Akamai Technologies Gets Boost From Security and Cloud Demand

Shares of Akamai Technologies (AKAM) took off Friday, a day after the tech firm reported better-than-expected second-quarter results and raised its profit guidance on higher demand for its security and cloud computing products. 

Akamai posted adjusted earnings per share (EPS) of $1.58, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $408.9 million. Revenue gained 5% year-over-year to $979.6 million. All three beat consensus estimates of analysts polled by Visible Alpha.

Security revenue rose 15% to $498.7 million, and compute revenue increased 23% to $151.5 million. However, delivery revenue fell 13% to $329.4 million.

CEO Saya Akamai ‘Had Many Significant Wins in Q2’

Chief Executive Officer (CEO) Tom Leighton explained that the company saw strong customer interest in its security solutions, and “had many significant wins in Q2.” In addition, he pointed to the success of the launch of a new cloud offering last quarter, and that “the strong early momentum we achieved in Q1 continued in Q2.”

Akamai now sees full-year adjusted EPS of between $6.34 and $6.47, up from its previous outlook of $6.20 to $6.40.

Akamai Technologies led S&P 500 gainers with shares up 10% to $100.94 as of noon ET Friday. Still, they are down about 15% so far this year.