Cloud-based identity software company Okta Inc (NASDAQ:OKTA) cut its net losses in the quarterly period ending April 30 to $40 million from the thumping $119 million net loss reported in the previous year.
It follows a workforce restructuring programme announced in February that saw 400 team members laid off.
A year earlier, the group was forced to cut its workforce by 300 people, or roughly 5% after what Todd McKinnon conceded was a period of overhiring.
Subscription revenue, which is the primary driver for Okta, increased by 20% to $603 million, while professional services and other revenue saw a slight decline to $14 million.
The market initially responded positively to the quarterly statement, with shares adding nearly 5% in pre-market trades, but the stock proceeded to plummet over 3% in opening exchanges.