Shares of Zix (ZIXI) have jumped today, up by 11% as of 1 p.m. EDT, after the company reported first-quarter earnings. The email cybersecurity specialist beat revenue expectations but modestly cut its guidance for 2020.
Revenue in the first quarter increased 79% to $52.4 million, topping the consensus estimate of $45.5 million. That translated into adjusted earnings per share of $0.12, $0.01 shy of the $0.13 per share in adjusted profits that analysts were expecting. Annual recurring revenue (ARR) grew to $214.3 million.
"Our stable financial performance and uninterrupted operational execution in the first quarter is a testament to our team's unwavering commitment to helping our customers and partners meet the challenges of today's remote work environment," CEO David Wagner said in a statement. "The COVID-19 pandemic is accelerating digital transformation and is increasing the need for robust business communications solutions that ensure organizations remain secure, compliant and productive."
Zix expects revenue in the second quarter to be in the range of $52 million to $53 million, which should translate into adjusted earnings per share of $0.12 to $0.14, compared to the consensus estimate of $0.13 per share in adjusted profits in the coming quarter.
The tech company cut its revenue forecast for 2020, which now calls for revenue of $210 million to $217 million this year, down from a prior range of $220 million to $225 million. Adjusted earnings per share for 2020 is still expected to be $0.56 to $0.58, unchanged from the previous outlook.