(Adds CEO comment, profit estimates, forecast, and shares)
Feb 11 (Reuters) - Akamai Technologies on Tuesday beat quarterly estimates for revenue and profit, driven by strong demand for its cloud security services and growth in its traditional business of speeding up media content delivery through the web.
Shares of the company were up 2.8% in extended trading.
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 Amazon.com 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 quarterly 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.
Revenue from the company’s media and carrier division rose 7.8% to $352.6 million, as more people used their smartphones and computers to download games, videos and software from the internet.
“We had a very strong holiday season across the world with substantial increase in traffic for our media customers,” Chief Executive Officer Thomson Leighton told Reuters.
For the current quarter, the company expects revenue between $741 million and $755 million, the midpoint of which is below analysts’ estimates of $749.4 million.
Akamai said it expects elevation in traffic levels during third and fourth quarter of 2020, driven by Summer Olympics and the U.S. presidential election cycle.
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 Cambridge, Massachusetts-based company earned $1.23 per share, beating analysts’ estimate of $1.13 per share. (Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi and Shailesh Kuber)
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