Akamai Technologies Surges 18% Following Strong Q4 Beat
Akamai earned $0.72 per share on revenue of $579.16 million. Wall Street analysts were expecting the company to earn $0.62 per share on revenue of $568.76 million.
Akamai noted that Performance and Security Solutions revenue for the quarter rose 16 percent from a year ago to $286 million, Cloud Security Solutions revenue rose 46 percent to $73 million, Media Deliver Solutions revenue fell 2 percent to $247 million and Service and Support Solutions revenue rose 18 percent to $46 million.
By region, total revenue for the quarter rose 5 percent in the U.S. to $416 million and international revenue rose 17 percent to $163 million.
Non-GAAP net income for the quarter rose 1 percent from a year ago to $129 million.
Akamai also announced a change to its organizational structure. The company's current products and development organizations will be re-aligned into 2 divisions to foucs on its Media and Web customers. The new structure is intended to create "tighter alignment and integration between customer requirements and product innovation."
Commenting on the new organizational model, Dr. Tom Leighton, Akamai's Chief Executive Officer, said, "This is a natural evolution of our company structure intended to help us better serve our customers and further accelerate growth. We've made great strides in diversifying our product portfolio in recent years, delivering record sales and profitability. As we close out another excellent year, I believe our Media and Web businesses are now at the scale where a transition to this type of customer- and solutions-centric organization makes sense. By better aligning our teams that build product with those that work day-to-day with our world-class customers, I am confident in our ability to bring new solutions to market faster and to make Akamai services even easier for our customers to consume."
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