Barracuda Logo.

Image source: Barracuda Networks.

What: Shares of Barracuda Networks Inc. (NYSE: CUDA) were flying higher today after the software services provider blew past estimates in its fourth-quarter earnings report. As of 12:25 p.m. ET, the stock was up 16.7%.

So what: The company posted a per-share profit of $0.15, nearly double expectations of $0.08, while revenue jumped 16% to $83.7 million easily beating the consensus of $80.9 million. The results were a solid improvement over the quarter a year ago when Barracuda posted a per-share profit of $0.07. CEO BJ Jenkins said, "We continue to build momentum in our core focus areas and are pleased with the initial results of our efforts to capitalize on the fastest-growing trends in our markets." Barracuda's active subscriber count also grew by 14% from the quarter a year ago.

Recent improvements to the company's suite of products include launching Barracuda essentials for Office 365 and an enhanced web application security portfolio.

Now what: For the current year, Barracuda's guidance was also strong as it expects EPS of $0.45-$0.50, better than analyst estimates of $0.43. However, revenue for the current year is projected at $337 million-$342 million, less than analyst expectations of $347.2 million. 

Considering Barracuda shares had fallen sharply in each of its three previous earnings reports, it was refreshing to see the company post a solid earnings beat and better-than-expected guidance. After declining more than 50% from their peak last year, shares seem more reasonably valued now. Other metrics, like an improving renewal rate to 96%, seem to indicate that Barracuda has put those tough times behind it.