Okta’s (OKTA) stock is down 4% after the identity verification company pulled its guidance for fiscal 2027.
The company, whose technology is used to authenticate users of online platforms, reported earnings per share (EPS) of $0.82 U.S., which beat the $0.76 U.S. expected on Wall Street.
Revenue in the latest quarter totaled $742 million U.S., which was ahead of the $730 million U.S. forecast among analysts. Sales were up 12% from a year earlier.
Despite the top and bottom-line beats, Okta refrained from providing any guidance for the upcoming fiscal year, sending its share price lower in extended trading.
Management said they declined to provide guidance because providing a forecast would require “some conservatism” on the part of the company.
Okta’s subscription revenue in Q3 grew 11% from a year ago to $724 million U.S., which topped the $715 million U.S. estimate of analysts.
Okta released a capability during this year’s third quarter that allows businesses to build artificial intelligence (A.I.) agents and automate tasks.
Before today (Dec. 3), OKTA stock had gained 4% this year to trade at $81.87 U.S. per share.
