Akamai 3Q Profit Slips, Beats Analyst Estimates

CAMBRIDGE, Mass. (AP) — Akamai Technologies Inc. said Wednesday that its third-quarter profit slipped 2 percent as higher costs and operating expenses bit into revenue growth.

The results beat analyst estimates, though, and shares of the company — which provides technology for managing Web traffic — rose $2.04, or 10.1 percent, to $22.20 in after-hours trading.

Akamai shares had finished regular trading down 80 cents, or 3.8 percent, at $20.16.

For the quarter that ended Sept. 30, Akamai earned $32.7 million, or 18 cents per share, compared with $33.4 million, or 18 cents per share, in the year-ago quarter.

When excluding one-time items, Akamai earned 38 cents per share — 3 cents per share higher than what analysts polled by Thomson Reuters expected.

Revenue rose 5 percent to $206.5 million, beating analyst expectations for $199.4 million. A year earlier Akamai brought in revenue of $197.3 million.

Akamai's costs and expenses rose 7 percent to $155.8 million.

The company said its number of customers with recurring contracts rose 8 percent to 3,031 by the end of the quarter.