Why Okta Stock Jumped Thursday

What happened

Shares of enterprise identity-management company Okta (NASDAQ: OKTA) impressed investors on Thursday with better-than-expected third-quarter results. The news sent shares higher, with the stock rising as much as 15.2%. As of 1:43 p.m. EST, the stock was up 12.8%

So what

Okta reported third-quarter revenue of $105.6 million, up 58% year over year. This easily beat a consensus analyst estimate for revenue of $99.9 million. The company's non-GAAP net loss per share for the period was $0.04, narrower than a loss of $0.19 in the year-ago quarter. This also beat a consensus forecast for a loss of $0.11 per share.

Importantly, Okta said its third-quarter free cash flow, or cash from operations less capital expenditures, was positive for the first time.

The strong third-quarter earnings extend the company's recent momentum. In Q2, Okta similarly crushed expectations.

Now what

Okta CEO Todd McKinnon is optimistic about the company's continued prospects:

The company boosted its full-year fiscal 2019 revenue outlook, guiding for revenue between $391 million and $392 million, representing 52% to 53% year-over-year growth. This is up from a previous outlook for fiscal 2019 revenue to be between $372 million and $375 million.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Okta. The Motley Fool has a disclosure policy.