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Okta surges as Q3 results, forecast blow away expectations

Okta (NASDAQ:OKTA) shares surged nearly 17% in after-hours trading after the identity access management company posted third-quarter results and guidance for the upcoming period that handily topped estimates.

For the period ending October 31, Okta (OKTA) said it broke even on adjusted basis, generating $481M in revenue, up 37% year-over-year.

A consensus of analysts were expecting Okta (OKTA) to lose 24 cents per share on an adjusted basis and $465.37M in revenue.

The company also said its remaining performance obligations grew 21% year-over-year to $2.85B and that Susan St. Ledger, its President of Worldwide Field Operations, would be retiring January 31, 2023.

Looking ahead to the next quarter, Okta (OKTA) said it expects revenue to be between $488M and $490M, above expectations of $488M. Adjusted earnings per share are forecast to be between 9 and 10 cents per share, compared to expectations of an adjusted loss of 11 cents per share.

Okta (OKTA) also raised its full-year revenue forecast, as it now expects sales to be between $1.836B and $1.838B, up from a prior view of $1.81B to $1.82B. On an adjusted basis, Okta (OKTA) expects to lose between 26 and 27 cents per share.

The company will hold a conference call at 5 p.m. EST to discuss the results.

Earlier this month, investment firm KeyBanc Capital Markets lowered its estimates on Okta (OKTA) but reiterated the firm's overweight rating on the company.