Okta forecasts slowest revenue growth since IPO amid economic uncertainty

By Anhata Rooprai

March ‌4 (Reuters) - Okta forecast ​first-quarter ​revenue below Wall Street expectations on Wednesday, projecting single-digit growth for the first time since ‌its 2017 IPO as economic uncertainty weighs on ⁠enterprise technology spending.

The identity security company said it expects revenue between $749 ‌million and $753 million for ‌the first quarter, representing a growth of 9%.

This was below analysts' average estimate of $754.61 million, according to ​data compiled by LSEG. Analysts were expecting a revenue growth of 9.7%.

While identity management is typically viewed ⁠as a more resilient area of IT spending, Okta has faced pressure as ​enterprise customers delay projects and scrutinize costs.

Analysts have said tighter budgets could push some customers ​to renew later than usual ‌or scale back deployments, particularly because software is often priced per employee and hiring trends ⁠remain muted.

Chief Operating Officer Eric Kelleher told Reuters that the company has not yet seen any meaningful impact from ⁠seat reductions showing up in its results.

Okta also expects adjusted profit ​between 84 cents and 86 cents per share for the fiscal quarter, below estimates of 87 cents.

For the fourth quarter ended January ‌31, Okta's revenue rose over 11% to $761 million, beating estimates of $748.8 million.

Adjusted profit came ‌in at 90 cents per share, beating estimates of ⁠85 cents.

Okta competes with ‌identity and access ​management providers such as Ping Identity and SailPoint.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Tasim ‌Zahid)

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