Akamai Technologies misses quarterly revenue estimates due to weak security demand

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Akamai Technologies misses quarterly revenue estimates due to weak security demand
Akamai Technologies misses quarterly revenue estimates due to weak security demand

Akamai Technologies missed quarterly revenue predictions and predicted a difficult first quarter as demand for its cloud security services fell.

Akamai Technologies missed quarterly sales projections on Tuesday and forecasted a weak first quarter as demand for its cloud security services slowed.

Shares of the Cambridge, Massachusetts-based corporation plummeted almost 5% in extended trade.

Most businesses have a limited technology budget and are even reducing their expenditure on cyber-security solutions this year as they cut costs to remain competitive in an uncertain economic climate.

In addition to private players such as Roblox and Adobe, Akamai’s customers include the United States Department of Labor, the Census Bureau, and the Department of Defense.

According to LSEG data, revenue for the fourth quarter was $995 million, which fell short of the expected $998.1 million.

Adjusted earnings per share were $1.69, compared to projections of $1.60 per share.

Akamai expects first-quarter revenue of $980 million to $1 billion, slightly lower than analysts’ expectations of $993.4 million.

It anticipates quarterly adjusted earnings per share of $1.59 to $1.64, compared to projections of $1.59.

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