July 30, 2019 / 8:04 PM / 2 months ago

Akamai beats revenue estimates as cloud security demand surges

July 30 (Reuters) - Akamai Technologies Inc beat analysts’ estimates for second-quarter revenue on Tuesday, boosted by strong demand for its cloud security services and growth in its traditional business of speeding up media content delivery through the web.

Revenue from the security business, which helps data centers operate and deliver content securely, jumped 32% to $205 million in the quarter.

The company’s media and carrier division, which includes media delivery business, posted a 4% rise in revenue to $325 million, as more people use smartphones and computers to download games, videos and software from the internet.

Akamai is also benefiting from increasing competition in the video-streaming market.

“We saw continued strong OTT (over-the-top) traffic growth on the Akamai Edge platform,” Chief Executive Officer Tom Leighton said in a statement.

Net income rose to $113.9 million, or 69 cents per share, in the three months ended June 30, from $43.1 million, or 25 cents per share, a year earlier.

The year-ago quarter included a one-time $50 million endowment to the Akamai Foundation, the company said.

On an adjusted basis, the company posted earnings per share of $1.07.

Revenue rose 6.4% to $705.1 million, beating analysts’ average estimate of $695.8 million, according to IBES data from Refinitiv.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila

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