File photo of Todd McKinnon, chief executive officer of Okta Inc.
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shares Octa The identity management company popped more than 18% in extended trading on Tuesday after the release Third quarter results It beat analysts’ estimates and gave rosy guidance.
Here’s how the company did it:
- Earnings per share: Adjusted 67 cents vs. 58 cents expected by LSEG
- Income: $665 million vs. $650 million expected by LSEG
Okta helps companies manage employee access to apps or devices with features like single sign-on and multifactor authentication. The company posted net income of $16 million, or 9 cents per share, in the quarter, compared to a net loss of $81 million, or 49 cents per share, in the same period last year.
Revenue was up 14% from $569 million a year ago A release. The company reported subscription revenue of $651 million in the quarter, beating the average analyst estimate of $635 million, according to the Street Account.
“Our solid Q3 results were underpinned by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The focused investments we’ve made in our partner ecosystem, public sector verticals and large customers are coming to fruition in our business, and each of these areas will contribute meaningfully to top-line growth.”
For the fourth quarter, Okta said it expects to report revenue between $667 million and $669 million, above average estimates of $651 million, according to LSEG. The company expects to report earnings of 73 cents to 74 cents per share for the period, beating estimates.
Before the close, Okta shares were down 10% for the year, while the Nasdaq was up 30% over that stretch.
Okta will host its quarterly call with investors at 5 pm ET.
