Okta, Inc. (OKTA - Free Report) reported third-quarter fiscal 2019 adjusted loss of 4 cents per share that was much narrower than the Zacks Consensus Estimate of a loss of 11 cents and the year-ago quarter’s loss of 19 cents.
Revenues surged 57.8% from the year-ago quarter to $105.7 million. The figure also surpassed the consensus mark of $97 million.
Subscription revenues (92.5% of total revenues) grew 57.9% year over year to $97.7 million. Professional services and other revenues (7.5%) surged 56.1% year over year to $7.9 million.
Total calculated billings for the quarter were $124 million, up 57.9% year over year due to better-than-expected bookings linearity. Trailing 12 months calculated billings came in at $434 million, up 59% year over year.
Total customer base increased 42% year over year to 5,600 mainly across enterprise customer base. Notably, Okta added 450 new customers during the quarter. The company’s ability to secure identities and digital assets across a variety of users and technologies helped it win customers.
Additionally, Okta Identity Cloud’s capability to consolidate all customer applications to a single-identity service without compromising security or stability is attracting customers. Companies like Deloitte and VMware (VMW - Free Report) along with the U.S. Department of State chose Okta’s identity solutions in third-quarter fiscal 2019.
Moreover, momentum in cloud, digital transformation and security is helping Okta retain long-time customers like Adobe (ADBE - Free Report) , Experian and Allergan (AGN - Free Report) and attract new customers like Major League Baseball.
Further, customers with more than $100,000 annual recurring revenues increased 55% year over year to 937 due to increase in up sell activities. During the quarter, Okta added 100 net new customers with over $100,000 annual recurring revenues.
Dollar based retention rate for the trailing 12 months ended Oct 31 was 120%. Moreover, headcount increased 29% year over year to 1473 to support business growth.
Okta, Inc. Price, Consensus and EPS Surprise