Insiders reveal what it’s really like working at Amazon when it comes to hiring, firing, performance reviews, and more

Jeff Bezos and Andy Jassy surrounded by images of workers and robots in Amazon warehouses
Amazon’s Jeff Bezos and Andy Jassy.

  • Insider is investigating Amazon’s workplace amid a major effort to unionize the company.
  • The e-commerce and cloud giant has a complex performance-review system some employees say is unfair.
  • Amazon is investigating allegations of gender bias in its Prime division after Insider reporting.
  • See more stories on Insider’s business page.

Amazon is the second-largest US employer and still one of the fastest-growing in the country. It offers income and benefits to well over 1 million people, and it’s been a source of jobs and shopping convenience during the pandemic.

With that level of influence, Amazon’s operations have come under intense scrutiny, which has prompted a nationwide unionization effort. The following covers everything you need to know about what it’s like to work at the company.


How Amazon culls its workforce

Andy Jassy
Under outgoing CEO Andy Jassy, Amazon’s cloud unit has built up an impressive roster of cloud security partners – but they often also work with competitors Microsoft Azure and Google Cloud.

Insider is investigating Amazon’s system for improving, or ousting, employees deemed underperformers. Once managers label workers as struggling, they are put on a “Focus” coaching plan. If they fail there, the workers are moved to another program called “Pivot,” and then finally to an internal company jury that decides their fate at the company.

The system has been criticized by some current and former employees, who say it is unfairly stacked against them and can encourage managers to give bad reviews to good staff. Amazon says it gives managers tools to help employees improve and advance in their careers. “This includes resources for employees who are not meeting expectations and may require additional coaching. If an employee believes they are not receiving a fair assessment of their performance, they have multiple channels where they can raise this,” a company spokesperson said recently.

Amazon has a goal to get rid of a certain number of employees each year, which is called unregretted attrition. Some managers at the company told Insider they felt so much pressure to meet the target that they hire people who they intend to fire within a year.

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The company has been hit with allegations of bias

amazon logo

There’s been a rash of lawsuits filed against Amazon alleging gender and racial bias. In May, five current and former female employees sued the company Amazon, claiming “abusive mistreatment by primarily white male managers.”

In February, Charlotte Newman, a Black Amazon manager, filed a suit alleging gender discrimination and sexual harassment. And last year, a high-profile female engineer called on the company to fix what she saw as a “harassment culture,” Insider reported.

An Amazon spokesperson said the company investigated the cases, found no evidence to support the allegations, and doesn’t tolerate discrimination or harassment.

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Amazon’s warehouses churn through workers

Robots in a UK Amazon warehouse
Robotic Amazon warehouses use robots to ferry shelves of items around the warehouse floor. Above, a photo taken in an Amazon warehouse in the UK.

The company’s fulfillment centers employ hundreds of thousands of people, offering pay and benefits that are competitive versus other retail-industry jobs. But the work can be grueling, some staff don’t stick around long, and there are growing efforts to unionize this modern blue-collar workforce.

Amazon warehouses are partly automated, using robots that zip around the shop floor fetching pallets of merchandise and bringing them to employees who pick the correct items and pack them for shipping. The company hires thousands of extra temporary workers each year to support a surge in orders during the holiday shopping period.

During the pandemic, online orders have jumped at an unusual time for Amazon. It prompted an unprecedented hiring spree last year but caused tension with workers concerned about entering warehouses that could spread the virus. These issues came to a head earlier this year, when employees at a fulfillment center in Bessemer, Alabama, voted on whether to form a union. The effort failed, but there’s a bigger union push gathering steam.

In his final shareholder letter as CEO earlier this year, Jeff Bezos defended Amazon’s working conditions, but said the company needed “to do a better job for our employees.”

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Amazon’s delivery network relies on thousands of drivers

Amazon delivery drivers pee bottle 4x3

The company partners with UPS, FedEx, and the US Postal Service, but it also operates a massive fleet of in-house delivery vehicles. These vans are driven by a combination of employees, third-party courier services, and contract workers.

Amazon is known for imposing strict time constraints on drivers and tracking how many times they stop and how fast they drive. While the company factors in break times – a 30-minute lunch and two 15-minute breaks – some drivers say they either can’t or don’t want to take them.

Earlier this year, a US lawmaker tweeted that Amazon workers have to pee in bottles. The company denied this, but multiple drivers confirmed it was part of the job. Amazon later apologized and said drivers have trouble finding restrooms because of traffic and being on rural routes, adding that the issue has been exacerbated by closed public bathrooms during the pandemic.

