LONDON, UK / ACCESSWIRE / September 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Okta, Inc. (NASDAQ: OKTA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=OKTA, following the Company's disclosure of its financial results on September 07, 2017, for the second quarter fiscal 2018. The Company's results came in better than market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For three months ended July 31, 2017, Okta's total revenue increased 62.9% to $61.00 million from $37.44 million in Q2 FY17. The total revenue surpassed analysts' expectations of $55.90 million.

During Q2 FY18, the Company's subscription revenue increased 67.7% to $56.08 million from $33.44 million in Q2 FY17. For the reported quarter, the Company's Professional services and other revenue increased 23% to $4.92 million on a y-o-y basis from $4.00 million in Q2 FY17.

During Q2 FY18, Okta's gross profit increased 74.5% to $41.31 million from $23.66 million in Q2 FY17. For the reported quarter, the Company's gross margin increased 460 basis points to 67.7% of revenue from 63.1% of revenue in Q2 FY17. During Q2 FY18, the Company's adjusted gross margin increased 600 basis points to 71% of revenue from 65% of revenue in Q2 FY17.

For the reported quarter, Okta's sales and marketing (S&M) expenses increased 39.3% to $39.60 million, from $28.42 million in Q2 FY17. During Q2 FY18, the Company's research and development (R&D) expenses increased 75.1% to $16.92 million from $9.66 million in Q2 FY17. For the reported quarter, the Company's general and administrative (G&A) expenses increased 94.6% to $11.95 million from $6.14 million in Q2 FY17.

During Q2 FY18, Okta's operating loss was $27.16 million compared to operating loss of $20.56 million in Q2 FY17. For the reported quarter, the Company's adjusted operating loss was $15.18 million compared to adjusted operating loss of $16.85 million in Q2 FY17.

During Q2 FY18, Okta's net loss was $27.00 million compared to net loss of $20.60 million in Q2 FY17. For the reported quarter, the Company's adjusted net loss was $15.02 million compared to adjusted net loss of $16.89 in Q2 FY17. During Q2 FY18, Okta's diluted EPS was negative $0.29 compared to negative diluted EPS of $1.10 in Q2 FY17. For the reported quarter, the Company's adjusted diluted EPS was negative $0.16 compared to negative $0.90 in Q2 FY17. Adjusted diluted EPS surpassed analysts' expectations of negative $0.25.

Balance Sheet

As on July 31, 2017, Okta's cash and cash equivalents increased 443.2% to $126.46 million from $23.28 million in Q4 FY17.

During Q2 FY18, the Company's accounts receivable, net of allowance, increased 2.2% to $35.30 million from $34.54 million in Q4 FY17.

For the reported quarter, the Company's accounts payable decreased 17.2% to $9.85 million from $11.90 million in Q4 FY17.

During H1 FY18, Okta's cash provided by operating activities was negative $15.92 million, as compared to negative $26.87 million in H1 FY17.

For the reported quarter, the Company's free cash flow was negative $10.48 million compared to negative $15.03 million in Q2 FY17.

Outlook

For Q3 FY18, Okta expects total revenue to be in the range of $62.0 million to $63.0 million and adjusted operating loss to be in the band of $23.5 million to $22.5 million. The Company estimates adjusted diluted EPS to be in the range of negative $0.25 to negative $0.24 for Q3 FY18.

For FY18, Okta expects total revenue to be in the range of $243.0 million to $245.0 million and adjusted operating loss to be in the range of $78.4 million to $76.4 million. The Company estimates adjusted diluted EPS to be in the range of negative $0.98 to negative $0.95 for fiscal 2018.

Stock Performance

On Wednesday, September 27, 2017, the stock closed the trading session at $29.13, advancing 2.07% from its previous closing price of $28.54. A total volume of 425.54 thousand shares have exchanged hands, which was higher than the 3-month average volume of 359.43 thousand shares. Okta's stock price surged 19.09% in the last one month and 21.43% in the past three months. Furthermore, since the start of the year, shares of the Company have rallied 23.90%. The stock currently has a market cap of $2.80 billion.

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