Shares of content delivery network and cloud services provider Akamai Technologies Inc. and cybersecurity company Gen Digital Inc. rose in late trading today after both beat revenue expectations in their latest quarterly earnings reports.
For its third quarter that Sept. 30, Akamai reported adjusted earnings per share of $1.63, up 29% year-over-year, on revenue of $965 million, up 9%. Analysts had expected Akamai to report earnings per share of $1.50 on revenue of $944 million.
Breaking out its businesses, Akamai saw security revenue of $456 million, up 20% year-over-year, delivery revenue of $379 million, down 4% and compute revenue of $130 million, up 19%. The company generated $499 million in revenue in the U.S., up 8%, and $467 million internationally, up 11%.
Akamai had $2.1 billion in cash, cash equivalents and marketable securities on hand as of the end of September, after bringing in cash from operations of $359 million in the quarter, or 37% of revenue.
“We are very pleased with our excellent third-quarter performance on both revenue and profitability,” Dr. Tom Leighton, chief executive officer of Akamai, said in the company’s earnings release. “Security and cloud computing revenue growth accelerated and together now account for 61% of our total revenue. In addition, our cost savings initiatives helped improve margins while we continue to invest in key growth areas.”
For its fiscal fourth quarter ending Dec. 31, Akamai expects adjusted earnings per share of $1.57 to $1.62 on revenue of $985 million to $1.005 billion. Analysts were expecting $1.54 and $987 million. For the full year, the company expects earnings per share of $6.08 to $6.13 on revenue of $3.802 billion to $3.822 billion.
For its fiscal second quarter that ended on Sept. 29, Gen Digital, the company previously known as NortonLifeLock Inc., reported adjusted earnings per share of 47 cents, up 4% year-over-year, on revenue of $948 million, up 27%. The earnings per share figure aligned with analysts’ expectations, while the revenue figure came in ahead of an expected $945 million.
Gen saw bookings of $923 million in the quarter, up 28% year-over-year, operating income of $549 million, up 41% and and operating margin of 57.9%, up 600 basis points.
“We created Gen just one year ago, knowing that NortonLifeLock and Avast together would be the company to deliver cyber safety to everyone,” Vincent Pilette, CEO of Gen, said in the company’s earnings release. “Our digital lives keep expanding and, unfortunately, cyberthreats do too.”
For its fiscal third quarter, Gen expects adjusted earnings per share of 49 to 51 cents on revenue of $950 million to $960 million. Both were misses at the midpoint, as analysts expected an outlook of 51 cents on revenue of $967.3 million. For its full fiscal year, the company expects adjusted earnings per share of $1.95 to $2 and revenue of $3.81 billion to $3.84 billion.
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