Okta Inc OKTA shares are trading lower Thursday after the company reported second-quarter results and issued guidance below analyst estimates.
Q2 Results: Okta said second-quarter revenue increased 43% year-over-year to $452 million, which beat average analyst estimates of $430.68 million, according to Benzinga Pro. The company reported a quarterly net loss of 10 cents per share, which was improved from a net loss of 11 cents per share year-over-year.
Outlook: Okta expects third-quarter revenue to be between $463 million and $465 million versus the estimate of $463.99 million. Full-year revenue is expected to be between $1.812 billion and $1.82 billion versus the estimate of $1.82 billion.
Okta expects a third-quarter adjusted net loss between 24 cents and 25 cents per share. The company anticipates a full-year adjusted net loss between 70 cents and 73 cents per share.
Analyst Assessment: Several analysts adjusted ratings and cut price targets on the stock following the company's quarterly results.
- Canaccord Genuity analyst Michael Walkley downgraded Okta from Buy to Hold and lowered the price target from $155 to $85.
- Piper Sandler analyst Rob Owens maintained Okta with an Overweight and lowered the price target from $130 to $125.
- Needham analyst Alex Henderson downgraded Okta from Buy to Hold.
- JMP Securities analyst Trevor Walsh maintained Okta with a Market Outperform and lowered the price target from $165 to $145.
- Morgan Stanley analyst Hamza Fodderwala downgraded Okta from Overweight to Equal-Weight and announced a $93 price target.
OKTA Price Action: Okta is making new 52-week lows on Thursday.
The stock was down 18.2% at $74.75 at time of publication.
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