Okta (OKTA) Shares Down 4% Despite Q2 Beat/Raise
Okta, Inc. (NASDAQ: OKTA) shares were trading around 4% lower after-hours, despite the company posted Q2 beat/raise, driven by strong demand for the company’s workforce and customer identity solutions and Auth0's developer-centric identity solutions (note, this is the first quarter as a combined company with Auth0).
The company’s revenue grew 57% year-over-year to $316 million (vs. consensus of $296.23 million), with subscription revenue growing 59% to $303 million. The company posted non-GAAP EPS of ($0.11), beating the Street estimate of $0.35 loss per share.
The company raised its Q3 and full 2022-year guidance. For Q3 it expects a loss per share to range from $0.25 to $0.24 (vs. consensus of $0.34 loss) and revenue of $325-327 million, higher than the consensus estimate of $322.93 million.
For the full 2022-year the company estimates revenue of $1.243-$1.250 billion, representing a growth rate of 49%-50% year-over-year, better than the Street estimate of $1.22 billion. Non-GAAP EPS is expected to range from ($0.77) to ($0.74), compared to the $1.11 loss per share estimated by the Street.