Shares of New Relic (NYSE:NEWR) have popped today, up by 12% as of 12:20 p.m. EST, after the company reported fiscal second-quarter earnings results. The cloud-based software analytics company beat expectations for both the top and bottom lines.
Revenue in the second quarter came in at $114.9 million, which led to non-GAAP earnings per share of $0.13 (when excluding the impact of adopting new revenue recognition standards). Consensus estimates had called for $112.2 million in sales and an adjusted profit of $0.12 per share. New Relic now has 786 paid business accounts that spend over $100,000 per year, up from 586 a year ago.
The company finished the quarter with $731.1 million in cash on the balance sheet.
"Results for the second quarter exceeded our expectations and marked a successful first half of FY19," CEO Lew Cirne said in a statement. "Enterprise DevOps teams are under pressure to move faster and deliver high-performing software, at scale. That's why they're increasingly adopting New Relic as the single platform to manage the performance of their critical digital initiatives -- from the customer experience, through applications to the underlying infrastructure."
On the earnings call, Cirne also added, "We see no end to the trend of software being used more and more often to improve business outcomes, from driving revenue, to increasing productivity, to building brand value."
Outlook for the fiscal third quarter was also strong. New Relic expects revenue to be in the range of $118.5 million to $120.5 million, with non-GAAP earnings per share of $0.12 to $0.13. Analysts are currently modeling for $117.7 million in sales with adjusted earnings per share of $0.09.