Akamai Q3 tops estimates

Akamai said revenue in its cloud security business increased 37 percent.

Akamai reported better-than-expected third quarter financial results on Monday.

The cloud services provider delivered first quarter net income of $107 million, or 64 cents a share, on revenue of $670 million, up seven percent from a year ago. Non-GAAP earnings for the quarter came to 94 cents a share.

Wall Street was looking for first quarter non-GAAP earnings of 83 cents a share on revenue of $664.2 million. Akamai's shares ticked up a little more than two percent after hours.

Akamai saw strong growth it its Web division, with revenue climbing eight percent to $357 million. The media division, Akamai's unit that speeds up webpages, saw third quarter revenue rise six percent year-over-year to $313 million.

The company's cloud security business had revenue increase 37 percent to $169 million, with an annualized run rate of nearly $700 million.

"We are well on our way to achieving our 30 percent margin goal in 2020, while continuing to invest in innovation and new products to drive future growth," said Akamai chief executive Tom Leighton.

The company also announced that its board has approved a new $1.1 billion share repurchase program.