Home / Business and Economy / Okta Slashes Revenue Forecast, Eyes Slowest Growth Yet
Okta Slashes Revenue Forecast, Eyes Slowest Growth Yet
5 Mar
Summary
- Okta projects first-quarter revenue below expectations.
- Company anticipates single-digit growth for the first time.
- Economic uncertainty impacts enterprise technology spending.
Okta's financial outlook reveals an anticipated first-quarter revenue range of $749 million to $753 million, a projection that falls short of analyst expectations and signifies an unprecedented single-digit growth rate since its 2017 IPO. This conservative forecast underscores the impact of current economic uncertainties on enterprise technology budgets.
The company's performance is attributed to customers delaying projects and intensifying cost scrutiny, a trend observed despite identity management typically being a resilient IT spending area. While Okta has not yet reported significant impacts from customer seat reductions, the current financial projections suggest a cautious approach from clients navigating tighter budgets and muted hiring environments.
For the fourth quarter ending January 31, Okta reported revenue growth exceeding 11% to $761 million, surpassing previous estimates. The company also achieved an adjusted profit of 90 cents per share, exceeding analyst expectations for that period. Okta competes in the identity and access management market with firms like Ping Identity and SailPoint.
