Okta Inc tops analysts’ estimates for earnings and revenue in fiscal Q3

Okta Inc tops analysts’ estimates for earnings and revenue in fiscal Q3
Written by:
Wajeeh Khan
December 3, 2020
  • Okta Inc tops analysts’ estimates for earnings and revenue in fiscal Q3.
  • The U.S. company names Mike Kourey as its next Chief Financial Officer.
  • Okta forecasts up to £166.04 million of revenue in the fourth quarter.

Okta Inc. (NASDAQ: OKTA) said on Wednesday that its earnings and revenue in the fiscal third quarter came in significantly better than what analysts had anticipated. Okta also revealed to have partnered with Amazon on Wednesday to bring its Okta Identity Cloud to AWS (Amazon Web Services) marketplace.

Okta shares were reported about 7% up in after-hours trading on Wednesday. On a year to date basis, the stock is more than 100% up. If you want to invest in the stock market, you’ll need a broker – here’s a list of the top few to make selection easier for you.

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Okta’s Q3 financial results versus analysts’ estimates

Okta reported £54.45 million of loss in the third quarter that translates to 41.88 pence per share. In the same quarter last year, it had recorded a narrower £47.49 million of loss or 39.64 pence per share.

The enterprise identity-management systems provider earned £4.26 million in Q3 on an adjusted basis or 2.99 pence per share. In terms of revenue, Okta registered £162.60 million in the recent quarter versus the year-ago figure of £114.43 million.

According to FactSet, experts had forecast the company to post £151.68 million of revenue in the third quarter. They had also estimated Okta to see 0.75 pence of loss per share in Q3. In separate news from the U.S., CrowdStrike also published its quarterly update on Wednesday.

Chief Operating Officer of Okta, Frederic Kerrest, commented on the financial results on Wednesday and said:

“If you take a step back and think of the business we’re in, we’re helping companies with their digital transformations. These megatrends have been around for the pasts five years, and have been accelerated by COVID, no doubt.”

Okta’s guidance for the fiscal fourth quarter

For the fiscal fourth quarter, Okta now expects its per-share loss to fall in the range of 0.75 pence to 1.50 pence. Its estimate for Q4 revenue stands at up to £166.04 million. Analysts, on the other hand, are calling for £161.70 million of revenue for Okta in the fourth quarter and 1.50 pence of loss per share.

The San Francisco-based company named Mike Kourey as its next Chief Financial Officer on Wednesday as its current CFO Bill Losch announced his retirement. Losch is scheduled to step down next year in March.

Okta Inc. performed largely upbeat in the stock market last year with an annual gain of about 90%. At the time of writing, it is valued at £22.06 billion.