Todd McKinnon, CEO and co-founder of Okta, speaks during the BoxWorks 2019 Conference in San Francisco, California, on Oct. 3, 2019.
Michael Short | Bloomberg | Getty Images
Okta reported better-than-expected earnings and revenue on Tuesday but maintained its guidance as the identity management software vendor grapples with an uncertain economic backdrop. The stock plunged 10% in extended trading.
Here’s how the company did compared to LSEG estimates:
- EPS: 86 cents adjusted vs. 77 cents expected
- Revenue: $688 million vs. $680 million expected
Revenue in the fiscal first quarter rose 12% from $617 million a year ago. Subscription revenue increased by the same amount to $673 million.
Okta reported net income of $62 million, or 35 cents per share, swinging from a net loss of $40 million, or 24 cents per share, a year ago.
Okta said it’s taking a “prudent approach” to its outlook, keeping its guidance for the fiscal year. The company previously said it expects revenue of between $2.85 billion and $2.86 billion for the year.
“When we look forward for our outlook, we’re putting a little bit of conservatism for potentially some macro uncertainty going forward,” CEO Todd McKinnon said in an interview with CNBC. “Big picture, we’re in a good position in our market” for identity security.
Numerous companies in tech and beyond have scrapped or their forecasts since President Donald Trump announced sweeping new tariffs in April. The market has rebounded of late as the administration has walked back or paused a number of those levies.
McKinnon said discussions with customers have turned “more cautious,” but he said there was no impact on the business the first quarter.
Current performance obligations reached $2.23 billion, ahead of a $2.19 billion StreetAccount estimate.
The company will host an analyst call to discuss its results at 5 p.m. ET.
