Akamai earnings beat expectations on 18% earnings jump
Parent Category: News | 06-02-2014
Content delivery network (CDN) leader Akamai saw earnings rise 18% to $80.3 million, or $0.44 a share, compared with $68.3 million, or $0.38 a share, in the prior-year period. Revenue beat expectations and rose 15% to $436 million.
Adjusted profit rose 18% to $0.55 from $0.50 per share, and the company's adjusted operating margin fell to 44% from 46%.
For media delivery solutions, revenue was $207 million in the quarter, up 19% over Q4 of last year and up 10% sequentially.
For 2013, Akamai reported earnings of $293 million, or $1.61 a share, on revenue of $1.58 million, up 15% from a year ago. The company ended the quarter with 3,908 employees and 147,468 deployed servers, up from 127,638 a year ago.
On a conference call with analysts, Akamai CFO Jim Benson said demand was strong overall, citing the "strength of the holiday season which exceeded our expectations in every solution category and in every geography ... revenue growth continued to be very strong across our video, gaming, social media, and software download customer base and particularly strong among our largest, most strategic accounts."
Akamai also issued strong guidance for the first quarter, taking into account the renegotiation of a contract with what it says is its top media customer (widely believed to be Apple). It expects $426 to $442 million in revenue and EPS of $0.51-$0.55, well above a consensus of $412.8 million and $0.49.
The company's shares ended Wednesday's regular trading session at $47.42, up $0.93. In after-hours, the stock further gained $8.23 or 17.36% to $55.65.