Akamai, FireEye top Q2 estimates

Pegasystems, meanwhile, delivered mixed results for the second quarter.
Written by Stephanie Condon, Senior Writer and  Natalie Gagliordi on

Akamai on Tuesday reported second quarter financial results ahead of market expectations

The company's Q2 non-GAAP earnings per share came to $1.38 on revenue of $795 million, up 13 percent year-over-year.

Analysts were looking for earnings of $1.21 per share on revenue of $767.39 million.

"Akamai's outstanding top and bottom line results in the second quarter were powered by the strong growth of our Security and Media solutions and our continued operational excellence," CEO Tom Leighton said in a statement. "Amidst the ongoing humanitarian crisis associated with COVID-19, we are proud to be supporting our customers – and billions of internet users – with exceptional services when they need them most."

The company's Media and Carrier Division brought in revenue of $390 million, up 19 percent year-over-year. The Web Division achieved revenue of $404 million, up 7 percent year-over-year.

Akamai's Cloud Security Solutions accounted for $259 million in sales, up 27 percent year-over-year. The rest of its revenue, $535 million, came from content delivery network (CDN) and other solutions -- that segment of revenue was up 7 percent year-over-year. 

FireEye also delivered strong second quarter financial results that handily topped Wall Street estimates.

The company -- which sells security software that helps businesses prevent and respond to cyber attacks and its attempting to transition into a security-as-a-service model -- reported a net loss of $53.2 million, or 24 cents a share. Non-GAAP earnings came to 9 cents a share on revenue of $230 million. Wall Street was expecting a non-GAAP net loss of 2 cents a share with revenue of $214.7 million.

"The steps we have taken to accelerate our transformation to a security-as-a-service company resulted in record second quarter revenue and our highest ever non-GAAP profitability," said Kevin Mandia, FireEye's chief executive officer. "Growing adoption of our validation platform, cloud-based security products and intelligence solutions, combined with improved net retention in our appliance-based security controls business, drove annualized recurring revenue to record levels."

In terms of guidance, the company said it expects third quarter revenue in the range of $225 million to $229 million. Analysts are expecting revenue of $220 million.

Shares of FireEye were up more than 10 percent after hours.

Pegasystems reported mixed second quarter results. The company reported a Q2 non-GAAP net loss per share of 28 cents on revenue of $227.38 million. 

Analysts were expecting a net loss of 23 cents per share on revenue of $225.71 million.

"I'm pleased with our results through the first half of the year as we continue to demonstrate resiliency in our business throughout this global pandemic," CEO Alan Trefler said in a statement. "Clients and prospects continue to see value in our solutions, both for their short-term crisis related needs and their longer-term digital transformation goals, and we remain confident in our long-term opportunity."

For the first half of 2020, subscription revenue grew 38 percent year-over-year, which Pegasystem said reflects the fact that its cloud transition is more than halfway through. 

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