Shares of the identity management provider fell more than 3% in afternoon trading on Tuesday.
Here’s how the company performed against LSEG estimates:
- earnings per share: 82 cents adjusted vs. 76 cents expected
- Income: $742 million vs. $730 million expected
Revenue rose nearly 12% from $665 million in the year-ago period. Net income nearly tripled to $43 million from $16 million a year earlier. Subscription revenue rose 11% to $724 million, beating estimates of $715 million.
During the quarter, Okta released a capability that allows businesses to create AI agents and automate tasks.
CEO Todd McKinnon told CNBC that profits from AI agents have not fully factored into results and could surpass Okta’s core total market over the next five years.
“It’s not in the results yet, but we are investing, and we are taking advantage of this opportunity as if it will be a big part of the future,” he said in an interview Tuesday.
For the current quarter, the cybersecurity company expects revenue of between $748 million to $750 million and adjusted earnings of 84 cents to 85 cents per share. Analysts are projecting revenue of $738 million and EPS of 84 cents for the fourth quarter.
Return performance obligations, or the company’s subscription backlog, rose 17% from a year earlier to $4.29 billion and surpassed StreetAccount’s estimate of $4.17 billion.
This year has been a blockbuster period for cybersecurity companies, including major acquisition deals palo alto network And Google and a series of new initial public offerings from the region.
Okta shares have gained about 4% this year.
Watch: Bank of America’s Jill Carey Hall says earnings will spur small-cap outperformance
<a href=