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Okta falls 16% on “mixed” Q2 earnings and reduced forecast as analysts point out sales difficulties

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Representatives from $6.5 billion According to officials, the acquisition of Auth0 has not worked well with those at Okta, increasing employee churn.


After lowering its billings forecast for the remainder of the year, Okta (NASDAQ:OKTA) dropped its share price by more than 16% on Thursday. Analysts cited “integration problems” with its sales staff as the cause.

Both billings and unfulfilled performance commitments were “underwhelmed,” according to Gregg Moskowitz, a Mizuho analyst who rates Okta (OKTA) as a buy. He cited difficulties with sales integration between the core business and its Auth0 purchase.

In a note to clients, Moskowitz stated that Okta (OKTA) is the market leader “in the critically important identity/access management industry,” adding that “a retooled [go-to-market] approach could pay benefits, but will take time.”


Following the news, Moskowitz decreased his price objective for Okta (OKTA) from $150 to $110 and lowered his revenue and earnings expectations for the company.

Okta (OKTA) analyst Matthew Hedberg of RBC Capital Markets said the second-quarter results were “decent,” but the third-quarter forecast and full-year guidance are now in line with or slightly higher than consensus. Hedberg has a neutral rating and a $145 price target on Okta (OKTA).

Okta (OKTA) stated that it anticipates total sales for fiscal 2023 to be between $1.812 and $1.82B, increasing between 39% and 40% from the previous year. Analysts anticipated $1.82 billion in sales for the entire year.

The current remaining performing obligations, according to Okta (OKTA), are anticipated to be between $1.54B and $1.55B, up between 30% and 31% from last year.

Okta (OKTA) stated that it anticipates sales for the third quarter to be between $463M and $465M, up between 32% and 33% year over year.

Featured Image – Megapixl © Michaelvi 

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