Shares of Okta Inc. rose. On Thursday, after the identity software company said it would lay off about 7% of its workforce as part of a restructuring aimed at improving efficiency and profitability.
The company disclosed in an 8-K filing with the Securities and Exchange Commission that the restructuring includes eliminating 400 full-time jobs.
This will result in a restructuring charge of $24 million in the fiscal fourth quarter to cover employee benefits and compensation costs, most of which will be paid in the first quarter. The fourth quarter ended in January.
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It rose by 1.9% in morning trading, after falling by 8.7% in January.
Separately, the company reiterated the fourth-quarter financial guidance it provided when it announced third-quarter results on November 29. Okta then said it expects adjusted earnings per share of 50 cents to 51 cents and revenue of $585 million to $587 million. , which compares to the current FactSet consensus for EPS of 51 cents and revenue of $587.2 million.
“[T]The company announced to its employees a restructuring plan aimed at improving operating efficiencies and strengthening the company's commitment to profitable growth.
The company announced a total net loss of $119 million for the first three quarters of the current fiscal year, after recording a loss of $815 million for the fiscal year until January 31, 2023.
The stock is up 20.3% over the past three months through Wednesday and is up 8.5% over the past 12 months. In comparison, the S&P 500 SPX,
By 17.6% over the past year.
