Okta (OKTA) Q3 results 2024

Shares of Okta rose more than 18% in extended trading on Tuesday after the identity management company reported third-quarter results that beat analysts’ estimates and offered rosy forecasts.

This is how the company did it:

• Earnings per share: 67 cents adjusted versus 58 cents expected from LSEG.
• Revenue: $665 million versus LSEG’s expected $650 million.

Okta helps companies manage employee access to applications or devices with features such as single sign-on and multi-factor authentication. The company returned to profitability, reporting net income of $16 million, or 9 cents per share, in 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 a press release. According to Street Account, the company reported subscription revenue of $651 million for the quarter, beating the average analyst estimate of $635 million.

“Our solid Q3 results were underpinned by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The targeted investments we have made in our partner ecosystem, public sector and major customers are reflected in our business, with each of these areas making a significant contribution to revenue growth.”

According to LSEG, Okta expects fourth-quarter revenue to be between $667 million and $669 million, exceeding the average estimate of $651 million. The company expects earnings of 73 cents to 74 cents per share for the period, also above estimates.

Before the close, Okta shares were down 10% for the year, while the Nasdaq was up 30% in that period.

Okta will hold its quarterly conference call with investors at 5:00 p.m. ET.

REGARD: CNBC’s full interview with Okta CEO Todd McKinnon