Jeff Van Rhee

Tom said Akamai doesn't have the public profile of giant hyperscalers for data center pushback, not an issue yet and perhaps a good problem to have at larger scale. Ed said on security growth, pleased with Q1 results. API security still early days with low penetration, Guardicore growing consistently. Will update guidance as the year progresses.

Tom described multiple AI impacts on security: AI enables larger botnets, trains malware to evade defenses, creates undetectable deepfakes, and opens new attack surfaces as enterprises adopt AI apps and agents. Akamai's new firewall for AI and API security capabilities help defend this new surface and identify shadow AI. AI has positive impact on security revenue despite nastier attack landscape. On delivery, scraper bots are increasing traffic, but Akamai's bot management helps customers deflect and manage bots. On balance, AI increases need for Akamai's security and management services.

Ed described normal seasonal patterns. AI agent applications could create more video and API traffic. Big gaming titles in backlog plus console refresh cycle could help. If current trends hold, flat to down single digits is achievable again next year.

Ed confirmed no one-time Edgio items as traffic was migrated by mid-January. Traffic growth was surprising and higher than expected across video and software downloads. Pricing metric showing moderation in declines. Overall a healthier market than last 1-2 years.

Ed confirmed legacy compute headwind playing out as expected. Cloud infrastructure services still on track for 40% to 45% ARR growth. Legacy decline from custom deals running their course and storage migration.

Ed broke down the subsegments: WAF slowing with high penetration, API security growing very fast, infrastructure security low single digits, Prolexic high single to low double digits. Newer products not yet at scale to offset slower mature products.

Ed said they haven't provided sales productivity metrics but will consider it. Impact should manifest in stronger revenue growth. Bookings metrics don't always translate cleanly to revenue.

Declined a formal FCF breakeven date, saying the near-term focus is EBITDA-positive then FCF-positive with sequential gross-profit gains; partial.

Confirmed IM-4 remains on the books for late 2027 and on track as resources shift from the near-complete IM-3; direct.

Altemus framed it as a continuation of the L3Harris relationship without stating whether IM would go prime; partial.

Altemus clarified AMDT3 is a separate series of tracking satellites distinct from the SDA Tranche 3 tracking layer; partial.

Asked by Daniel on for Jeff Van Rhee; McGrath gave a rough 66/33 Lantaris/legacy split and deferred a precise organic figure until the combined pro formas are out.

Vijay (on for Jeff Van Rhee) asked; Steve described a deliberate M&A strategy, after KinetX, Lanteris was next for production capability, scale and reliability.

Steve detailed KinetX's Iridium and MUOS constellation-management work and proprietary deep-space navigation software, reiterating ~$10M trailing revenue and 14% EBITDA.

Beck said Iridium is a quintessential Rocket Lab deal that brings profitability rather than a P&L hole, with a constellation good into 2035; growth initiatives can be supercharged, especially in PNT, and the deal gives Rocket Lab credibility for mission-critical, life-critical constellations with government and commercial customers.

Beck said acquired subsystem units are run like startups with clear margin targets; most were already profitable, though Mynaric needs more work.

Beck said Rocket Lab is well positioned for NASA's Mars Telecom Network with proven experience, though competitors will also bid.

Spice said Q4 margin gains come from Electron cadence and overhead absorption, plus solid Space Systems margin trends.

Beck said the components toolbox is largely complete; focus now shifts to payloads, with Geost the first step.