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Earnings: Akamai Beats Expectations, Adds Customers

This story was written by Rory Maher.
Akamai (NSDQ: AKAM) first quarter revenue was up 12 percent over the same quarter last year, to $210 million, while "normalized" earnings per share was $0.43 - consensus estimates had been for $208 million and $0.40. The company's international efforts continued to grow; 28 percent of revenue was from international clients in the first quarter versus 25 percent during the fourth quarter 2008. The company, which helps clients stream audio and video, also added new customers. It had 2,950 customers at the end of the first quarter, 10 percent more than a year ago and 3 percent more than at the end of 2008.

While competition from a growing number of content-delivery providers could hurt the company's ability to grow, the results suggest Akamai has been holding up fine so far. Traffic from one-time events like the presidential inauguration and the NCAA tournament helped lift revenue in the first quarter, which could mean a slowing of revenue growth in the second quarter. 

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By Rory Maher

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