Okta Stock Falls As Acquisition Impacts Cybersecurity Firm’s Earnings
Okta stock fell after the cybersecurity firm reported second-quarter earnings and revenue that topped analyst estimates amid its acquisition of Auth0 in May. Okta revenue guidance edged by expectations for the October quarter.
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San Francisco-based Okta (OKTA) said it lost 11 cents per share vs. a 7-cent profit in the year-earlier period. Revenue climbed 57% to $316 million, the cybersecurity firm said. Revenue growth included a $38 million contribution from Auth0.
Analysts expected the Okta earnings report to show a loss of 35 cents a share on sales of $296.7 million. The company said billings rose 83% to $363 million vs. estimates of $302 million. Excluding Auth0, billings rose 47%, the cybersecurity firm said.
For the October quarter, Okta forecast revenue of $326 million at the midpoint of its guidance vs. estimates of $323 million. The company projected a loss in a range of 25 cents to 26 cents. Analysts had estimated a 34-cent loss.
Meanwhile, Okta stock fell 3.7% to near 255 in after-hours trading on the stock market today.
Okta Stock: Acquisition Closed In May
Also, Okta in May closed the acquisition of Auth0 in a $6.5 billion deal. In addition, cybersecurity firm Okta had $2.47 billion in cash and equivalents on its balance sheet as of July 31.
Okta's cybersecurity software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Heading into the earnings report, Okta stock owned a Relative Strength Rating of 65 out of a possible 99, according to IBD Stock Checkup.
Founded in 2009, Okta competes with products from Microsoft (MSFT) as well as Ping Identity (PING) and Centrify.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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