CAMBRIDGE, Mass. - Akamai Technologies, Inc. (NASDAQ: NASDAQ:AKAM) has announced that its API Security product is now compliant with the Payment Card Industry Data Security Standard (PCI DSS) version 4.0, a key benchmark for secure handling of credit card information by organizations.
Alongside this achievement, the company reported a significant increase in customer demand for its API Security product, with a growth rate exceeding 200% since its launch in August 2023.
The newly added compliance underscores the importance of robust API security in the current digital landscape, where APIs are integral to payment processing and handling sensitive cardholder data. Akamai's API Security, enhanced by the acquisition of Neosec last year, has been commended for its native connector feature, which expedites production deployment, and its ability to instantly block threats using App & API Protector.
Akamai's latest State of the Internet report highlights that nearly one-third of web attacks target APIs, emphasizing the critical role of API security in operational security and user experience. Clients from various sectors, including hospitality and retail, have lauded the product for its real-time monitoring and intuitive operation.
Haim Inger, CTO of Clal Insurance and Finance, praised Akamai API Security for its performance and the insights provided into their API estate, which required no additional effort to understand. Customer feedback on Gartner (NYSE:IT)® Peer Insights™ further supports the product's reputation for real-time monitoring, rate limiting mechanisms, and seamless integration with existing systems.
Rupesh Chokshi, Senior Vice President and General Manager of Application Security at Akamai, reflected on the growing reliance on APIs by organizations and the consequent need for secure API solutions like Akamai's PCI DSS-compliant product.
This announcement is based on a press release statement and provides a glimpse into how organizations are leveraging API Security for visibility into their API estate through continuous discovery and monitoring, as illustrated in customer stories from HiBob, EarnIn, and Dan Hotels.
Akamai Technologies continues to offer solutions to keep digital experiences secure for companies and their users globally.
InvestingPro Insights
Akamai Technologies, Inc. (NASDAQ: AKAM) has not only made strides in enhancing their API Security product but also shows a promising financial outlook according to InvestingPro data. The company has a market capitalization of $15.46 billion and maintains a solid gross profit margin of 60.44% over the last twelve months as of Q4 2023. This profitability is reflected in their operating income margin of 18.56% during the same period.
InvestingPro Tips suggest that Akamai's management has been actively engaged in share buybacks, which can be a positive signal about the company's confidence in its future. Moreover, 11 analysts have revised their earnings estimates upwards for the upcoming period, indicating a potential upside in the company's financial performance.
It is worth noting, however, that Akamai is trading at a high P/E ratio of 28.18, which may suggest that the stock is priced at a premium relative to near-term earnings growth.
For those interested in a deeper dive into Akamai's financial health and future prospects, InvestingPro offers additional insights, with a total of 9 tips available for investors. Utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and explore how these insights can inform your investment decisions.
With a next earnings date set for May 9, 2024, investors and potential investors will be keen to see how the company's financials have been impacted by the increased demand for its API Security product and its compliance with PCI DSS version 4.0. Akamai's focus on security in the digital space seems to be paying off, not just in product accolades but also in its financial growth and stability.
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