Okta Q3 Earnings: Revenue Beat, EPS Beat, Strong Guidance, Shares Surge

Okta Inc OKTA reported third-quarter financial results after the market close on Tuesday. Here’s a rundown of the report.

Q3 Earnings: Okta reported third-quarter revenue of $665 million, beating analyst estimates of $649.7 million. The cloud-native cybersecurity company reported adjusted earnings of 67 cents per share, beating analyst estimates of 58 cents per share, according to Benzinga Pro.

Total revenue and subscription revenue were both up 14% on a year-over-year basis. Remaining performance obligations totaled $3.66 billion at quarter’s end, up 19% year-over-year.

Net cash provided by operations was $159 million, up from $154 million in the prior year's quarter. The company generated free cash flow of $154 million in the quarter, up from $150 million year-over-year. Okta ended the quarter with $2.25 billion in cash, cash equivalents and short-term investments.

“Our solid third-quarter results were underpinned by continued strong profitability and cash flow. The focused investments we’ve made in our partner ecosystem, the public sector vertical, and large customers are materializing in our business with each of these areas contributing meaningfully to top-line growth,” said Todd McKinnon, co-founder and CEO of Okta.

“Okta’s commitment to innovation and elevating identity security is resonating with customers of all sizes as they look to Okta to modernize their identity infrastructure.”

What’s Next: Okta sees fourth-quarter revenue in the range of $667 million to $669 million versus estimates of $650.64 million. The company anticipates fourth-quarter adjusted earnings of 73 to 74 cents per share versus estimates of 67 cents per share. 

Okta expects full-year revenue to be in the range of $2.595 billion to $2.597 billion versus estimates of $2.563 billion. The company expects full-year adjusted earnings to be between $2.75 and $2.76 per share versus estimates of $2.61 per share.

Management will hold a conference call with analysts and investors at 5 p.m. ET to further discuss the company’s quarterly performance.

OKTA Price Action: Okta shares were up 19.31% in after-hours, trading at $97.49 at the time of publication, per Benzinga Pro.

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