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Jared Blikre breaks downn Okta's latest earnings report.
ADAM SHAPIRO: Got to get to Jared Blikre. We have earnings today after the bell. Okta's up first. What are they telling us?
JARED BLIKRE: Yeah, the stock's down about 5%, 6%. Results not too bad. They did raise their guidance. But let's get the results for the third quarter first. It was an adjusted loss per share of $0.07, narrower than the Street estimate of the $0.238. Revenue for the quarter coming in at $350.7 million. That's up 61% year over year. And it beats the Street estimate of $327.1 million. Subscription revenue up 63%, billings up 54%, but adjusted operating margin down about 3%, whereas it was about 3% one year ago.
If you're wondering what's standing in front of me right now, guess what? We got holiday tree lighting ceremony that's going on outside. And that's just in a few minutes. Just about the only thing green around here is that tree. Also some commentary here from the CEO, and that would be Tom McKinnon. Our strong third quarter results reflect the continued shift to identity-first architectures and the critical adoption of zero trust security environments, which are propelling our market leading position.
Now for that 2022 year forecast, they are seeing revenue of $1.28 billion. And the Street was estimating just a little bit less than that. So that is a small beat on there. Adjusted loss per share, their 2022 year forecast, $0.52 to $0.53. They did see a loss per share of $0.74 to $0.77, so that's narrower than what they expected before. And also, it's narrower than the Street estimate of $0.74. All around, not bad numbers, but I would also note that this stock closed at a 52-week low. Software has been under tremendous pressure, and this all came on a very inauspicious day here.