Okta tops estimates and raises outlook as SentinelOne slides on weak guidance
Shares of Okta Inc. rose more than 6% in late trading today, while SentinelOne Inc. fell more than 18%, as the two cybersecurity companies reported quarterly results hours apart with sharply different reactions from investors.
Okta beat on earnings and revenue and raised its full-year outlook. SentinelOne also beat on earnings and posted a higher adjusted operating margin, but light revenue guidance and an 8% cut to its workforce sent the stock lower.
For the quarter that ended on April 30, Okta reported adjusted earnings of 91 cents per share, up from 86 cents a year earlier, on revenue of $765 million, up 11% year-over-year. Both figures topped the 85 cents per share and revenue of $752 million analysts had been expecting. Subscription revenue also rose 11%, to $750 million.
Current remaining performance obligations, a measure of future subscription revenue, grew 12% year-over-year, to $2.499 billion, while total remaining performance obligations rose 16%, to $4.719 billion. Free cash flow came in at $271 million, or 35% of revenue.
