm) | | |

| [removed: 10.1(F)@] [added: 10.1(G)@] | | | [Amended and Restated 1999 Employee Stock Purchase Plan of the Registrant](http://www.sec.gov/Archives/edgar/data/1086222/000095013506001650/b58056atexv10w5.txt) | | |

| [removed: 10.2(G)@] [added: 10.2(H)@] | | | [Amendment to Amended and Restated 1999 Employee Stock Purchase Plan of the Registrant](http://www.sec.gov/Archives/edgar/data/1086222/000119312508111487/dex1046.htm) | | |

| [removed: 10.3(H)@] [added: 10.3(I)@] | | | [2009 Akamai Technologies, Inc. Stock Incentive Plan](http://www.sec.gov/Archives/edgar/data/1086222/000119312511147774/dex991.htm) | | |

| [removed: 10.4(I)@] [added: 10.4(J)@] | | | [removed: [2013] [added: [Amended and Restated] Akamai Technologies, Inc. [added: 2013] Stock Incentive [removed: Plan, as amended](http://www.sec.gov/Archives/edgar/data/1086222/000108622219000152/exhibit9912013stockincenti.htm)] [added: Plan](http://www.sec.gov/Archives/edgar/data/0001086222/000108622221000194/stockinventiveplan2013amen.htm)] | | |

| [removed: 10.6(K)] [added: 10.6(L)] | | | [Cotendo, Inc. Amended and Restated 2008 Stock Plan](http://www.sec.gov/Archives/edgar/data/1086222/000126643212000019/exhibit99.htm) | | |

| [removed: 10.7(L)@] [added: 10.7(M)@] | | | [Form of Restricted Stock Unit Agreement for use under the 2013 Stock Incentive Plan, as amended (time vesting)](http://www.sec.gov/Archives/edgar/data/1086222/000154256713000027/akam10q63013ex102.htm) | | |

| [removed: 10.8(M)@] [added: 10.8(N)@] | | | [Form of Restricted Stock Unit Agreement for use under the 2013 Stock Incentive Plan (performance vesting)](http://www.sec.gov/Archives/edgar/data/1086222/000154256713000027/akam10q63013ex103.htm) | | |

| [removed: 10.9(M)@] [added: 10.9(N)@] | | | [Form of Stock Option Agreement for use under the 2013 Stock Incentive Plan](http://www.sec.gov/Archives/edgar/data/1086222/000154256713000027/akam10q63013ex104.htm) | | |

| [removed: 10.10(M)] [added: 10.10(N)] | | | [Form of Deferred Stock Unit Agreement for use under the 2013 Stock Incentive Plan](http://www.sec.gov/Archives/edgar/data/1086222/000154256713000027/akam10q63013ex105.htm) | | |

| [removed: 10.11(N)@] [added: 10.11(O)@] | | | [Form of Performance-Based Vesting Restricted Stock Unit Agreement with Retirement Provision](http://www.sec.gov/Archives/edgar/data/1086222/000108622215000025/exhibit991.htm) | | |

| [removed: 10.12(O)@] [added: 10.12@] | | | [Non-Employee Director Compensation [removed: Plan](http://www.sec.gov/Archives/edgar/data/1086222/000108622219000210/akam10q6302019ex104.htm)] [added: Plan](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit1012_10k2021.htm)] | | |

| [removed: 10.13 (L)@] [added: 10.13(M)@] | | | [Form of Restricted Stock Unit [removed: Agreement](http://www.sec.gov/Archives/edgar/data/1086222/000108622219000136/akam10q3312019ex1039.htm) [for] [added: Agreement for] use under the 2013 Stock Incentive Plan (2019)](http://www.sec.gov/Archives/edgar/data/1086222/000108622219000136/akam10q3312019ex1039.htm) | | |

| [removed: 10.15(P)@] [added: 10.14(P)@] | | | [Form Executive Bonus Plan](http://www.sec.gov/Archives/edgar/data/1086222/000108622221000068/formofexecutivebonusplan20.htm) | | |

| [removed: 10.16(R)@] [added: 10.15(Q)@] | | | [Akamai Technologies, Inc. Executive Severance Pay Plan, as amended](http://www.sec.gov/Archives/edgar/data/1086222/000108622219000226/exhibit101executivesev.htm) | | |

