RALEIGHBandwidth continues to defy Wall Street expectations.

On Wednesday, the Cary-based software developer reported a second quarter profit of $3.5 million, or 14 cents per share. Losses, adjusted for one-time gains, came to 4 cents per share.

Compare that to a loss of 17 cents per share – the average estimate of five analysts surveyed by Zacks Investment for the company.

The firm also posted revenue of $56.8 million during that period, surpassing Street forecasts of $55 million.

“I am very pleased to report that our second quarter results exceeded our expectations on both the top and bottom lines,” Bandwidth CEO David Morken said in a conference call shortly after announcing the results. “Our CPaaS (communications platform as a service) revenue increased 20 percent year-over-year driving total revenue.”

In the call, he also announced a five-year multi-million dollar agreement “in principal” to provide CPaaS services for a Fortune 500 company. He didn’t identify the company but said it “offers communications and technology solutions for residential small business and enterprises across the United States.”

The news gave a boost to Bandwidth shares, which have risen around 83 percent since the beginning of the year. By late Wednesday, shares hit $74.50. That’s more than double to the year before.

“While Bandwidth has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?” an analyst wrote for Zachs Equity Research.

“It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.11 on $60.74 million in revenues for the coming quarter and -$0.48 on $234.48 million in revenues for the current fiscal year.”

Bandwidth reports stronger quarter than Street forecast; stock rallies