Varonis Systems' (NASDAQ:VRNS) stock price spiked Tuesday following the release of a better-than-expected third-quarter earnings report.
Shares of the cybersecurity and analytics company rose by as much as 13.3% in morning trading and were still up by 5.4% as of noon EDT.
Varonis delivered its Q3 results Monday afternoon and reported non-GAAP earnings of $0.06 per share, far better than analysts' consensus estimate for a loss of $0.13 per share. Revenue of $76.8 million also beat Wall Street's estimate of $70.2 million.
"New and existing customers continue to make larger initial investments in Varonis and consume more licenses over time, underscoring the logic behind our subscription transition and confirming that we are unleashing the potential of our platform," said CEO Yaki Faitelson in a press release.
The company's subscription revenue increased by an impressive 89% in the quarter and total sales rose by 17% year over year.
Varonis' strong Q3 results spurred many analysts to raise their price targets for the company's stock on Tuesday, and led analysts at Craig-Hallum to upgrade it from a hold rating to a buy.
Varonis said that its fourth-quarter revenue will be between $82 million and $85 million and that adjusted earnings per share will be in the range of $0.10 to $0.13. Including Tuesday morning's share price jump, Varonis stock is up by more than 66% year to date as investors continue to be optimistic about the company's future.