What happened

Shares of Mimecast (NASDAQ:MIME) popped on Tuesday, rising as much as 20.6%. As of 1:15 p.m. EST today, the stock was up 13.2%.

Shares of the email and data security company were up because of the company's fiscal third-quarter earnings release, which featured better-than-expected revenue and adjusted earnings per share.

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So what

For its third quarter of fiscal 2019, Mimecast reported revenue of $87.6 million, up 30% year over year. Non-GAAP earnings per share were $0.09, up from $0.03 in the year-ago period. On average, analysts were expecting revenue of about $84.8 million and non-GAAP earnings per share of $0.06. 

And it's important to note that free cash flow of $10.8 million during the quarter was a big jump from the $4.5 million generated in the year-ago quarter.

The results were driven by new customer acquisition, increased adoption of the company's expanded offerings, and record customer retention, management said in Mimecast's third-quarter earnings release.

Now what

For its current quarter, management said it expects revenue between $90.6 million and $91.5 million. This is above a consensus analyst forecast for revenue of $87.8 million during the period.

Looking to fiscal 2020, management said it expects revenue between $413 million and $427 million, easily higher than analysts' average forecast of approximately $405 million in revenue during the period.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of Mimecast. The Motley Fool has a disclosure policy.