After-Hours Action: Why Okta Shares Are Surging

Okta Inc OKTA shares are trading higher in Thursday's after-hours session after the company reported better-than-expected financial results and issued guidance above analyst estimates. 

Okta said fiscal first-quarter revenue increased 65% year-over-year to $415 million, which beat the estimate of $388.99 million, according to data from Benzinga Pro. The company reported a quarterly earnings loss of 27 cents per share, which beat the estimate for a loss of 34 cents per share.

"We delivered solid first quarter results highlighted by strength in new customer additions, dollar-based net retention rate, and the success we're having with large customers as they continue their journey to the cloud," said Todd McKinnon, co-founder and CEO of Okta.

Okta expects fiscal second-quarter revenue to be between $428 million and $430 million versus the estimate of $422.25 million. The company said it expects to lose 31 to 32 cents per share in the second quarter. 

Full-year revenue is expected to be between $1.805 billion and $1.815 billion, representing growth of 39% to 40% year-over-year.

OKTA Price Action: Okta has traded between $77.01 and $276.30 over a 52-week period.

The stock was up 16.0% in after hours at $108.70 at press time.

Photo: courtesy of Okta.