| [removed: 10.17(S)@] [added: 10.16(R)@] | | | [Form of [removed: Executive] Change in Control and Severance [removed: Agreement](http://www.sec.gov/Archives/edgar/data/1086222/000108622215000184/exhibit991formofchangeinco.htm)] [added: Agreement](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000054/exhibit991february18th.htm)] | | |

| [removed: 10.18(T)@] [added: 10.17(S)@] | | | [Akamai Technologies, Inc. Policy on Departing Director Compensation](http://www.sec.gov/Archives/edgar/data/1086222/000108622217000080/exhibit1027departingdirect.htm) | | |

| [removed: 10.19(U)@] [added: 10.18(T)@] | | | [Akamai Technologies, Inc. U.S. Non-Qualified Deferred Compensation Plan](http://www.sec.gov/Archives/edgar/data/1086222/000108622215000101/akam10q3312015ex1048.htm) | | |

| [removed: 10.20(V)@] [added: 10.19(U)@] | | | [Employment Letter Agreement between the Registrant and F. Thomson Leighton dated February 25, 2013](http://www.sec.gov/Archives/edgar/data/1086222/000126643213000021/exhibit1028.htm) | | |

| [removed: 10.21(S)@] [added: 10.20(R)@] | | | [Amendment to Employment Letter Agreement between the Registrant and F. Thomson Leighton dated November 12, 2015](http://www.sec.gov/Archives/edgar/data/1086222/000108622215000184/exhibit993leightonagreemen.htm) | | |

| [removed: 10.22(W)] [added: 10.21(V)] | | | [Indenture of Lease for 145 Broadway, Cambridge, Massachusetts dated November 7, 2016](http://www.sec.gov/Archives/edgar/data/1086222/000108622216000396/exhibit104711kcakamailease.htm) | | |

| [removed: 10.23(W)] [added: 10.22(V)] | | | [Must-Take Premises and Right of First Offer Agreement among the Registrant, Boston Properties Limited Partnership and the Trustees of Ten Cambridge Center Trust dated November 7, 2016](http://www.sec.gov/Archives/edgar/data/1086222/000108622216000396/exhibit1048musttakeagreeme.htm) | | |

| [removed: 10.24(X)] [added: 10.23(W)] | | | [150 Broadway Real Property Lease Dated December 20, 2017](http://www.sec.gov/Archives/edgar/data/1086222/000108622218000052/exhibit1019-150broadwaylea.htm) | | |

| [removed: 10.25(Y)†] [added: 10.24(X)†] | | | [Exclusive Patent and Non-Exclusive Copyright License Agreement, dated as of October 26, 1998, between the Registrant and Massachusetts Institute of Technology](http://www.sec.gov/Archives/edgar/data/1086222/000095013599004906/0000950135-99-004906.txt) | | |

| [removed: 10.26(Z)] [added: 10.25(Y)] | | | [Credit Agreement by and among Akamai Technologies, Inc., the financial institutions identified therein as lenders, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents and arrangers party thereto, dated May 10, 2018.](http://www.sec.gov/Archives/edgar/data/1086222/000108622218000104/creditagreement.htm) | | |

| [removed: 10.27(D)] [added: 10.26(D)] | | | [Form of Call Option Confirmation between Akamai and each Option Counterparty](http://www.sec.gov/Archives/edgar/data/1086222/000119312514060700/d678043dex101.htm) | | |

| [removed: 10.28(D)] [added: 10.27(D)] | | | [Form of Warrant Confirmation between Akamai and each Option Counterparty](http://www.sec.gov/Archives/edgar/data/1086222/000119312514060700/d678043dex102.htm) | | |

| [removed: 10.29(E)] [added: 10.28(E)] | | | [Form of Call Option Confirmation between the Registrant and each Option Counterparty](http://www.sec.gov/Archives/edgar/data/1086222/000119312519223514/d794476dex101.htm) | | |

| [removed: 10.30(E)] [added: 10.29(E)] | | | [Form of Warrant Confirmation between the Registrant and each Option Counterparty](http://www.sec.gov/Archives/edgar/data/1086222/000119312519223514/d794476dex102.htm) | | |

