Todd McKinnon, CEO and founder of Okta, speaks during the BoxWorks 2019 Conference in San Francisco, California, on Oct. 3, 2019.
Michael Short | Bloomberg | Getty Images
Shares of Okta rose more than 18% in extended trading on Tuesday after the identity management company posted third-quarter results that beat analysts’ estimates and provided positive guidance.
Here’s how the company did it:
- Earnings per share: 67 cents adjusted versus 58 cents expected by LSEG.
- Net worth: $665 million compared to $650 million expected by LSEG.
Okta helps companies manage employee access to apps or devices with features like single sign-on and multi-factor authentication. The company swung to a profit, 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 last year, according to the release. The company reported $651 million in subscription revenue for the quarter, beating the average analyst estimate of $635 million, according to Street Account.
“Our strong Q3 results were supported by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The concentrated investment we have made in the ecosystem of our partners, the direct public sector, and the largest customers is reflected in our business, each of these areas is contributing significantly to the high growth.”
For the fourth quarter, Okta said it expects to report revenue between $667 million and $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 exceeded estimates.
Before the shutdown, 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 pm ET.
WATCH: CNBC’s full interview with Okta CEO Todd McKinnon
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