posted better-than-expected quarterly results, as the content-delivery network company continued to see high levels of traffic tied to the Covid-19 pandemic’s impact on the global economy.
For the quarter, Akamai (ticker: AKAM) posted revenue of $795 million, up 13% from a year ago, or 14% adjusted for foreign currency. The consensus view among Wall Street analysts was that revenue would be $767 million. Non-GAAP profits were $1.38 a share, up 29%, and beating the analyst consensus forecast of $1.21.
The company said revenue from its Web division was $404 million, up 7%, while Cloud Security Solutions revenue was $259 million, up 27%. Internet Platform Customers revenue was $51 million, up 10%. International revenue rose 22%, while U.S. revenue increased 6%.
In an interview with Barron’s, CEO Tom Leighton said that the company had “an excellent quarter,” with strong traffic from media customers throughout. He noted that while the company serves some markets seriously challenged by the pandemic—including travel and hospitality—the impact has been more modest than expected. Leighton also said that the company did renegotiate contracts.
Leighton said traffic overall remains elevated compared to year-ago levels, with an extra boost from traffic for new over-the-top video services and videogame launches. He said Akamai expects to see the elevated traffic levels continue, though without the kind of spike experienced earlier in the year. Overall, he said, “the tailwinds from increased use of internet have outweighed the headwinds from customers that needed help.”
The Akamai CEO also noted that the company’s security arm has seen a huge spike in activity by bad actors, with a five-fold increase in the number of customer employees visiting sites with malware, a four-fold increase in the number of attempts at unauthorized logins, and two of the biggest denial of service attacks ever. One involved a larger bank and the other a large internet service provider.
On the company’s post-earnings conference call with analysts, Akamai projected September quarter revenue of $760 million to $785 million, with profits of $1.20 to $1.24 a share, above consensus at $758.8 million and $1.19 a share.
For the full year, the company sees revenue of $3.125 billion to $3.175 billion, with profits of $5.02 to $5.12 a share, ahead of the previous consensus at $3.11 billion and $4.93 a share.
Akamai was up 1.8%, to $114 in late trading.
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