Cloud Security, Increased Traffic Lifts Akamai’s Revenues

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Akamai (NASDAQ:AKAM) reported its earnings for the third quarter of 2017 on October 24. The company reported yet another quarter of growth as revenues grew 7% to $621 million. The revenue growth was driven largely by Performance and Security Solutions, as revenues grew by 11% to $381 million due to growth in Cloud security revenues. The media delivery solution once again reported a decline in revenues, falling by 9% during the quarter. Nevertheless, the company reported that its platform witnessed its highest levels of internet traffic as it grew by over 24% y-o-y in Q3.

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Cloud Security Solutions Boosts Performance And Security Solutions

Performance & Security Solutions reported 11% growth in revenues as its cloud security solution revenue grew by over 27% to $121 million. These solutions now account for over 20% of Akamai’s overall revenue in Q3 and have an annualized revenue run rate of over $500 million.

Decline In Media Delivery Solutions Continues

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 3% decline in revenue. However, in the previous quarter, the company took some steps to increase web traffic and revenues on its platform. Due to these initiatives, traffic across Akamai’s platform rose by 24%, while the revenues (excluding the large internet platforms) grew by 2%.

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