Akamai Technologies Drops 7% Following Q4 Results

Akamai Technologies Drops 7% Following Q4 Results Feb. 14, 2024, 5:26 p.m., readers: 16

Akamai Technologies (NASDAQ:AKAM) experienced a 7% decrease in its share price intra-day today, following the company's release of fourth-quarter results that fell short of revenue expectations and provided a cautious outlook for the first quarter of 2024. The cloud computing firm reported earnings per share (EPS) of $1.69, beating the consensus predictions of $1.60. However, its revenue for the quarter was $995 million, slightly below the expected $999.09 million. Within its revenue breakdown, Akamai's security services contributed $471.0 million, an 18% increase year-over-year but just below the forecast of $473.3 million. Its delivery services saw a downturn, earning $389.0 million, a 6.3% drop from the previous year and less than the $392.8 million forecast. On a positive note, compute services reported a 20% year-over-year growth to $135.0 million, exceeding the anticipated $132.7 million. For the upcoming first quarter of 2024, Akamai anticipates its EPS to range between $1.59 and $1.64, compared to the analyst expectation of $1.59. The company expects revenue to be in the range of $980 million to $1 billion, compared to the analyst projection of $993.4 million.

About NASDAQ: AKAM

A kamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications;

Price: 101.33
Market cap: 15.4 billion USD
Eps: 3.52
P/e ratio: 28.79
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