(Reuters) -Akamai Technologies raised its annual revenue and profit forecast on Thursday, helped by steady demand for its cloud infrastructure services and content delivery network offerings.
The company is seeing strong momentum in its security and compute verticals, as enterprises ramp up investments in securing applications and web infrastructure amid the accelerating adoption of cloud technologies.
Akamai is also well-positioned to benefit from the surge in mobile data traffic, fueled by the growing use of mobile apps and services.
It provides content delivery network services to optimize web performance and reduce bandwidth congestion. It also offers cloud infrastructure solutions that improve the security and reliability of apps and web assets from data centers to end users.
Akamai’s customers include Adobe, eBay and Electronic Arts, as well as the U.S. Defense and Labor departments.
The cybersecurity company now expects annual revenue between $4.14 billion and $4.21 billion, ahead of its prior projection of $4.05 billion to $4.20 billion.
On an adjusted basis, Akamai sees per-share earnings in the range of $6.60 to $6.80, from its earlier forecast of between $6.10 and $6.40 apiece.
It expects revenue between $1.04 billion and $1.05 billion for the third quarter, compared with the analysts’ average estimate of $1.04 billion, according to data compiled by LSEG.
Akamai posted revenue of $1.04 billion for the quarter ended June 30, compared to analysts’ consensus estimate of $1.02 billion.
(Reporting by Arsheeya Bajwa in Bengaluru and Juby Babu in Mexico City; Editing by Alan Barona)
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