Okta stock fell Thursday as fiscal 2023 profit guidance came in well below expectations despite the company reporting a narrower-than-expected loss for its January quarter.
The cybersecurity software maker reported fourth-quarter earnings after the market close on Wednesday. OKTA stock results included those of fellow cybersecurity firm Auth0, which Okta acquired in May.
"The company offered non-GAAP EPS guidance for fiscal 2023 well below consensus expectations, reflecting investments in hiring, sales channel, Auth0 and support for further growth efforts," said William Blair analyst Jonathan Ho in a report. "Okta is seeing a robust demand environment driven by the threat landscape, digital transformation, zero trust and shift to cloud."
San Francisco-based Okta said it lost 18 cents per share vs. a 6-cent profit in the year-earlier period. Revenue climbed 63% to $383 million, including $56 million from Auth0, the company said.
Analysts expected the Okta earnings report to show a loss of 24 cents a share on sales of $360 million.
The company said billings rose 91% to $603 million vs. estimates of $497 million.
Okta Stock: Fiscal 2023 Guidance
For the current, full-year fiscal 2023 which ends next January, Okta predicted a loss in a range of $1.24 to $1.27 per share. Analysts had projected a 49-cent loss.
The company projected revenue of $1.785 billion, up 38%. Analysts predicted $1.75 billion.
Okta stock fell 8.1% to close at 167.98 on the stock market today.
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 24 out of a possible 99, according to IBD Stock Checkup.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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