The content-delivery and security software company Akamai Technologies posted better-than-expected financial results as it continues to gear up to take on Amazon.com, Microsoft, and Alphabet in the cloud-computing business.

For the fourth quarter, Akamai (ticker: AKAM) reported revenue of $928 million, up 2% from a year ago, and ahead of both the company's forecast range of $890 million to $915 million and the Wall Street consensus call of $903 million. On an adjusted basis, Akamai earned $1.37 a share, likewise above both the forecast range of $1.23 to $1.30 a share, and the Street consensus of $1.27.

CEO Tom Leighton said in an interview with Barron's that the company saw "strong seasonal traffic" in the quarter from its core internet delivery business, although that segment still showed the effects of a slower economy. Revenue was off 12% from a year earlier, or 8% adjusted for moves in exchange rates.

Security-software revenue was up 10%, or 14% when adjusted for currency moves. The company's compute segment, which includes its emerging cloud-computing business, saw revenue growth of 61%, or 65% when adjusted for currency.

Earlier on Tuesday, Akamai unveiled the "Akamai Connected Cloud," which the company describes as "a massively distributed edge and cloud platform for cloud computing, security, and content delivery."

As Leighton noted, Akamai is leveraging its work on traffic delivery and security services to push into cloud computing.

"We've competed for over 10 years with the hyperscalers on delivery and security, and now we'll do the same on compute, which is the largest of those markets," he said. Leighton contends that the company is well positioned to target cloud-computing business from "big media, big gaming. and big commerce," segments that are already heavy users of Akamai's content-delivery arm.

"We know these accounts, and they have been asking us to add compute," he said.

Leighton contends that over time, cloud computing can become the majority of Akamai's business, given the sheer size of the market.

"Getting 1% to 2% of that would be huge for us," he said.

This year, Leighton said, the company will move its own applications off other cloud vendors, and onto its own cloud. While some of the early adopters of Akamai's new service have involved new use cases, Akamai has also had wins against the largest cloud vendors based on a combination of both performance and cost, he said.

On a conference call with analysts, Akamai said it expects first-quarter revenue of between $900 million and $915 million, a little below consensus at $917 million, with non-GAAP profits of $1.30 to $1.34 a share, at the midpoint a penny shy of the Street at $1.33.

For the full year, Akamai sees revenue of $3.7 billion to $3.78 billion, at the midpoint right in line with the Street consensus at $3.74 billion. The company sees profits of $5.40 to $5.60 a share; at the midpoint of the range, a little below the old consensus for $5.55.

In late trading, Akamai stock was 0.2% higher at $88, giving back larger gains after the company issued guidance on the call.