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Okta shares rise as sales top estimates in first report since IPO

  • Okta's subscription business is driving results.
  • The company went public in April.
Okta executives at their IPO at the Nasdaq, April 7, 2017.
Source: Nasdaq
Okta executives at their IPO at the Nasdaq, April 7, 2017.

Okta reported quarterly results for the first time as a public company on Wednesday, beating analysts' estimates for revenue.

  • EPS: Excluding certain items, the loss per share was 50 cents vs. a loss of 62 cents as expected by analysts, according to Thomson Reuters.
  • Revenue: $53 million vs. $48.2 million expected by analysts.

Sales in the fiscal first quarter jumped 67 percent from $31.7 million a year earlier. Subscription revenue, which outweighs professional services revenue, climbed 75 percent.

Guidance for the second quarter also topped estimates.

  • The company expects a net loss of 25 cents to 26 cents a share on sales of $55 million to $56 million. Analysts were looking for a loss of 26 cents on $54 million in revenue.
  • For the 2018 fiscal year, the company says it will post sales of $233 million to $236 million vs. an average estimate of $227 million. Okta also says it will finish with a loss of $1.11 a share to 1.15 a share, while analysts were expecting a loss of $1.18.

Okta shares rose 4.6 percent in after-hours trading to $26.85. The company's stock popped 38 percent in its first day of trading on the Nasdaq in April and, based on the price in extended trading, is up 58 percent since its debut.

Watch: Okta makes public debut