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How to get a job at Amazon

Amazon job fair 2017
Job seekers line up to apply during “Amazon Jobs Day” at a fulfillment center in Fall River, Massachusetts, in August 2017.

Amazon remains an important employer that is growing quickly. Unlike some of its Big Tech rivals, the company offers a range of positions, from highly technical roles to blue-collar jobs. It’s recruiting methods range from massive job fairs to tough one-on-one interviews.

The company ranks among the top employers among technical students. In a survey published last year, Amazon came 10th in a survey of engineering students, beating out Intel and IBM but trailing Tesla and SpaceX.

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Cloudera stock jumps 24% after KKR, CD&R ink $5.3 billion deal to take the software company private

Cloudera IPO

Cloudera stock jumped as much as 24% on Monday after the software company inked a $5.3 billion deal with private-equity firms KKR & Co. and Clayton Dubilier & Rice to go private.

The private equity firms are set to pay $16 a share in cash to Cloudera investors as a part of the deal, representing a roughly 24% premium to Friday’s closing price.

“We are also pleased to announce our transaction with CD&R and KKR. This transaction provides substantial and certain value to our shareholders while also accelerating Cloudera’s long-term path to hybrid cloud leadership for analytics that span the complete data lifecycle – from the Edge to AI,” Rob Bearden, Cloudera’s chief executive officer, said in a statement.

“We believe that as a private company with the expertise and support of experienced investors such as CD&R and KKR, Cloudera will have the resources and flexibility to drive product-led growth and expand our addressable market opportunity,” the CEO added.

Cloudera was founded in 2008 by former Google, Yahoo!, and Facebook engineers Christophe Bisciglia, Amr Awadallah, and Jeff Hammerbacher.

The company provides an enterprise data cloud platform to customers like the Bombay stock exchange, the US census bureau, and Vodafone, among others.

Billionaire and activist investor Carl Icahn, who owns roughly 18% of Cloudera and was awarded two board seats in 2019, has agreed to vote in favor of the deal, according to the company.

Cloudera has seen revenue growth plunge to single digits over the past year from more than 80% back in 2019 amid competition from larger rivals Amazon, Google, and Microsoft in cloud software.

The company reported fiscal 2022 first-quarter revenue of $224.3 million on Monday, an increase of 7% versus the same period last year.

GAAP losses also narrowed in the first quarter to $33.8 million from $55.8 million a year ago.

Operating cash flow swelled to $162.2 million as well, compared to $68.4 million for the first quarter of fiscal 2021.

Due to the announced transaction with CD&R and KKR, Cloudera has canceled its earnings conference call previously scheduled for June 2, 2021, and will not provide financial guidance for the second quarter of fiscal 2022 or any further financial guidance with respect to the fiscal year 2022.

Cloudera stock traded up 23.98% as of 9:57 a.m. ET on Monday.

Cloudera stock chart
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A guide to cloud computing, the multibillion-dollar industry that powers your favorite apps

man using phone and several computer screen desktop laptop
Cloud computing transmits data to your computer via the internet, rather than letting you download it permanently.

  • Cloud computing is the delivery of on-demand computing services over the internet.
  • Cloud computing can include online data storage, writing apps, media streaming, and more.
  • Popular apps like Spotify, Netflix, and DropBox all run using cloud computing.
  • Visit Insider’s Tech Reference library for more stories.

You may have heard of “the cloud” countless times, but only have a general idea what it means. Cloud computing is the delivery of “on-demand” computing services – whether it’s storage, software, processing power, or other resources – over the internet. You typically pay as you go, billed only for the resources you use or the storage amount you’re subscribed to.

Though cloud computing isn’t an especially new innovation (it’s been around for decades), it’s become increasingly important to the most popular apps around today.

What to know about cloud computing

Types of cloud computing

The term “cloud computing” masks a lot of complexity. Where is the server? “In the cloud” – most users generally don’t need to know more than that.

The name obscures the fact that there are several different kinds of cloud computing architectures.

  • Public cloud: Perhaps the most common kind of cloud computing architecture, a public cloud is owned and operated by a third party and makes its resources available to customers, generally on a subscription basis. Every common commercial cloud service you know, from Dropbox to Microsoft Azure, is on a public cloud.
    Dropbox app
    Dropbox uses the cloud to store your data and back up your files.

