Why Okta Stock Is Rising After Hours

Okta, Inc. OKTA shares popped after-hours Wednesday after the company reported second-quarter earnings and issued guidance. Here's what's driving the action.

What To Know: Okta reported quarterly earnings of 31 cents per share which beat the analyst consensus estimate of 22 cents, a 410% increase over losses of 10 cents per share from the same period last year. The company reported quarterly sales of $556.00 million which beat the analyst consensus estimate of $534.54 million, a 23.06% increase over sales of $451.81 million the same period last year.

The company also reported operating cash flow of $53 million and free cash flow of $49 million.

Third-quarter total revenue is estimated to be in a range between $558 million and $560 million, versus the $552.37 million estimate. Earnings per share is anticipated to be between 29 cents and 30 cents, versus the estimate of 20 cents.

Okta also raised full-year 2024 total revenue from between $2.175 billion and $2.185 billion to between $2.207 billion and $2.215 billion, versus the estimate of $2.18 billion.

The full-year 2024 earnings per share was boosted from between 88 cents and 93 cents to between $1.17 and $1.20, versus the estimate of 91 cents.

"Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year," said Todd McKinnon, CEO and co-founder of Okta.

"We are building on our position as the leading independent identity partner. Both new and existing customers are getting tremendous value from the Okta platform as they seek to simplify their infrastructure while increasing security by integrating identity into their most important projects. We're confident in our long-term opportunity and driving innovation for our customers, while delivering non-GAAP profitable growth to our shareholders."

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OKTA Price Action: Shares of OKTA were up 11.0% at $81.65 at the time of publication, according to Benzinga Pro.

Image by Gerd Altmann from Pixabay