Okta surges on strong earnings

  • Okta beat on estimates and guidance.
  • The company's stock is up 134 percent since the beginning of 2018.
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 stock jumped as high as 18 percent in extended trading Thursday after the company reported better-than-expected results for the second quarter of its 2019 fiscal year, which ended on July 31.

Here's how the company did:

  • Earnings: Loss of 15 cents per share, excluding certain items, vs. loss of 19 cents per share as expected by analysts, according to Thomson Reuters.
  • Revenue: $94.6 million, vs. $84.8 million as expected by analysts, according to Thomson Reuters.

Okta's revenue grew by 57 percent, according to a statement. That's down 3 percentage points from one quarter ago.

With respect to guidance, Okta said that in the fiscal third quarter it's expecting a loss of 12 cents to 11 cents per share, excluding certain items, on $96 million to $97 million in revenue. That's ahead of the estimates from analysts polled by Thomson Reuters, which called for a loss of 17 cents per share, excluding certain items, on $89 million in revenue.

For its entire 2019 fiscal year Okta is calling for a loss of 48 to 46 cents per share, excluding certain items, on $372 million to $375 million in revenue. That's also ahead of expectations from analysts polled by Thomson Reuters, which were a loss of 56 percents per share, excluding certain items, on $356.5 million in revenue.

Also on Thursday, Okta said it has new or larger relationships at 21st Century Fox, Cisco, Pret A Manger and the state of Georgia.

On Thursday's conference call with analysts, Gray Powell of Deutsche Bank asked about the potential impact of Cisco's 2.35 billion acquisition of one Okta competitor, Duo Security.

"I think that partnering with Cisco more broadly and Duo as part of Cisco is going to be great, and we're very optimistic about that," Okta CEO Todd McKinnon said. McKinnon said that Duo is a "really good partner" of Okta's.

Okta stock is up 134 percent since the beginning of the year. In the quarter Okta announced the acquisition of security company ScaleFT. Okta went public in April 2017.