What happened
Okta (OKTA 1.21%) shareholders beat a surging market in November as the stock rose 17% compared to the 11% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally added to big gains for the software specialist, which has more than doubled so far in 2020.
Image source: Getty Images.
So what
Investors pushed Okta stock higher last month along with other software-as-a-service giants on hopes that these businesses will continue seeing strong growth even as the COVID-19 threat fades. The pandemic has accelerated a shift toward putting more work activity online, lifting Okta's prospects. But Wall Street in November was also excited about the potential for surging sales in the identity management company's Q3 report, which was released Dec. 2.
Now what
Okta revealed in that announcement that growth was indeed strong through late October. The company added hundreds of new enterprise customers on its way to a 42% sales increase.
CEO Todd McKinnon and his team expect continued elevated gains ahead, with sales rising between 32% and 33% in the fiscal fourth quarter, equating to 40% gains for the full year.
