(Bloomberg) – Okta Inc. shares slipped after Chief Executive Officer Todd McKinnon said the company is cautious amid an economic downturn and continuing global pandemic.
“We are still cautious about the rest of the year and the macroeconomic consequences for us,” he said in an interview. “Headwinds for the company will be a little stronger in the second half.”
The CEO determined that 11% of Octa’s customers were negatively affected by Covid-19. Large companies have shown more demand than small and medium-sized enterprises, he added.
Otka shares fell about 5% in extension after closing at $ 218.44 in New York. The share has risen 89% this year.
McKinnon has sought collaborative partnerships to make Okta’s security software useful for workers who have access to business systems, students who need to learn apps remotely, and consumers who are required to verify their identity online.
The company raised its annual sales forecast on Thursday, a sign of robust demand. However, the expectation of the company’s revenue for the current period ending in October represents sales growth from 32% to 33%, less than the profit over 43% in the previous year in previous quarter.
Octa reduced the loss forecast for the fiscal year to 1 cent to 3 cents per share. Analysts were looking for a loss of 20 cents a share.
In the period ending in October, the company forecast a loss, excluding some items, of 1 cent to 2 cents per share, better than analysts’ expectation of a loss of 6 cents a share.
Okta’s revenue jumped 43% to $ 200 million in the period ending July 31, beating analysts’ projections. Except for a few items, the company reported revenue of $ 9.9 million, or 7 cents a share. Analysts had predicted a small loss.
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