Shares of Zix (NASDAQ:ZIXI) have gotten clobbered today, down by 23% as of 1:50 p.m. EDT, after the email cybersecurity specialist reported second-quarter earnings. The results were slightly ahead of expectations, but investors may have been looking for more given it's among the types of companies that are benefiting from the shift to remote work.
Revenue in the second quarter was $53.3 million, ahead of the $51.6 million in sales that Wall Street was anticipating. That resulted in adjusted net income of $8 million, or $0.15 per share. Analysts were modeling for $0.14 per share in adjusted profits. The email cybersecurity technology company added over 56,000 cloud mailboxes in the second quarter, bringing its total to nearly 1.1 million.
"The dramatic shift to remote work in the second quarter allowed us to support our customers and partners more assertively than ever before," CEO David Wagner said in a statement. "Even under that strain, we again delivered profitable growth with 16% revenue growth and 18% adjusted EBITDA growth, further demonstrating the resiliency of our operating model and the importance of secure remote work to our partners and customers."
Zix's outlook for the third quarter calls for revenue of $53.5 million to $54 million, compared to the consensus estimate of $52.8 million. Adjusted earnings per share should be $0.15 to $0.16, which is roughly in line with analysts' expectation of $0.15 per share. Adjusted EBITDA margin should be in the range of 24% to 25%.