Earnings Results: Okta hikes annual earnings guidance by about a third after weakness doesn’t materialize, stock rallies more than 10%

by | Aug 30, 2023 | Stock Market

Okta Inc. late Wednesday hiked its annual earnings outlook by about a third after the identity-management software company’s worst-case scenario of weak business spending never materialized. Okta
shares rallied 14% after hours, following a 2.4% gain to close at $73.57.

Okta said sees adjusted third-quarter earnings of 29 cents to 30 cents a share on revenue of $558 million to $560 million, while analysts had forecast 29 cents a share on revenue of $552.9 million, But the big boost comes in Okta’s annual guidance. For the year, Okta expects $1.17 to $1.20 a share on revenue of $2.21 billion to $2.22 billion, while analysts surveyed by FactSet expected 91 cents a share on revenue of $2.18 billion. Okta last had forecast earnings of 88 cents to 93 cents a share on revenue of $2.18 billion to $2.19 billion. Last quarter, Okta shares fell under pressure after the company gave a strong forecast but warned macroeconomic conditions could worsen. In an interview with MarketWatch ahead of the company’s conference call, co-founder and Chief Executive Todd McKinnon said the company had prepped its outlook for the worst, which never materialized. What happened? “We were assuming the macro would get worse, …

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