Barracuda Networks (CUDA) blew past Wall Street's expectations when it reported fiscal 2017 third-quarter earnings late on Monday.

After Mondays' closing bell, the data-backup and security software provider posted adjusted earnings of 22 cents per share on revenue of $88.8 million, which was higher than analysts' estimates of 14 cents per share and $86.6 million in revenue.

Shares of Barracuda were higher by 1.4% to $24.09 in morning trading on Tuesday and are up more than 10% for the year.

The star of Barracuda's earnings was its billings segment, which reached $100.4 million during the quarter, up from $89.0 million in the same period last year. Wall Street projected billings of $98.4 million for the most recent quarter. Core product billings grew 30% year-over-year to $61.6 million.

The Campbell, CA-based company develops a firewall program used by many leading cloud services, including  Amazon's (AMZN) - Get Report Amazon Web Services,  Alphabet's (GOOGL) - Get Report Google Cloud Platform and Microsoft's (MSFT) - Get Report  Azure, as well as its Office 365 cloud-based email service.

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Barracuda added more than 1,000 customers during the period, largely because more customers are shifting toward cloud-based email services, such as Office 365, and are looking for a firewall program to provide backup security and data protection, Barracuda CEO William Jenkins said on an earnings call late Monday. 

The company now expects billings to be in the range of $100 million to $103 million in the fourth quarter, which is in-line with analysts' estimates of $100.3 million. 

Following the earnings, Wall Street was mostly bullish on Barracuda shares, with a few issuing upgrades and raising price targets. Here's what they had to say: 

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Mark Kelleher, Davidson (Upgraded to Neutral from Underperform, Price Target raised to $25 from $22)

"Barracuda delivered a solid quarter with operating leverage that we believe is sustainable, and we have increased our EPS and price target accordingly. With our new EPS assumption for calendar 2018, we believe Barracuda stock is close to fair valuation."

Gur Talpaz, Stifel (Buy, $32 Price Target)

"Barracuda's fortunes continue to rise with the tide of SMB cloud adoption, with the persisting migration of workloads away from on-premise to the cloud continuing to drive an acceleration in demand for the company's cloud-delivered solutions, particularly its Essentials for Office 365 offering...When considering the transition of workloads away from on-premises to the cloud remains very much ongoing, we believe the adoption of Barracuda's Essentials for Office 365 offering could still be in the early days and that the company remains in the early innings of the broad cloud growth opportunity.

Erik Suppiger, JMP Securities (Market Perform) 

"We came away from the [earnings] call with three takeaways: 1) core product billings growth accelerated 22% year-over-year on an organic basis from 9% last quarter, indicating that the company's increased focus on high-growth areas is beginning to bear fruit,; 2) Barracuda added 1,000 Essentials for Office 365 customers in the quarter to bring its total customer count to 2,000, driven by strong demand for advanced email security; and 3) while were encouraged by the results in the quarter, we continue to feel Barracuda is farily valued..."

Rob Owens, Pacific Crest Securities (Overweight, $30 PT) 

"All metrics exceeded forecast during the quarter as the cloud transition and modest compression in legacy product billings continue to bear fruit. Further, predicated on the revenue overage and better expense controls, bottom-line performance meaningfully outpaced expectations: operating margins were 580 basis-points ahead of expectations." 

Andrew Nowinski, Piper Jaffray (Overweight, $32 PT) 

"We believe the company is well-positioned across all three markets (email, NGFW and backup storage), which should drive upside to the modest 8% growth the Street is expecting in FY18. While management said they intend to continue investing to support the growth of Core Products over the next few quarters, we expect EBITDA margins to continue expanding longer-term."

Sterling Auty, JP Morgan (Overweight, PT raised to $33 from $28)

"Outside of  Mimecast, Barracuda Networks is doing a very good job capitalizing on the shift to the cloud. While initially this was driven primarily by selling into customers utilizing Microsoft Azure, over the last couple of quarters we are seeing a significant increase in Amazon Web Services related revenue. We now believe Barracuda can drive revenue growth sustainably into the low double digits and as that progression happens we expect the stock to continue to outperform."