Okta Affirms Revenue Forecast and Sees Narrower Adjusted Loss

Okta, a provider of identity solutions for enterprises and small- and medium-sized businesses, affirms its revenue outlook and narrows its estimated loss even as it expects "near-term billing headwinds."
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Okta,  (OKTA) - Get Report the provider of identity solutions for enterprises and small- and medium-sized businesses, affirmed its revenue outlook and narrowed its estimated loss even as it expects "near-term billing headwinds."

The headwinds stem from uncertainty surrounding the coronavirus pandemic. 

The San Francisco company estimated a narrower adjusted operating loss and adjusted net loss than it previously guided. 

Okta now expects an adjusted fiscal-first-quarter net loss of 16 cents to 17 cents a share, compared with its previous forecast of a loss of 23 cents to 24 cents. 

Revenue should come in as originally forecast, between $171 million and $173 million, Okta  said.

For the fiscal year, the company models an adjusted net loss of 31 cents to 36 cents a share, narrower than its previous guidance of 37 cents to 42 cents. 

The revenue forecast is unchanged at $770 million to $780 million.

"This is primarily related to lower sales and marketing costs, driven in part by temporary travel restrictions, lower employee-related costs, and moving Oktane and other events to virtual formats," the company said in a statement. 

On Tuesday, Okta provided an update for its partner connect program, which has offerings designed to give the company's partners additional resources.

"Our ecosystem continues to expand globally, through new strategic initiatives and an enhanced focus on distribution," Okta Senior Vice President Patrick McCue said in a statement. 

"We have made critical updates to our program because as partners continue to play a bigger role in our business, it’s imperative to continue to provide comprehensive tools and training to build their Okta knowledge and ultimately drive our customers’ success." 

Okta shares at last check were 2.9% lower at $118.76.