New Relic reported quarterly results late Tuesday that soundly beat estimates on the top and bottom lines. New Relic stock soared on the news.
The data analytics company reported adjusted earnings of 32 cents a share on revenue of $239.8 million. Analysts expected New Relic to report earnings of 15 cents on revenue of $232.7 million. Revenue jumped 18% from the year-ago period.
New Relic stock vaulted 13% higher to 72.90, during after-hours trading on the stock market today.
Results were for its fiscal third quarter ended Dec. 31.
Attracting New Customers At Record Rate
"We are attracting new customers at a rapid pace and growing with our existing customer base," New Relic Chief Executive Bill Staples said in a written statement with the news release. "Profitability is turning into a strength for New Relic as we continue to accelerate our focus on profitable growth."
New Relic provides data analytics, Big Data and cloud monitoring software. Companies use its cloud-based platform to visualize, analyze and troubleshoot their own software.
In addition, the massive volumes of information generated and used for decision-making in business today fuel the booming business of data analytics and Big Data companies.
"We have spent the last two years with our head down architecting our transformation," the company said in its news release.
The company added: "We've changed our business model from subscription to consumption pricing, shifted our product suite into an all-in-one platform, and re-accelerated growth by expanding into new markets like security."
New Relic stock has an IBD Composite Rating of 52 out of 99.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
