05:07 PM EDT, 05/09/2024 (MT Newswires) -- Akamai Technologies' ( AKAM ) first-quarter revenue fell short of Wall Street's estimates, dragged down by weakness in content delivery solutions, while the cloud computing company late Thursday offered a downbeat outlook for the ongoing three-month period.

Revenue grew 8% annually to $987 million but trailed the Capital IQ-polled consensus of $989.2 million. Adjusted per-share earnings rose to $1.64 during the quarter ended March 31 from $1.40 a year ago, above the Street's $1.61 view.

The stock was sliding 8.7% in after-hours trade.

Revenue from delivery solutions slid 11% year-over-year to $351.8 million, while Akamai's ( AKAM ) security solutions reported a 21% jump to $490.7 million. Compute sales advanced by 25%.

Akamai ( AKAM ) expects second-quarter revenue of $967 million to $986 million, lower than market expectations for $1 billion. The company anticipates reporting adjusted EPS of $1.51 to $1.56, missing the $1.64 consensus view.

For the full year, the company projected $3.95 billion to $4.02 billion in sales, below analysts' $4.08 billion estimate. Adjusted EPS is pegged at $6.20 to $6.40, versus the Street's view for $6.73.

The company said in February that it expected consolidated 2024 revenue to grow 6% to 8% year-over-year at constant currencies and adjusted EPS to rise 7% to 11%.

"Our updated full-year 2024 guidance reflects the impacts of the strengthening US dollar, a large social media customer optimizing costs, and slowing traffic growth across the industry," Chief Financial Officer Ed McGowan said in a statement. "It also reflects increased full-year expectations for our security and compute solutions.''

Akamai ( AKAM ) said Thursday it authorized a new $2 billion share repurchase program that adds to the company's remaining authorization of $412 million as of March 31. The new program runs through June 30, 2027.

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