Shares of Okta, Inc. (NASDAQ:OKTA) fell Thursday following the company's second-quarter financial results.

What To Know: Okta reported second-quarter revenues of $646 million, beating the consensus estimate of $632.7 million, and adjusted earnings per share of 72 cents, beating the expected 61 cents per share.

However, the company's subscription revenue growth decelerated to 17% year-over-year, down from 20% in the previous quarter. Okta's guidance for its current remaining performance obligation (cRPO) growth in the fiscal third quarter also fell short, predicting a 9% year-over-year increase, compared to the 13% growth seen in the fiscal second quarter.

Analysts reactions to the report were mixed. While some maintained a positive stance, such as WestPark Capital, which reiterated a Buy rating and a $140 price target, others lowered their price targets and expressed concerns over the company's growth trajectory.

Notably, B of A Securities downgraded Okta from Buy to Underperform, significantly reducing the price target from $135 to $75, citing the slowing momentum and weaker guidance as key reasons for the downgrade.

Several analysts, including those from BMO Capital, Scotiabank and Stifel, acknowledged Okta's robust execution and some positive aspects like strong enterprise deal flows and larger contract sizes. However, they also noted challenges such as sluggish new customer acquisition and persistent uncertainty around seat growth and upsells, particularly affecting Okta's Workforce Identity and Customer Identity segments.

What Else: Despite some encouraging results and optimism from certain analysts, the overall sentiment remains cautious. The company's decelerating cRPO growth and mixed forward guidance have left analysts uncertain about Okta's near-term growth prospects.

OKTA Price Action: At the time of publication, Okta's stock has fallen by 17.5% to $79.69 according to Benzinga Pro.

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