Shares in data integration software company Talend SA rose 2% in after-hours trading today after it reported third-quarter results that beat expectations thanks to solid growth in its cloud business.

The company reported a loss before certain costs such as stock compensation of 8 cents per share on revenue of $62.6 million, up 20% from the same period a year ago. Wall Street had Talend down for a much bigger 23-cent loss on revenue of $62.14 million.

Talend sells data integration software that merges information from multiple sources into a single view. The company said its success in the quarter was primarily thanks to strong sales of its Talend Cloud product, which was launched in 2016 and saw revenue more than double year-over-year for the thirteenth successive quarter. Talend Cloud sales now represent 49% of the company’s annual recurring revenue, officials said.

Talend predicted that its cloud business will continue growing quickly, given that it just announced availability of Talend Cloud on Microsoft Azure in the previous quarter.

“The progression of our cloud business is the most important trend,” Talend Chief Executive Officer Mike Tuchen (pictured) told SiliconANGLE in an interview. “We now have more than 2,000 customers, more than half our total customers. Our deal sizes are growing too, with triple the number of $100,000-plus customers in the cloud from a year ago.”

Tuchen said Talend was profiting from the multicloud and hybrid cloud trends, in which enterprises are increasingly using cloud services from multiple public cloud providers in addition to their own data centers. He said that’s a growing phenomenon and that even the company’s most “cloud-averse” customers, such as banks, were finding it hard to ignore. Of course, Talend benefits from hybrid cloud because it means there’s even greater demand for its data integration tools.

“It’s going to be hybrid for many years to come,” Tuchen said. “The vast majority of companies are using multiple clouds. Surveys show that trend increasing, not decreasing.”

For the fourth quarter, the company said it expects to see a loss of 19 to 22 cents per share on revenue of $65.4 million to $66.4 million. That’s more or less in line with Wall Street’s forecast, which has Talend down for a 19-cent loss on revenue of $66.4 million.

With reporting from Robert Hof

Photo: Talend/Twitter