Shares of enterprise mobility management provider MobileIron (NASDAQ:MOBL) surged on Monday following an announcement by the company that it was raising its guidance for the third quarter. At 11 a.m. EDT, the stock was up about 15%.
For the third quarter, which ended Sept. 30, MobileIron now expects gross billings in the range of $46.5 million to $47.5 million, up from previous guidance of $43 million to $45 million. Revenue will also come in higher than previously anticipated, with MobileIron now expecting between $41 million and $42 million of revenue, up from previous guidance of $39 million to $41 million.
Beyond billings and revenue, MobileIron provided a few other details. The company expects non-GAAP operating expenses to be at the low end of its previous guidance of $41 million to $43 million. Turning to the balance sheet, the company stated that it had roughly $80 million in cash and investments at the end of the quarter, down $6 million sequentially.
MobileIron CEO Barry Mainz summed up the company's strategy and results:
We've spent the last year putting together a new executive team, differentiating our platform, refining our go-to-market strategy, and focusing on execution. There's a big market in front of us and our results this quarter demonstrate that we're winning. We're very pleased with Q3 and we believe we're on track to be cash flow positive in the fourth quarter. I look forward to providing details on our regularly scheduled quarterly earnings conference call on October 27.
Even with the higher guidance, MobileIron's revenue will grow by just 10.5% year over year at the most during the third quarter. That's well below the rapid rate of growth experienced by the company in the past, and with GAAP net income squarely negative, it should be no surprise that the stock has tumbled since the company went public in 2014.
MobileIron's guidance boost provided some relief to investors on Monday, but the core problems of slow growth and big losses remain.