Earnings: Akamai’s Revs, Profit Rise — But Still Disappoint The Street

Sustained demand for Akamai’s content-delivery services kept the company in the black for Q2, with revenue and profits both up 5 percent year-over-year. Akamai (NSDQ: AKAM) grew its customer base by 9 percent, and managed to thrive throughout the heavy streaming during the Michael Jackson memorial, but its performance still fell far below analysts’ expectations.

Revenue came in at $204.6 million, for a profit of $0.19 per diluted share, but analysts expected $0.41 profit on $211 million in revenue. Investors punished the stock in after-hours trading (shares fell by 11 percent).

There were also concerns about Akamai’s overseas growth — international income remained relatively flat at 28 percent — as well as its forecast for the rest of the year. The company expects Q3 revenue to come in between $190 and $203 million, and Q4 revenue in the range of $205 to $218 million; both estimates are below The Street’s current forecasts (per TechTraderDaily).

1Q 2009 1Q 2008
EPS $0.19 $0.19
Net Income $36M $34.3M
Revenue $204.6M $194.0M

Release | Webcast