Akamai Forecasts Solid Earnings as Internet Video, Online Gaming Grow

Advertisement
By Reuters | Updated: 2 May 2014 10:23 IST
Akamai Technologies Inc, which hosts content for companies on its servers, forecast current-quarter results above analysts' estimates and it posted better-than-expected quarterly results as more people play games and watch videos online.

Shares of Akamai, whose customers include Facebook Inc, Apple Inc, Nintendo Co and Comcast's NBC, rose 4 percent in extended trading.

"We got a bunch of live events, generally of short duration, but had a lot bit more traffic than expected ...," Akamai Chief Executive Tom Leighton told Reuters on Thursday.

Videos of high-profile events such as Sochi Winter Olympics and NBA basketball championships earlier this year were watched online by many sports lovers.

Advertisement

Akamai saw strong growth in software downloads and online gaming in the first quarter ended March 31, the company said in a post-earnings conference call.

Advertisement

Akamai, which has more than 140,000 servers around the world, said revenue from its media customers rose 19 percent.

The company forecast adjusted earnings of 53-57 cents per share and revenue of $464 million to $478 million for the second quarter ending June.

Advertisement

Analysts on average were expecting a profit of 53 cents per share on revenue of $459.4 million, according to Thomson Reuters I/B/E/S.

Akamai's net income rose slightly to $72.8 million, or 40 cents per share in the first quarter from $71.5 million, or 39 cents per share, a year earlier.

Advertisement

Operating expenses rose about 25 percent as the company invested more in product development.

Excluding items, Akamai earned 58 cents per share.

Revenue rose 23 percent to $453.5 million.

Analysts on average had expected a profit of 53 cents per share on revenue of $441.3 million.

Akamai's shares closed at $54.53 on the Nasdaq on Thursday. The stock has risen about 25 percent this year.

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Akamai, Internet
Advertisement

Related Stories

Popular Mobile Brands
  1. DeepSeek-OCR Could Change How AI Reads Text From Images
  2. OnePlus 15 Battery Capacity, Charging Speed Teased Days Ahead of Launch
  3. iQOO Neo 11 Key Specifications Tipped Ahead of Launch in China
  4. These Are the 5 Biggest OxygenOS 16 Features You Should Know About
  5. BSNL Samman Plan For Senior Citizens Announced at This Price
  6. OnePlus 15 India Launch Teased; Key Features Revealed Ahead of Launch
  7. Redmi K90 Pro Max Key Features Revealed Ahead of Launch on October 23
  8. Samsung Galaxy XR Headset Launched With Hand Tracking at This Price
  9. Realme GT 8, Realme GT 8 Pro With Ricoh GR Optics Launched: See Price
  10. Your Smartwatch Could Soon Know Your Location to the Centimetre
  1. Redmi K90 Design, Key Features Revealed; Confirmed to Debut With 7,100mAh Battery
  2. Poco Pad M1 Spotted on TDRA Website, Could Debut Globally as Rebranded Redmi Pad 2 Pro
  3. Samsung AI Glasses Confirmed to Launch in Collaboration with Warby Parker, Gentle Monster
  4. iQOO Neo 11 Confirmed to Come With 2K Display and 7,500mAh Battery; Colour Options Tipped
  5. MacBook Pro 14-inch (2025) and iPad Pro With M5 Chip Now Available in India: Prices and Other Details Here
  6. Samsung Galaxy XR Headset Launched With Hand Tracking, Snapdragon XR2+ Gen 2 SoC: Price, Specifications
  7. Samsung Galaxy XR Headset Launching Today: Know Price, Features, and Specifications
  8. Smartwatch Breakthrough Brings GPS Accuracy Down to a Few Centimetres
  9. SpaceX Launches 10,000th Starlink Satellite, Sets New Annual Record
  10. Scientists Discover New Seismic Clue to Predict Mount Etna Eruptions
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.