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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 Akamai Technologies, Inc. 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.

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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.