Okta jumps on big earnings beat

  • Okta beat street estimates across the board for its third quarter earnings on Wednesday.
  • Its stock was up by as much as four percent in after hours trading.
  • The company also announced a new San Francisco headquarters for 207,000 square feet of space.
Okta co-founder and CEO Todd McKinnon.
Source: Okta
Okta co-founder and CEO Todd McKinnon.

Okta had a clean beat across the board for its third quarter earnings Wednesday, sending its stock up by as much as four percent in after hours trading.

Here are the most important numbers:

  • Revenue: $68.2 million vs. $62.8 million estimated, according to Thomson Reuters
  • EPS: 19 cent loss vs. 24 cent loss estimated, according to Thomson Reuters

Okta makes identity management software that lets employees of companies log into different cloud apps without having to use a bunch of different usernames and passwords. Since going public in April, its stock has jumped almost 70 percent.

Revenue grew 61 percent from the same quarter of last year, on the back of big customer wins at Caesars Entertainment, Nordstrom and CBRE. The company was also named as one of the leaders in Forrester's Identity-as-a-service report this quarter.

Net loss widened to $33.8 million in the third quarter, while its free cash flow remain negative at $11.2 million. The company still has $223.6 million of cash on its balance sheet.

Okta gave fourth quarter revenue guidance in the range of $70 million to $71 million, far exceeding FactSet's $67.9 million street consensus.

Additionally, Okta revealed plans for a move to a new headquarters in San Francisco. The new office, located in the SoMa district of San Francisco, will take up 207,000 square feet of space and open in the second quarter of 2018.