Okta (OKTA) stock is rallying 18% after the tech company reported stronger-than-expected fourth-quarter financial results and provided full-year guidance that also came in above analysts' average estimates. OKTA provides identity-management products.

Multiple investment banks were bullish on the shares in the wake of the results.

A mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication.

The Highlights of OKTA's Q4 Results and Guidance

The company delivered Q4 earnings per share, excluding certain items, of 78 cents, versus analysts' average estimate of 74 cents. Its sales climbed 12.7% versus the same period a year earlier to $682 million, versus the mean outlook of $669.1 million. Further, its remaining performance obligations soared 25% year-over-year.

For its current full year, Okta provided revenue guidance of $2.85 billion to $2.86 billion versus analysts' average estimate of $2.8 billion. Additionally, it expects its adjusted EPS to come in at $3.15 to $3.20, well above the mean outlook of $2.94.

Multiple Investment Banks Were Upbeat on OKTA

Investment bank D.A. Davidson upgraded the stock to Buy from Neutral. DA Davidson expects the company's revenue to climb 11% to 13% this year, above its guidance for a 9% to 10% gain. The momentum of Okta's sales is increasing, the investment bank added.

"This quarter was another positive step in the right direction, and we believe Okta has a number of opportunities to drive growth higher in coming years," investment ban Stifel wrote.

While we acknowledge the potential of OKTA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.