Akamai Technologies, Inc. Announces Earnings and Sales Surprises; Shares Rise 4%

Image source: Akamai Technologies.

Akamai Technologies (NASDAQ: AKAM  ) just released results for the first quarter of 2014.

The cloud services and data traffic management veteran saw non-GAAP earnings rise 14% year-over-year to $0.58 per diluted share. Revenue rose 23% to $454 million.

Both numbers were positive surprises, as analysts would have settled for earnings of $0.53 per share on $441 million in sales.

About halfway through the quarter, Akamai completed the $370 million acquisition of cloud-computing security vendor Prolexic Technologies. The buyout wasn't explicitly broken out in tonight's quarterly report, but Akamai expected the deal to add about $7 million to first-quarter revenues along with a $0.01 reduction of earnings per share.

As it turned out, Akamai landed squarely in the middle of its updated revenue guidance range, and jumped above the top end of its earnings targets.

"Our first quarter results demonstrated continued momentum across all our solution offerings and geographies," said Akamai CEO Tom Leighton in a prepared statement. Media delivery services and security products were particularly strong growth drivers, with the security division's sales jumping 26% higher.

Akamai shares rose 4% in extended-hours trading following the news.

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Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

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