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.
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.
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.
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.