Nov 7 (Reuters) - Akamai Technologies ( AKAM ) forecast
fourth-quarter revenue below estimates on Thursday, expecting a
pullback in spending on its cloud and content delivery services
by clients grappling with an uncertain macroeconomic
environment.
Shares of the Cambridge, Massachusetts-based company fell 9%
in extended trading.
Higher-for-longer interest rates and sticky inflation have
prompted clients to tighten their purse strings, hurting firms
such as Akamai ( AKAM ), which provides services to deliver web content
faster, as well as cybersecurity software.
The company expects fourth-quarter revenue in a range of
$995 million to $1.02 billion, compared with analysts' average
estimate of $1.03 billion, according to data compiled by LSEG.
Slowing traffic growth and a large social media customer
optimizing its business to reduce costs had also impacted the
company's sales, Akamai ( AKAM ) said in May.
Overall traffic growth levels have still not begun to
rebound, D.A. Davidson analysts said in a note in August.
Akamai's ( AKAM ) third-quarter revenue rose 4% to $1.01 billion,
compared to estimates of $999 million.
Its customers include Adobe, eBay ( EBAY ) and
Electronic Arts ( EA ), as well as the U.S. Defense and Labor
departments.
It forecast fourth-quarter adjusted net income per share
between $1.49 and $1.56, compared with estimates of $1.62 per
share.