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Okta Shares Plunge 7% Despite Strong Q2 Results

Published 31/08/2022, 22:12
OKTA
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By Davit Kirakosyan

Okta, Inc. (NASDAQ:OKTA) shares fell around 7% after-hours despite the company’s reported Q2 results, with EPS of ($0.10) coming in better than the consensus estimate of ($0.31).

Revenue increased 43% year-over-year to $452 million, beating the consensus estimate of $430.64 million. Subscription revenue grew 44% year-over-year to $435 million.

“Looking at the second half of the fiscal year, we’re focused on refining the go-to-market strategy for the combined Auth0 and Okta sales organization, strengthening our teams, and making strategic reductions to our spend to improve profitability,” said Todd McKinnon, CEO and co-founder of Okta.

The company expects Q3/23 revenue to be in the range of $463-$465 million, representing a 32%-33% year-over-year growth.

For the full 2023-year, the company expects EPS in the range of ($0.73)-$0.70. Revenue is expected to be in the range of $1.81-1.82 billion, compared to the consensus estimate of $1.82 billion.

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