Apptio ( APTI ) stock catapulted more than 20% Tuesday after the provider of information-technology business management software reported a narrower third-quarter loss, with revenue topping expectations.
[ibd-display-video id=2469617 width=50 float=left autostart=true]In recent trades, shares had soared by 20.2% to 22.77 on the stock market today .
Bellevue, Wash.-based Apptio said it lost 2 cents per share vs. a per-share loss of 16 cents a year earlier. Analysts had projected a 10-cent loss. Revenue rose 16% to $47 million, topping views of $44.9 million.
Management guided to positive free cash flow for the year, up from its earlier break-even outlook. Management also said it’s targeting the federal government market.
“Q3 results lend good support to our thesis that Apptio’s markets are early in evolution, and the company is the best-positioned software-as-a-service vendor in the category for the future,” Brian Schwartz, an Oppenheimer analyst, said in a note to clients.
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Apptio had been up 3% in 2017 prior to the release of Q3 earnings.
“Apptio’s results included upside on subscription billings, as well as gross operating margin,” said Ross MacMillan, an RBC Capital analyst in a report.
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