Akamai Technologies reports a second-quarter earnings beat

Yahoo Finance tech editor Dan Howley breaks down Akamai's second-quarter earnings reults.

Video transcript

DAVE BRIGGS: Some breaking news now. Cloud company Akamai reporting second quarter results just moments ago. Tech performer Dan Howley has the breakdown. Hey, Dan, what are you seeing?

DAN HOWLEY: That's right. We have a beat here on the top and bottom line. We have adjusted EPS of $1.35. That beats on expectations of $1.31. Revenue came in at $903 million versus expectations of $897.9 million. The company says that EPS-- adjusted EPS was down 5% year over year, but flat when you adjust for foreign exchange.

Revenue, meanwhile, was actually up 7% year over year, or 9% when adjusted for foreign exchange. Its security revenue was up 23% year over year. And its compute revenue was up 32% year over year. And then just looking at the stock price right now, it's relatively flat. I'm seeing it up less than 1%. So decent news here. Obviously, a beat is always good, but it doesn't appear that it's being very well received, or at least, too well received by the broader aftermarket traders.

SEANA SMITH: Dan, do you think a lot of that has to do with the fact that they're just seeing growth begin to slow? That year over year sales number that you throw out there, slowing to 6% from 7% pace of growth on a year over year basis. I guess, how big of a concern do you think that potentially is here for shareholders and for investors?

DAN HOWLEY: I think it's-- you know, you have these huge mega companies that are playing in the same space. You have smaller companies that are playing in the same space. You have the likes of, I mean, Microsoft and Amazon working at the compute space and security as well. So this is a company that's trying to be kind of a in the middle kind of firm when it comes to its offerings.

And I think that could be why you're seeing that kind of reaction. It's only moving up very slightly, so it's not, I don't think, a huge issue for investors. But obviously, the fact that it's kind of sandwiched between upstarts and big mega companies doesn't really help it in a space like this.

SEANA SMITH: All right, Dan Howley, thanks so much. Again, Akamai shares moving to the upside here in extended hours, up just about a half of a percent.