  • Private cloud: The only difference between a public and private cloud is who owns and operates it. A private cloud is generally owned by a single business or organization and is used exclusively by that entity. It’s a private network that reserves all of its resources for the business, but is still accessed remotely rather than in data centers on site.
  • Hybrid cloud: A hybrid cloud combines public and private clouds in a way that data, software, and other resources can flow seamlessly between them. It allows for more flexibility, generally by letting public clouds meet shortfalls in computing requirements when the private cloud is fully saturated.

Types of cloud applications

Not only are there distinctions between the architecture of cloud services, but there are some key differences in the kind of applications that cloud computing is used for.

Cloud computing services tend to fall into one of three main categories, and you can read more about this in our guide to cloud applications.

  • Software as a service (SaaS): This is often the simplest kind of cloud computing platform to understand; with SaaS, the cloud computing operator offers software (running on the SaaS operator’s computing hardware) you can access remotely. Microsoft 365 is a common example of SaaS.
GettyImages 854090620
The Microsoft 365 subscription service is a cloud-based SaaS platform.

  • Infrastructure as a service (IaaS): In this case, a third party provides the computing hardware to run your software. For example, a software developer might rent space on an Amazon Web Services (AWS) server instead of owning and maintaining a large server locally.
  • Platform as a service (PaaS): Slightly different from IaaS, PaaS includes the hardware, operating system, and middleware needed to host the software you want to run in the cloud. Google’s App Engine is an example of PaaS.

Common uses for cloud computing

While cloud computing was a novelty in years past, the proliferation of online services, web apps, broadband, massive commercial data centers, and other technologies have made cloud computing a core part of today’s technological landscape. Here are some of the most common applications for cloud computing today.

  • Data storage: It’s common today to rely on cloud storage for data storage, backup, and recovery solutions. Not only is data backed up to the cloud, but the cloud is commonly an extension of local storage as well.
  • Software-on-demand: Many businesses and individuals now rent software using SaaS rather than purchasing it outright – like Microsoft 365 and Google Docs.
  • Streaming audio and video: Services from Spotify to Netflix to HBO Max are all examples of streaming services that operate from the cloud. They’ve essentially replaced local media playback, making the cloud an integral part of most people’s daily life.
Netflix
When you watch something on Netflix, you’re accessing content from the cloud.

  • Analyzing business data: Many businesses now store their critical business data in the cloud. They then use cloud services to analyze that data for business intelligence solutions.

The advantages and disadvantages of cloud computing

While cloud computing has become a critical part of the modern computing landscape, it’s not without its disadvantages.

For example, despite the appeal of “renting” rather than “buying,” cloud computing isn’t necessarily cheaper. Long-term, it can be more cost-effective to own and operate your own computing resources, especially if you need those resources indefinitely. If the company hosting your cloud computing service of choice shuts down, you could lose all your data.

Additionally, there are security concerns. If a third party is hosting your data, it’s a potential risk vector for hackers and corporate espionage.

Companies may also want to own their own computing resources as a way to differentiate their capabilities. If you are using the same third-party services as the competition, for example, it’s difficult to offer capabilities that are better than, or even different than what they offer.

On the other hand, cloud computing is popular today because it still offers significant advantages over local computing. It’s less costly, at least in the short term, compared to owning your own servers.

It also allows for greater mobility and portability of your data – it’s already in the cloud and can be accessed from anywhere. And it moves responsibility for factors like security and disaster recovery to a third party that theoretically has that expertise.

Here’s how much storage is available on your Google Drive, and how to upgrade to Google One for more storage spaceHow to manage your iCloud storage on a Mac computer and buy additional gigabytesA beginner’s guide to broadband internet, the most popular type of internet in the USA guide to proxy servers, the computer systems that relay information between users and networks, and how they can disguise users’ online presence

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Alphabet reports Q1 earnings as it blows past Wall Street expectations

Google's CEO Sundar Pichai
Google’s CEO Sundar Pichai.

  • Alphabet announced its Q1 earnings Tuesday, beating Wall Street expectations.
  • Alphabet reported $45.6 billion in revenue, minus traffic acquisition costs, versus $42.48 billion expected by analysts.
  • Google’s ad revenue continued its post-pandemic recovery, while Cloud revenue also grew again in Q1.
  • See more stories on Insider’s business page.

Alphabet announced its first-quarter earnings Tuesday, blowing past Wall Street’s expectations as the company’s ad business continues to see strong growth following a pandemic slump last year.

Google’s parent company brought in $45.6 billion in revenue for the quarter, minus traffic acquisition costs, versus $42.48 billion expected by analysts. Alphabet’s revenue jumped 35.3% from $33.7 billion in the same quarter a year ago.

