What happened
Shares of Zix (ZIXI), a leader in email security, soared on Friday. The stock rose as much as 35.1% and is up 33% as of 2:00 p.m. EDT.
The stock's gain follows Zix's first-quarter results, which included better-than-expected revenue and a rosy outlook for the rest of the year.
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So what
Zix's revenue skyrocketed in its first quarter, rising 76% year over year to $29.3 million. But this revenue includes sales from its acquisition earlier this year of cloud-based cybersecurity solutions provider AppRiver. Excluding this acquisition, revenue was up 10% year over year. On average, analysts were expecting revenue of $27.2 million.
On a non-GAAP basis, Zix's earnings per share were $0.03, down from $0.08 in the year-ago quarter.
In Zix's first-quarter earnings release, CEO David Wagner was pleased about the company's recent performance: "The first quarter of 2019 was positive in a number of meaningful ways: we closed the acquisition of AppRiver, successfully executed on our previously communicated cost-savings initiatives, and delivered 20%+ growth of Monthly Recurring Revenue (MRR) at AppRiver along with 74% New First Year Orders growth at Zix."
Both revenue and the company's adjusted earnings per share were notably higher than management's guidance for the period.
Now what
Management raised its outlook for the full year, guiding for revenue between $167 million and $169 million. Previously, management expected revenue to be between $164 million and $167 million in 2019. In addition, management is now guiding for non-GAAP EPS between $0.40 and $0.42, up from a forecast for non-GAAP EPS between $0.30 and $0.33.
