Okta Inc (NASDAQ:OKTA) is trading lower Thursday morning after the company issued second-quarter earnings guidance below estimates.
Okta reported a first-quarter earnings loss of 10 cents per share, which beat the estimate for a loss of 20 cents per share. The company reported quarterly revenue of $251 million, which beat the estimate of $238.31 million.
Okta said it expects a second-quarter earnings loss of 35 to 36 cents per share, which was lower than the estimate for a loss of 11 cents per share.
Total revenue was $251 million, an increase of 37% year-over-year. Subscription revenue was $240 million, an increase of 38% year-over-year.
Total calculated billings were $364 million, an increase of 74% year-over-year. Calculated billings includes the effect of billings process improvements that were enacted at the end of the first quarter of fiscal year 2022. Excluding these changes, calculated billings would have been $293 million, an increase of 40% year-over-year.
"Broad-based demand for both our customer and workforce identity solutions led to another quarter of strong financial results and an excellent start to the fiscal year. Organizations around the world are turning to Okta to improve the digital customer experience and to improve how their employees safely connect to their applications from anywhere," said CEO Todd McKinnon.
JP Morgan analyst Sterling Auty maintained Okta with a neutral rating and raised the price target from $235 to $245 on Thursday.
OKTA shares lost $27.74, or 11.3%, to begin Thursday at $218.80.
