Akamai Hits Record Revenue, Earnings5 Feb, 2014 By: Chris Tribbey
Cloud technology company Akamai enjoyed record revenue and earnings for its fourth quarter, thanks to big gains in both its Media Delivery Solutions and Performance and Security Solutions businesses.
“The holiday season exceeded our expectations in every category,” Akamai CEO Tom Leighton said during a conference call with investors.
Fourth-quarter revenue for the company was $436 million, up 15% year over year, and Akamai posted a profit of $80.3 million, up 16% year over year. Operating income for the quarter was $115.8 million. ￼
The company saw its Media Delivery Solutions business pull in $207.5 million for the quarter, and another $192.2 million in Performance and Security Solutions revenue, both up roughly $20 million from the third quarter.
"We were extremely pleased with how the business performed in the fourth quarter and throughout 2013, with strong growth across all our solution offerings and geographies,” Leighton said. “We achieved gross margin expansion through continued improvements in network efficiencies while at the same time invested in growth drivers intended to enable us to take advantage of the significant opportunities in front of us.
“As we enter 2014, Akamai's focus is clear, and we believe we are well positioned to meet the needs of our customers and prospects as they embrace the hyper-connected world."
Akamai said that in the U.S. it now services 97 of the top 100 Internet retailers, nine of the top 10 banks, 20 of the top 24 cable networks, and 72 of the top 100 media companies, including 19 of the top 20 gaming companies.
Sales through resellers and sales outside the United States accounted for 21% and 29%, respectively, of revenue for the fourth quarter.
“Vast amounts of traffic are poised to move online, and users everywhere are demanding near-instant access to applications and information, from a myriad of connected devices,” Akamai CFO Jim Benson said during the call. “This demand represents both a challenge and an opportunity.”