Okta Inc. (OKTA) shares rose more than 4 percent in the after-hours trading session on Wednesday after the company announced its financial results for the first quarter that beat consensus forecast.
The identity management company reported a loss of $26 million, or 25 cents per share for the three-month period ended April 30, narrower than a loss of $27.7 million, or 70 cents per share in the same period last year. On an adjusted basis, it lost $9.4 million, or 9 cents per share, versus $18.8 million, or 47 cents per share last year.
Revenue for the quarter came in at $83.6 million, up 60 percent from the comparable period last year. Analysts surveyed by FactSet were looking for an adjusted loss of 16 cents on $78.8 million in revenue.
Okta’s CEO Todd McKinnon said the company had another strong quarter and an excellent start to the year. McKinnon further said that organizations see the strategic value of identity and importance of Okta as an independent and neutral cloud platform.
The company generated net cash of $4.0 million, or 4.8 percent of total sales, from operations in the first quarter, as compared to cash of $9.7 million used in operations. Free cash flow in the latest quarter was negative $1.6 million, versus negative $13.3 million in the same period last year.
The San Francisco, California-based company expects revenue in the range of $84 million to $85 million and an adjusted loss in between 20 cents-21 cents per share for the second quarter.
For the FY 2019, Okta projected revenue in the range of $353 million to $357 million and a non-GAAP net loss between 54 cents-58 cents per share. The outlook was better than analysts’ average estimates.
