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Sept. 2, 2021, 8:32 a.m. EDT

Okta stock falls even as earnings, outlook top Street estimates

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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  /zigman2/quotes/210420951/composite OKTA -2.15% 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  /zigman2/quotes/210599714/realtime SPX +0.98% and the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +1.39% .

/zigman2/quotes/210420951/composite
US : U.S.: Nasdaq
$ 244.63
-5.38 -2.15%
Volume: 2.15M
Oct. 28, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$38.67 billion
Rev. per Employee
$297,728
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/zigman2/quotes/210599714/realtime
US : S&P US
4,596.42
+44.74 +0.98%
Volume: 2.15B
Oct. 28, 2021 4:11p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
15,448.12
+212.28 +1.39%
Volume: 5.09M
Oct. 28, 2021 4:11p
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