Akamai Earnings: Cloud Security Solutions Drive Revenue Growth In Q1
Akamai (NASDAQ:AKAM) reported its revenues for the first quarter of 2017 on May 2nd. [1] The company reported yet another quarter of growth as revenues grew 7% (8% in constant currency) to $609 million. The revenue growth was driven by growth from Performance and Security Solutions, which reported 17% growth. The media delivery solution once again reported a decline in revenues as revenues declined by 9% during the quarter. One of the primary drivers for the Performance and Security Solutions growth was 36% growth in Cloud Security Solutions revenue.
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Decline In Media Delivery Solutions Continues
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Revenue from Akamai’s six big technology clients (Amazon, Apple, Google, Facebook, Microsoft, and Netflix) has been declining at a rapid pace as these companies have been investing in and delivering content through their own content delivery networks. As a result, the company reported that its media delivery solutions division experienced 9% decline in revenue. However, if the impact of the large internet platforms is excluded the revenues grew by 11%, indicating that it continues to deliver content for its SME clients.
Cloud Security Solutions Boosts Performance And Security Solutions
Performance & Security Solutions reported 17% growth in revenues to $369.15 million as its cloud security solution revenue grew by over 36% to $109.76 million. These solutions now account for over 60% of Akamai’s overall revenue in Q1. Within this solution category, the company witnessed solid growth across all major product lines with particularly strong growth continuing in the Cloud Security Solutions.
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