Okta CEO Is Feeling Optimistic. Looks Like Investors Are Too

Shares of Okta  (OKTA) are higher after hours, following the identity cloud computing firm's upbeat third-quarter report.

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Okta said it lost 19 cents a share on revenue of $68.2 million. Analysts had modeled for a 24 cent per-share loss, on revenue of $62.8 million.

For the fourth quarter, Okta said it expects to loss between 17 and 18 cents a share on revenue of $70 million to $71 million a share. That forecast also topped consensus estimates, which call for a 20 cent per-share loss on revenue of $67.9 million.

Okta CEO Todd McKinnon spoke with Barron's just after the report, and he attributes the company's beat to its ability to benefit and accelerate two key trends: First, that every company wants its employees to be more productive and more security, and that every company, no matter its industry, is becoming a tech company--i.e. wanting to provide a better website and mobile app for its customers. Okta's products help customers do both, he says.

McKinnon also said that Okta is making progress in terms of the market beginning to realize the opportunity in front of it, but believes that we're still in early days. He likens cloud computing and Okta to Amazon (AMZN), which in the year 2000 was predicting that over decades a huge amount of commerce would shift online--over the next 10 and 20 years he expects major expansion.

To that point, he highlights that the company just signed a lease for a new headquarters in downtown San Francisco that doubles the size of its current location.

In September, Okta jumped after reporting a  strong second quarter and raising its guidance  for the full year. The shares went public in April, and also rose after reporting their first quarter as a public company this summer.

The shares climbed a dime in regular trading and is up 3.7% to $29.50 after hours.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Technology , Stocks
Referenced Symbols: OKTA , AMZN

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