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Our future success depends upon the services of ~~Contents~~our executive officers and other key technology, sales, marketing and support personnel who have critical industry experience and relationships. There is significant competition for talented individuals in the regions in which our primary offices are located, which affects both our ability to retain key employees and hire new ones. None of our officers or key employees is bound by an employment agreement for any specific term, and members of our senior management have left our company over the years for a variety of reasons. The loss of the services of a significant number of our employees or any of our key employees or our inability to attract and retain new talent may be disruptive to our operations and overall business.

Our failure to effectively manage our operations as our business evolves could harm us.

Our future operating results will depend on our ability to manage our operations. As a result of the diversification of our business, personnel growth, increased usage of alternative working arrangements, acquisitions and international expansion in recent years, many of our employees are now based outside of our Cambridge, Massachusetts headquarters; however, most key management decisions are made by a relatively small group of individuals based primarily at our headquarters. If we are unable to appropriately increase management depth, enhance succession planning and decentralize our decision-making at a pace commensurate with our actual or desired growth rates, we may not be able to achieve our financial or operational goals. It is also important to our continued success that we hire qualified personnel, properly train them and manage out poorly-performing personnel, all while maintaining our corporate culture and spirit of innovation. If we are not successful in these efforts, our growth and operations could be adversely affected. With the restrictions on businesses intended to curb the spread of the

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COVID-19 virus, ~~most~~nearly all of our employees worldwide have been working remotely since the first quarter of ~~2020.~~2020; we expect this situation to continue through much of 2021. A ~~long-term~~longer-term continuation of these restrictions could, among other things, negatively impact employee morale and productivity, inhibit our ability to hire and train new employees and impede our ability to support customers at the levels they expect. As a result, our business could suffer.

Our restructuring and reorganization activities may be disruptive to our operations and harm our business.

Over the past several years, we have implemented internal restructurings and reorganizations designed to reduce the size and cost of our operations, improve operational efficiencies, enhance our ability to pursue market opportunities and accelerate our technology development initiatives. In February 2021, we announced a significant reorganization to create two new business groups linked to our security and edge delivery technologies as well as establishing a unified global sales force. We may take similar steps in the future as we seek to realize operating synergies, optimize our operations to achieve our target operating model and profitability objectives, respond to market forces or better reflect changes in the strategic direction of our business. Disruptions in operations may occur as a result of taking these actions. Taking these actions may also result in significant expense for us, including with respect to workforce reductions, as well as decreased productivity due to employee distraction and unanticipated employee turnover. Substantial expense or business disruptions resulting from restructuring and reorganization activities could adversely affect our operating results.

We may have exposure to greater-than-anticipated tax liabilities.

Our future income taxes could be adversely affected by earnings being lower than anticipated in jurisdictions that have lower statutory tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, or changes in tax laws, regulations or accounting principles, as well as certain discrete items such as equity-related compensation. We have recorded certain tax reserves to address potential exposures involving our income tax and sales and use tax positions. These potential tax liabilities result from the varying application of statutes, rules, regulations and interpretations by different jurisdictions. We are currently subject to tax audits in various jurisdictions including the Commonwealth of Massachusetts. In the second quarter of 2018, we filed an appeal with the Massachusetts Appellate Tax Board, or MATB, contesting adverse audit findings relating to our eligibility to claim certain tax benefits and exemptions. In July 2020, the MATB ruled in our favor; however the decision is eligible for appeal by the Massachusetts Department of Revenue. If the ultimate outcome of the potential appeal and other audits are adverse to us, our reserves may not be adequate to cover our total actual liability, and we would need to take a financial charge. Although we believe our estimates, our reserves and the positions we have taken in all jurisdictions are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and may materially affect our financial results in the period or periods for which such determination is made.

Fluctuations in foreign currency exchange rates affect our reported operating results in U.S. dollar terms.

Revenue generated and expenses incurred by our international subsidiaries are often denominated in the currencies of the local countries. As a result, our consolidated U.S. dollar financial statements are subject to fluctuations due to changes in exchange rates as the financial results of our international subsidiaries are translated from local currencies into U.S. dollars. In addition, our financial results are subject to changes in exchange rates that impact the settlement of transactions in non-functional currencies. While we have implemented a foreign currency hedging program to mitigate transactional exposures, there is no guarantee that such program will be effective.

If the accounting estimates we make, and the assumptions on which we rely, in preparing our financial statements prove inaccurate, our actual reported results may be adversely affected.

Our financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these financial statements requires us to make estimates and judgments about, among other things, taxes, revenue recognition, stock-based compensation, capitalization of internal-use software development costs, investments, contingent obligations, allowance for current expected credit losses, intangible assets and restructuring charges. These estimates and judgments affect, among other things, the reported amounts of our assets, liabilities, revenue and expenses, the amounts of charges accrued by us, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances and at the time they are made. If our estimates or the assumptions underlying them are not correct, actual results may differ materially from our estimates and we may need to, among other things, accrue significant additional charges that could adversely affect our results of operations, which in turn could adversely affect our stock price. In addition, new accounting pronouncements and interpretations of accounting pronouncements have occurred and may occur in the future that could adversely affect our reported financial results.

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Our sales to government clients subject us to risks including early termination, audits, investigations, sanctions and penalties.

We have customer contracts with the U.S. government, as well as foreign, state and local governments and their respective agencies. Such government entities often have the right to terminate these contracts at any time, without cause. There is increased pressure for governments and their agencies, both domestically and internationally, to reduce spending. Most of our government contracts are subject to legislative approval of appropriations to fund the expenditures under these contracts. These factors may combine to potentially limit the revenue we derive from government contracts in the future. Additionally, government contracts generally have requirements that are more complex than those found in commercial enterprise agreements and therefore are more costly to comply with. Such contracts are also subject to audits and investigations that could result in civil and criminal penalties and administrative sanctions, including termination of contracts, refund of a portion of fees received, forfeiture of profits, suspension of payments, fines and suspensions or debarment from future government business.

We rely on certain “open-source” software, the use of which could result in our having to distribute our proprietary software, including our source code, to third parties on unfavorable terms, which could materially affect our business.

Certain of our offerings use software that is subject to open-source licenses. Open-source code is software that is freely accessible, usable and modifiable; however, certain open-source code is governed by license agreements, the terms of which could require users of such software to make any derivative works of the software available to others on unfavorable terms or at no cost. Because we use open-source code, we may be required to take remedial action in order to protect our proprietary software. Such action could include replacing certain source code used in our software, discontinuing certain of our products or taking other actions that could be expensive and divert resources away from our development efforts. In addition, the terms relating to disclosure of derivative works in many open-source licenses are unclear. If a court interprets one or more such open-source licenses in a manner that is unfavorable to us, we could be required to make certain of our key software available at no cost. Furthermore, open-source software may have security flaws and other deficiencies that could make our solutions less reliable and damage our business.

