CAMBRIDGE, Mass. - Akamai Technologies (NASDAQ:AKAM) reported second-quarter earnings that surpassed analyst expectations and strong full-year guidance, sending shares up 3% in after-hours trading.
The cloud services provider posted adjusted earnings per share of $1.58, beating the consensus estimate of $1.53. Revenue came in at $980 million, slightly above analysts' projections of $977.62 million and up 5% YoY.
"Akamai delivered solid results in the second quarter highlighted by our strong bottom-line performance and continued strength in our security and cloud computing solutions, which now represent approximately two-thirds of total revenue," said CEO Dr. Tom Leighton.
Security revenue grew 15% YoY to $499 million, while compute revenue jumped 23% to $151 million. However, delivery revenue declined 13% to $329 million.
For the full year 2024, Akamai shared its outlook, now expecting adjusted EPS of $6.34-$6.47, up from its previous guidance and above the $6.31 consensus. The company projects full-year revenue of $3.97-4.01 billion, in line with analyst estimates of $3.99 billion.
The company's non-GAAP operating margin held steady at 29% in Q2. Akamai repurchased 1.4 million shares for $128 million during the quarter at an average price of $94.29 per share.
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