Okta stock plunged Wednesday after the company announced the acquisition of Auth0 in a $6.5 billion deal. The cybersecurity firm also reported that January-quarter earnings, revenue and billings topped analyst estimates.
The all-stock deal for Bellevue, Wash.-based Auth0, gives Okta (OKTA) an operation geared to help software developers build identity authentication capabilities into applications.
Meanwhile, Okta said it earned an adjusted 6 cents per share, swinging to a profit from a 1-cent loss a year earlier. Revenue climbed 40% to $234.7 million, the company said.
Analysts expected the Okta earnings report to show a loss of 1 cent a share on sales of $221.8 million for the period ended Jan. 31.
The cybersecurity firm said fourth-quarter billings rose 40% to $316 million. That topped estimates of $288.3 million.
Okta Stock: Revenue Outlook Meets Expectations
For the April quarter, Okta forecast revenue of $238 million at its midpoint of guidance vs. estimates of $237 million.
Okta stock tumbled 10.5% to near 216 in after-hours trading on the stock market today.
Okta’s software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Heading into the earnings report, Okta stock owned a Relative Strength Rating of 67 out of a possible 99. Okta stock trades well below an entry point of 287.45.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE