What happened 

Shares of Vuzix (VUZI -0.62%), a smart-glasses and augmented reality company, soared today after the company reported its second-quarter financial results. While the company's bottom line missed Wall Street's expectations, Vuzix's revenue outpaced analysts' consensus estimate in the quarter. 

The tech stock had jumped 21.8% as of 11:54 a.m. ET.  

So what 

Vuzix reported a second-quarter non-GAAP (adjusted) loss of $0.16 per share, down from a loss of $0.15 in the year-ago quarter and missing Wall Street's average estimate of a loss of $0.15.

A person looking at a computer.

Image source: Getty Images.

But investors overlooked the company's bottom line and instead focused their attention on Vuzix's sales, which increased by 3% year over year to $3 million and slightly beat analysts' consensus estimate of $2.9 million for the quarter. 

"Despite the macro challenges that persisted throughout our second quarter, we were able to achieve both sequential and modest year-over-year product sales growth," Vuzix CEO Paul Travers said in a press release. 

The company's research and development expenses increased by 10% in the quarter to $3 million, partially related to new investments in the company's Shield smart glasses.

Additionally, Vuzix management said that its selling and marketing costs increased by 37% in the quarter to $1.9 million "primarily due to increases in salary and benefits expenses due to headcount increases."

The increase in spending in these categories likely weighed down the company's bottom line in the quarter. 

Now what 

While investors were clearly happy that Vuzix beat Wall Street's revenue expectation in the quarter, investors should keep a close eye on the company's bottom-line losses as well as the company's rising costs. 

Vuzix investors should also be prepared for more volatility. The company's share price has soared 49% over the past six months but its stock is still down 27% over the past 12 months.