Followers | 689 |
Posts | 143664 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
![](https://investorshub.advfn.com/uicon/35728.png?cb=1539773763)
Thursday, February 02, 2023 11:03:11 AM
By: Morningstar | February 2, 2023
Company admits it hired too many workers for the current situation
The wave of software layoffs continued Thursday as Okta Inc. announced that it was cutting 300 jobs.
Chief Executive Todd McKinnon disclosed the layoffs, which will affect about 5% of Okta's (OKTA) employees, in an email to staffers Thursday that was also posted to the company's corporate blog.
"A workforce reduction like this is the last thing I wanted to do, and I am truly sorry," he said in the note.
McKinnon wrote that Okta's cuts come after the company grew too quickly in light of current economic circumstances. He said it also made some execution missteps.
"We entered fiscal 2023 with a growth plan based on the demand we experienced in the prior year," he said. "This led us to overhire for the macroeconomic reality we're in today. In addition, in the first half of [fiscal 2023], we faced our own execution challenges."
In a filing with the Securities and Exchange Commission, the company disclosed that it expects to take about $15 million of restructuring charges in its 2023 fiscal fourth quarter for payments expected to be made in the fiscal first quarter of 2024.
Workday Inc. (WDAY) and Splunk Inc. (SPLK) are among other software companies that announced layoffs this week, while SAP (SAP.XE) and Salesforce Inc. (CRM) have also moved to reduce their employee counts. Layoffs have affected workers in other categories of tech as well, and even the biggest companies haven't been immune from cutbacks.
Shares of Okta were ahead more than 6% in morning trading.
The stock's gains also come after Needham analyst Alex Henderson turned bullish on the name.
Henderson thinks that Okta has "righted" problems with execution that led to what he deems a conservative forecast for fiscal 2024.
"We think the growth bar set at 16%-17% in [fiscal year 2024/calendar year 2023] is easily beatable as it was set before evidence of the fixes kicked in," he wrote in a note to clients ahead of the layoff announcement, as he upgraded the stock to buy from hold and set a $90 price target. "The Customer business alone, at 45% of revenue and growing 30%-35%+, should be able to drive company-wide revenue to meet the [calendar year 2023/fiscal year 2024] guidance, we believe."
Henderson joins Stifel analyst Adam Borg, who upgraded Okta's stock to buy from hold earlier in the week.
Read Full Story »»»
![](http://studentaid.gov/universal-navigation/assets/us_flag_small.png)
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent OKTA News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/21/2024 09:07:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/15/2024 09:04:13 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/13/2024 08:13:59 PM
- Okta to Announce Second Quarter Fiscal Year 2025 Financial Results on August 28, 2024 • Business Wire • 08/01/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/23/2024 09:04:10 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/19/2024 08:59:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/18/2024 09:15:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/18/2024 09:14:10 PM
- Okta Announces SaaS Startup Competition to Build New Identity Security Applications • Business Wire • 07/17/2024 05:24:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/16/2024 08:09:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/09/2024 09:33:13 PM
- Okta Sponsors Firstboard.io to Support Talent Diversification at the Highest Levels • Business Wire • 07/09/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/05/2024 09:41:38 PM
- Okta Names Anthony Bates to Board of Directors • Business Wire • 06/24/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 09:22:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 09:21:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 09:20:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 09:19:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 09:17:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 09:16:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 09:25:40 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/10/2024 09:11:16 PM
- Okta to Present at Upcoming Investor Conference • Business Wire • 05/31/2024 12:00:00 PM
- Kohl’s, UiPath Shares Down, Foot Locker and Okta Should Rise • IH Market News • 05/30/2024 01:13:06 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/29/2024 08:02:57 PM
FEATURED ELEMENT79 ANNOUNCES UPLISTING TO OTCQB VENTURE MARKET • Aug 26, 2024 10:03 AM
North Bay Resources Announces Gold Assays up to 2.2 Ounces per Ton, Fran Gold Project, British Columbia • NBRI • Aug 26, 2024 10:00 AM
PickleJar Unveils Latest Venue Managed Services Innovations in Upcoming Webinar • PKLE • Aug 23, 2024 1:11 PM
Element79 Gold Corp Provides Update on Nevada Portfolio • ELMGF • Aug 23, 2024 8:00 AM
Maybacks Adds Award Winning Show to Its Lineup Discusses Maybacks Opportunity • AHRO • Aug 22, 2024 11:30 AM
North Bay Resources Announces First Gold Concentrate at Mt. Vernon Gold Mine, Assays 12 oz/ton Gold, 17.5 oz/ton Platinum, and 8 oz./ton Silver, Sierra County, California • NBRI • Aug 22, 2024 10:28 AM