Google Cloud brought $4.02 billion in revenue and had an operating loss of $974 million in Q1, versus $3.99 billion in revenue expected by analysts. That’s compared to $3.83 billion in revenue and $1.24 billion in operating losses during Q4 2020, the first time Google broke out its cloud business’ performance separately.

Google’s ad business also continued to rebound, following its first-ever revenue decline in Q2 2020, as advertisers reallocate their budgets back toward Google’s platforms, especially YouTube, which brought in $6.01 billion in revenue during Q1 2021.

Following Alphabet’s Q4 2020 earnings, analysts told Insider’s Hugh Langley that YouTube’s explosive 46% year-over-year Q4 growth signaled that the company has finally started tapping into lucrative TV ad spending.

Meanwhile, Alphabet’s “other bets,” which include Verily, Waymo, and other Alphabet businesses, reported revenue of $198 million against an operating loss of $1.15 billion, compared to analyst expectations of $1.21 billion in operating losses.

Alphabet also announced plans to buy back $50 billion of its Class C stock. The company’s stock was up more than 4% in after-hours trading.

Here’s what Alphabet reported, compared to what analysts expected, according to Bloomberg.

  • Total revenue: $55.3 billion (Expected $51.61 billion)
    • Revenue minus traffic acquisition costs (TAC): $45.6 billion (Expected $42.48 billion)
  • Earnings per share: $26.29 per share, adjusted (Expected $15.65)
  • Google Cloud revenue: $4.02 billion (Expected $3.99 billion)
  • YouTube ads revenue: $6.01 billion

Google’s earnings report comes as the digital advertising market has seen substantial growth over the past two quarters, though the company sent shockwaves through the industry by announcing last month that it will no longer track individual users online, which could upend how adtech companies do business.

But some experts previously told Insider’s Isobel Asher Hamilton that the move may be a clever ploy by Google to further entrench its dominance of the digital ads market – a dominance that has invited increasing antitrust scrutiny, including three separate federal lawsuits, that could mean regulatory headwinds for Google down the road.

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Companies continue to prioritize AI and cloud for innovation investment, according to the latest Transforming Business poll

GettyImages 1211566430
Contactless payment with facial recognition technology.

  • Cloud and AI top the list of innovation investments by companies according to the latest Transforming Business poll.
  • Companies are still figuring out all the applications of these technologies.
  • Racial and gender biases in AI applications are issues no company can ignore.
  • Visit Insider’s Transforming Business homepage for more stories.

Companies continue to prioritize AI and cloud as key investment targets as they strive to innovate and drive growth into the future, according to the most recent Transforming Business poll.

Actionable data insights are a key outcome for these applications. “Many businesses are looking to streamline their operations and make them more efficient, as well as find new insights and connections in their data,” said Victoria Petrock, principal analyst at eMarketer. “They are turning to AI to help them achieve competitive advantage.”

While it might seem like AI and cloud are ubiquitous and widely utilized, companies are still figuring out all the ways it can change their business. Laura Urquizu, CEO of Red Points and one of the 100 People Transforming Business in Europe, wrote in an article for Insider that AI and machine learning had vastly improved customer experience by creating more personalized shopping experiences and increasing brand loyalty.

But the insights available via tools like AI and the cloud can do much more than some companies have figured out. “No matter how important customer experience is, however, it is a mistake to believe it is the only operational area that can (and should) be transformed using technologies like these,” Urquizu wrote. “The efficiency of your internal operations – your support team, supply chain, production, inventory, quality control, human resources, and so on – can all benefit from applying AI and ML technologies.”

The opportunities vary by industry, of course, and the global pandemic has created opportunities to put AI to the test as never before. BenevolentAI, whose CEO Joanna Shields is one of this year’s Transformers, used its technology to analyze vast quantities of scientific research, ultimately surfacing a drug treatment that has been used to treat moderate-to-severe COVID patients.

“One positive outcome of COVID-19 is that it has united science and tech for good, accelerating data-sharing agreements and encouraging the open publication of research results.” Shields told Insider. “This new environment of collaboration has provided a glimpse of the beginnings of a more open and adaptable R&D model that can accelerate the delivery of innovative and life-changing outcomes for patients.”

Innovation has not come without problems, however. AI applications have come under fire, demonstrably shown in some cases to reflect racial and gender bias in hiring tools, and voice and facial recognition.

Tech companies and their customers are under pressure to address these injustices with a appropriate urgency.

