Okta Inc’s (NASDAQ: OKTA) second quarter 2020 bottom line and top-line results surpassed market’s views. As expected, the company shrunk its loss. Non-GAAP loss per share was 5 cents on revenue of $140.5 million for the quarter ended July 31, 2019. Analysts had expected the cloud-based identity management company to post a loss of 10 cents per share on revenue of $131.18 million.
After trading in the positive territory for a while, Okta stock turned to red, hurt by weak bottom line outlook for Q3. Shares of Okta traded down about 3% at 4:45 PM ET.
When the the company reported first quarter 2020 results, it had projected second quarter 2020 revenue to be $130 million to $131 million and adjusted loss of $0.11 to $0.10 per share.
Q2 revenue surged 49% year-over-year on strong subscription revenue growth of 51%. GAAP net loss was $43 million or $0.37 per share compared to a loss of $39.2 million or $0.37 per share in the second quarter of fiscal 2019.
For the third quarter of fiscal 2020, the company expects revenue to grow 35% to 36% to a range of $143 million to $144 million. Non-GAAP net loss per share is expected to be $0.13 to $0.12 whereas the market expected a loss of 9 cents per share.
Read: VMware (VMW) beats Q2 FY20 estimates; to acquire Pivotal Software and Carbon Black
Okta lifted its outlook for full-year 2020. The company now expects revenue of $560 to $563 million, representing a year-over-year growth rate of 40% to 41% and non-GAAP net loss per share of $0.44 to $0.42. This compares to the previous estimated revenue of $543 million to $548 million and non-GAAP loss per share outlook of $0.49 to $0.45.
The company had 7,000 customers at the end of second quarter of 2020, up 36% and customers with annual contract value (ACV) above $100,000 grew 46% year-over-year to 1,222.
The San Francisco, California-based firm’s shares, which reached its all-time high ($141.85) during the end of July, had surged 109% so far this year and 120% in the past 52 weeks.