Cybersecurity Provider Okta Surges on Earnings Beat
Okta, Inc. (OKTA:US) reported a solid set of second-quarter results to send its shares sharply higher on Thursday.
Earnings per share (EPS) of $0.31 exceeded the analyst estimate of $0.22 by $0.09. Additionally, the company's revenue for the quarter amounted to $556 million, surpassing the consensus estimate of $534.67 million.
The company's subscription revenue for the period reached $542 million, marking a substantial 24% year-over-year growth and surpassing the estimated $518.3 million.
Okta’s adjusted operating margin stood at 11% compared to a negative 3% in the previous year. This exceeded the estimated margin of 7%. Moreover, the company's adjusted gross margin also showed improvement, reaching 80% compared to the prior year's 77% and exceeding the estimated margin of 78.4%.
The cybersecurity services provider also offered a full-year outlook. The company anticipates FY EPS in the range of $1.17 to $1.20, which is notably higher than the consensus estimate of $0.91. Moreover, OKTA projects revenue for the fiscal year to be between $2.21 billion to $2.22 billion, surpassing the consensus estimate of $2.18 billion.
“Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year. We are building on our position as the leading independent identity partner,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta.
Congressman Ro Khanna was actively trading OKTA shares throughout 2022.
