Okta Inc (NASDAQ:OKTA) shares slumped early Thursday despite the company reporting first-quarter sales and earnings that were well ahead of Wall Street’s expectations, as well as its own.
In a statement, CEO and co-founder Todd McKinnon maintained the company was well-positioned to advance its position in the technology sector but warned that macroeconomic conditions are increasing.
By 10am ET, the stock was down 22% at $61, valuing the company at $11.5 billion.
The cloud identity management company posted 1 25% year-over-year increase in revenue to $518 million, ahead of Wall Street’s estimate for $511 million, as subscription revenue jumped 26% to $503 million.
Non-GAAP diluted earnings per share (EPS) of $0.22, up from a $0.27 loss previously, beat the consensus estimate from analysts of $0.12.
The company also highlighted record operating cash flow of $129 million and free cash flow of $124 million.
“We started the new fiscal year with strong non-GAAP operating profit and record cash flow, which is a testament to the actions we’ve taken to increase efficiency and profitability,” McKinnon said.
“Identity is a key building block for projects around the long-term trends of zero trust security, digital transformation, and cloud adoption.”
For full-year 2024, the company has guided for revenue of $2.18 billion to $2.19 billion and non-GAAP diluted EPS of $0.88 to $0.93.
Contact the author at stephen.gunnion@proactiveinvestors.com