Why Okta Stock Was Soaring Today

Shares of Okta (NASDAQ: OKTA) were surging today after the cloud identity software company easily beat estimates in its third-quarter earnings report last night, and posted fourth-quarter guidance that was much better than expected. Okta, which helps businesses ensure that users can securely and seamlessy connect to the apps they need, limped into the third-quarter earnings report after the stock was slammed in the previous report when management acknowledged challenges integrating the sales force from Auth0, the customer-identity software company it acquired last May. The company maintained its usual consistency, posting a net retention rate of 122%, meaning it grew sales from existing customers by 22% over the last four quarters, and it added 650 customers in the quarter, growing its customer base by 22% year over year to 17,050.