Why Are Investors Cheering iClick Interactive Asia Stock?

Chinese enterprise and marketing cloud platform iClick Interactive Asia Group Ltd ICLK reported second-quarter FY21 revenue growth of 34% year-on-year to $78 million, beating the analyst consensus of $74.7 million.
Segments: Marketing Solutions revenue increased 22% Y/Y to $64.6 million.
Enterprise Solutions' revenue jumped 160% Y/Y to $13.4 million.
Driver: Gross billings increased 46% Y/Y to $194.2 million from higher marketers' demand, especially from the banking, finance, automobile, and petroleum sectors.
Margin: The gross margin expanded 261 bps to 31.2% due to expansion of the Marketing Solutions and contribution from higher-margin Enterprise Solutions.
Adjusted net income per ADS of $0.03 beat the consensus of $0.02.
iClick held $103.7 million in cash and equivalents.
Share Buyback: The board approved an upsized share buyback program from the previous $15 million to the current $25 million.
Outlook: iClick sees Q3 revenue from Enterprise Solutions of $17 million - $20 million and Marketing Solutions of $65 million - $75 million.
For FY21, iClick's revenue outlook is unchanged at $318 million - $338 million versus the consensus of $331.19 million. Revenue from Enterprise Solutions outlook remains at $62 million - $68 million.
Management: CEO Jian T.J. Tang was also appointed as the Chair succeeding Sammy Hsieh.
Price Action: ICLK shares traded higher by 14.5% at $5.30 on the last check Wednesday.

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