Akamai Technologies misses quarterly revenue estimates on weak security demand

(Reuters) - Akamai Technologies missed estimates for quarterly revenue on Tuesday and projected a downbeat first quarter as it grapples with a slowdown in demand for its cloud security services.

Shares of the Cambridge, Massachusetts-based company fell about 5% in extended trading.

Most companies are on a tight tech budget and are even curbing their spending on cyber-security products this year as they undertake massive cost cutting to stay competitive in an uncertain economic environment.

Akamai counts the U.S. Department of Labor, the Census Bureau and the Department of Defense among its customers, besides private players like Roblox and Adobe.

Revenue for the fourth quarter came in at $995 million, missing estimates of $998.1 million, according to LSEG data.

On an adjusted basis, the company earned $1.69 per share compared with estimates of a profit of $1.60 per share.

Akamai forecast first-quarter revenue in the range of $980 million to $1 billion, slightly below analyst's estimates of $993.4 million.

It expects quarterly adjusted earnings per share between $1.59 and $1.64, compared with estimates of $1.59.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)

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