Shares of SolarWinds Corp (SWI) surged 5.03% on Wednesday after the software company reported better-than-expected third-quarter financial results and raised its full-year guidance, driven by robust growth in its subscription business.

For the quarter ended September 30, 2024, SolarWinds posted revenue of $200.03 million, a 5.5% increase from the same period last year. This figure beat the consensus estimate of $194.09 million, according to Zacks Investment Research. Adjusted earnings per share (EPS) came in at $0.27, surpassing the $0.25 consensus estimate and representing an 8% earnings surprise.

The company's subscription revenue climbed 30.1% year-over-year to $76.46 million, reflecting strong demand for its cloud-based solutions. However, maintenance revenue declined 5% to $110.63 million. SolarWinds' adjusted gross margin dipped slightly to 90.5%, while its adjusted EBITDA margin improved by 310 basis points to 48%.