Legal and Regulatory Risks

Evolving privacy regulations could negatively impact our profitability and business operations.

Laws and regulations that apply to the internet related to privacy and data localization could pose risks to our revenues, intellectual property and customer relationships, as well as increase expenses or create other disadvantages to our business.

Privacy laws are rapidly proliferating, changing and evolving globally. Governments, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data. Laws, such as the European Union General Data Protection Regulation, or GDPR, and the California Consumer Privacy Act of 2018, or CCPA, and industry self-regulatory codes have been enacted, and more laws are being considered that may affect how we use data generated from our network as well as our ability to reach current and prospective customers, understand how our solutions are being used and respond to customer requests allowed under the laws. Any perception that our business practices, our data collection activities or how our solutions operate represent an invasion of privacy, whether or not consistent with current regulations and industry practices, may subject us to public criticism or boycotts, class action lawsuits, reputational harm or claims by regulators, industry groups or other third parties, all of which could disrupt our business and expose us to liability.

Engineering efforts to build new capabilities to facilitate compliance with data localization and privacy laws could require us to take on substantial expense and divert engineering resources from other projects. We might experience reduced demand for our offerings if we are unable to ~~retain~~engineer products that meet our ~~key employees~~legal duties or help our customers meet their obligations under the GDPR, the CCPA or other data regulations, or if the changes we implement to comply with such laws and ~~hire~~regulations make our offerings less attractive.

Our ability to leverage the data generated by our global network of servers is important to the value of many of the solutions we offer, our operational efficiency and ~~retain qualified sales, technical, marketing~~future product development opportunities. Our ability to use data in this way may be constrained by regulatory developments. Compliance with applicable laws and ~~support personnel,~~regulations regarding personal data may require changes in services, business practices or internal systems that result in increased costs, lower revenue, reduced efficiency or greater difficulty in competing with other firms. Compliance with data regulations might limit our ability to ~~compete could be harmed.~~innovate or offer certain features and functionality in some jurisdictions where we operate. Failure to comply with existing or new rules may result in significant penalties or orders to stop the alleged non-compliant activity, as well as negative publicity and diversion of management time and effort.

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~~Our future success depends upon~~Although we take steps intended to improve the ~~services~~security controls across our business groups and geographies, our security controls over personal data, our training of employees and third parties on data security and other practices we follow may not prevent the improper disclosure or misuse of customer or end-user data we store and manage. Improper disclosure or misuse of personal data could harm our reputation, lead to legal exposure to customers or end users, or subject us to liability under laws that protect personal data, resulting in increased costs or loss of revenue.

Other regulatory developments could negatively impact our business.

Laws and regulations that apply to the internet related to, among other things, content liability, security requirements, law enforcement access to information, data localization requirements and restrictions on social media or other content could pose risks to our revenues, intellectual property and customer relationships as well as increase expenses or create other disadvantages to our business. Section 230 of the U.S. Communications Decency Act, often referred to as Section 230, gives websites that host user-generated content broad protection from legal liability for content posted on their sites. Proposals to repeal or amend Section 230 could expose us to greater legal liability in the conduct of our ~~executive officers~~business. Our Acceptable Use Policy prohibits customers from using our network to deliver illegal or inappropriate content; if customers violate that policy, we may nonetheless face reputational damage or lawsuits related to their content. Regulations have been enacted or proposed in a number of countries that limit the delivery of certain types of content into those countries; these include restrictions adopted in India in 2020 prohibiting access to identified Chinese applications (which caused a reduction in revenue to us) and ~~other key technology, sales, marketing and support personnel who have critical industry experience and relationships. There is significant competition for talented individuals~~proposed regulations in the ~~regions~~U.S. on delivery of certain Chinese mobile applications. Enactment and expansion of such laws and regulations would negatively impact our revenues. Interpretations of laws or regulations that would subject us to regulatory supervision or, in ~~which our primary offices are located, which affects both our ability~~the alternative, require us to ~~retain key employees~~exit a line of business or a country, could lead to loss of significant revenues and ~~hire new ones. None~~have a negative impact on the quality of our ~~officers~~solutions. As noted with privacy compliance above, engineering efforts to build new capabilities to facilitate compliance with law enforcement access requirements, content access restrictions, or ~~key employees is bound by an employment agreement for any specific term,~~other regulations could require us to take on substantial expense and ~~members of~~divert engineering resources from other projects. These circumstances could harm our senior management have left Akamai over the years for a variety of reasons. If restrictions on activities imposed by governments across the world as a result of the COVID-19 pandemic persist for an extended period, we may have difficulty fully addressing our hiring needs due to associated logistical and other issues. The loss of the services of a significant number of our employees or any of our key employees (including as a result of health issues related to the COVID-19 pandemic) or our inability to attract and retain new ~~talent may be disruptive to our operations and overall business.~~profitability.

We may need to defend against patent or copyright infringement claims, which would cause us to incur substantial costs or limit our ability to use certain technologies in the future.

As we expand our business and develop new technologies, products and services, we have become increasingly subject to intellectual property infringement and other claims and related litigation. We have also agreed to indemnify our customers and channel and strategic partners if our solutions infringe or misappropriate specified intellectual property rights; as a result, we have been and could again become involved in litigation or claims brought against customers or channel or strategic partners if our solutions or technology are the subject of such allegations. Any litigation or claims, whether or not valid, brought against us or pursuant to which we indemnify our customers or partners could result in substantial costs and diversion of resources and require us to do one or more of the following:

•cease selling, incorporating or using features, functionalities, products or services that incorporate the challenged intellectual property;

•pay substantial damages and incur significant litigation expenses;

•obtain a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all; or

•redesign products or services.

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If we are forced to take any of these actions, our business may be seriously harmed.

Our business will be adversely affected if we are unable to protect our intellectual property rights from unauthorized use or infringement by third parties.

We rely on a combination of patent, copyright, trademark and trade secret laws and contractual restrictions on disclosure to protect our intellectual property rights. These legal protections afford only limited ~~protection.~~protection, particularly in some regions outside the United States. We have previously brought lawsuits against entities that we believed were infringing our intellectual property rights but have not always prevailed. Such lawsuits can be expensive and require a significant amount of attention from our management and technical personnel, and the outcomes are unpredictable. Monitoring unauthorized use of our solutions is difficult, and we cannot be certain that the steps we have taken or will take will prevent unauthorized use of our technology. Furthermore, we cannot be certain that any pending or future patent applications will be granted, that any future patent will not be challenged, invalidated or circumvented, or that rights granted under any patent that may be issued will

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provide competitive advantages to us. If we are unable to protect our proprietary rights from unauthorized use, the value of our intellectual property assets may be reduced. Although we have licensed from other parties proprietary technology covered by patents, we cannot be certain that any such patents will not be challenged, invalidated or circumvented. Such licenses may also be non-exclusive, meaning our competition may also be able to access such technology.

