Okta flags ’uncertain economic environment’ ahead; shares slump

Published 27/05/2025, 21:48
© Reuters

Invesitng.com - Okta slumped in afterhours trading on Tuesday after the IT services management group flagged uncertain economic environment ahead even as Q1 results topped estimates.

Okta Inc (NASDAQ:OKTA) fell 11% in recent afthours trading.

The cloud software provider reported adjusted earnings per diluted share of $0.86 on revenue of $688M for the three months ended Apr. 30, beating estimates for $0.77 and $680.3M, respectively.

Current remaining performance obligations, or cRPO, a gauge of booked revenue, grew 21% year-on-year in Q1.

For Q2, adjusted per-share income, which strips out one-time items, is seen at $0.83 to $0.84, compared with Wall Street projections of $0.79. Revenue of $710M to $712M was also above the $708.8M called for by analysts. 

Looking ahead, the company lifted its forecast for adjusted diluted net income per share to a range of $3.23 to $3.28 from $3.15 to $3.20 previously. But maintained its revenue forecast and flagged "potential risks related to the uncertain economic environment." Okta previously forecast revenue between $2.850B and $2.860B. 

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