What happened
Shares of Okta (OKTA 1.76%) climbed 11.7% on Thursday, following the release of the identity management leader's fiscal 2022 third-quarter results.
So what
Okta's revenue surged 61% year over year to $351 million. The gains were boosted by Okta's acquisition of secure access platform Auth0 in May. Excluding the $46 million in revenue that Auth0 contributed in the quarter, Okta's adjusted revenue rose 40%.
"We're maintaining the momentum of both Okta and Auth0 and are making great progress on the integration," Okta CEO Todd McKinnon said in a statement. "We're already seeing early success cross-selling into each other's customer bases and are on our way to capturing more of the massive identity market faster together."
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Still, Okta's growth investments weighed on its profitability. The access management company generated a net loss of $221 million under generally accepted accounting principles (GAAP), compared to a loss of $73 million in the prior-year quarter. On an adjusted basis, Okta's checked in at $11 million, compared to a loss of $6 million in the year-ago period.
Now what
Fortunately, Okta sees much more growth ahead. Management guided for revenue to increase by 53% to $358 million in the fourth quarter. Though the company said investors should expect it to post an adjusted operating loss of approximately $35 million and a net loss per share of roughly $0.25.
"The three megatrends that have driven Okta's business over the past few years continue to drive our growth: the deployment of cloud and hybrid IT, digital transformation projects, and the adoption of zero trust security environments," McKinnon said during a conference call with analysts.