We rely on certain “open-source” software the use of which could result in our having to distribute our proprietary software, including our source code, to third parties on unfavorable terms, which could materially affectLitigation may adversely impact our business.

~~Certain~~From time to time, we are or may become involved in various legal proceedings relating to matters incidental to the ordinary course of our ~~offerings use software that is subject to open-source licenses. Open-source code is software that is freely accessible, usable~~business, including patent, commercial, product liability, breach of contract, employment, class action, whistleblower and modifiable; however, certain open-source code is governed by license agreements, the terms of which could require users of such software to make any derivative works of the software available to others on unfavorable terms or at no cost. Because we use open-source code, we may be required to take remedial action in order to protect our proprietary software. Such action could include replacing certain source code used in our software, discontinuing certain of our products or taking other ~~actions that could be expensive~~litigation and ~~divert resources away from our development efforts.~~claims, and governmental and other regulatory investigations and proceedings. In addition, ~~the terms relating to disclosure of derivative works in many open-source licenses are unclear. If a court interprets one or more such open-source licenses in a manner that is unfavorable to us,~~under our charter, we could be required to ~~make~~indemnify and advance expenses to our directors and officers in connection with their involvement in certain ~~of our key software available at no cost. Furthermore, open-source software may have security flaws~~actions, suits, investigations and other ~~deficiencies~~proceedings. Such matters can be time-consuming, divert management’s attention and resources and cause us to incur significant expenses. Furthermore, because litigation is inherently unpredictable and may not be covered by insurance, there can be no assurance that the results of any litigation matters will not have an adverse impact on our business, results of operations, financial condition or cash flows.

Global climate change and related natural resource conservation regulations could adversely impact our business.

The long-term effects of climate change on the global economy and our industry in particular remain unknown. Changes in weather where we operate may increase the costs of powering and cooling computer hardware we use to develop software and provide cloud-based services. Catastrophic natural disasters could negatively impact our office locations. In response to concerns about global climate change, governments may adopt new regulations affecting the use of fossil fuels or requiring the use of alternative fuel sources. Our deployed network of servers consumes significant energy resources, including those generated by the burning of fossil fuels. While we have invested in projects to support renewable energy development, our customers, investors and other stakeholders may require us to take more steps to demonstrate that we are taking ecologically responsible measures in operating our business. The costs and any expenses we may incur to make our network more energy-efficient and comply with any new regulations could make ~~our solutions~~us less ~~reliable~~profitable in future periods. Failure to comply with applicable laws and regulations or other requirements imposed on us could lead to fines, lost revenue and damage to our ~~business.~~reputation.

Investment-Related Risks

Our stock price has been, and may continue to be, volatile, and your investment could lose value.

The market price of our common stock has historically been volatile. Trading prices may continue to fluctuate in response to a number of events and factors, including the following:

•quarterly variations in operating results;

•announcements by our customers related to their businesses that could be viewed as impacting their usage of our solutions;

•market speculation about whether we are a takeover target or considering a strategic transaction;

•announcements by competitors;

•activism by any single large stockholder or combination of stockholders;

•changes in financial estimates and recommendations by securities analysts;

•failure to meet the expectations of securities analysts;

•purchases or sales of our stock by our officers and directors;

•general economic conditions and other macro-economic factors;

•repurchases of shares of our common stock;

•successful cyber-attacks affecting our network or systems;

•performance by other companies in our industry; and

•geopolitical conditions such as acts of terrorism, military conflicts or global pandemics.

Furthermore, our revenue, particularly that portion attributable to usage of our solutions beyond customer commitments, can be difficult to forecast, and, as a result, our quarterly operating results can fluctuate substantially. This concern is particularly acute with respect to our media and commerce customers. We have introduced new billing models over the years, including recently offering a zero overage plan that eliminates surcharges for certain traffic. In the future, our customer contracting models may change to move away from a committed revenue structure to a ~~"pay-as-you-go"~~“pay-as-you-go” approach, which could make it easier for customers to reduce the amount of business they do with us or leave altogether. Changes in billing models and committed revenue requirements could, therefore, create challenges with our forecasting processes. Because a significant

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portion of our cost structure is largely fixed in the short-term, revenue shortfalls tend to have a disproportionately negative impact on our profitability. If we announce revenue or profitability results that do not meet or exceed our guidance or make changes in our guidance with respect to future operating results, our stock price may decrease significantly as a result.

Any of these events, as well as other circumstances discussed in these Risk Factors, may cause the price of our common stock to fall. In addition, the stock market in general, and the market prices of stock of publicly-traded technology companies in particular, have experienced significant volatility that often has been unrelated to the operating performance of affected companies. These broad stock market fluctuations may adversely affect the market price of our common stock, regardless of our operating performance.

~~If the accounting estimates we make, and the assumptions on which we rely, in preparing our financial statements prove inaccurate, our actual results may be adversely affected.~~

Our financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these financial statements requires us to make estimates and judgments about, among other things, taxes, revenue recognition, stock-based compensation costs, capitalization of internal-use software development costs, investments, contingent obligations, allowance for doubtful accounts, intangible assets, and restructuring charges. These estimates and judgments affect, among other things, the reported amounts of our assets, liabilities, revenue and expenses, the amounts of charges accrued by us, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances and at the time they are made. If our estimates or the assumptions underlying them are not correct, actual results may differ materially from our estimates and we may need to, among other things, accrue significant additional charges that could adversely affect our results of operations, which in turn could adversely affect our stock price. In addition, new accounting pronouncements and interpretations of accounting pronouncements have occurred and may occur in the future that could adversely affect our reported financial results.

~~We may have exposure to greater-than-anticipated tax liabilities.~~

Our future income taxes could be adversely affected by earnings being lower than anticipated in jurisdictions that have lower statutory tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, or changes in tax laws, regulations, or accounting principles, as well as certain discrete items such as equity-related compensation. We have recorded certain tax reserves to address potential exposures involving our income tax and sales and use tax positions. These potential tax liabilities result from the varying application of statutes, rules, regulations and interpretations by different jurisdictions. We are currently subject to tax audits in various jurisdictions including the Commonwealth of Massachusetts. In the second quarter of 2018, we filed an appeal with the Massachusetts Appellate Tax Board, or MATB, contesting adverse audit findings relating to our eligibility to claim certain tax benefits and exemptions. In July 2020, the MATB ruled in our favor. The ruling is subject to appeal.If the ultimate outcome of our appeal and other audits are adverse to us, our reserves may not be adequate to cover our total actual liability, and we would need to take a financial charge. Although we believe our estimates, our reserves and the positions we have taken in all jurisdictions are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and may materially affect our financial results in the period or periods for which such determination is made.

If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. As a result, our stockholders could lose confidence in our financial reporting, which could harm our business and the trading price of our common stock.

