Shares of enterprise identity-management company Okta (NASDAQ:OKTA) jumped on Friday, rising as much as 12.5%. As of 2:11 p.m. EDT, the stock was up 7.1%.
The stock's gain follows Okta's better-than-expected financial results for its first quarter of fiscal 2020. Revenue, in particular, crushed analysts' expectations.
Okta reported revenue of $125 million, up 50% year over year. On average, analysts were expecting revenue of about $117 million. Okta's non-GAAP (generally accepted accounting principles) net loss per share was $0.19, beating an average analyst estimate for a net loss per share of $0.21.
Continued momentum was driven by a 52% year-over-year increase in revenue. Subscription revenue accounted for 94% of the company's revenue during the quarter. An "acceleration with enterprise customers" served as a key catalyst for subscription revenue, said Okta CEO Todd McKinnon in the company's fiscal first-quarter earnings release.
McKinnon believes the company is positioned to "continue executing on our significant and growing market opportunities."
Management forecast fiscal second-quarter revenue to be between $130 million and $131 million, for year-over-year growth of 37% to 38%. In addition, Okta guided for non-GAAP earnings per share during the period to be between a loss of $0.11 and a loss of $0.10.