Akamai Technologies stock edged higher late Tuesday after the content delivery network and security software company posted better-than-expected first quarter results.
For the quarter, Akamai (ticker: AKAM) reported revenue of $843 million, up 10% from a year ago, or up 8% adjusted for foreign currency, and ahead of its guidance range of $822 million to $836 million. Its stock rose 2.7% to $108 in after-hours trading.
In an interview with Barron's, Akamai CEO Tom Leighton said the company's security business saw revenue increase 29%, now accounting for 37% of overall revenue. Meanwhile revenue from its core content delivery network business was up 2%, lapping the strong Covid-driven traffic in 2020.
Leighton said that content delivery demand from media clients remains "very strong," but not quite as strong as last year. He notes that some consumer-facing businesses—in particular hospitality and travel and retailing—remain under pressure, with the company in some cases reducing rates in exchange for longer contract terms or the upsell of security services.
Non-GAAP earnings were $1.38 a share, ahead of the forecast range of $1.28 to $1.31 a share. Adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) were $375 million, up 15%. On a GAAP basis, the company earned $156 million, or 94 cents a share.
The company is projecting second-quarter revenue of $839 million to $853 million, with earnings of $1.35 to $1.40 a share. The consensus estimate has been revenue of $838.4 million and $1.34 a share in earnings.
For the full year, the company now sees revenue of $3.4 billon to $3.44 billion, up from a previous range of $3.37 billion to $3.42 billion. Akamai now sees full-year earnings of $5.45 to $5.52 a share, up from $5.33 to $5.45 a share.