Akamai Technologies shares fall reflecting drop in net income

7th November 2024 22:08

(Alliance News) - Shares in Akamai Technologies Inc fell on Thursday after net income tumbled in the third quarter.

Akamai is a Cambridge, Massachusetts-based provider of cloud computing, security and content delivery services.

Net income plunged to USD57.9 million in the third quarter from USD160.5 million a year prior. Basic earnings per share fell to USD0.38 from USD1.06.

Revenue rose to USD1.00 billion from USD965.4 million.

"Akamai delivered another solid quarter, highlighted by continued momentum in security and cloud computing. Together, these solutions grew 17% on a year-over-year basis and now account for nearly 70% of our total revenue," said Chief Executive Tom Leighton.

"This quarter also marks a significant milestone as we surpassed the billion-dollar quarterly revenue threshold for the first time. Looking forward, we remain confident in the traction we see from our new products and our continued commitment to strong bottom-line performance."

For the fourth quarter Alkamai sees revenue up to USD1.02 billion, and non-GAAP net income per diluted share of up to USD1.56.

Shares fell 6.7% in after-hours trading. They closed down 0.3% at USD104.43 on Thursday in New York.

By Jeremy Cutler, Alliance News reporter

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