Okta on Tuesday topped Wall Street's third-quarter estimates and issued an upbeat outlook, but shares fell despite the outperformance as investors had high hopes for AI demand.
Shares of the identity management provider fell more than 3% in after-hours trading on Tuesday.
Here's how the company did versus LSEG estimates:
Earnings per share : 82 cents adjusted vs. 76 cents expected
: 82 cents adjusted vs. 76 cents expected Revenue: $742 million vs. $730 million expected
Revenues increased almost 12% from $665 million in the year-ago period. Net income increased 169% to $43 million, or 24 cents per share, from $16 million, or breakeven, a year ago. Subscription revenues grew 11% to $724 million, ahead of a $715 million estimate.
During the quarter, Okta released a capability that allows businesses to build AI agents and automate tasks.
CEO Todd McKinnon told CNBC that upside from AI agents haven't been fully baked into results and could exceed Okta's core total addressable market over the next five years.
"It's not in the results yet, but we're investing, and we're capitalizing on the opportunity like it will be a big part of the future," he said in a Tuesday interview.
For the current quarter, the cybersecurity company expects revenues between $748 million and $750 million and adjusted earnings of 84 cents to 85 cents per share. Analysts forecast $738 million in revenues and EPS of 84 cents for the fourth quarter.
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