Akamai Technologies, Inc. (NASDAQ:AKAM) stock fell 7.72% (As on May 10, 11:12:11 AM UTC-4, Source: Google Finance) after the company posted mixed result for first quarter of FY 24. Security revenue was $491 million, up 21% year-over-year and when adjusted for foreign exchange. Delivery revenue was $352 million, down 11% year-over-year and down 10% when adjusted for foreign exchange. Compute revenue was $145 million, up 25% year-over-year and when adjusted for foreign exchange. U.S. revenue was $512 million, up 8% year-over-year. International revenue was $475 million, up 7% year-over-year and up 8% when adjusted for foreign exchange. Non-GAAP income from operations was $292 million, an 11% increase from first quarter 2023. Non-GAAP operating margin for the first quarter was 30%, up 1 percentage point from the same period last year. Non-GAAP net income was $255 million, a 17% increase from first quarter 2023. Adjusted EBITDA was $417 million, an 11% increase from first quarter 2023. Cash from operations for the first quarter of 2024 was $352 million, or 36% of revenue. Cash, cash equivalents and marketable securities was $2.3 billion as of March 31, 2024.

AKAM in the first quarter of FY 24 has reported the adjusted earnings per share of $1.64, beating the analysts’ estimates for the adjusted earnings per share of $1.61, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 8 percent to $987 million in the first quarter of FY 24, missing the analysts’ estimates for revenue of $989.2 million.

For the current quarter ending in June, Akamai Technologies expects its per-share earnings to range from $1.51 to $1.56, versus estimates of $1.63 per share. The company said it expects revenue in the range of $967 million to $986 million for the fiscal second quarter, versus expectations of $1 billion.

Akamai Technologies expects full-year earnings in the range of $6.20 to $6.40 per share compared to market estimates of $6.73, with revenue ranging from $3.95 billion to $4.02 billion, versus expectations of $4.08 billion.

Meanwhile, the company has entered into a definitive agreement to acquire application programming interface (API) security company, Noname Security. Noname, one of the top API security vendors in the market, will enhance Akamai’s existing API Security solution and accelerate its ability to meet growing customer demand and market requirements as the use of APIs continues to expand. Akamai also expects to gain greater scale with Noname’s additional sales and marketing resources, and established channel and alliance relationships.