Shares of Zix (NASDAQ:ZIXI) briefly popped today, rising as much as 13% earlier in the session after the company reported third-quarter earnings results. The stock has since given back most of those gains and is now up less than 1% as of 1:46 p.m. EST.
Revenue in the third quarter was $54.8 million, topping the consensus estimate of $52.8 million. That resulted in adjusted net income of $9.2 million, or $0.17 per share, while Wall Street analysts were looking for just $0.15 per share in adjusted profits. The email cybersecurity technology company reported annual recurring revenue (ARR) of $222.3 million. Zix also said it had acquired data backup and recovery specialist CloudAlly.
"Cloud data back-up is a critical component of a secure modern workplace, and we believe it will further improve our standing with current and potential partners as we enable them to navigate and thrive in an increasingly work-from-anywhere world," CEO David Wagner said in a statement. "Our continued, efficient rate of new customer acquisition and the rapid adoption of our Secure Cloud platform both underscore our early success on this long-term secular market trend."
Guidance for the fourth quarter calls for revenue of $56.4 million to $57.4 million, which includes $1 million from CloudAlly. Analysts are expecting $54.8 million in sales next quarter. Adjusted EPS is forecast at $0.16 to $0.17, compared to the consensus estimate of $0.15. That should bring total revenue for 2020 to $217 million to $218 million.