Okta Shares Rise on Q3 Earnings Beat

The identity management company reported diluted net income per share of $0.04, versus expectations for a loss of $0.01 a share.
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Shares of Okta ( (OKTA) - Get Report) were rising after-hours Wednesday after the identity and access management software maker reported fiscal third quarter results that beat analyst earnings and revenue expectations.

Okta’s revenues for the quarter ending in Oct. grew 42% year-over-year to $217.4 million, while diluted net income per share was $0.04, compared to analyst estimates of revenue of $202.8 million and diluted net loss per share of $0.01. Subscription revenue increased 43% to $206.7 million and remaining performance obligations (RPO), or subscription revenue backlog, grew 53% year-over-year to $1.58 billion.

"Our strong growth in RPO and revenue, and record cash flows, are evidence of our success with large enterprise customers and the continued secular tailwinds driving our business,” said Okta CFO Bill Losch, who will be leaving the company in March 2021. “We are confident in our ability to continue executing at a high level and thus are raising our fiscal year 2021 outlook for both revenue and profitability."

Shares of Okta were rising 6% after-hours Wednesday to $244.00, after falling 2.9% during the day. Okta shares are up more than 105% year to date so far.

The company now expects total revenue for the fourth quarter of fiscal 2021 to grow 32% to 33% year-over-to year to a total of $221 million to $222 million. This would represent a non-GAAP operating loss of $1 million to $2 million, or a non-GAAP net loss per share of $0.01 to $0.02, based on weight shares outstanding of roughly 131 million.