Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of j2 Global have skyrocketed today by as much as 14% after the company posted record earnings results.
So what: Revenue in the fourth quarter hit a new record of $102 million, which absolutely crushed the $91.9 million that the Street was expecting. Non-GAAP earnings per share of $0.70 was also well ahead of the $0.62 per share consensus estimate. There were numerous other records set too, such as quarterly EBITDA of $52.3 million and a cancel rate of 2.2%.
Now what: CEO Hemi Zucker highlighted that j2 Global's cancel rate hit the lowest level in its history as evidence that the company is successfully delivering its value proposition to customers. The company also continues to pursue larger acquisitions to grow its cloud business and recently purchased IGN, a website for gaming. Guidance for 2013 calls for sales of $500 million to $525 million, with non-GAAP earnings per share of $2.65 to $2.85.
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The article Why j2 Global Shares Skyrocketed originally appeared on Fool.com.
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