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Okta stock falls even as earnings, outlook top Street estimates

By Wallace Witkowski

Okta Inc. shares dropped in the extended session Wednesday after the identity-management services company's quarterly results and outlook topped Wall Street estimates.

Okta (OKTA) shares fell 2.5% in Wednesday's after-hours session, following a 0.4% rise in the regular session to close at $264.76.

The company, which makes software that helps workers to sign into network applications, reported a second-quarter loss of $276.7 million, or $1.83 a share, compared with a loss of $60.1 million, or 48 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 11 cents a share, versus net income of 7 cents a share in the year ago period.

Revenue rose to $315.5 million from $200.4 million in the year-ago quarter.

Analysts had forecast an adjusted loss of 35 cents a share on revenue of $296.7 million, based on the company's forecast of a loss of 36 cents to 35 cents a share on revenue of $295 million to $297 million.

Okta expects an adjusted third-quarter loss of 25 cents to 24 cents a share on revenue between $325 million and $327 million, while analysts surveyed by FactSet had forecast a loss of 34 cents a share on revenue of $323.1 million.

For the year, Okta sees an adjusted loss of 77 cents to 74 cents a share on revenue of $1.24 billion to $1.25 billion, while analysts had forecast a loss of $1.14 a share on revenue of $1.22 billion.

During the quarter, Okta closed its $6.5 billion acquisition of identity-platform company Auth0.

"In our first quarter as a combined company with Auth0, we're off to a fantastic start," said Todd McKinnon, chief executive and co-founder of Okta, in a statement. "Execution remained sharp with strong demand for Okta's workforce and customer identity solutions, as well as Auth0's developer-centric identity solutions."

Okta shares have gained 18% over the past 12 months, compared with 28% gains in both the S&P 500 index and the tech-heavy Nasdaq Composite Index .

-Wallace Witkowski

 

(END) Dow Jones Newswires

09-02-21 0832ET

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