Okta Inc. shares rallied more than 10% in the extended session Thursday, adding to similar gains in the regular session after the identity-management services company reported better-than-expected results and hiked its outlook for the year.
shares soared 13% in Thursday’s after-hours session, building on an 11% surge in the regular session to close at $93.68.
The company, which makes software that helps workers connect to network applications, reported a first-quarter loss of $242.7 million, or $1.56 a share, compared with a loss of $109.2 million, or 83 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 27 cents a share, compared with a loss of 10 cents a share in the year-ago period.
Revenue rose to $414.9 million from $251 million in the year-ago quarter.
Analysts had forecast an adjusted loss of 34 cents a share on revenue of $388.9 million, based on the company’s forecast loss of 35 cents to 34 cents a share on revenue of $388 million to $390 million.
Okta expects an adjusted second-quarter loss of 32 cents to 31 cents a share on revenue between $428 million and $430 million, while analysts surveyed by FactSet had forecast a loss of 34 cents a share on revenue of $422.7 million.
Okta hiked its annual outlook, forecasting a second-quarter loss of $1.14 to $1.11, on revenue of $1.81 billion to $1.82 billion. Back in March, Okta had forecast an adjusted loss of $1.27 to $1.24 a share for the year on revenue of $1.78 billion to $1.79 billion, while analysts forecast a loss of $1.24 a share on revenue of $1.78 billion.
This quarter marks the first year that Okta has had the Auth0 identity-platform on the books. Okta closed the $6.5 billion acquisition of Auth0 on May 3, 2021.
“We delivered solid first-quarter results highlighted by strength in new customer additions, dollar-based net retention rate, and the success we’re having with large customers as they continue their journey to the cloud,” said Todd McKinnon, chief executive and co-founder of Okta, in a statement. “Organizations around the world have made it clear that identity is the foundation for their digital transformation projects and zero-trust security environments.”
Okta shares have dropped 57% over the past 12 months, compared with a 1% decline by the S&P 500 index
and a 10.5% decline by the tech-heavy Nasdaq Composite Index