JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
CAMBRIDGE, Mass. - Akamai Technologies, Inc. (NASDAQ:AKAM) saw its shares climb 2.9% after reporting second quarter financial results that exceeded analyst expectations and raising its full-year outlook, driven by strong performance in its security and cloud computing segments.
The cybersecurity and cloud computing company reported adjusted earnings of $1.73 per share for the second quarter, significantly beating the analyst consensus of $1.55. Revenue reached $1.043 billion, up 7% YoY and ahead of the $1.02 billion analysts had expected.
Particularly impressive was the company’s Cloud Infrastructure Services revenue, which grew 30% YoY to $71 million. Security revenue, which represents more than half of the company’s total revenue, increased 11% YoY to $552 million.
"Akamai reported excellent results in the second quarter, highlighted by outperformance in both revenue and profitability," said Dr. Tom Leighton, Akamai’s Chief Executive Officer. "These investments are paying off – our Cloud Infrastructure Services grew 30% year-over-year – and we expect that rate to accelerate through the remainder of the year."
Looking ahead, Akamai raised its guidance for both the third quarter and full year. For Q3, the company expects adjusted earnings of $1.62 to $1.66 per share, well above the analyst consensus of $1.49. Revenue is projected to be between $1.035 billion and $1.05 billion, in line with analyst expectations of $1.04 billion.
The company’s operating margin for the quarter was 30%, up one percentage point from the same period last year. Akamai’s security business continues to be its growth engine, while its traditional delivery business declined 3% YoY to $320 million.
Akamai’s cloud computing segment showed solid growth of 13% YoY, reaching $171 million in revenue. The company’s international revenue grew 10% YoY to $516 million, outpacing U.S. revenue growth of 4%.
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