Okta lower in after-hours trading despite posting earnings beat
Okta reported quarterly earnings that beat expectations. The company reported an adjusted EPS of 6 cents and revenue of $234.7M, compared to Street expectations of a 1 cent loss-per-share and estimated revenue of $222.1M. Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the details.
Video Transcript
SEANA SMITH: We've got some more earnings reports for you. Okta is out with its results. Jared has a closer look at some of these numbers. And Jared, a huge move lower here after hours.
JARED BLIKRE: It's not just Okta. The entire software sector was under pressure today, and it's just continuing after earnings. So let's dig into those Okta numbers because it was a miss on their first quarter forecasts, although they did beat on their top and bottom line. So, adjusted EPS for the fourth quarter came in at $0.06. The Street was expecting a loss of $0.01 per share, so a beat there.
Revenue came in at $234.7 million. That's up 40% year over year, handily beating estimates of $222.1 million. But it's that forecast that's really a bit weak here. They're seeing revenue for the current quarter of $237 to $239 million. And the estimate was for higher at $239.3 million. They're also seeing an adjusted loss per share of $0.20 to $0.21. Estimated loss per share was lower at $0.07.
You can see the stock is off about 13% right now. We'll just take a look at a longer term chart. This is-- let's actually do a year to date, and you can see they are now underwater for the year. That's as of the close. So, going to be likely underwater tomorrow as well. Now, a lot of these software names have been high flyers. And so, you disappoint on earnings, much less you don't beat handily, we are seeing some of the worst reactions to earnings reports in a long time this particular quarter.
Well, let's move on to Vroom because things are not looking that much better there. Let's get a read on the current stock price. That's down 15% after hours. And it has to do with a very mixed report. So they did manage to beat on revenue for the fourth quarter. That came in at $405.8 million. Estimate was for slightly lower, $401.8 million. But the adjusted loss per share wider than estimates, $0.44, when the Street was estimating $0.37.
And then, on their-- excuse me. Then on their forecast, they're seeing adjusted loss per share of $0.61 to $0.68. Estimate loss per share was much lower, $0.37. They did manage to beat on their first quarter forecast.
And if I could just go back to Okta one more time, I do have a little bit more to add to that. They announced that they are buying off zero in a stock deal valued at about $6.5 billion that is dilutive. So that could account for some of the share losses that we're seeing in after hours trading, off to 0, by the way, one of those two-factor authorization apps, of which I have about five on my phone right now. But the losses in software just accelerating here, guys.
SEANA SMITH: Certainly, and certainly stocks to watch here as we look ahead to tomorrow's opening bell. All right, Jared, thanks so much for bringing us that.
