What happened
Shares of digital communication platform company SendGrid (SEND +0.00%) jumped as much as 14.6% on Wednesday, following its second-quarter earnings release. At the time of this writing, SendGrid stock is up about 13.1%.
The stock's gain on Wednesday was likely primarily because SendGrid reported better-than-expected second-quarter revenue and non-GAAP earnings. In addition, SendGrid's guidance for its third-quarter revenue was above a consensus estimate for the period.
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So what
SendGrid reported revenue of $35.7 million, up 32% year over year. On average, analysts were expecting second-quarter revenue of $34.4 million.
SendGrid's non-GAAP earnings per share (EPS) improved from $0.01 in the year-ago quarter to $0.05 in Q2. On average, analysts were expecting non-GAAP EPS of $0.01 for SendGrid's second quarter.
SendGrid CEO Sameer Dholakia said the results were "strong," pointing to the company's "accelerating sequential revenue growth, improving gross margins driving sharply higher profitability, and strong free-cash-flow generation."
Now what
SendGrid said it now expects full-year revenue to be between $142.5 million and $144 million, representing 28% year-over-year growth. This compares to previous guidance for full-year revenue between $140.3 million and $142.3 million.
SendGrid's guidance for third-quarter revenue between $35.9 million and $36.1 million was above a consensus analyst estimate for third-quarter revenue of $35.4 million.
