Okta (NASDAQ:OKTA) stock is falling hard on Thursday after the identity security company released earnings results for its second quarter of fiscal 2023.
That’s despite the company’s adjusted earnings per share (EPS) of -10 cents for the quarter. This came in better than the -30 cents per share Wall Street had expected. It’s also a minor improvement over the -11 cents reported during the same time last year.
To go along with that, Okta reported revenue of $451.81 million. Yet again, that beats out the $431.4 million that analysts’ were looking for in the period. It also represents a 43% increase year-over-year (YOY) from $315.5 million.
CEO Comments Are Pulling OKTA Stock Down
Todd McKinnon, CEO and co-founder of Okta, spoke with MarketWatch following the earnings report. The CEO said the company is facing some “short-term challenges.” That includes troubles integrating Auth0 into its business after acquiring it last year.
Another problem that Okta is facing is a high turnover of employees. The company’s attrition rates are currently sitting at about 20%, as compared to the typical 15%. McKinnon attributes this to the poor integration of Auth0.
All of this news has OKTA stock seeing heavy trading this morning. As of this writing, more than 10 million shares of the stock have changed hands. For comparison, the company’s daily average trading volume is closer to 2.6 million shares.
OKTA stock is down 30% as of Thursday morning.
There’s more recent stock market news traders will want to know about below!
We’ve got all the stock news for investors to read about on Thursday! That includes why Addentax Group (NASDAQ:ATXG) is rising, what has Chinese EV stocks moving and this morning’s biggest pre-market stock movers. You can get up to speed on all of this news at the following links!
More Thursday Stock Market News
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.