Okta Inc. reports £45.23 million of loss in the fiscal second quarter

Okta Inc. (NASDAQ: OKTA) published its quarterly financial results on Thursday after the bell that came in stronger than what the analysts had anticipated. The company also gave its future guidance that topped Wall Street estimates.

Shares of the company were reported more than 3.5% down in after-hours trading on Thursday. Okta Inc. is now exchanging hands at £158 per share that represents a massive 125% recovery compared to its year to date low of £72.24 per share in March

Okta’s Q2 financial results versus analysts’ estimates

Okta swung to £45.23 million of loss in the fiscal second quarter that translates to 36.12 pence a share. In the same quarter last year, it had reported a lower £32.36 million of loss or 27.84 pence per share.

On an adjusted basis, the company earned 5.27 pence per share versus the year-ago figure of 3.76 pence of loss a share. CEO Todd McKinnon of Okta commented on the earnings report on Thursday and said:

“The three mega-trends that have been driving our business for the past several years — the adoption of cloud and hybrid IT, digital transformation, and zero-trust security — are all being accelerated globally by the current environment.”

In terms of revenue, the access management company recorded £150.81 million that was higher than £105.75 million in the comparable quarter of 2019. According to FactSet, experts had forecast the company to print 1.51 pence of adjusted loss per share on £140.20 million of revenue in the recent quarter.

Okta’s guidance for the fiscal third quarter

For the fiscal third quarter, the San Francisco-based company not anticipates 1.51 pence of adjusted loss per share to 0.75 pence a share. It expects its revenue to register at around £152.75 million. Analysts, on the other hand, have estimated 3.76 pence of loss per share for Okta in Q3 on £147.27 million of revenue.

According to COO Frederic Kerrest, Okta’s MFA (Multi-Factor Authentication) product posted an annualised growth of 200% in terms of usage in the recent quarter. In related news, Okta’s peer, Salesforce, also reported its quarterly earnings earlier this week.

Okta’s performance in the stock market was also hawkish in 2019 with an annual gain of roughly 90%. At the time of writing, the American identity and access management firm has a market cap of £20.48 billion.