We have complied with Section 404 of the Sarbanes-Oxley Act of 2002 by assessing, strengthening and testing our system of internal controls. Even though we concluded our internal control over financial reporting and disclosure controls and procedures were effective as of the end of the period covered by this report, we need to continue to maintain our processes and systems and adapt them to changes as our business evolves and we rearrange management responsibilities and reorganize our business. This continuous process of maintaining and adapting our internal controls and complying with Section 404 is expensive and time-consuming and requires significant management attention. We cannot be certain that our internal control measures will continue to provide adequate control over our financial processes and reporting and ensure compliance with Section 404. Furthermore, as our business changes, including by expanding our operations in different markets, increasing reliance on channel partners and completing acquisitions, our internal controls may become more complex and we will be required to expend significantly more resources to ensure our internal controls remain effective. Failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations. If we or our independent registered public accounting firm identify material weaknesses,

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~~the disclosure of that fact, even if quickly remediated, could reduce the market's confidence in our financial statements and harm our stock price.~~

Any failure to meet our debt obligations would damage our business.

As of the date of this report, we had total principal amount of $1,150.0 million of convertible senior notes outstanding due in ~~2027~~2025, and we had total principal amount of $1,150.0 million of convertible senior notes outstanding due in ~~2025.~~2027. We also entered into a credit facility in May 2018 that provides for an initial $500.0 million in revolving loans; under specified circumstances, we would be able to borrow an additional $500.0 million thereunder. Our ability to repay any amounts we borrow under our credit facility, refinance the notes, make cash payments in connection with conversions of the notes or repurchase the notes in the event of a fundamental change (as defined in the applicable indenture governing the notes) will depend on market conditions and our future performance, which is subject to economic, financial, competitive and other factors beyond our control. We also may not use the cash we have raised through future borrowing under the credit facility or the issuance of the convertible senior notes in an optimally productive and profitable manner. If we are unable to remain profitable or if we use more cash than we generate in the future, our level of indebtedness at such time could adversely affect our operations by increasing our vulnerability to adverse changes in general economic and industry conditions and by limiting or prohibiting our ability to obtain additional financing for additional capital expenditures, acquisitions and general corporate and other purposes. 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. If we do not have sufficient cash to repurchase the notes following a fundamental change, we would be in default under the terms of the notes, which could seriously harm our business. Although the terms of our credit facility include certain financial ratios that potentially limit our future indebtedness, the terms of the notes do not do so. If we incur significantly more debt, this could intensify the risks described above.

We may issue additional shares of our common stock or instruments convertible into shares of our common stock and thereby materially and adversely affect the market price of our common stock.

Our ~~Board~~board of ~~Directors~~directors has the authority to issue additional shares of our common stock or other instruments convertible into, or exchangeable or exercisable for, shares of our common stock. If we issue additional shares of our common stock or instruments convertible into, or exchangeable or exercisable for, shares of our common stock, it may materially and adversely affect the market price of our common stock.

~~Our sales to government clients subject us to risks including early termination, audits, investigations, sanctions and penalties.~~

We have customer contracts with the U.S. government, as well as foreign, state and local governments and their respective agencies. Such government entities often have the right to terminate these contracts at any time, without cause. There is increased pressure for governments and their agencies, both domestically and internationally, to reduce spending. Most of our government contracts are subject to legislative approval of appropriations to fund the expenditures under these contracts. These factors combine to potentially limit the revenue we derive from government contracts in the future. Additionally, government contracts generally have requirements that are more complex than those found in commercial enterprise agreements and therefore are more costly to comply with. Such contracts are also subject to audits and investigations that could result in civil and criminal penalties and administrative sanctions, including termination of contracts, refund of a portion of fees received, forfeiture of profits, suspension of payments, fines and suspensions or debarment from future government business.

~~Litigation may adversely impact our business.~~

From time to time, we are or may become involved in various legal proceedings relating to matters incidental to the ordinary course of our business, including patent, commercial, product liability, breach of contract, employment, class action, whistleblower and other litigation and claims, and governmental and other regulatory investigations and proceedings. In addition, under our charter, we could be required to indemnify and advance expenses to our directors and officers in connection with their involvement in certain actions, suits, investigations and other proceedings. Such matters can be time-consuming, divert management’s attention and resources and cause us to incur significant expenses. Furthermore, because litigation is inherently unpredictable and may not be covered by insurance, there can be no assurance that the results of any litigation matters will not have an adverse impact on our business, results of operations, financial condition or cash flows.

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~~Global climate change and related natural resource conservation regulations could adversely impact our business.~~

The long-term effects of climate change on the global economy and our industry in particular remain unknown. Changes in weather where we operate may increase the costs of powering and cooling computer hardware we use to develop software and provide cloud-based services. Catastrophic natural disasters could negatively impact our office locations. In response to concerns about global climate change, governments may adopt new regulations affecting the use of fossil fuels or requiring the use of alternative fuel sources. Our deployed network of servers consumes significant energy resources, including those generated by the burning of fossil fuels. While we have invested in projects to support renewable energy development, our customers, investors and other stakeholders may require us to take more steps to demonstrate that we are taking ecologically responsible measures in operating our business. The costs and any expenses we may incur to make our network more energy-efficient and comply with any new regulations could make us less profitable in future periods. Failure to comply with applicable laws and regulations or other requirements imposed on us could lead to fines, lost revenue and damage to our reputation.

Because we currently do not intend to pay dividends, stockholders will benefit from an investment in our common stock only if it appreciates in value.

We currently intend to retain our future earnings, if any, for use in the operation of our business and do not expect to pay any cash dividends in the foreseeable future on our common stock. As a result, the success of an investment in our common stock will depend upon any future appreciation in its value. There is no guarantee that our common stock will appreciate in value or even maintain the price at which stockholders have purchased their shares.

Provisions of our charter, by-laws and Delaware law may have anti-takeover effects that could prevent a change in control even if the change in control would be beneficial to our stockholders.

Provisions of our charter, by-laws and Delaware law could make it more difficult for a third party to control or acquire us, even if doing so would be beneficial to our stockholders. These provisions include:

•our ~~Board~~board of ~~Directors~~directors having the right to elect directors to fill a vacancy created by the expansion of the ~~Board~~board of ~~Directors~~directors or the resignation, death or removal of a director;

•stockholders needing to provide advance notice to nominate individuals for election to the ~~Board~~board of ~~Directors~~directors or to propose matters that can be acted upon at a stockholders' meeting; and

•the ability of our ~~Board~~board of ~~Directors~~directors to issue, without stockholder approval, shares of undesignated preferred stock.

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Further, as a Delaware corporation, we are also subject to certain Delaware anti-takeover provisions. Under Delaware law, a corporation may not engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or, among other things, the board of directors has approved the transaction. Our ~~Board~~board of ~~Directors~~directors could rely on Delaware law to prevent or delay an acquisition of us.

