As companies invest substantially in protecting their systems from hackers, Akamai Technologies (AKAM.O), which opened a new tab on Thursday, is counting on robust demand for its cybersecurity services. The company is forecasting third-quarter sales and profit above projections.
In extended trading, the Cambridge, Massachusetts-based company’s shares increased by 4%.
Based on LSEG data, Akamai anticipates revenue for the third quarter of $988 million to $1.01 billion, which is higher than the average estimate of $996.7 million made by analysts.
In addition, Akamai reduced the range of its projected total revenues for 2024 from $3.95 billion to $4.02 billion to between $3.97 billion and $4.01 billion. The midpoint is consistent with projections, at $3.99 billion.
Additionally, the business has seen that the emergence of generative artificial intelligence has facilitated the spread of malware and ransomware, which has increased demand for its services, according to a research note released in May by TD Cowen analysts.
Above predictions of $1.54 per share, Akamai projected quarterly adjusted net income of between $1.56 and $1.62 per share.
In order to facilitate the transmission of digital material more quickly, the firm also offers content delivery services and cloud platforms. The US Departments of Defense and Labor, as well as Adobe (ADBE.O), eBay (EBAY.O), and Electronic Arts (EA.O), among others, are among its clientele.
Overestimating its sales by $977.2 million, Akamai’s second-quarter revenue increased by 5% to $980 million.
