Okta surpasses top and bottom line estimates for Q3

Okta (OKTA) reported its Q3 2019 earnings results on Wednesday evening. The company’s top and bottom line results beat analysts’ views. For the three months ended October 31, 2018, Okta’s loss per share stood at 4 cents on revenue of $106 million. Street had estimated the cloud-based identity management company to post a loss of 11 cents per share on revenue of  $97 million.

Revenue surged 58% year-over-year, due to 58% growth in subscription revenue. GAAP net loss per share narrowed to $0.27 from $0.35 in the third quarter of fiscal 2018. The San Francisco, California-based firm grew its customers 42% year-over-year to 5,600 in the recently ended quarter.

For the final quarter of 2019, the company expects revenue of $107 million to $108 million, representing a year-over-year growth rate of 39% to 40%. Adjusted loss per share is estimated to be $0.09 to $0.08.

For FY19, revenue is predicted to be $391 million to $392 million, representing a year-over-year growth rate of 52% to 53%. Adjusted loss per share is targeted to be $0.37 to $0.36.

“We had a record third quarter with 58% year-over-year growth for both revenue and billings, which was driven by increased momentum in the enterprise. We saw 55% growth in customers with over $100,000 annual recurring revenue, representing a record 100 net new adds in a quarter,” said CEO Todd McKinnon.

According to Research and Markets, Cloud Identity and Access Management (IAM) market is estimated to grow to $4.86 billion by 2023, increasing from $1.265 billion in 2018 at a CAGR of 30.89% over the forecast period.

Salesforce (NYSE: CRM) beat Q3 estimates, provides strong outlook

Shares of Okta ended Tuesday’s session at $60.65, down 6.5%. The stock’s value had jumped 137% in the year-to-date period and 114% in the past 52 weeks.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips