Okta’s shares jumped 22.6% in the afternoon session after the company delivered solid fourth-quarter earnings that beat Wall Street’s expectations. The company reported a 25% year-over-year growth in remaining performance obligations, exceeding analysts’ estimates and implying strong future sales.
Sales were up 13% from last year, with nearly all of it coming from subscriptions. Margins improved due to tight cost controls and stronger revenue, leading to earnings per share that came in ahead of estimates.
Looking ahead, full-year sales guidance topped Wall Street forecasts, but expected sales growth of 9-10% signals some slowdown compared to the previous year. Despite this, Okta’s fourth quarter was strong, with shares closing at $108.53, up 24.4% from the previous close.
Okta’s shares have only had four moves greater than 5% over the last year, indicating significant market impact. The company’s recent RPO forecast fell short of estimates six months ago, but this latest news shows a more positive outlook.
Investors who bought Okta’s shares five years ago would now be looking at an investment worth $827.01.
Source: https://finance.yahoo.com/news/why-okta-okta-stock-soaring-215706975.html