Akamai revenue beats estimates on cloud growth

Feb 11 (Reuters) - Akamai Technologies’ quarterly revenue beat estimates on Tuesday, driven by strong demand for its cloud security services and growth in its traditional business of speeding up media content delivery through the web.

Cloud security business has been the company’s growth driver in recent quarters, as its content delivery business has come under pressure with companies including Apple Inc and Inc setting up their own networks.

In a push to improve its cloud security business, the company recently acquired security startup KryptCo and Israeli cyber security firm ChameleonX.

Total revenue rose 8.2% to $772.1 million, beating analysts’ average estimate of $749.3 million, according to IBES data from Refinitiv.

Revenue from the cloud security business, which helps data centers operate and deliver content securely, rose 28.8% to $237.9 million in the quarter.

Revenue from the company’s media and carrier division rose 7.8%, as more people used their smartphones and computers to download games, videos and software from the internet.

Cambridge, Massachusetts-based company’s net income rose to $119.1 million, or 73 cents per share, in the fourth quarter ended Dec. 31, from $94 million, or 57 cents per share, a year earlier.

Excluding items, the company earned $1.23 per share. (Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)