Akamai's 4Q15 Results: Why Did Media Delivery Revenues Fall?
Cloud security revenues rose 46% YoY in 4Q15
Akamai Technologies’ (AKAM) Cloud Security Solutions segment revenues rose 46% YoY (year-over-year) in 4Q15 to $73 million. For full year 2015, revenues in this segment rose 50% YoY to $254 million.
Performance of other business segments
Akamai’s Performance and Security Solutions segment revenues rose 16% YoY in 4Q15 to $286 million. For full year 2015, revenues in this segment rose 17% YoY to $1,050 million.
Akamai’s Service and Support Solutions segment revenues rose 18% YoY in 4Q15 to $46 million. For full year 2015, revenues in this segment rose 16% YoY to $170 million.
Akamai has increasingly developed new services, as competitors are now capable of providing content delivery network (or CDN) services at similar prices. Akamai is thus offering a number of value-added services, including targeted advertising and cloud-based services. Akamai’s value-added services now account for almost 50% of its total revenues.
Revenues from the United States rose 5% YoY
Akamai’s revenues from the United States for 4Q15 rose 5% YoY to $416 million. For full year 2015, revenues from the United States rose 12% YoY to $1.6 billion. International revenues rose 17% YoY in 4Q15 to $163 million and 11% YoY to $593 million in calendar 2015. When adjusted for foreign exchange fluctuations, international revenues rose 27% and 24% YoY in 4Q15 and calendar 2015, respectively.
A strong US dollar (UUP) has impacted revenues of a number of tech firms, including heavyweights such as Apple (AAPL), IBM (IBM), and Cognizant Technology Solutions (CTSH).
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