“[Businesses] must find a way to provide AI with the right data inputs, and give it instructions to behave in the most ethical way possible, ignoring and unfolding historical biases and to be confident in leaving the business’ past behaviors behind,” Michael Feindt, a 2020 Transformer and strategic advisor at Blue Yonder, a digital fulfillment and supply chain solutions provider, wrote for Insider.

It is possible, Feindt said, to apply these tools to actually combatting discrimination and inequity.

“Simply put, it’s down to us whether AI is a force for good or a force for bad. If you can provide it with data and instructions that are designed to shape the world in a certain way, AI will do that,” Feindt wrote. “So if businesses are willing to put in the time and effort to set things on a fairer course, AI can set about fighting discrimination and injustice.

This SurveyMonkey Audience poll targeted individuals who work in a management capacity at their company according to the Audience panel. They included respondents from Hong Kong (n=50), Singapore (n=50), The United States (n=207), Canada (n=104), France (n=52), the United Kingdom (n=51), Germany (n=50) and India (n=50), with local translations in Germany and France. Respondents are incentivized to complete surveys through charitable contributions. Generally speaking, digital polling tends to skew toward people with access to the internet. SurveyMonkey Audience doesn’t try to weight its sample based on race or income. Polling data collected total of 614 respondents March 3-4, 2021.

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Box stock surges 10% after report says the company is exploring a sale amid pressure from activist investor Starboard

Box CEO
Aaron Levie, the CEO of Box.

  • Box stock surged as much as 10% on Monday before paring gains.
  • A report from Reuters Monday said the cloud storage company may be open to a sale amid pressure from activist investor Starboard Value LP.
  • Starboard has been edging Box to sell after pushing for a board challenge less than a month ago.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Box surged as much as 10% on Monday after reports from Reuters and CNBC said the company is exploring a sale amid pressure from hedge fund and activist investor Starboard Value LP.

The news comes after Reuters reported last month that Starboard was preparing to launch a board challenge against Box unless major changes were made at the cloud storage company.

Reports say Starboard has been upset with Box’s inability to capitalize on the work-from-home trend during the pandemic. Starboard currently owns 10.9 million shares of Box, worth some $246 million as of March 19’s closing price.

Despite the pressure from Starboard, Box stock is up roughly 100% over the past year. However, even after Monday’s move higher, the Redwood City, California-based firm is down 13% from its May, 2018 record highs.

In Box’s fiscal year 2021 earnings report filed last Friday the company revealed revenues of $770 million versus $696 million a year ago.

Although the company was able to limit losses to just $43 million versus $144 million in fiscal year 2020, Box’s slowing revenue growth during the pandemic has been a cause for concern for investors.

In January, DA Davidson analyst Rishi Jaluria downgraded Box to “neutral” and issued an $18 price target on the company citing low scores in a CIO survey for 2021 spending intentions.

Box traded down 6.63% as of 1:14 p.m. ET on Monday.

Box chart
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How edge computing has become a $250 billion ‘perfect complement’ to cloud computing

Hivecell
Hivecell is a startup focused on edge computing that helps companies avoid the cost of storing massive amounts of data in the cloud.

  • Edge computing places processing power closer to where data is being created in the physical world.
  • It has received increased investment thanks to connected devices like factory robots or autonomous vehicles.
  • It complement’s cloud computing by solving issues of latency, bandwidth, autonomy, or compliance.
  • This article is part of a series about cloud technology called At Cloud Speed.

As technologies like autonomous vehicles, factory robots, and remote monitoring systems become more commonplace, a concept called edge computing is receiving increased attention and investment.

Edge computing refers to a model in which processing power is placed closer to where data is being created in the physical world: While cloud computing platforms like Amazon Web Services are hosted from the retailer’s own massive data centers scattered across the world, edge computing focuses on smartening up the car, robot, or other systems right on the device or placing a processor in closer proximity.

It’s a concept that’s only become more popular as a surge in connected devices – like Tesla’s semi-autonomous cars or camera-laden robots in Amazon’s factories – collides with the rise of cloud computing, presenting an opportunity for both.

“Edge computing is actually a counterbalance to the cloud,” Gartner analyst Bob Gill told Insider. “It’s a perfect complement to the cloud that solves for the weakness of the cloud.”

As the flexibility, efficiency, and pricing of cloud computing have led firms to abandon their in-house data centers, it’s created a new set of technical challenges. While the cloud offers immense raw computing power, relying on it comes with trade-offs, too.

