Okta, Inc. (NASDAQ: OKTA) reported Q3 EPS of ($0.07), $0.05 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $153 million versus the consensus estimate of $143.7 million.

Third Quarter Fiscal 2020 Financial Highlights:

• Revenue: Total revenue was $153.0 million, an increase of 45% year-over-year. Subscription revenue was $144.5 million, an increase of 48% year-over-year.
• Remaining Performance Obligations (RPO): Total RPO was $1.03 billion, an increase of 68% year-over-year. Current RPO, which is revenue expected to be recognized over the next 12 months, was $515.9 million, up 52% compared to the third quarter of fiscal 2019.
• Calculated Billings: Total calculated billings were $175.6 million, an increase of 42% year-over-year.
• Operating Loss: GAAP operating loss was $45.7 million, or 30% of total revenue, compared to $28.5 million, or 27% of total revenue, in the third quarter of fiscal 2019. Non-GAAP operating loss was $8.1 million, or 5% of total revenue, compared to $6.5 million, or 6% of total revenue, in the third quarter of fiscal 2019.
• Net Loss: GAAP net loss was $63.5 million, compared to $29.5 million in the third quarter of fiscal 2019. GAAP net loss per share was $0.53, compared to $0.27 in the third quarter of fiscal 2019. Non-GAAP net loss was $8.1 million, compared to $3.9 million in the third quarter of fiscal 2019. Non-GAAP net loss per share was $0.07, compared to $0.04 in the third quarter of fiscal 2019.
• Cash Flow: Net cash provided by operations was $10.6 million, or 7% of total revenue, compared to net cash used in operations of $6.4 million, or 6% of total revenue, in the third quarter of fiscal 2019. Free cash flow was $9.2 million, or 6% of total revenue, compared to $1.4 million, or 1% of total revenue, in the third quarter of fiscal 2019.
• Cash, cash equivalents, and short-term investments were $1.37 billion.

"Our strong third quarter results reflect our expanding leadership position and the growing importance of identity," said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "Industry leading growth in subscription revenue, remaining performance obligations, and billings were driven by strong execution and the continued secular tailwinds of increasing adoption of cloud applications, digital transformation as companies improve how they connect with their employees and customers, and deployment of zero trust security environments. Businesses of all sizes around the world are turning to Okta's cloud-based solutions for a modern, highly customizable identity platform that meets their business needs and security challenges. We've made great progress and continue to innovate to address this large and growing market opportunity."

GUIDANCE:

Okta, Inc. sees Q4 2020 EPS of ($0.05)-($0.04), versus the consensus of ($0.06). Okta, Inc. sees Q4 2020 revenue of $155-156 million, versus the consensus of $154.59 million.

Okta, Inc. sees FY2020 EPS of ($0.35)-($0.34), versus the consensus of ($0.43). Okta, Inc. sees FY2020 revenue of $574-575 million, versus the consensus of $562.83 million.

For the fourth quarter of fiscal 2020, the company expects:

• Total revenue of $155 million to $156 million, representing a growth rate of 34% to 35% year-over-year
• Non-GAAP operating loss of $10.1 to $9.1 million
• Non-GAAP net loss per share of $0.05 to $0.04, assuming weighted shares outstanding of approximately 122 million

For the full year fiscal 2020, the company now expects:

• Total revenue of $574 million to $575 million, representing a growth rate of 44% year-over-year
• Non-GAAP operating loss of $53.1 to $52.1 million
• Non-GAAP net loss per share of $0.35 to $0.34, assuming weighted shares outstanding of approximately 117 million

For earnings history and earnings-related data on Okta, Inc. (OKTA) click here.