Okta Shares Soar 18% After Beating Analyst Estimates
Identity Management Company Sees Strong Profitability and Revenue Growth
Okta, a leading identity management company, has reported impressive third-quarter results, surpassing analysts’ expectations and sending its shares soaring by over 18% in extended trading. The company’s strong performance was driven by its continued focus on profitability and cash flow.
Solid Q3 Results
Okta’s net income for the quarter stood at $16 million, or 9 cents per share, marking a significant turnaround from its net loss of $81 million, or 49 cents per share, in the same period last year. Revenue also saw a substantial increase of 14% from $569 million a year ago, reaching $651 million in subscription revenue.
Beating Estimates
The company’s solid Q3 results were underpinned by its strong profitability and cash flow. Okta CEO Todd McKinnon attributed the success to the company’s focused investments in its partner ecosystem, public sector vertical, and large customers, which have contributed meaningfully to top-line growth.
Rosy Guidance
Looking ahead, Okta expects to report revenue between $667 million and $669 million for the fourth quarter, exceeding the $651 million average estimate. The company also anticipates earnings of 73 cents to 74 cents per share for the period, surpassing estimates.
A Year of Growth
Prior to the close, Okta shares were down 10% for the year, while the Nasdaq has seen a significant upswing of 30% over the same period. The company will host its quarterly call with investors at 5 p.m. ET to discuss its performance in more detail.
Investor Confidence Boosted
Okta’s strong Q3 results and rosy guidance have boosted investor confidence, leading to a significant surge in its share price. As the company continues to focus on profitability and growth, it’s likely to remain a key player in the identity management space.
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