Shares of Akamai Technologies Inc. (AKAM) - Get Report climbed nearly 15% Tuesday, Oct. 30, after the content delivery network and cloud service provider beat analysts' third-quarter earnings estimates.
The Cambridge, Massachusetts-based company reported earnings of 94 cents ashare, up 47% from a year ago, and beat the Zacks estimate of 83 cents.
Net income was $158 million, up 43% from a year ago. Revenue totaled $670 million, a 7% increase from a year eatlier. U.S. revenue was $413 million, consistent year over year, while international revenue increased 21% to $257 million.
In a statement, CEO Tom Leighton cited 37% year-over-year growth in the company's security business and "tremendous growth in our earnings." He also noted Akamai's fourth consecutive quarter of non-GAAP operating margin improvement.
"We are well on our way to achieving our 30% margin goal in 2020, while continuing to invest in innovation and new products to drive future growth," Leighton said.
Akamai also said its board authorized a $1.1 billion share repurchase program, effective Nov. 1 through Dec. 31, 2021, which is in addition to $124 million remaining on its prior authorization.
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