Okta's Long-Term Prospects Keep Getting Better
Okta's (NASDAQ: OKTA) second-quarter earnings report came out Wednesday night. This report gave investors the first update since the company's $6.5 billion acquisition of Auth0 closed on May 3, just a few days after the quarter began. While some investors seemed skeptical of the all-stock deal, especially given its hefty price tag, the second-quarter results show that the deal is priming Okta for long-term growth.
Overall revenue in the quarter was up 59% to $315.5 million, which was well ahead of estimates at $295.5 million. Standalone Okta revenue growth was up 39%, a slight acceleration from the previous quarter. On the bottom line, the Auth0 acquisition weighed on results as expected, with the company reporting an adjusted loss of $0.11 per share. That was down from a per-share profit of $0.07 in the quarter a year ago, but still better than the analyst consensus at a loss of $0.35.
Okta had a record quarter for customer additions with 750, bringing the grand total to 13,050. However, the biggest takeaways from the quarter revolve around the company's long-term growth potential. Let's take a closer look.
Source Fool.com
