What happened Shares of software-as-a-service company New Relic (NYSE: NEWR) skyrocketed on Tuesday, rising as much as 40.2%. When the market closed, the shares were up 38.5%. The tech stock gained so much ground because the company, which provides a platform for engineers to build and operate software, reported strong fiscal second-quarter results after the end of the trading day on Monday. Image source: Getty Images. So what For the fiscal period, which ended Sept. 30, New Relic's revenue rose 18% year over year to $196 million, crushing analysts' consensus forecast for revenue of $182.2 million. Its adjusted loss of $0.10 per share was narrower than the consensus estimate for a loss of $0.13 per share. "This quarter marks the completion of our business turnaround and the beginning of a new chapter of growth for New Relic," said CEO Bill Staples in the earnings release. During the period, the number of active customer accounts increased by 200 quarter over quarter to 14,300. Further, the share of revenue coming from active customer accounts contributing more than $100,000 in annualized revenue rose to 81%. Now what New Relic said it expects even higher revenue in its fiscal Q3. Management is guiding for revenue in the $198 million to $202 million range for the period. That would translate to year-over-year growth of 19% to 22%. The strong quarterly results and the robust guidance are in part due to the company's turnaround efforts. "We recently laid out five strategic priorities to guide our company forward, and we are pleased with the progress we've already made in advancing these objectives," said Staples in the earnings release. "Today, New Relic has a strong foundation for the future, as we continue our work to help millions of developers and engineers build better software by making observability a daily part of a data-driven engineering approach, across the entire software lifecycle." 10 stocks we like better than New RelicWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and New Relic wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool recommends New Relic. The Motley Fool has a disclosure policy.Source