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Barracuda Networks shares rise on profit beat, boosted by increase of active subscribers and billings

Barracuda Networks beats Street expectations

Shares of Barracuda Networks rose more than 8 percent Tuesday in premarket trade after the company reported a quarterly profit 8 cents above estimates, boosted by a 15 percent jump in active subscribers and a 13 percent increase in billings from a year earlier.

The stock later lost that momentum, ending the day only 1 percent higher.

On Monday, the California-based cybersecurity firm posted earnings per share of 22 cents on $88.8 million in revenue. Analysts projected it would report earnings of 14 cents a share on $86.6 million in revenue, according to Thomson Reuters consensus estimates.

The number of active subscribers exceeded 309,000 and dollar-based renewal rate was 90 percent for the quarter. It said billings for the quarter were $100.4 million, compared with $89.0 million last year.

"The threat landscape is complex and constantly evolving. As threats become more sophisticated, security remains a top priority for customers," President and CEO BJ Jenkins said in a statement.

The stock is up 30 percent in the past 6 months.

Barracuda Networks 5-day chart