Cybersecurity Firm Okta Posts Q3 Earnings, Revenue Beat; Shares Jump

Core Insights - Okta's stock surged over 15% following the release of its third-quarter earnings, which exceeded consensus estimates for both earnings and revenue [1][3] - The company reported adjusted earnings of 67 cents per share, a 52% increase year-over-year, and revenue of $665 million, reflecting a 14% growth [1][2] - Okta's subscription revenue also grew by 14% to $651 million, surpassing the consensus estimate of $635 million [2] Financial Performance - The earnings report indicated that analysts had anticipated earnings of 58 cents per share and revenue of $650 million [2] - For the upcoming January quarter, Okta forecasts revenue growth of 10.5% to $668 million, exceeding the expected $651 million [2] Market Reaction - Following the earnings announcement, Okta's stock price rose to $94.58 in extended trading, recovering from a 12% decline earlier in 2024 [3] - Prior to the earnings report, Okta had a Relative Strength Rating of 24 out of a possible 99, indicating weaker performance compared to peers [3] Competitive Landscape - The company faces growing competition from Microsoft, which poses a challenge to its market position [4]