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Okta Falls on Mixed Earnings Results

Okta handily topped sales expectations, but posted a wider-than-expected loss for its fiscal second quarter. It also raised its outlook for the third quarter.

Okta shares were falling in after-hours trading after it posted a mixed earnings result, but beat revenue estimates and raised its forward-looking guidance.

For the quarter ending in July, the cloud software firm posted total revenue of $200.4 million, up 43% year-over-year, and a GAAP loss of 48 cents per share. Analysts were expecting revenue of $186.3 million and a GAAP loss of 41 cents per share. On a non-GAAP basis, however, Okta delivered 7 cents in diluted earnings versus an expected non-GAAP loss of 2 cents. 

Shares of Okta OKTA were down 3.6% to $210.58 in after-hours trading. 

“The three mega-trends that have been driving our business for the past several years - the adoption of cloud and hybrid IT, digital transformation, and zero trust security -- are all being accelerated globally by the current environment,” said Okta CEO Todd McKinnon in a statement. 

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Okta reported total calculated billings of $198.1 million, an increase of 27% year-over-year, and a remaining performance obligation of $1.43 billion, an increase of 56% year-over-year. 

For the current quarter and full year, Okta CFO Bill Losch added that it's “prudent to continue to expect some near-term economic uncertainty," but that its fiscal second quarter results gave the company confidence in raising its outlook. 

Okta is guiding for third quarter sales of $202 million to $203 million, up 32% to 33% and ahead of Wall Street's consensus of $195.7 million. For the full fiscal year, Okta now expects revenue of $800 million to $803 million, up 37% and above consensus estimates of $777 million.

Okta shares have risen 86% year to date partly on tailwinds tied to the remote work trend.