Okta (NASDAQ:OKTA) saw its stock decline more than 6% in early Wednesday trading following the revelation that hackers, who breached the company's network, accessed information on all users of its customer support system.
The impact of the breach is more extensive than initially estimated, surpassing the previously stated 1% of affected customers.
"While we do not have direct knowledge or evidence that this information is being actively exploited, we have notified all our customers that this file is an increased security risk of phishing and social engineering," Okta told Reuters.
Okta has informed customers that in a network breach two months ago, hackers downloaded a report containing data, including names and email addresses, of all clients using its customer support system.
Analysts at Stifel see “additional headline risk associated with the potential for Okta prospects/customers to pause new deals/expansions.” However, they also reminded investors that prior incidents didn’t have a material impact on the company’s business.
“Events like this can collectively raise questions about Okta’s internal security control/procedures,” the analysts wrote in a note.