What happened

Shares of Anaplan (NYSE:PLAN) jumped on Thursday after the software-as-a-service provider reported its third-quarter results. Revenue and earnings beat expectations, and the company raised its outlook for the full year. The stock was up about 7.8% at 12:30 p.m. EST, after being up as much as 13.3% earlier in the day.

So what

Anaplan reported third-quarter revenue of $89.4 million, up 44% year over year and about $2.9 million higher than the average analyst estimate. Subscription revenue was $79.7 million, up 47%. The company's dollar-based net expansion rate, which measures how much revenue is generated from existing customers, was a healthy 123%.

A rising chart.

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Non-GAAP (adjusted) earnings per share came in at a loss of $0.08, an improvement from a loss of $0.18 in the prior-year period, and $0.05 better than analysts were expecting. Anaplan posted a $34.7 million net loss on a GAAP basis, compared to a loss of $51.2 million in the prior-year period. Sales and marketing spending was equivalent to 68% of total revenue.

"It's been impressive to see how Connected Planning has resonated throughout the enterprise planning ecosystem. We hear consistently from our customers that the value they see with our platform is essential and a major competitive advantage," said Anaplan CEO Frank Calderoni.

Now what

For the fourth quarter, Anaplan expects to produce revenue between $96.5 million and $97.5 million, along with a non-GAAP operating margin between negative 14% and negative 15%.

For the full year, the company boosted its guidance. Anaplan now expects revenue between $346 million and $347 million, up from a previous range of $339 million to $343 million. Non-GAAP operating margin is now expected between negative 17% and negative 18%, improved from a previous range of negative 19.5% to negative 20.5%.

While Anaplan is growing sales quickly, the stock is expensive. With a market capitalization of around $6.9 billion, the price-to-sales ratio is just about 20. Shares of the SaaS company have now nearly doubled since the start of the year.