Okta, Nutanix, Zuora beat earnings estimates

Shares of Okta were down in after-hours trading after the cloud identity management company delivered a mixed Q3 outlook.

Okta reported its second quarter financial results on Wednesday, beating market expectations but delivering a mixed Q3 outlook. 

The cloud identity management firm reported a non-GAAP net loss of $5.5 million, or 5 cents per share, on revenue of $140.5 million. By comparison, in Q2 2019, Okta's net loss was $16.4 million, or 15 cents per share, on revenue of $94.59 million. 

Analysts were expecting a net loss of 11 cents per share on revenue of $131.18 million. 

"We had another exceptional quarter with strong growth in subscription revenue, billings, and remaining performance obligation," CEO Todd McKinnon said in a statement. "Identity plays a foundational role as organizations look to adopt more cloud technologies and accelerate their businesses' digital transformation in a highly secure and easy to use manner."

Subscription revenue for the quarter came to $132.5 million, an increase of 51 percent year-over-year. Total calculated billings were $155.8 million, a 42 percent increase.

For the third quarter of fiscal 2020, Okta is expecting total revenue of $143 million to $144 million, with a non-GAAP net loss per share between 13 cents and 12 cents. 

Wall Street is expecting $140.53 million in Q3 revenue with a net loss of 9 cents. 

Nutanix, meanwhile, published its fourth quarter and full fiscal 2019 results. 

The company reported a non-GAAP net loss of $105.8 million, or 57 cents per share, on revenue of $299.9 million. A year prior, the company reported a non-GAAP net loss per share of 11 cents on revenue of $303.7 million. 

The decrease in revenue reflects a reduction of pass-thru hardware from $35.9 million in Q4 2018 to $13 million in Q4 2019, Nutanix said, as well as the company's shift to a subscription business model.  

Wall Street was looking for a net loss of 64 cents per share on revenue of $293.86 million. 

For the full fiscal year 2019, Nutanix's net loss per share was $1.51. Revenue totaled $1.24 billion, up from $1.16 billion in fiscal 2018. 

"We delivered a solid fourth quarter and believe our performance reflects our execution improvements and the meaningful progress we have made transitioning our business to a subscription model," CEO Dheeraj Pandey said in a statement. "We are encouraged by our record gross margins, strengthening pipeline, progress in sales hiring, and recent large customer wins. We have a strong set of tenured sales leaders in place and continue to lead the industry as an innovator with technology at the forefront of hybrid cloud transformation."

Software and support revenue in Q4 was $286.9 million, up 7 percent year-over-year. Billings in Q4 came to $371.7 million. 

Cloud-based subscription management company Zuora delivered better-than-expected second quarter financial results. The company reported a Q2 net loss of $20.8 million, or 19 cents a share. The non-GAAP net loss came to 9 cents per share on revenue of $69.7 million, up 21% year-over-year. Meanwhile, Zuora said subscription revenue came to $50.6 million, an increase of 24% year-over-year. 

Wall Street was expecting a non-GAAP net loss of 14 cents a share on revenue of $66.9 million. Shares of Zuora were up more than 7% after hours.

In terms of guidance, Zuora expects third quarter revenue in the range of $69 million to $71 million and a non-GAAP net loss between 10 cents and 9 cents. Analysts were expecting a loss of 9 cents and revenue of $70.08 million.