Akamai Technologies Inc. Earnings: 1 Number You Need to Know

A Fool studies Akamai Technologies' earnings report and reveals the one number investors need to pay attention to now.

Feb 11, 2014 at 9:00PM

Akamai Technologies' (NASDAQ:AKAM) earnings report suggests the company has many more years of growth ahead, Fool contributor Tim Beyers says in the following video. Why? One number stands out: 50.

In an interview conducted the day of the report, Akamai CEO and co-founder Tom Leighton revealed that 50% of revenue for the media group that supports streamed video, gaming, and similar services originates overseas. (A third of overall revenue is derived overseas.)

That's a strong number that suggests growing global appeal for the company's core business at a time when emerging economies are getting their first real taste of broadband. Companywide, revenue improved 15% in the fourth quarter. Adjusted operating profit grew 11%. Both figures beat Street estimates and guidance also impressed.

Second, it suggests that the core business is likely more vibrant than skeptics believed just a year ago. If anything, a healthy media business gives Akamai the resources the grow the newer and more experimental areas of its business, such as security and embedded acceleration software. Ultimately, that bodes well for the stock, Tim says.

Now it's your turn to weigh in. What did you think of Akamai Technologies' earnings report? Please watch the video to get Tim's full take and then leave a comment to let us know whether you would buy, sell, or short Akamai stock at current prices.

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Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Netflix at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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