By Sabela Ojea
In the fiscal second quarter ending on July 31, Okta, the digital identity verification provider, showed promising results with a significant reduction in losses and a surge in subscription revenue.
The company reported a net loss of $111 million, or 68 cents per share, compared to a loss of $210 million, or $1.34 per share, in the same period the previous year.
When excluding one-time items, Okta’s earnings per share landed at 31 cents. Analysts surveyed by FactSet had predicted adjusted earnings per share of 22 cents. Notably, three months ago, the company projected adjusted earnings per share of 21 to 22 cents, indicating an overachievement.
Impressively, revenue rose by 23% to $556 million, surpassing analysts’ expectations of $534.7 million according to FactSet. Subscription revenue experienced a similar significant increase of 24% to $542 million in the given period. Furthermore, this represents a 7.8% upward growth from the first quarter.
Todd McKinnon, the Chief Executive Officer of Okta, stated, “Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year.”
About Okta
Okta is a leading provider of digital identity verification services. We help businesses and organizations streamline their authentication processes and protect their data. With a dedication to efficiency and outstanding performance, Okta has achieved impressive financial results in the fiscal second quarter. For more information, visit our website at www.okta.com.
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