(Reuters) – Akamai Technologies forecast annual 2025 revenue below estimates on Thursday, owing to sluggish demand for its cloud and content delivery services.
Businesses have kept a tight leash on spending amid rising macroeconomic uncertainty and inflation, hitting demand for companies such as Akamai Technologies.
The cybersecurity company sees annual revenue between $4.00 billion and $4.20 billion, below the analysts’ average estimate of $4.26 billion, according to data compiled by LSEG.
The company is also facing competition from bigger rivals including Palo Alto Networks and CrowdStrike, which are ramping up investments in artificial intelligence to provide all-in-one cyber platforms.
Shares of the Cambridge, Massachusetts-based company fell 6% in extended trading.
Akamai Technologies also provides cloud platforms and content delivery services. Its customers include Adobe, eBay and Electronic Arts, as well as the U.S. Defense and Labor departments.
The company posted fourth-quarter revenue of $1.02 billion, in line with the estimates.
It expects first-quarter revenue between $1 billion and $1.02 billion, compared with analysts’ average estimate of $1.05 billion.
On an adjusted basis, it posted quarterly earnings of $1.66 per share, compared with an estimate of $1.51 per share.
(Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona)
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