55We have complied with Section 404 of the Sarbanes-Oxley Act of 2002 by assessing, strengthening and testing our system of internal controls. Even though we concluded our internal control over financial reporting and disclosure controls and procedures were effective as of the end of the period covered by this report, we need to continue to maintain our processes and systems and adapt them to changes as our business evolves and we rearrange management responsibilities and reorganize our business. This continuous process of maintaining and adapting our internal controls and complying with Section 404 is expensive and time-consuming and requires significant management attention. We cannot be certain that our internal control measures will continue to provide adequate control over our financial processes and reporting and ensure compliance with Section 404. Furthermore, as our business changes, including by expanding our operations in different markets, increasing reliance on channel partners and completing acquisitions, our internal controls may become more complex and we will be required to expend significantly more resources to ensure our internal controls remain effective. Failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations. If we or our independent registered public accounting firm identify material weaknesses, the disclosure of that fact, even if quickly remediated, could reduce the market's confidence in our financial statements and harm our stock price.


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	~~September 30, 2020~~March 31, 2021


Delaware						04-3432319
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - par value $0.01 per share	AKAM	Nasdaq Global Select Market


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets at ~~Septe~~March 31, 2021 ~~mber~~ ~~30, 2020~~ and December 31, ~~2019~~20 2 0	3
	Consolidated Statements of Income for the three ~~and~~ ~~nine~~months ended ~~September~~ ~~30,~~March 31, 2021 and 2020 ~~and 2019~~	5
	Consolidated Statements of Comprehensive Income for the three ~~and~~ ~~nine~~months ended ~~September~~March 31 , 2021 ~~30, 2020~~ and ~~2019~~20 20	6
	Consolidated Statements of Cash Flows for the ni ne three months ended ~~Sept~~e ~~mber~~ ~~30,~~March 31, 2021 and 2020 ~~and 2019~~	7
	Consolidated Statements of Stockholders' Equity for the three ~~and~~ n ~~ine~~months ended ~~September~~ ~~30,~~March 31, 2021 and 2020 ~~and 2019~~	9
	Notes to Unaudited Consolidated Financial Statements	1310
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2623
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4239
Item 4.	Controls and Procedures	4339

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	4340
Item 1A.	Risk Factors	4440
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5651
Item 6.	Exhibits	5752

SIGNATURES		5853


(in thousands, except share data) (unaudited)	(in thousands, except share data) (unaudited)	September 30, 2020		December 31, 2019		(in thousands, except share data) (unaudited)	March 31, 2021		December 31, 2020
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	742,521	$	393,745	Cash and cash equivalents	$	456,799	$	352,917
Marketable securities	Marketable securities	701,515		1,143,249		Marketable securities	831,260		745,156
Accounts receivable, net of reserves of $3,696 and $1,880 at September 30, 2020, and December 31, 2019, respectively		630,406		551,943
Accounts receivable, net of reserves of $1,654 and $1,822 at March 31, 2021, and December 31, 2020, respectively						Accounts receivable, net of reserves of $1,654 and $1,822 at March 31, 2021, and December 31, 2020, respectively	666,536		660,052
Prepaid expenses and other current assets	Prepaid expenses and other current assets	168,779		142,676		Prepaid expenses and other current assets	206,807		171,406
Total current assets	Total current assets	2,243,221		2,231,613		Total current assets	2,161,402		1,929,531
Marketable securities	Marketable securities	1,110,058		835,384		Marketable securities	1,165,573		1,398,802
Property and equipment, net	Property and equipment, net	1,383,480		1,152,153		Property and equipment, net	1,511,393		1,478,272
Operating lease right-of-use assets	Operating lease right-of-use assets	745,089		758,450		Operating lease right-of-use assets	825,944		793,945
Acquired intangible assets, net	Acquired intangible assets, net	184,478		179,431		Acquired intangible assets, net	227,436		234,724
Goodwill	Goodwill	1,598,919		1,600,265		Goodwill	1,682,093		1,674,371
Deferred income tax assets	Deferred income tax assets	97,801		76,528		Deferred income tax assets	103,433		106,918
Other assets	Other assets	151,347		173,062		Other assets	140,646		147,567
Total assets	Total assets	$	7,514,393	$	7,006,886	Total assets	$	7,817,920	$	7,764,130


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
(in thousands, except per share data) (unaudited)	(in thousands, except per share data) (unaudited)	2020		2019		2020		2019		(in thousands, except per share data) (unaudited)	2021		2020
Revenue	Revenue	$	792,845	$	709,912	$	2,351,862	$	2,121,494	Revenue	$	842,708	$	764,302
Costs and operating expenses:	Costs and operating expenses:									Costs and operating expenses:
Cost of revenue (exclusive of amortization of acquired intangible assets shown below)	Cost of revenue (exclusive of amortization of acquired intangible assets shown below)	283,439		246,938		828,825		729,874		Cost of revenue (exclusive of amortization of acquired intangible assets shown below)	306,687		268,582
Research and development	Research and development	66,773		64,887		202,087		192,467		Research and development	82,045		71,224
Sales and marketing	Sales and marketing	122,749		122,258		370,004		383,640		Sales and marketing	116,354		123,786
General and administrative	General and administrative	128,365		123,216		385,435		366,167		General and administrative	136,715		127,361
Amortization of acquired intangible assets	Amortization of acquired intangible assets	10,340		9,624		31,155		28,871		Amortization of acquired intangible assets	11,427		10,434
Restructuring charge (benefit)		21		(300)		10,439		6,879
Restructuring charge										Restructuring charge	7,116		10,585
Total costs and operating expenses	Total costs and operating expenses	611,687		566,623		1,827,945		1,707,898		Total costs and operating expenses	660,344		611,972
Income from operations	Income from operations	181,158		143,289		523,917		413,596		Income from operations	182,364		152,330
Interest income	Interest income	6,307		7,908		22,852		22,953		Interest income	4,578		7,043
Interest expense	Interest expense	(17,324)		(12,127)		(51,778)		(32,689)		Interest expense	(17,834)		(17,205)
Other expense, net	Other expense, net	(2,158)		(752)		(7,869)		(819)		Other expense, net	(817)		(4,108)
Income before provision for income taxes	Income before provision for income taxes	167,983		138,318		487,122		403,041		Income before provision for income taxes	168,291		138,060
(Provision) benefit for income taxes		(8,801)		960		(41,764)		(42,718)
Provision for income taxes										Provision for income taxes	(11,898)		(14,292)
Loss from equity method investment	Loss from equity method investment	(559)		(1,388)		(1,674)		(1,388)		Loss from equity method investment	(698)		(622)
Net income	Net income	$	158,623	$	137,890	$	443,684	$	358,935	Net income	$	155,695	$	123,146
Net income per share:	Net income per share:									Net income per share:
Basic	Basic	$	0.97	$	0.85	$	2.73	$	2.20	Basic	$	0.95	$	0.76
Diluted	Diluted	$	0.95	$	0.84	$	2.69	$	2.18	Diluted	$	0.94	$	0.75
Shares used in per share calculations:	Shares used in per share calculations:									Shares used in per share calculations:
Basic	Basic	162,757		162,445		162,387		163,029		Basic	163,061		161,992
Diluted	Diluted	166,519		164,558		164,990		164,788		Diluted	165,688		163,684


