Okta (OKTA) reported second-quarter results late Wednesday that beat estimates on the top and bottom lines, as did its outlook. But Okta stock fell in after-hours trades.
The cybersecurity software company reported an adjusted loss of 10 cents a share on revenue of $452 million. Analysts expected Okta to report a loss of 31 cents a share on revenue of $430.7 million.
Okta stock dropped 7.7% to 84.30 during post-close trading on the stock market today.
The company expects third-quarter revenue in the range of $463 million to $465 million. The midpoint of $464 million matches the consensus. It expects an adjusted loss in the range of 24 cents to 25 cents. Okta stock analysts expected a loss of 28 cents.
Okta’s cybersecurity software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Okta Stock: Refining Go-To-Market Strategy
“Looking at the second half of the fiscal year, we’re focused on refining the go-to-market strategy for the combined Auth0 and Okta sales organization, strengthening our teams, and making strategic reductions to our spend to improve profitability,” Okta Chief Executive Todd McKinnon said in written remarks with the earnings release.
Heading into the earnings report, Okta stock owned a weak Relative Strength Rating of 15 out of a possible 99, according to IBD Stock Checkup.
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Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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