Okta (OKTA) Q3 2024 Earnings

Actions of Okta rose more than 18% in extended trading on Tuesday after the identity management company posted third-quarter results that topped analyst estimates and offered upbeat guidance.

Here’s how the company fared:

• Earnings per share: 67 cents adjusted versus 58 cents expected by LSEG
• Revenue: $665 million versus $650 million expected by LSEG

Okta helps businesses manage employee access to apps or devices with features like single sign-on and multi-factor authentication. The company achieved profitability and reported 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 rose 14% from $569 million a year ago, according to a statement. The company reported $651 million in subscription revenue for the quarter, beating analysts’ average estimate of $635 million, according to Street Account.

“Our strong third-quarter results were supported by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The focused investments we have made in our partner ecosystem, public sector vertical and large customers are materializing in our business and each of these areas contributes significantly to top-line growth.”

For the fourth quarter, Okta said it expects to report revenue between $667 million and $669 million, beating the average estimate of $651 million, according to LSEG. The company expects to report earnings of between 73 cents and 74 cents per share during the period, which also beat estimates.

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

Okta will host its quarterly conference call with investors at 5 p.m. Eastern time.

LOOK: Full CNBC interview with Okta CEO Todd McKinnon