Okta (NASDAQ:OKTA) stock is soaring 15% in early trading after the identity management company reported “beat-and-raise” results.
Its first-quarter revenue soared 65% year-over-year to $415 million, versus analysts’ average estimate of $389 million. Its per-share loss, excluding certain items, came in at 27 cents, better than analysts’ mean outlook of a loss per share of 34 cents.
For its current full fiscal year, Okta slightly increased its top-line guidance range to $1.805 billion to $1.815 billion from $1.78 billion to $1.79 billion previously. Moreover, the company now expects its adjusted per-share loss to be $1.14 to $1.11, significantly better than its previous outlook of a loss per share of $1.27 to $1.24.
“Organizations around the world have made it clear that identity is the foundation for their digital transformation projects and zero trust security environments,” Okta CEO Todd McKinnon said in a statement. “Okta is the recognized leader in identity and we’re confident in our ability to capture more of the massive market opportunity,” he added.
Two Analysts Are Positive on OKTA Stock
Two analysts were upbeat on the Q1 results, suggesting the data indicates Okta has not sustained major damage from the brief breach of its defenses that occurred in January.
“Okta remains well-positioned across workforce/customer use cases … the fallout from the breach should continue resolving in coming periods,” wrote Stifel’s Adam Borg. The analyst, however, cut his price target on OKTA stock to $115 from $195.
Truist’s Joel Fishbein stated the company’s results were “impressive,” adding that “the recent deal wins and confidence of the raised guidance [are] encouraging,” However, Fishbein kept a “hold” rating on the shares.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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