Why MobileIron Inc. Stock Soared Friday

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What happened

Shares of mobile information technology platform company MobileIron (NASDAQ: MOBL) jumped as much as 26.3% on Friday, following the company's fourth-quarter earnings release. The stock is up 18% at 12:40 p.m. EST.

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The stock's run-up on Friday is likely because MobileIron's fourth-quarter results were better than expected for both its top and bottom lines. In addition, MobileIron's record fourth-quarter revenue and billings were both well above its guidance going into the quarter.

So what

MobileIron's non-GAAP earnings per share in its fourth quarter were about breakeven. This was achieved with fourth-quarter revenue of $48.8 million, which was up 7% year over year. On average, analysts were expecting a non-GAAP loss per share of $0.03 on revenue of $46.5 million.

Management had guided for fourth-quarter revenue to be between $46 and $48 million, representing 1% to 5% revenue growth.

Also notable was MobileIron's meaningful acceleration in recurring revenue, which was up 15% year over year in Q4 compared to 12% in Q3.

The quarter marked MobileIron's first non-GAAP operating profit in its history.

Now what

Recently appointed CEO Simon Biddiscombe is optimistic about MobileIron's market opportunity:

For 2018's first quarter, management said it expects revenue between $42 million and $45 million, or flat revenue to 6% year-over-year growth. Similarly, management forecast gross billings to remain flat or increase up to 6% year over year.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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