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
(in thousands) (unaudited)	(in thousands) (unaudited)	2020		2019		(in thousands) (unaudited)	2021		2020
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	443,684	$	358,935	Net income	$	155,695	$	123,146
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	350,681		324,874		Depreciation and amortization	131,471		116,208
Stock-based compensation	Stock-based compensation	146,901		140,262		Stock-based compensation	54,305		47,493
(Benefit) provision for deferred income taxes		(22,548)		24,581
Provision (benefit) for deferred income taxes						Provision (benefit) for deferred income taxes	1,764		(2,888)
Amortization of debt discount and issuance costs	Amortization of debt discount and issuance costs	47,057		30,761		Amortization of debt discount and issuance costs	16,257		15,633

Other non-cash reconciling items, net	Other non-cash reconciling items, net	16,284		3,778		Other non-cash reconciling items, net	1,226		12,052
Changes in operating assets and liabilities, net of effects of acquisitions:	Changes in operating assets and liabilities, net of effects of acquisitions:					Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	Accounts receivable	(85,439)		(38,144)		Accounts receivable	(15,580)		(73,913)
Prepaid expenses and other current assets	Prepaid expenses and other current assets	(21,380)		(11,663)		Prepaid expenses and other current assets	(35,388)		(10,434)
Accounts payable and accrued expenses	Accounts payable and accrued expenses	49,818		(29,441)		Accounts payable and accrued expenses	(72,986)		(27,458)
Deferred revenue	Deferred revenue	14,803		16,714		Deferred revenue	25,439		26,989
Other current liabilities	Other current liabilities	(1,638)		(21,850)		Other current liabilities	(716)		928
Other non-current assets and liabilities	Other non-current assets and liabilities	(14,316)		(22,643)		Other non-current assets and liabilities	(11,694)		(4,513)
Net cash provided by operating activities	Net cash provided by operating activities	923,907		776,164		Net cash provided by operating activities	249,793		223,243
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Cash received (paid) for business acquisitions, net of cash acquired		106		(121,409)
Cash (paid) received for business acquisitions, net of cash acquired						Cash (paid) received for business acquisitions, net of cash acquired	(15,638)		106
Cash paid for asset acquisition	Cash paid for asset acquisition	(36,376)		0		Cash paid for asset acquisition	0		(36,376)
Cash paid for equity method investment		0		(36,008)

Purchases of property and equipment	Purchases of property and equipment	(395,793)		(268,766)		Purchases of property and equipment	(87,222)		(141,095)
Capitalization of internal-use software development costs	Capitalization of internal-use software development costs	(168,634)		(159,645)		Capitalization of internal-use software development costs	(77,497)		(74,334)
Purchases of short- and long-term marketable securities	Purchases of short- and long-term marketable securities	(1,153,526)		(1,373,563)		Purchases of short- and long-term marketable securities	(90,279)		(389,779)
Proceeds from sales of short- and long-term marketable securities	Proceeds from sales of short- and long-term marketable securities	29,809		547		Proceeds from sales of short- and long-term marketable securities	7,154		1,179
Proceeds from maturities of short- and long-term marketable securities	Proceeds from maturities of short- and long-term marketable securities	1,301,354		878,779		Proceeds from maturities of short- and long-term marketable securities	226,995		529,637
Other non-current assets and liabilities	Other non-current assets and liabilities	(1,980)		1,895		Other non-current assets and liabilities	179		(76)
Net cash used in investing activities	Net cash used in investing activities	(425,040)		(1,078,170)		Net cash used in investing activities	(36,308)		(110,738)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Proceeds from the issuance of convertible senior notes		0		1,135,629
Proceeds from the issuance of warrants		0		185,150
Purchase of note hedge related to convertible senior notes		0		(312,225)
Repayment of convertible senior notes		0		(690,000)

Proceeds related to the issuance of common stock under stock plans	Proceeds related to the issuance of common stock under stock plans	45,812		43,204		Proceeds related to the issuance of common stock under stock plans	21,410		19,546
Employee taxes paid related to net share settlement of stock-based awards	Employee taxes paid related to net share settlement of stock-based awards	(77,299)		(61,116)		Employee taxes paid related to net share settlement of stock-based awards	(63,946)		(50,835)
Repurchases of common stock	Repurchases of common stock	(121,078)		(291,788)		Repurchases of common stock	(58,241)		(80,550)
Other non-current assets and liabilities		0		(1,558)
Net cash (used in) provided by financing activities		(152,565)		7,296

Net cash used in financing activities						Net cash used in financing activities	(100,777)		(111,839)
Effects of exchange rate changes on cash, cash equivalents and restricted cash	Effects of exchange rate changes on cash, cash equivalents and restricted cash	3,535		(2,650)		Effects of exchange rate changes on cash, cash equivalents and restricted cash	(7,151)		(8,983)
Net increase (decrease) in cash, cash equivalents and restricted cash	Net increase (decrease) in cash, cash equivalents and restricted cash	349,837		(297,360)		Net increase (decrease) in cash, cash equivalents and restricted cash	105,557		(8,317)
Cash, cash equivalents and restricted cash at beginning of period	Cash, cash equivalents and restricted cash at beginning of period	394,146		1,036,987		Cash, cash equivalents and restricted cash at beginning of period	353,466		394,146
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period	$	743,983	$	739,627	Cash, cash equivalents and restricted cash at end of period	$	459,023	$	385,829


		Three Months Ended September 30, 2020																							Three Months Ended March 31, 2021
(in thousands, except share data) (unaudited)	(in thousands, except share data) (unaudited)	Common Stock			Additional Paid-in Capital				Accumulated Other Comprehensive Loss				Treasury Stock				Retained Earnings				Total Stockholders' Equity		(in thousands, except share data) (unaudited)		Common Stock				Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Treasury Stock		Retained Earnings		Total Stockholders' Equity
		Shares	Amount								Shares															Amount
Balance at July 1, 2020		162,630,477	$	1,638			$	3,734,787			$	(57,307)			$	(107,880)			$	333,057			$	3,904,295
Balance at January 1, 2021																							Balance at January 1, 2021		162,709,720		$	1,627	$	3,664,820	$	(20,201)	$	0	$	605,050	$	4,251,296

Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	289,304	3		(13,390)																(13,387)		Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes		1,128,184		11		(64,017)								(64,006)

Stock-based compensation	Stock-based compensation				59,831																59,831		Stock-based compensation						63,765								63,765

Repurchases of common stock	Repurchases of common stock	(119,997)											(13,198)								(13,198)		Repurchases of common stock		(591,963)								(58,241)				(58,241)

