Okta Stock Drops on Quarterly Earnings Report

Okta’s stock fell sharply on Thursday on its second-quarter results. Exceeded expectations but struggled with integration issues related to his Auth0 acquisition in 2021. Octa (OKTA) announced quarterly results late Wednesday.


The cybersecurity software company reported an adjusted loss of 10 cents per share on revenue of $452 million. However, analysts expected Okta to report a loss of 31 cents per share against his $430.7 million earnings.

RBC Capital Markets analyst Matthew Hedberg said in a note to clients: “Management said it was working to slow the decline, including by changing its organizational structure to better align with strategy and improving sales mix.”

Okta’s stock plunged 33.7% to close at 60.60 on the stock market today.

Oppenheimer analyst Ittai Kidron said in a note that “Okta has already taken a step back and is addressing these challenges.” “But we think that could slow down the road to recovery and his targeted Auth0 synergies would probably be lower and take longer to extract.”

Okta Stock: Improving Your Go-To-Market Strategy

The company expects third quarter sales of $463 million to $465 million. The midpoint of $464 million is in line with analyst estimates. On the other hand, he expects an adjusted loss of 24 cents to 25 cents. Okta’s equity analyst had expected a loss of 28 cents.

Okta’s cybersecurity software monitors and manages privileged accounts. Hackers often target employees and management who have administrative access to a company’s computer systems.

“Looking toward the second half of the fiscal year, we will focus on improving our go-to-market strategy for our combined Auth0 and Okta sales organization, strengthening our team, and strategically reducing spend to improve profitability. We have it,” said Okta. Chief Executive Officer Todd McKinnon said in written comments on the earnings release:

According to the IBD Stock Checkup, Okta shares have a weak relative strength rating of 15 out of 99.

Also, if you are new to IBD, consider reviewing stock trading systems and CAN SLIM basics. Recognizing chart patterns in issues such as Okta stock is one key to investment guidelines.

Follow Brian Deagon on Twitter. @IBD_BDeagon Learn more about technology stocks, analytics and financial markets.

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