Akamai Technologies fell short of quarterly revenue expectations on Tuesday and issued a cautious forecast for the next quarter, attributing the slowdown to declining demand for its cloud security services.
The Cambridge, Massachusetts-based company’s shares dropped about 5% in extended trading. This decline reflects broader trends in the tech sector, where many companies are tightening their belts and even reducing spending on cybersecurity due to economic uncertainty.
Despite boasting notable clients like government agencies (Department of Labor, Census Bureau, Department of Defense) and private companies (Roblox, Adobe), Akamai reported a fourth-quarter revenue of $995 million, falling short of analyst estimates of $998.1 million. However, on an adjusted basis, the company’s earnings per share of $1.69 surpassed expectations of $1.60.
Looking ahead, Akamai projects first-quarter revenue between $980 million and $1 billion, falling slightly below analyst estimates of $993.4 million. Similarly, adjusted earnings per share are expected to fall within the range of $1.59 and $1.64, compared to analyst predictions of $1.59.
This revised press release eliminates unnecessary words and phrases while retaining the key information about Akamai’s financial performance and future outlook. Additionally, it removes all Reuters identifiers and links, as requested.