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Cloud Security Solutions Drive Akamai’s Revenue

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May. 24 2016, Updated 9:18 a.m. ET

Akamai at a glance

Akamai Technologies (AKAM) is a global leader in the content delivery network (or CDN) and has a market capitalization of $8.7 billion.

Its peer companies include VeriSign (VRSN), Orange (ORAN), and IBM (IBM), with market capitalizations of $8.9 billion, $41.7 billion, and $140.7 billion, respectively.

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Akamai’s revenue rose 8% YoY

Last month, Akamai announced its 1Q16 results. It reported revenue of $568 million, a rise of 8% YoY (year-over-year). The company’s GAAP (generally accepted accounting principles) EPS (earnings per share) fell 2% YoY to $0.42. Its non-GAAP EPS rose 8% YoY to $0.66 in 1Q16.

“Q1 was a very solid quarter for Akamai on both the top and bottom lines, representing a great start to 2016,” said Dr. Tom Leighton, the company’s CEO. “We delivered earnings that exceeded our expectations and saw continued strong revenue growth from our Cloud Security Solutions, which grew 47% year-over-year in constant currency.”

Analysts expected revenue of $563.8 million and EPS of $0.63 for Akamai. The company’s revenue rose 9% YoY when adjusted for foreign exchange due to the strong US dollar (UUP).

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