“People realized that not all the things that they want to do in the cloud worked well in the cloud,” IDC analyst Dave McCarthy told Insider.

Specifically, edge computing can help solve issues of latency (where systems need to be able to process data incredibly fast), bandwidth (where machines are generating vast amounts of data that would be inefficient to send to a distant data center), autonomy (where systems need to be able to function without network connection), or compliance (like when information needs to remain within a specific country to adhere with local regulations).

Gartner expects that by 2022 more than 50% of enterprise-generated data will be created and processed outside the traditional data center or cloud.

Why edge computing is on the rise

One of the big reasons for the move towards edge computing is the explosion of the so-called Internet of Things, where connected devices often collect vast amounts of data that can then be analyzed, like smart factory equipment that can flag machines that may break down or restaurant point-of-sale systems that can make predictions about what ingredients will run out first.

“Edge computing and IoT devices go together like peanut butter and jelly,” Forrester’s Glenn O’Donnell said.

But the amount of data these devices collect can be so vast that sometimes it doesn’t make sense financially to store it all, or the process of moving it to the cloud for processing takes too long.

“You see this in connected cars, in smart factories, even in retail environments where a piece of data is generated, and you want to take action on that data, but you need to do it really fast,” said IDC’s McCarthy. “The whole round trip – like the time it takes to send it to the cloud, have the cloud make a decision, and then send the answer back so you can do something – is too long.”

Startups and major public firms alike are focused on different sides of the problem, from services that automatically route workloads through the closest possible data centers, to making chips more capable of performing machine learning-related processes on-device. Intel, for example, expects the silicon-related side of edge computing to be a $65 billion market by 2024, and analyst firm IDC predicts that the global market for edge computing-related products and services will reach $250 billion by 2024.

And while edge computing provides a counterbalance to cloud computing, the hyperscale cloud firms like Amazon Web Services, Microsoft Azure, and Google Cloud are all making big investments too, especially by partnering with telecom companies to extend their networks – with a major push towards helping the carriers adopt 5G, which would allow their respective platforms to reach devices far afield from a traditional WiFi connection.

“The cloud companies are making huge bets on edge technology, which almost seems like an oxymoron, but they recognize that there are a lot of scenarios that don’t work in the cloud,” said IDC’s McCarthy. “They realized that they had two choices: They could ignore that business or they could find a way of extending their cloud technology to these edge locations. And they’ve chosen to do the latter.”

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Okta drops after company gives weak guidance and announces $6.5 billion Auth0 acquisition

Okta Auth0 deal
Okta cofounders Frederic Kerrest and CEO Todd McKinnon (top L to R) on a video call signing the agreement to acquire Auth0 for $6.5 billion with its cofounders CEO Eugenio Pace and Matias Woloski (bottom L to R)

  • Okta fell by nearly 10% Thursday as the ID-authentication software company’s outlook missed Wall Street’s view. 
  • The company expects a first-quarter adjusted loss of $0.20 to $0.21 a share compared with the consensus of a loss of $0.07. 
  • Okta plans to buy rival Auth0 in a transaction valued at $6.5 billion. 
  • Visit the Business section of Insider for more stories.

Okta shares dropped nearly 10% Thursday following a quarterly outlook that missed Wall Street’s estimate while the identity-authentication software maker said it plans to buy rival Auth0 in a $6.5 billion stock deal.

The company late Wednesday projected a first-quarter adjusted loss of $0.20 to $0.21 per share, which was wider than the consensus estimate of a per-share loss of $0.07. It also expects year-over-year growth in total revenue to $237 million to $239 million compared with Wall Street’s view of $237 million.

Shares of Okta lost as much as 9.6% when it hit an intraday low of $218. The stock later pared the decline to 4.5%. Over the past 12 months, the shares have advanced about 79%.

The company’s projection came within its fourth-quarter financial report and alongside a separate announcement about planning to buy Auth0. Okta said its guidance does not include any potential impact from the proposed Auth0 deal.

Okta said the pending deal will stoke growth in the $55 billion identity market. Auth0 will run as an independent business unit inside of Okta and both of its platforms will be supported and integrated over time.

The transaction “will accelerate our innovation, opening up new ways for our customers to leverage identity to meet their business needs,” said Todd McKinnon, Okta’s CEO and co-founder, in the statement.

For the fourth quarter, the company posted adjusted earnings of $0.06 a share, swinging from a loss of $0.01 a year ago. Revenue of $234.7 million increased from $167.3 million in the same period a year ago.

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