Net income	Net income																158,623				158,623		Net income												155,695		155,695
Foreign currency translation adjustment	Foreign currency translation adjustment								13,177												13,177		Foreign currency translation adjustment								(24,265)						(24,265)
Change in unrealized loss on investments, net of tax	Change in unrealized loss on investments, net of tax								(1,724)												(1,724)		Change in unrealized loss on investments, net of tax								(2,881)						(2,881)
Balance at September 30, 2020		162,799,784	$	1,641	$	3,781,228			$	(45,854)			$	(121,078)			$	491,680			$	4,107,617
Balance at March 31, 2021																							Balance at March 31, 2021		163,245,941		$	1,638	$	3,664,568	$	(47,347)	$	(58,241)	$	760,745	$	4,321,363


	Three Months Ended September 30, 2019
(in thousands, except share data) (unaudited)	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Treasury Stock		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at July 1, 2019	163,359,091	$	1,649	$	3,760,840	$	(42,484)	$	(116,247)	$	(208,994)	$	3,394,764

Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	305,367	3		(10,727)								(10,724)

Stock-based compensation				55,406								55,406
Equity component of convertible senior notes, net of deferred tax of $23,170 and issuance costs of $2,880				240,820								240,820
Issuance of warrants related to convertible senior notes				185,150								185,150
Purchase of note hedge related to convertible senior notes				(312,225)								(312,225)
Repurchases of common stock	(2,004,956)							(175,541)				(175,541)

Net income										137,890		137,890
Foreign currency translation adjustment						(14,095)						(14,095)
Change in unrealized gain on investments, net of tax						155						155
Balance at September 30, 2019	161,659,502	$	1,652	$	3,919,264	$	(56,424)	$	(291,788)	$	(71,104)	$	3,501,600


	Nine Months Ended September 30, 2020
(in thousands, except share data) (unaudited)	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance as of January 1, 2020	162,000,843	$	1,620	$	3,653,486	$	(45,144)	$	0	$	47,996	$	3,657,958

Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	1,667,888	17		(76,696)								(76,679)
Issuance of common stock under employee stock purchase plan	393,921	4		29,166								29,170
Stock-based compensation				175,272								175,272



Repurchases of common stock	(1,262,868)							(121,078)				(121,078)

Net income										443,684		443,684
Foreign currency translation adjustment						(7,292)						(7,292)
Change in unrealized gain on investments, net of tax						6,582						6,582
Balance as of September 30, 2020	162,799,784	$	1,641	$	3,781,228	$	(45,854)	$	(121,078)	$	491,680	$	4,107,617


	Nine Months Ended September 30, 2019
(in thousands, except share data) (unaudited)	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Treasury Stock		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance as of January 1, 2019	162,904,550	$	1,629	$	3,670,033	$	(48,912)	$	0	$	(430,890)	$	3,191,860
Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement										851		851
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	1,833,758	18		(59,653)								(59,635)
Issuance of common stock under employee stock purchase plan	473,462	5		27,664								27,669
Stock-based compensation				167,475								167,475
Equity component of convertible senior notes, net of deferred tax of $23,170 and issuance costs of $2,880				240,820								240,820
Issuance of warrants related to convertible senior notes				185,150								185,150
Purchase of note hedge related to convertible senior notes				(312,225)								(312,225)
Repurchases of common stock	(3,552,268)							(291,788)				(291,788)

Net income										358,935		358,935
Foreign currency translation adjustment						(10,744)						(10,744)
Change in unrealized gain on investments, net of tax						3,232						3,232
Balance as of September 30, 2019	161,659,502	$	1,652	$	3,919,264	$	(56,424)	$	(291,788)	$	(71,104)	$	3,501,600


	Three Months Ended March 31, 2020
(in thousands, except share data) (unaudited)	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance as of January 1, 2020	162,000,843	$	1,620	$	3,653,486	$	(45,144)	$	0	$	47,996	$	3,657,958

Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	1,047,040	11		(50,711)								(50,700)

Stock-based compensation				56,215								56,215



Repurchases of common stock	(871,294)							(80,550)				(80,550)

Net income								0		123,146		123,146
Foreign currency translation adjustment						(26,277)						(26,277)
Change in unrealized loss on investments, net of tax						(7,574)						(7,574)
Balance as of March 31, 2020	162,176,589	$	1,631	$	3,658,990	$	(78,995)	$	(80,550)	$	171,142	$	3,672,218


				Gross Unrealized						Classification on Balance Sheet							Gross Unrealized						Classification on Balance Sheet
		Amortized Cost		Gains		Losses		Aggregate Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities			Amortized Cost		Gains		Losses		Aggregate Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
As of September 30, 2020
As of March 31, 2021														As of March 31, 2021

Commercial paper	Commercial paper	$	11,954	$	42	$	0	$	11,996	$	11,996	$	0	Commercial paper	$	51,962	$	8	$	(2)	$	51,968	$	51,968	$	0
Corporate bonds	Corporate bonds	1,410,954		11,095		(274)		1,421,775		636,405		785,370		Corporate bonds	1,525,643		6,535		(953)		1,531,225		677,111		854,114
U.S. government agency obligations	U.S. government agency obligations	359,014		529		(241)		359,302		52,637		306,665		U.S. government agency obligations	392,396		185		(106)		392,475		101,745		290,730
		$	1,781,922	$	11,666	$	(515)	$	1,793,073	$	701,038	$	1,092,035		$	1,970,001	$	6,728	$	(1,061)	$	1,975,668	$	830,824	$	1,144,844

As of December 31, 2019
Certificates of deposit		$	150,000	$	0	$	0	$	150,000	$	150,000	$	0
As of December 31, 2020														As of December 31, 2020
Commercial paper	Commercial paper	73,829		23		(7)		73,845		73,845		0		Commercial paper	$	46,931	$	13	$	(8)	$	46,936	$	46,936	$	0
Corporate bonds	Corporate bonds	1,368,668		1,840		(378)		1,370,130		753,538		616,592		Corporate bonds	1,628,462		9,482		(262)		1,637,682		607,403		1,030,279
Municipal securities														Municipal securities	3,495		0		(6)		3,489		0		3,489
U.S. government agency obligations	U.S. government agency obligations	369,475		80		(74)		369,481		165,623		203,858		U.S. government agency obligations	435,653		329		(63)		435,919		89,951		345,968
		$	1,961,972	$	1,943	$	(459)	$	1,963,456	$	1,143,006	$	820,450		$	2,114,541	$	9,824	$	(339)	$	2,124,026	$	744,290	$	1,379,736


		Total Fair Value		Fair Value Measurements at Reporting Date Using				Total Fair Value			Fair Value Measurements at Reporting Date Using
				Level 1		Level 2				Total Fair Value			Level 1			Level 2
As of September 30, 2020
As of March 31, 2021									As of March 31, 2021
Cash Equivalents and Marketable Securities:									Cash Equivalents and Marketable Securities:
Money market funds	Money market funds	$	375,752	$	375,752	$	0		Money market funds		$	92,107		$	92,107		$	0

