Shares of identity and access management company Okta fall on weak outlook

0

Shares of Okta Inc. fell in late trading after the identity and access management company announced an outlook below analysts’ expectations in its latest earnings report.

For the quarter ended Jan. 31, Okta reported a loss before costs such as stock-based compensation of $29 million, or 18 cents per share. That compares to adjusted earnings of $8 million, or six cents per share, a year ago. Revenue jumped 63% from the year-ago quarter to $383 million.

Analysts planned a loss of 24 cents per share on revenue of $360 million.

For Okta’s full-year 2022, the company’s adjusted loss was $68 million, or 46 cents per share, compared to $16 million or 11 to 13 cents per share based on the dilution of the shares, the previous year. Total revenue increased 56% to $1.3 billion.

“Identity management is at the forefront of today’s rapidly changing security environment,” said Todd McKinnon, co-founder and CEO of Okta, in A declaration. “Today, senior executives and developers are increasingly turning to Okta to help provide their employees and customers with the freedom to use any technology securely.”

At least analysts were expecting it to turn a loss, but what they didn’t see coming was the weak outlook.

Looking ahead, Okta said it expects an adjusted loss of 34 to 35 cents per share in its first fiscal quarter on revenue of $388 million to $390 million. For the full fiscal year 2023, Okta expects an adjusted loss of $1.24 to $1.27 per share on revenue of $1.78 billion to $1.79 billion. Analysts had expected full-year earnings of 49 cents a share on revenue of $1.75 billion.

Although Okta beat revenue expectations, there was a significantly large gap between analysts’ expected losses and Okta’s forecast. This discrepancy was noticed by investors, with Okta shares falling more than 6% late in the session.

Photo: Okta

Show your support for our mission by joining our Cube Club and our Cube Event community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, ​​Dell Technologies Founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many other luminaries and experts.

Share.

Comments are closed.