What happened

Okta (NASDAQ:OKTA) stock beat the market last month by jumping 19%, compared to a 3.4% boost in the S&P 500, according to S&P Global Market Intelligence. The boost added to a significant rally for shareholders this year, with the stock rising roughly 100% in 2019.

A user interacts with a digital security screen.

Image source: Getty Images.

So what

November's rally came as Wall Street grew more confident in the identity security specialist's growth outlook. Okta is still generating net losses and operates under a significant debt burden. Yet sales growth is spiking as it gains a valuable foothold in the quickly expanding market for digital identity management.

Now what

Okta's 2019 rally will be tested when the company posts third-quarter earnings results after the market closes on Thursday, Dec. 5. Management is predicting a 36% sales spike for the period and moderate net losses. The tech stock's short-term trajectory, though, will depend on any update that CEO Todd McKinnon and his team issue for the broader fiscal year, which is currently projected to show a 40% revenue boost, translating to non-GAAP (adjusted) operating losses of $63 million at the midpoint of guidance.