Okta stock surged on Tuesday after the cybersecurity firm reported third-quarter earnings and revenue that topped consensus estimates. Revenue guidance also came in above views.
Reported after the market close, Okta earnings were 67 cents per share on an adjusted basis for the quarter ending Oct. 31, up 52% from a year earlier. San Francisco-based Okta said revenue climbed 14% to $665 million.
Analysts had expected Okta earnings of 58 cents on revenue of $650 million.
"Results were highlighted by subscription revenue growth of 14% to $651 million vs. consensus at $635 million," RBC Capital analyst Matthew Hedberg said in a report.
For the current January quarter, Okta predicted revenue growth of 10.5% to $668 million, topping estimates of $651 million.
Okta Stock Jumps On Q3 Results
On the stock market today, Okta stock surged more than 15% to 94.58 in extended trading. OKTA had retreated 12% in 2024 prior to the earnings report.
The company's security software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Heading into the earnings report, Okta owned a Relative Strength Rating of 24 out of a best-possible 99, according to IBD Stock Checkup.
Growing competition from Microsoft is one issue for Okta stock.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