Commercial paper	Commercial paper	41,994		0		41,994			Commercial paper		51,968			0			51,968
Corporate bonds	Corporate bonds	1,421,775		0		1,421,775			Corporate bonds		1,531,225			0			1,531,225
U.S. government agency obligations	U.S. government agency obligations	409,298		0		409,298			U.S. government agency obligations		392,475			0			392,475
Mutual funds	Mutual funds	18,500		18,500		0			Mutual funds		21,165			21,165			0
		$	2,267,319	$	394,252	$	1,873,067				$	2,088,940		$	113,272		$	1,975,668

As of December 31, 2019
As of December 31, 2020									As of December 31, 2020
Cash Equivalents and Marketable Securities:									Cash Equivalents and Marketable Securities:
Money market funds	Money market funds	$	50,779	$	50,779	$	0		Money market funds		$	74,417		$	74,417		$	0
Certificates of deposit		150,000		0		150,000
Commercial paper	Commercial paper	73,845		0		73,845			Commercial paper		75,785			0			75,785
Corporate bonds	Corporate bonds	1,370,130		0		1,370,130			Corporate bonds		1,637,682			0			1,637,682
Municipal securities									Municipal securities		3,489			0			3,489
U.S. government agency obligations	U.S. government agency obligations	369,481		0		369,481			U.S. government agency obligations		435,919			0			435,919
Mutual funds	Mutual funds	15,177		15,177		0			Mutual funds		19,932			19,932			0
		$	2,029,412	$	65,956	$	1,963,456				$	2,247,224		$	94,349		$	2,152,875


~~Balance as of January 1, 2020~~	$	~~1,880~~
~~Charges to income from operations~~	~~10,354~~
~~Collections from customers previously reserved and other~~	~~(8,538)~~
~~Balance as of September 30, 2020~~	$	~~3,696~~


	March 31, 2021		March 31, 2020
Beginning balance	$	1,822	$	1,880
Charges to income from operations	923		1,752
Collections from customers previously reserved and other	(1,091)		(451)
Ending balance	$	1,654	$	3,181


	March 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technology	$	179,213	$	(115,581)	$	63,632	$	172,346	$	(111,435)	$	60,911
Customer-related intangible assets	354,978		(193,476)		161,502		358,032		(186,733)		171,299
Non-compete agreements	351		(103)		248		373		(77)		296
Trademarks and trade names	7,638		(5,584)		2,054		7,658		(5,440)		2,218
Acquired license rights	490		(490)		0		490		(490)		0
Total	$	542,670	$	(315,234)	$	227,436	$	538,899	$	(304,175)	$	234,724


Balance as of January 1, ~~2020~~2021	$	~~1,600,265~~1,674,371
Acquisition of Inverse, Inc.	10,741
Measurement period adjustments related to acquisitions completed in ~~prior years~~2020	~~(1,056)~~312
Foreign currency translation	~~(290)~~(3,331)
Balance as of ~~September 30, 2020~~March 31, 2021	$	~~1,598,919~~1,682,093


	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technology	$	154,343	$	(106,730)	$	47,613	$	153,722	$	(94,088)	$	59,634
Customer-related intangible assets	315,087		(180,658)		134,429		279,684		(163,155)		116,529
Non-compete agreements	816		(721)		95		830		(529)		301
Trademarks and trade names	7,543		(5,202)		2,341		7,600		(4,633)		2,967
Acquired license rights	490		(490)		0		490		(490)		0
Total	$	478,279	$	(293,801)	$	184,478	$	442,326	$	(262,895)	$	179,431


	Employee Severance and Related Benefits		Software Charges		Other		Total
Balance as of January 1, 2020	$	5,707	$	99	$	151	$	5,957
Costs incurred	4,180		0		57		4,237
Cash disbursements	(9,645)		(99)		(208)		(9,952)
Non-cash charges	0		0		(11)		(11)

Balance as of September 30, 2020	$	242	$	0	$	(11)	$	231


	Employee Severance and Related Benefits
Balance as of January 1, 2021	$	22,051
Costs incurred	6,452
Cash disbursements	(7,000)
Translation adjustments and other	(395)
Balance as of March 31, 2021	$	21,108


	Foreign Currency Translation		Net Unrealized Gains on Investments		Total
Balance as of January 1, 2020	$	(52,924)	$	7,780	$	(45,144)
Other comprehensive (loss) income	(7,292)		6,582		(710)
Balance as of September 30, 2020	$	(60,216)	$	14,362	$	(45,854)


	Foreign Currency Translation		Net Unrealized Gains (Losses) on Investments		Total
Balance as of January 1, 2021	$	(33,295)	$	13,094	$	(20,201)
Other comprehensive loss	(24,265)		(2,881)		(27,146)
Balance as of March 31, 2021	$	(57,560)	$	10,213	$	(47,347)


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
(in thousands)	(in thousands)	2020		2019		(in thousands)	2021		2020
Net income	Net income	$	443,684	$	358,935	Net income	$	155,695	$	123,146
Non-cash reconciling items included in net income	Non-cash reconciling items included in net income	538,375		524,256		Non-cash reconciling items included in net income	205,023		188,498
Changes in operating assets and liabilities	Changes in operating assets and liabilities	(58,152)		(107,027)		Changes in operating assets and liabilities	(110,925)		(88,401)
Net cash provided by operating activities	Net cash provided by operating activities	$	923,907	$	776,164	Net cash provided by operating activities	$	249,793	$	223,243


Period (1)	(a) Total Number of Shares Purchased (2)	(b) Average Price Paid per Share (3)		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (4)	(d) Approximate Dollar Value of Shares that May Yet be Purchased Under Plans or Programs(4)
July 1, 2020 – July 31, 2020	—	$	—	—	$	657,601
August 1, 2020 – August 31, 2020	50,566	109.52		50,566	652,063
September 1, 2020 – September 30, 2020	69,431	110.33		69,431	644,403
Total	119,997	$	109.99	119,997	$	644,403



Exhibit 10.1						Form Executive Bonus Plan (incorporated by reference to the Registrant's Current Report on Form 8-K (File No. 000-27275, 21665537) filed with the Securities and Exchange Commission on February 23, 2021).

Exhibit 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 amended

Exhibit 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 amended

Exhibit 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 2002

Exhibit 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 2002

101.INS						Inline XBRL Instance Document – The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.*

101.SCH						Inline XBRL Taxonomy Extension Schema Document*

101.CAL						Inline XBRL Taxonomy Calculation Linkbase Document*

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document*

101.LAB						Inline XBRL Taxonomy Label Linkbase Document*

101.PRE						Inline XBRL Taxonomy Presentation Linkbase Document*

104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101.INS)


	Akamai Technologies, Inc.

~~November 6, 2020~~May 7, 2021	By:	/s/ Edward McGowan
		Edward McGowan
		Chief Financial Officer (Duly Authorized Officer, Principal Financial Officer)