Okta, Crowdstrike report earnings after the bell

Yahoo Finance's Jared Blikre reports on Okta's and Crowdstrike's latest earnings releases.

Video Transcript

ADAM SHAPIRO: All right, shares of Okta are trading higher after the bell. We got their earnings report, and Jared Blikre's going to break it down for us. Jared.

JARED BLIKRE: That's right. The stock is up about over 5% right now. Had been up as much as 7%. And we're getting some nice pops in the software space overall, not just Okta but CrowdStrike and also Zscaler. But first to Okta, because we've got some nice beats on both the top and bottom lines.

We have third quarter adjusted EPS coming in at $0.04 versus an estimated loss per share of $0.01. So turning a profit, at least on an adjusted basis. And then revenue was $217.4 million, and the estimate was for a bit lower at $203.2 million. That is up.

Revenue is up 42% year over year. Subscription revenue up 43%. Third quarter billings up 44%.

Only thing I'm seeing a little weakness in is in their operating margins. It's 3%-- and that is down-- actually, that's an improvement versus negative 5.3% year over year. But the adjusted gross margin of 78% fell a little bit short of estimates of 78.5%. Nevertheless. the stock popping nicely here, up nearly 6%.

Also want to mention that the board member, Mike Kourey has been named as CFO. And that's going to be effective March 2021. He's succeeding Bill Losch, who is retiring. And just taking a quick look at the stock year to date, we can see up 99.5%. We'll just call it 100%. So making some nice gains, although we really haven't seen those highs for about one month here. See if we can push through that.

Now CrowdStrike also is up, and we're seeing that up as much as 10%. Right now it's at 10.85%, so it keeps climbing as we're talking here. And that was also a beat on both the top and bottom lines. Third quarter adjusted EPS coming in at $0.08. The estimate was for half of the $0.01.

Revenue 230-- excuse me, revenue came in of $232.5 million. Estimate was for a bit lower at $213.8 million. And their adjusted operating margin, that came in at 8%. Also seeing some nice boosts to their full year adjusted EPS and revenue targets, all of them exceeding what the Street was looking for.

And here's a chart of CrowdStrike year to date. You can see, up 184%. It, too, has been consolidating over the last three months, so we'll have to see if this strength today leads to more strength in the sector overall. We haven't seen IGV-- that's the software ETF-- make a new high in a little bit. Guys.