Okta boosts full-year revenue forecast, beats estimates

Yahoo Finannce's Jared Blikre joined Yahoo Finance Live to break down Okta's earnings as the company reported $251M in revenue vs. an estimated revenue of $239.1M.

Video Transcript

ADAM SHAPIRO: Jared Blikre, how did they do on their earnings report?

JARED BLIKRE: That's right. We saw them as high as 5%. I'll give you the numbers here. Guidance was a little bit mixed, but beats on top and bottom lines for the current for the reporting quarter. Revenue coming in at $251 million. That's up 37% year over year. The estimate was for lower at $239.1 million. Subscription revenue, $240.1 million. That's up 38% year over year. Billings, $364 million, up 74%.

And then adjusted operating margin, that was down 6%. Last year, it was down 7%. So adjusted gross margin coming in at 78%. That is higher than the estimates of 77.8%. Now on their revenue forecast, it beat expectations, but on the adjusted loss per share side, basically double what the Street was expecting, $1.13 to $1.16, when the estimate was for a loss per share of about $0.43. Nevertheless, investors seem to be shrugging that off right now on the beats on both its top and bottom line.