Q1 Earnings Highs And Lows: F5 (NASDAQ:FFIV) Vs The Rest Of The Content Delivery Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at content delivery stocks, starting with F5 (NASDAQ:FFIV).

The amount of content on the internet is exploding, whether it is music, movies and or e-commerce stores. Consumer demand for this content creates network congestion, much like a digital traffic jam which drives demand for specialized content delivery networks (CDN) services that alleviate potential network bottlenecks.

The 4 content delivery stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.

Luckily, content delivery stocks have performed well with share prices up 14% on average since the latest earnings results.

Weakest Q1: F5 (NASDAQ:FFIV)

Initially started as a hardware appliances company in the late 1990s, F5 (NASDAQ:FFIV) makes software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyberattacks.

F5 reported revenues of $731.1 million, up 7.3% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations.

The stock is up 7% since reporting and currently trades at $283.53.

Read our full report on F5 here, it’s free.

Best Q1: Fastly (NYSE:FSLY)

Founded in 2011, Fastly (NYSE:FSLY) provides content delivery and edge cloud computing services, enabling enterprises and developers to deliver fast, secure, and scalable digital content and experiences.

Fastly reported revenues of $144.5 million, up 8.2% year on year, outperforming analysts’ expectations by 4.8%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.

Fastly delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 24% since reporting. It currently trades at $7.45.

Is now the time to buy Fastly? Access our full analysis of the earnings results here, it’s free.

Cloudflare (NYSE:NET)

Founded by two grad students of Harvard Business School, Cloudflare (NYSE:NET) is a software-as-a-service platform that helps improve the security, reliability, and loading times of internet applications.

Cloudflare reported revenues of $479.1 million, up 26.5% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations.

Cloudflare delivered the fastest revenue growth but had the weakest full-year guidance update in the group. Interestingly, the stock is up 35.9% since the results and currently trades at $169.20.

Read our full analysis of Cloudflare’s results here.

Akamai (NASDAQ:AKAM)

Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers.

Akamai reported revenues of $1.02 billion, up 2.9% year on year. This print met analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and EPS guidance for next quarter topping analysts’ expectations.

Akamai achieved the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 11% since reporting and currently trades at $76.17.

Read our full, actionable report on Akamai here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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