| 21.1 | | | [Subsidiaries of the [removed: Registrant](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit211_10k2020.htm)] [added: Registrant](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit211_10k2021.htm)] | | |

| 23.1 | | | [Consent of Independent Registered Public Accounting [removed: Firm](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit231_10k2020.htm)] [added: Firm](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit231_10k2021.htm)] | | |

| 31.1 | | | [Certification of Chief Executive Officer pursuant to Rule 13a- 14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as [removed: amended](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit311_10k2020.htm)] [added: amended](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit311_10k2021.htm)] | | |

| 31.2 | | | [Certification of Chief Financial Officer pursuant to Rule 13a- 14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as [removed: amended](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit312_10k2020.htm)] [added: amended](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit312_10k2021.htm)] | | |

| 32.1 | | | [Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit321_10k2020.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit321_10k2021.htm)] | | |

| 32.2 | | | [Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit322_10k2020.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/1086222/000108622222000058/exhibit322_10k2021.htm)] | | |

| 4.4(F) | | | [First Supplemental Indenture with respect to 0.125% Convertible Senior Notes due 2025, dated December 16, 2021, between Akamai Technologies, Inc. and U.S. Bank National Association, as trustee](https://www.sec.gov/Archives/edgar/data/0001086222/000108622221000313/a41firstsupplementalindent.htm) | | |

| 4.5(F) | | | [First Supplemental Indenture with respect to 0.375% Convertible Senior Notes due 2027, dated December 16, 2021, between Akamai Technologies, Inc. and U.S. Bank National Association, as trustee](https://www.sec.gov/Archives/edgar/data/0001086222/000108622221000313/a42firstsupplementalindent.htm) | | |

| 10.5(K) | | | [Prolexic Technologie](https://www.sec.gov/Archives/edgar/data/1086222/000126643214000053/exhibit991prolexicplan.htm)[s, Inc.](https://www.sec.gov/Archives/edgar/data/1086222/000126643214000053/exhibit991prolexicplan.htm) [2011 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1086222/000126643214000053/exhibit991prolexicplan.htm) | | |

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| 10.5(J) | | | [Blaze Software Inc. Stock Option Plan](http://www.sec.gov/Archives/edgar/data/1086222/000126643212000012/akams-8ex991.htm) | | |

| 10.14@ | | | [Summary of the Registrant’s Compensatory Arrangements with Executive Officers](https://www.sec.gov/Archives/edgar/data/1086222/000108622221000075/exhibit1014_10k2020.htm) | | |

(Z) Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-27275, 18837347) filed with the Commission on May 15, 2018.

Such portions have been omitted and filed separately with the Securities and Exchange Commission.

| February [removed: 26, 2021] [added: 28, 2022] | | | AKAMAI TECHNOLOGIES, INC. | | | | | |

| | | | | | | Edward McGowan [added: Executive Vice President,] Chief Financial Officer [added: and Treasurer] | | |

| /s/ F. THOMSON LEIGHTON | | | | | | Chief Executive Officer and Director (Principal Executive Officer) | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ EDWARD MCGOWAN | | | | | | [added: Executive Vice President,] Chief Financial Officer [added: and Treasurer] (Principal Financial [removed: and Accounting] Officer) | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ MARIANNE [added: C.] BROWN | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| Marianne [added: C.] Brown | | | | | | | | | | | | | | |

| /s/ MONTE E. FORD | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ JILL A. GREENTHAL | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ DANIEL R. HESSE | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ PETER T. KILLALEA | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ JONATHAN F. MILLER | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ MADHU RANGANATHAN | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ BERNARDUS VERWAAYEN | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ WILLIAM R. WAGNER | | | | | | Director | | | | | | February [removed: 26, 2021] [added: 28, 2022] | | |

| /s/ LAURA HOWELL | | | | | | Chief Accounting Officer (Principal Accounting Officer) | | | | | | February 28, 2022 | | |

| Laura Howell | | | | | | | | | | | | | | |

| /s/ SHARON Y. BOWEN | | | | | | Director | | | | | | February 28, 2022 | | |

| Sharon Y. Bowen | | | | | | | | | | | | | | |

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| /s/ FREDERIC V. SALERNO | | | | | | Director | | | | | | February 26, 2021 | | |

| Frederic V. Salerno | | | | | | | | | | | | | | |