Zix Corporation [NASDAQ:ZIXI] stock trading pair surged on Friday and easily made it to the top of the most active stocks on the market. The asset increased by over 34.63% on the day following a +2.85 relative change. ZIXI achieved an NLS volume of 4,305,613. Previously, the stock had closed at 8.23. Besides, ZIXI posted intraday high at $11.17 and a low at $8.82. In a period of 52 weeks, ZIXI posted highs around $9.06 and a low of $4.66.
Shares of Zix [NASDAQ:ZIXI] made an incredible turn on Friday following the release of the company’s Q1 results. The revenue of the email security provider surpassed expected margins giving the company a clear upward trajectory path for the rest of year.
According to the financial report, Zix’s revenue exploded in gains of more than 76% to $29.3 million year-over-year. However, it is important to note that the revenue has also included the cost Zix was purchased at from its owner, AppRiver, a cloudbased cybersecurity solutions provider. Removing the revenue from its acquisition cost, it means that the revenue grew 10% on a year-over-year basis. On the other hand, industry experst and analysts had estimated a revenue of about $27.2 million.
The earnings per share, following the non-GAAP standard decreased from $0.03 to $0.08 compared to the same financial quarter last year. The CEO of Zix David Wagner could not hide his excitement due to the revenue growth saying:
“The first quarter of 2019 was positive in a number of meaningful ways: we closed the acquisition of AppRiver, successfully executed on our previously communicated cost-savings initiatives, and delivered 20%+ growth of Monthly Recurring Revenue (MRR) at AppRiver along with 74% New First Year Orders growth at Zix.”
Following the formidable performance in the first quarter of 2019, the firm’s management readjusted raising the full year outlook to range between $167 million and $169 million. Prior, the management team had estimated the full year outlook to stay between $164 million and $167 million. Moreover, the non-GAAP EPS has been raised to stand at $0.40 and $0.42 from a previous forecast that placed it at $0.30 and $0.33.
[NASDAQ:ZIXI] Chart Outlook
Looking at the daily chart for this stock pair, we can spot a rising trend over a long period. ZIXI exchanged hands slightly above $5.00 in May 2018. The last 12 months have seen the stock trade higher highs and higher lows. Moreover, there was a sustained break above the 200EMA in January. The EMA200 has from the beginning of the year functioned as strong rebound zone for the stock which has also been trading above the trendline.
The gains on Friday have raised the bar for this stock. However, investors have their eyes open to see what happens after the ballistic rise. Will ZIXI continue rising? Will it consolidate above $10.00 or will we see a reversal? However, if the price maintains above the EMA200 and the trendline, ZIXI will stay in the positive zone in the coming months as we approach the next quarter’s report.