Investing 30-11-2022 23:02 13 Views

Okta stock just popped up 15%: explained here

Okta Inc (NASDAQ: OKTA) is up more than 15% in extended trading after the identity management company said it broke even in its third financial quarter.

Okta Inc issued upbeat guidance for the future

Investors are also celebrating the guidance that suggests things will get even better moving forward.

For Q4, Okta now forecasts 9 cents to 10 cents of adjusted per-share earnings on $488 million to $490 million in revenue. In comparison, analysts had called for a 12 cents loss on $488.3 million of revenue. In the earnings press release, CEO Todd McKinnon said:

We’re delivering innovation and simplicity to solve complex identity challenges. We remain focused on go-to-market execution, spend efficiency measures, and increasing profitability as we navigate an evolving macro environment.

For the year, Okta stock is still down more than 70%.

Key takeaways from Okta’s Q3 earnings report

Lost $208.9 million versus the year-ago $221.3 millionPer-share loss also narrowed from $1.44 to $1.32Broke even on an adjusted per-share basisRevenue jumped 37% year-on-year to $481.4 millionConsensus was 24 cents of loss on $465.4 million revenue

Other notable figures in the earnings report include remaining performance obligations (RPO) that went up 21% versus the same quarter last year to $2.85 billion. Free cash flow was $6.0 million this quarter.

President Susan St. Ledger to retire

Also on Wednesday, Okta said its President of Worldwide Field Operations – Susan St. Ledger will retire on January 31st. CEO McKinnon will temporarily take her role if a successor is not brought onboard by then.

St. Ledger has agreed to take up an advisory role to ensure smooth transition, the company added.

Investors wanting to invest in Okta stock following its strong quarterly update should also know that Wall Street currently has a consensus “overweight” rating on it.

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