Akamai reports Q2 report and outlook top expectations, shares slip

Akamai said it’s security revenue in the quarter rose by 25%, year over year, to $325 million.

Bandwidth provider Akamai Technologies this afternoon reported Q2 revenue and profit that both topped expectations, driving by a 25% rise in security revenue. The company's forecast for the current quarter and for the full year was also above Wall Street's expectations.

Despite the upbeat results and outlook, the report sent Akamai shares down 4% in late trading. 

CEO Tom Leighton called the results "excellent," remarking that the "performance was highlighted by continued strong growth across our security solutions globally." 

Added Leighton, "As the internet has become increasingly critical to consumers and businesses, our customers have turned to us more than ever to power and protect exceptional online experiences."

Revenue in the three months ended in June rose 7%, year over year, to $853 million, yielding a net profit of $1.42 a share.

Analysts had been modeling $846 million and $1.38 per share.

Revenue from Akamai's security business rose by 25%, year over year, to $325 million, while its "edge technology" revenue declined by 1% to $528 million.

International revenue was up 15% in the quarter, while Akamai's U.S. revenue rose 1%. 

The report follows issues last month with Akamai's DNS servers that led to outages at major customers of Akamai, including Amazon Web Services, Microsoft, Delta Airlines, Oracle, Capital One, and AT&T. 

For the current quarter, the company sees revenue of $845 million to $860 million, and EPS in a range of $1.37 to $1.41. That compares to consensus for $845 million and a $1.35 profit per share.

For the full year, the company sees revenue in a range of $3.42 billion to $3.45 billion, and EPS of $5.45 to $5.65. That compares to consensus of $3.43 billion and a $5.53 profit per share.

Also: McAfee, Akamai Q1 reports top expectations on security technology growth