Password security company Okta soars 16% on major earnings and revenue beat
- Okta stock soared 16% Thursday after the single sign-on platform beat Wall Street's expectations across the board.
- The company's quarterly losses lessened, and it projected continued growth in the upcoming third quarter.
Okta shares soared 16% in after hours trading Thursday after the single sign-on company delivered a major beat in second quarter earnings.
Okta tightened its losses and projected strong growth for the third quarter and 2019 fiscal year, beating Wall Street's expectations on every metric."We continued to see momentum across our business in the second quarter of the fiscal year, with year-over-year subscription revenue growth of 59%, including particular strength in the enterprise," Okta CEO Todd McKinnon said in a statement.
"Growth in customers with over $100,000 annual recurring revenue accelerated to 55% year-over-year in Q2, which is a testament to the increasing strategic need for an identity solution as organizations move to the cloud. This need is pervasive and imperative, and I believe we are in the early stages of capitalizing on this high growth opportunity," he said.
Here's what Okta reported:
- Revenue (GAAP) for the quarter: Okta reported $94.6 million, up 57% from the year before. Analysts expected revenue of $84.82 million.
- Earnings (adjusted) for the quarter: Okta lost $0.15 per share. Analysts expected losses of $0.19.
- Revenue (GAAP) guidance for Q3: Okta expects revenue of $96 to $97 million, for 43% to 45% growth from the year before. Analysts expected $88.96 million.
- Earnings (adjusted) guidance for Q3: Okta expects losses of $0.12 to $0.11 per share. Analysts expected guidance of a $0.17 loss per share.
- Revenue (GAAP) guidance for fiscal 2019: Okta expects revenue of $372 to $375 million. Analysts expected guidance of $356.46 million.
- Earnings (adjusted) guidance for fiscal 2019: Okta expects losses of $0.48 to $0.46, per share. Analysts expected guidance of a loss of $0.56.