Akamai beats Q3 expectations

Akamai reported strong third quarter financial results after the bell on Tuesday. The cloud services provider delivered third quarter net income of $159 million, or 95 cents a share, on revenue of $793 million, up 12% from a year ago. Non-GAAP earnings for the quarter came to $1.31 a share. 

Wall Street was looking for third quarter non-GAAP earnings of $1.23 a share on revenue of $775.2 million. 

Akamai saw mild growth it its Web division, with revenue up 8% from a year ago. The media division, Akamai’s unit that speeds up webpages, saw third quarter revenue rise 16% to $375 million. 

The company’s cloud security unit — a component of the Performance and Security category — had revenue of $266 million, up 23% from a year ago. Revenue from the company’s Internet Platform Customers came to $51 million.

In terms of guidance, analysts expect Akamai to deliver fourth quarter earnings of $1.29 a share on revenue of $822.6 million. Akamai did not immediately provide Q4 guidance. Shares of Akamai were down slightly after hours. 

“Our excellent third quarter results were driven by the continued strong performance of our security products and sustained high traffic levels on the Akamai Edge platform,” said Akamia CEO Tom Leighton. “We’re proud of how Akamai continued to deliver fast, intelligent and secure online experiences for billions of users around the world as we support our customers during these unprecedented times.”

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