Okta Shares Soar 18% After Beating Earnings Estimates
Shares of Okta, an identity management company, surged more than 18% in extended trading on Tuesday after the company released its third-quarter results, which exceeded analysts’ estimates. The company reported:
* Earnings per share of 67 cents, surpassing the estimated 58 cents by analysts
* Revenue of $665 million, exceeding the predicted $650 million
* Net income of $16 million, or 9 cents per share, compared to a net loss of $81 million, or 49 cents per share, in the same period last year
The company’s revenue increased 14% from $569 million in the same period last year. Okta’s subscription revenue came in at $651 million, beating the average analyst estimate of $635 million.
Okta CEO Todd McKinnon attributed the strong results to the company’s focused investments in its partner ecosystem, the public sector vertical, and large customers, which have contributed to the company’s top-line growth. McKinnon stated, “Our solid Q3 results were underpinned by continued strong profitability and cash flow.”
For the fourth quarter, Okta expects to report revenue between $667 million and $669 million, exceeding the estimated $651 million. The company expects to report earnings of 73 cents to 74 cents per share, also exceeding estimates.