Okta Shows No Signs of Slowing Down
In its short history as a publicly traded company, Okta (NASDAQ: OKTA) has developed an enviable pattern. The company regularly smashes its own guidance and raises its future outlook, which has made it a Wall Street darling.
Its third-quarter report was no different. The cloud-based security and identity specialist said revenue jumped 45% to $153 million, well ahead of expectations at $143.7 million. Subscription revenue rose 48% to $144.5 million, and its Remaining Performance Obligations (RPO), effectively a backlog of bookings, rose 68% to $1.03 billion, showing that the company's contracts are becoming bigger and longer. COO Frederic Kerrest said Okta was starting to see contract lengths of five years or longer, a sign of the company's growing reputation and customer trust. Current RPO, which will be recognized over the next year, rose 52% to $515.9 million, which bodes well for 2020.
On the bottom line, Okta's per-share loss widened from -$0.04 to -$0.07 as expenses rose alongside revenue, though that beat estimates at -$0.12.
Source Fool.com
