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Clean sweep of beats for Okta’s third quarter results as big customer wins boost numbers

Revenue for the quarter jumped 61% to US$68.2mln, comfortably above the US$62.8mln Wall Street analysts had forecast
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Caesars Entertainment, Nordstrom and real estate group CBRE were among the big customer wins in the quarter

It was a clean sweep of beats with software maker Okta Inc’s (NASDAQ:OKTA) third quarter results late on Wednesday, sending the stock higher early on Thursday morning.

Okta makes identity management software that lets a company’s employees log into different cloud apps without having to use several usernames and passwords.

Revenue for the quarter jumped 61% to US$68.2mln, comfortably above the US$62.8mln Wall Street analysts had forecast.

Losses came in better than expected as well, with Okta registering a 19 cent loss per share versus forecasts of a 24 cent loss.

Shares jumped 2.7% to US$29.22 early on Thursday.

The strong performance came as the San Francisco-based group secured several new customer wins with Caesars Entertainment, Nordstrom and CBRE among others.

As for guidance, Okta said it expects fourth quarter revenues of between US$70mln and US$71mln – well ahead of previous consensus forecasts of US$67.9mln.

“We are pleased with another strong quarter, reporting 61 percent year-over-year revenue growth while we continued to improve our free cash flow margins,” said chief executive Todd McKinnon.

"Okta's business benefits from three critical market trends: the continued move for organizations to build an elegant cloud architecture with the best of breed partners in the market, the need for every organization to enhance customer experience while protecting customers’ identities, and the need for every organization to become more secure. Our financial results today continue to confirm these trends."

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