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Akamai Technologies Easily Beats Estimates

The company said it is landing more long-term contracts.
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SAN FRANCISCO -- Akamai Technologies (AKAM) - Get Free Report posted a jump in profit in the fourth quarter, handily beating Wall Street's expectations.

The Cambridge, Mass.-based company, which provides service for accelerating content and applications online, earned $35.9 million in the fourth quarter, or 20 cents a share, up from $20.6 million, or 12 cents, a year ago in the same period. Excluding certain items, Akamai would have earned 41 cents a share, well above analysts' estimates of 37 cents.

Fourth-quarter revenue was up 46% to $183.2 million compared with $125.7 million a year ago. Analysts were expecting fourth-quarter revenue to total $175 million.

"As we begin our tenth year as a company, we believe the value of Akamai's differentiated services is stronger than ever -- a testament to the dedication of our employees and the commitment of our customers to building great businesses on the Internet," said Akamai Chief Executive Paul Sagan.

For the year, the company earned $101 million, or 56 cents a share. Excluding certain items, it would have earned $1.32 a share. Analysts estimated full-year earnings of $1.28 a share.

Akamai said its number of customers under long-term contracts grew 13% year over year. Sales through resellers accounted for 16% of fourth-quarter revenue while sales from outside of the U.S. accounted for 23%.

Shares of Akamai were up 5%, or $1.53, to $31.26 in after-hours trading.