Bill McColl
1 min read
In This Article:
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Okta didn't raise its full-year guidance despite posting better-than-expected first quarter results.
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The identity software provider pointed to a "uncertain economic environment" ahead.
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Okta warned that net retention revenue will face a "headwind" in the first half of its fiscal year.
Okta (OKTA) shares plunged 13% Wednesday, a day after the identification software provider didn't raise its full-year guidance because of economic uncertainty.
The company said in looking ahead, it was now "factoring in potential risks related to the uncertain economic environment for the remainder of FY26."
In the conference call with analysts, a transcript of which was provided by AlphaSense, CFO Brett Tighe explained that Okta's net revenue retention is facing "a little bit of headwind," which the company believes will last through the first half of the fiscal year.
The outlook offset better-than-expected first-quarter results. Okta reported adjusted earnings per share of $0.86, with revenue up 12% year-over-year to $688.0 million. Both exceeded Visible Alpha forecasts.
CEO and co-founder Todd McKinnon explained that Okta posted "record operating profit and another quarter of robust free cash flow."
Even with today's losses, shares of Okta are nearly 40% higher this year.
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