SAN FRANCISCO -- VMware ( VMW) stretched for a new high Thursday on the strength of its first earnings report Wednesday.

Stock in the Palo Alto, Calif., virtualization software company was recently up $10.58, or 10.2%, to $114.10. That price gives the company a market cap of $44 billion, surpassing that of Yahoo! ( YHOO) at $42 billion.

VMware had reached as high as $115.95 in morning trading. Its previous intraday high was set Oct. 11 at $114.88.

The company reported third-quarter revenue of $357.8 million , up 89.5% year on year, and beat analysts' earnings per share expectations by 6 cents.

The stock has risen 119% from its first public trade at $52.11 on Aug. 14. VMware was offered at $29 the day before. The company remains 86% owned by EMC ( EMC).

VMware expects its 90% growth rate to stay relatively constant, CFO Mark Peek said on a conference call with analysts Wednesday.

Virtualization software enables companies to run multiple operating systems on a single server, helping businesses make more efficient use of equipment and reduce energy consumption. Server use is currently estimated at 15%, but virtualization software typically raises that to 60% or better.