Akamai Q1 revenue climbs 7% due to cloud security demand

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Akamai is reporting first-quarter revenues of $609 million, up 7% year over year, thanks in part to increased demand for the company’s security solutions.

Performance and Security Solutions revenue reached $369 million, up 17% year over year, and Cloud Security Solutions revenue, reached $110 million, up 36% year over year.

"Q1 was a very solid quarter for Akamai on both the top and bottom lines," said Dr. Tom Leighton, CEO of Akamai, in a statement. "We are especially pleased with the strong results of our performance and security solutions, which grew 17% year-over-year, or 18% in constant currency*, and now account for over 60% of our overall revenue. As we look forward, I remain excited about the opportunities that lie ahead, as Akamai is uniquely positioned to help our customers provide the highest quality and most secure digital experiences on the Internet."

While Akamai’s security segments performed well, its Media Delivery Solutions revenue was $187 million, down 9% year over year, and Akamai’s revenue from Internet Platform Customers came in at $51 million, down 29% year over year.

Despite the struggles for some segments, Akamai’s net income was $81 million, an 8% increase from first quarter 2016.

Related: Akamai supports CMAF transcoding to improve OTT video workflow

Akamai’s continued growth as one of the key contend delivery network providers for online video companies comes after Akamai recently announced moves to help the industry better streamline the workflows associated with video delivery.

“With OTT video being a multibillion-dollar business opportunity, the question is how we make this a reality,” said Shawn Michels, product line director at Akamai Technologies, in an interview with FierceOnlineVideo. “CMAF spins out of that as a natural maturation process where a bunch of companies realized we can’t support a bunch of different formats and we’re going to have to become more efficient and squeeze costs out of the system as it becomes a real business.”