Why Okta Inc (NASDAQ: OKTA) stock is crashing

Free $100 Forex No-Deposit Bonus

Okta Inc (NASDAQ: OKTA) stock lost over 9.9% on 8th March 2019 (Source: Google finance) after the company gave a weak outlook. OKTA added a record 500 net new customers in the quarter, bringing the total customer count to over 6,100. And the number of customers who spent over $100,000 a year with the company on an annual basis now totals 1,038, an increase of 50% year over year and a record add of 101. Operating cash flow was $10.1 million in Q4. Operating cash flow margin was a positive 8.8%, compared to a positive 0.2% in Q4 last year, an 860 basis point improvement. Free cash flow was $4.8 million, positive for the second quarter in a row.

OKTA in the fourth quarter of FY 19 has reported the adjusted loss per share of 4 cents, beating the analysts’ estimates for the adjusted loss per share of 8 cents. The company had reported the adjusted revenue growth of 50 percent to $115.5 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $107.9. Subscription revenue totaled $108.5 million in the fourth quarter, an increase of 53% year over year, representing 94% of the total revenue, up from 92% in Q4 last year. Revenue from outside of the U.S. grew 47% year over year and represented approximately 15% of the fourth-quarter revenue, consistent with Q4 last year. Subscription gross margin continues to be strong at 82.4%, up 160 basis points versus the fourth quarter last year. Total gross margin was 76.4% in the fourth quarter, up 250 basis points year over year. Gross profit was $88.2 million, up 55% year over year.

Okta expects an adjusted loss to be in the range of 22 cents to 21 cents a share on revenue of $116 million to $117 million for the first quarter, and a loss of 53 cents to 48 cents a share on revenue of $530 million to $535 million for the year. Analysts surveyed by FactSet had forecast a loss of 12 cents a share on revenue of $111.7 million, and a loss of 22 cents a share on revenue of $518.3 million for the year.

Meanwhile, OKTA has signed an agreement to acquire Azuqua, a leader in no-code, cloud-based business application integration and workflow automation. Together, Okta and Azuqua will provide organizations with a neutral, independent control center for automating the business processes and the flow of identities between applications and services for everyone in an organization The proposed acquisition is expected to close during Okta’s fiscal first quarter, subject to the satisfaction of certain closing conditions.

Copyright © 2019. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.