Okta recently reported impressive Q3 earnings, showcasing strong growth in enterprise identity management. The company achieved $742 million in revenue, exceeding Wall Street’s expectations of $730 million, with nearly a 12% year-over-year increase. Notably, adjusted earnings per share reached 82 cents, surpassing the consensus estimate of 76 cents. Subscription revenue grew 11% to $724 million, ahead of analysts’ predictions.
CEO Todd McKinnon emphasized Okta’s strategic focus on AI, stating that AI agents could significantly expand their market potential. He believes AI will not just enhance existing features but could open a new revenue stream for the company. Additionally, Okta’s subscription backlog rose 17% year-over-year to $4.29 billion, indicating strong future revenue visibility.
Despite these strong results, Okta’s shares dipped 3% in after-hours trading, reflecting investor caution amid a competitive cybersecurity landscape filled with acquisitions and IPOs. For Q4, the company projects revenue between $748 million and $750 million, demonstrating continued growth.
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