Okta Inc. shares plunged in the extended session Wednesday after the identity-management software company raised expectations for the months ahead even while its chief executive warned macroeconomic conditions could worsen.
In an interview with MarketWatch ahead of the company’s conference call, Okta OKTA Chief Executive Todd McKinnon, a company co-founder, said that even while increasing his annual forecast, he sees a tougher business environment ahead. For the second quarter, Okta executives forecast adjusted earnings of 21 cents to 22 cents a share on revenue of $533 million to $535 million, while the Street expected 16 cents a share on revenue of $528.4 million, according to FactSet. Okta also hiked its outlook for the year, forecasting adjusted earnings of 88 cents to 93 cents a share on revenue of $2.18 billion to $2.19 billion, up from a previous forecast of 74 cents to 79 cents a share on revenue of $2.16 billion to $2.17 billion.