According to a recent Research and Markets report, the global 5G security market is expected to grow to $6.5 billion by 2025. Infrastructure security will be the fastest growing segment and will grow to $2.6 billion by 2025. Akamai (NASDAQ: AKAM), is realizing the importance of the market and is investing in partnerships and acquisitions to cater to this industry.
Akamai’s third quarter revenues grew 12% to $793 million, ahead of the market’s estimate of $775.31 million. Net income increased 15% to $159 million. Adjusted EPS was $1.31, ahead of the market’s estimates of $0.51.
By segment, Media and Carrier Division revenues grew 16% to $375 million. Web Division revenues grew 8% to $418 million
Among other key metrics, Revenue from Cloud Security Solutions grew 23% over the year to $266 million. Revenue from Internet Platform Customers grew 15% to $51 million. Revenue excluding Internet Platform Customers grew 11% to $742 million.
For the fourth quarter, Akamai has not issued an earnings guidance.
Recently, Akamai announced its acquisition of Asavie, a Dublin based mobility technology solutions provider. Asavie’s solutions help manage an organization’s security, performance, and access policies for mobiles and internet-connected devices and create a secure, smooth access for an entirely mobile workforce. It automates the creation of self-serve, private, network-based services with secure access from both mobile and internet-connected devices to applications and data.
The current pandemic is driving transition among organizations to a secure remote environment. Regulated industries like healthcare, financial services and education are benefiting from Asavie’s cloud-managed solution that is scalable as well as rapidly installable. Last year, Asavai reported revenues of €23.6 million (~$28 million) and pre-tax profits of €1.9 million (~$2.3 million). Terms of the acquisition were not disclosed.
Akamai plans to integrate Asavie’s solutions with its security and personalization services product line. Akamai believes that the addition of Asavie will help its carrier partners address enterprise and mid-market customer demand for IoT and mobile device security and management services. Overall, the acquisition will help Akamai advance on its 5G security strategy.
Akamai continues to focus on carrier networks to drive growth. Recently, it also extended its partnership with AT&T through to 2023. As part of the tie-up, both companies will continue to help enhance the security, performance, and scale of customers’ digital businesses across a host of industries, including retail, finance, entertainment, manufacturing, and the public sector among.
Akamai’s stock is trading at $96.68 with a market capitalization of $15.7 billion. It touched a 52-week high of $120.00 in August this year. Akamai had fallen to a 52-week low of $75.18 in March this year when the stocks fell.
Photo: akangarooo /Flickr.com
This segment is a part in the series : Cloud Stocks