Akamai: higher quarterly EPS, but disappointing targets
May 10, 2024 at 02:05 am EDT
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Akamai Technologies on Thursday evening reported non-GAAP EPS of $1.64 for the first three months of the year, up 17% year-on-year, on sales of $987 million, up 8%.
"Revenues from both solutions (security and compute) collectively grew by more than 20%, to account for nearly two-thirds of total sales," stressed Tom Leighton, CEO of the cloud services group.
While its board has authorized a three-year, $2 billion share buyback program, Akamai has indicated that it only expects adjusted EPS of between $6.20 and $6.40, and revenues of between $3.95 and $4.02 billion, for the year 2024.
Our updated guidance reflects the impact of a stronger dollar, a major social media customer optimizing its costs, and slower traffic growth across the industry", explains CFO Ed McGowan.
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Akamai Technologies, Inc. is the world's No. 1 supplier of Internet applications and content distribution acceleration services. The activity is organized primarily around 3 areas:
- content distribution: transmission, storage, and management of data flows, media content, electronic applications, etc.;
- development of applications on Internet sites: applications for recording user visits to sites, research, etc.;
- other: data management, distribution control, application performance measurement, secure content transmission, etc.
At the end of 2023, the group had a platform of more than 350,000 servers interconnected to more than 1,300 Internet access supplier networks worldwide.
The United States account for 51.7% of net sales.