Okta (OKTA) shares have gained a modest 7.3% year to date (YTD), underperforming the broader Zacks Computer & Technology sector's return of 22.8% but outperforming the Zacks Internet Software-Services industry's gain of 3.9%. OKTA has been suffering from a challenging macroeconomic environment and the negative impact of the security breach. It expects current remaining performance obligation growth between 10% and 11% which is lower than 15% reported in the first quarter of fiscal 2025. However, we believe ...

Wall Street analysts forecast that Okta (OKTA) will report quarterly earnings of $0.61 per share in its upcoming release, pointing to a year-over-year increase of 96.8%. It is anticipated that revenues will amount to $632.24 million, exhibiting an increase of 13.7% compared to the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Prior to ...

Customers with more than $100K in Annual Contract Value (ACV) increased 12% year over year to 4,550. OKTA added 400 new customers in the reported quarter, out of which 160 customers were in the $100K-plus ACV category. Cloud Native Application Protection Platforms, provided by the likes of CrowdStrike (CRWD) and Palo Alto Networks, witnessed the greatest year-over-year growth of 31.5%, followed by Identity and Access Management (IAM) at 21.4%. OKTA's revenues are expected to witness a CAGR of 25% between fi ...

The cloud identity management company's stock has climbed by 0.8% in the past month, exceeding the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%. Investors should also pay attention to any latest changes in analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Looking at valuation, Okta is presently ...

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movemen ...

Heading into today, shares of the cloud identity management company had gained 8.55% over the past month, outpacing the Computer and Technology sector's loss of 3.88% and the S&P 500's gain of 1.08% in that time. For the full year, the Zacks Consensus Estimates project earnings of $2.40 per share and a revenue of $2.53 billion, demonstrating changes of +50% and +11.91%, respectively, from the preceding year. Based on our research, we believe these estimate revisions are directly related to near-team stock m ...

The the stock of cloud identity management company has risen by 3.92% in the past month, lagging the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%. Investors should also take note of any recent adjustments to analyst estimates for Okta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. In terms of valuation, Okta i ...

Core Viewpoint - Okta is positioned to reignite growth through strategic initiatives, despite underperforming the S&P 500 and Nasdaq 100 YTD, with a recommendation to buy the stock based on its potential for substantial returns over a three-year investment horizon [2][9]. Group 1: Financial Performance - In Q1 FY25, Okta reported a revenue growth of 19% YoY to $617 million, with earnings growing 270% YoY, indicating strong performance particularly in the public sector [3][5]. - The number of customers with an Average Contract Value (ACV) of $100K+ grew 11.5% YoY to 4,550, reflecting successful customer acquisition and expansion efforts [3][4]. - Current Remaining Performance Obligations (cRPO) grew 15% YoY, exceeding management's expectations of 13%, suggesting effective go-to-market strategies [4][5]. Group 2: Strategic Initiatives - The company is redesigning its sales team to focus on customer acquisition and upselling, which is expected to enhance its market position [4]. - Okta launched the "Okta Security Identity Commitment" initiative to strengthen security and product innovation following a security breach, alongside the introduction of a new product, Identity Security Posture [5][7]. - Management has raised revenue guidance for FY25 from 10.5% to 12%, indicating confidence in future growth [8]. Group 3: Competitive Landscape - Okta faces competitive pressures from larger companies like Microsoft, IBM, and Oracle, which have more resources to bundle solutions [7]. - Despite the competitive landscape, Okta's stabilization of the Net Retention Rate (NRR) at 111% is a positive indicator of its ability to attract new customers and drive solution adoption [7]. Group 4: Valuation and Future Outlook - The company is projected to generate approximately $3.3 billion in revenue by FY27, with a non-GAAP operating margin expected to reach 21.5% [8]. - A price target of $120 is suggested, representing a 30% upside based on projected earnings growth and a PE ratio of 34 [8].

FY25 Q1 Presentation OKTA saw current remaining performance obligations grow 15% YoY to $1.949 billion, surpassing guidance for 13% growth. That strong result may indicate that revenue growth should remain in the double-digits at least in the near term. RPO Up 14% Y/Y; Current RPO Up 15% Y/Y ($ in millions) $3,073 $3,027 $3,007 $2,942 $2,853 $2,790 $2,710 $1,952 $1,826 $1,772 $1,701 $1,684 $1,579 $1,497 $1,413 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q2 FY24 Q3 FY24 Q4 FY24 ■ Current RPO ■ Non-Current RPO Qu ...

Okta (OKTA) is benefiting from an expanding clientele driven by the strong adoption of its Identity Threat Protection solution. It exited the first quarter of fiscal 2025 with the total customer count increasing 6% year over year to 19,100. Okta's expanding user base has been a key catalyst. It is protecting customers by blocking more than 2 billion security attacks a month, and expects these numbers to grow. However, the current level at which Okta shares are trading doesn't reflect these positive factors ...