What happened

Shares of Hortonworks (NASDAQ:HDP) surged on Wednesday after the data management software company reported its second-quarter results. Both the top and bottom lines came in higher than analysts were expecting, and the company's guidance was ahead of estimates. The stock was up about 17% at 1:05 p.m. EDT.

So what

Hortonworks reported second-quarter revenue of $86.3 million, up 40% year over year and about $5.8 million higher than the average analyst estimate. CEO Rob Bearden pointed to strong adoption of the company's open-source global data management platforms as the driver behind the growth.

A rising stock chart.

Image source: Getty Images.

Non-GAAP earnings per share came in at a loss of $0.12, up from a loss of $0.44 in the prior-year period and $0.11 better than analysts were expecting. The company lost $0.52 per share on a GAAP basis, up from a loss of $0.87 per share in the second quarter of 2017. GAAP operating expenses rose by just 9% year over year, helping to knock down the losses.

Now what

In the third quarter, Hortonworks expects to produce revenue of $87 million, along with a non-GAAP operating margin between negative 14% and negative 10%. Analysts were anticipating revenue guidance of $82.9 million.

For the full year, Hortonworks sees revenue between $338 million and $343 million and a non-GAAP operating margin between negative 16% and negative 10%. That revenue range is above the $330.4 million analysts were forecasting.

While Hortonworks is still far from profitable, robust revenue growth and strong guidance have investors pushing up the stock.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.