Cloud computing stocks, especially those providing software as a service (SaaS), have proven to be fertile ground for investors. Several of these companies have quickly grown by capitalizing on the massive transition in business to cloud software, which offers several advantages over traditional applications, including scalability and integration. The subscription model these companies generally use also has the potential to deliver high profit margins once the businesses reach scale, as variable costs are relatively low.

Okta is one such example of the power of this model and the opportunity in the cloud — the stock has soared more than 300% since its 2017 IPO coming into its first-quarter earnings report. Investors were hoping to see Okta’s strong growth continue as it brings in new customers and expands current relationships. And they were not disappointed as shares were up 5% in after-hours trading. Let’s take a closer look at the results. 

Read more at – Okta Kicks Off 2019 on the Right Foot