ZIXI - Zix trades lower despite top line beat provides Q4 and FY outlook

Zix ([[ZIXI]] -3.7%) added 50,276 cloud mailboxes in Q3, bringing the total number of productivity mailboxes to over 1.1M.Reports revenue increase 15% to $54.8M, beating consensus by $1.06M.GAAP net loss totaled $0.7M, compares to a year ago loss of $1.6M.Non-GAAP EPS of $0.17 beats by $0.02; GAAP EPS of -$0.05 misses by $0.04.Q4 forecast: Revenue $56.4M-57.4M, implying 12-14% Y/Y growth; GAAP EPS (loss) ($0.09) - ($0.08); adjusted EBITDA margin ~25%.FY forecast: Revenue $217M-218M, implying 25-26% Y/Y growth; GAAP EPS (loss) ($0.28) - ($0.29); adjusted EBITDA margin ~24%.EBITDA margin expanded to 19.3% from last year's 16.6%CFO Dave Rockvam commented: “In the third quarter we delivered on our commitment to drive revenue growth as well as adjusted gross margin and adjusted EBITDA increases on an absolute basis, the latter two of which were up $0.3M and $1.1M from Q2 2020, respectively. We also produced strong cash flow from operations, generating $15.1M in the third quarter and $24.2M on a year-to-date basis.

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Zix trades lower despite top line beat, provides Q4 and FY outlook