Todd McKinnon, CEO and co-founder of Okta, speaks at the BoxWorks 2019 Conference in San Francisco, California, on October 3, 2019.
Michael Short | Bloomberg | Getty Images
shares of ok It rallied more than 18% in extended trading on Tuesday after the identity management company’s release third quarter results that beat analysts’ estimates and offered rosy guidance.
Here’s how the company did it:
- Earnings per share: 67 cents adjusted versus LSEG’s expected 58 cents.
- Income: $665 million vs. LSG’s expected $650 million.
Okta helps companies manage employee access to apps or devices with features like single sign-on and multi-factor authentication. The company turned to profitability, reporting net income of $16 million, or 9 cents per share, during the quarter, compared with a net loss of $81 million, or 49 cents per share, in the same period last year.
Revenue increased 14% from $569 million a year ago, according to the report a release. The company reported revenue of $651 million this quarter, beating the average analyst estimate of $635 million, according to Street Account.
“Our strong results for the quarter were underpinned by 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 vertical and large customers are being realized in our business, with each of these areas contributing meaningfully to top-line growth.”
For the fourth quarter, Okta said it expects to report revenue of $667 million to $669 million, above the average estimate of $651 million, according to LSEG. The company expects to report earnings of 73 cents to 74 cents per share for the period, which also beat estimates.
Before the close, Okta shares were down 10% for the year, while the Nasdaq was up 30% during that time.
Okta will hold its quarterly call with investors at 5:00 PM ET.
