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Okta, the provider of identity in the cloud, reported better earnings than expected during its last quarter last Wednesday.
Michael Vi / Dreamstime
Okta shares fell on Wednesday in recent operations despite a better-than-expected second-quarter fiscal quarter tax report from the identity provider in the cloud. The company also issued a bullish forecast for the rest of the year.
Still, shares of
Octa
(ticker: OKTA) fell 2.4% in the extended session.
Okta reported a second-quarter loss of $ 276.9 million, or $ 1.83 per share, compared to a net loss of $ 60.1 million, or 48 cents a share, during the period. previous year. Adjusted for share compensation, among other items, Okta reported a loss of 11 cents per share. Revenue rose 57% to $ 315.5 million.
Analysts had expected an adjusted loss of 35 cents per share on revenue of $ 295.5 million.
For Okta, economic reopenings around the world have created short-term uncertainty, but CEO Todd McKinnon said De Barron On Wednesday, the general trend towards remote work will continue to benefit the company.
While Covid-19 has created uncertainty among many companies, more companies have had to secure home offices where people use cloud applications that are not in a company’s own data centers. “It’s this two-factor story,” McKinnon says.
Okta has yet to appoint a new chief financial officer following the resignation of Mike Kourey on June 1. At least one Wall Street analyst had suggested an announcement could arrive on Wednesday along with revenue, but as of now CFO’s permanent job has yet to be fulfilled.
Okta said he expected a tight third-quarter loss of 25 cents to 24 cents per share on revenue of $ 325 million to $ 327 million. Wall Street analysts have forecast a loss of 34 cents per share on revenue of $ 321 million.
McKinnon said the company raised its outlook because “all trends are very positive” and that Okta was exceeding expectations of “all metrics.”
Okta raised its forecast for the year and said it now expects a full-year adjusted loss of 77 cents to 74 cents per share, with revenue of $ 1.242 billion to $ 1.252 billion. Throughout the year, the agreed estimate has been a loss per share of $ 1.11 for revenue of $ 1.222 billion.
McKinnon says he is confident trends will continue in favor of Okta, which is why the company raised its outlook.