Bandwidth Inc., a communications technology services company, reported third quarter earnings and revenue that beat Wall Street expectations due to a one-time gain of income tax benefit.

The Raleigh-based company reported net income of $2.5 million, or 12 cents per share, in the quarter, compared to net income of $1.4 million, or 11 cents per share, in the third quarter a year ago.

Analysts surveyed by Zacks Investment Research were expecting a loss of 20 cents per share.

However, excluding the one-time gain of $4.2 million income tax benefit from option exercises, Bandwidth reported a non-GAAP net loss of $1.0 million, or 5 cents per share, in the quarter, compared to a non-GAAP net income of $2.2 million, or 15 cents per share, in the third quarter a year ago.

Revenue was $50.5 million, up 22 percent from revenue of $41.3 million in the third quarter a year ago.

“We continued our trend of surpassing expectations during the third quarter and delivered strong financial results. We grew CPaaS revenue 24 percent year-over-year and expanded customer relationships evidenced by our 117% dollar-based net retention rate,” stated David Morken, chief executive officer of Bandwidth, in a statement.

Bandwidth’s shares rose $4.92 to $54.49 in after-hours trading on Tuesday. The earnings were released after the market closed.

The company projects fourth-quarter revenue to be between $49.1 million and $49.6 million and full year revenue to be between $200.8 million and $201.3 million.

The company went public last year. In the four quarters since it has been a public company, it has beaten Wall Street expectations.

Companies such as Google, Microsoft, and Ring Central use Bandwidth’s APIs to embed voice, messaging and 9-1-1 access into software and applications.