Core Viewpoint - Okta Inc reported strong third-quarter results, leading to a rise in its share price, despite providing conservative guidance for fiscal 2026 which may have surprised some investors [1][2]. Financial Performance - Okta achieved a revenue growth of 14% year-on-year, surpassing the consensus estimate of 11% [3]. - Subscription revenue reached $651 million, reflecting a 14% year-on-year growth, which exceeded the estimate of $635 million [9]. - The company's cRPO (current Remaining Performance Obligations) was reported at $2.062 billion, exceeding the guidance midpoint by $75 million [10]. - New products accounted for 15% of bookings, indicating an expansion in the product portfolio [11]. Analyst Ratings and Price Targets - BMO Capital Markets maintained a Market Perform rating and raised the price target from $103 to $105 [3]. - Needham maintained a Buy rating and increased the price target from $100 to $115, citing improved execution and early signs of product adoption [5]. - Stifel reiterated a Buy rating and raised the price target from $108 to $115, noting strong results and above-expectation guidance [7]. - Goldman Sachs maintained a Buy rating and increased the price target from $97 to $107, highlighting that quarterly revenues and EBIT exceeded consensus [11]. - Guggenheim Securities maintained a Buy rating with a price target of $130, although noted that the preliminary fiscal 2026 revenue growth guidance of 7% was below consensus [13]. Guidance and Future Outlook - The company provided a conservative revenue growth guidance of 7% for fiscal 2026, which is below the consensus estimate of 9% [4][13]. - Analysts expressed that the preliminary guidance may be conservative based on management's typical approach [6]. - Management indicated plans to build out go-to-market specializations to reinvigorate growth, which analysts support [8]. - The fourth-quarter guidance for cRPO was set at 9% year-on-year, which some analysts view as conservative [16]. Market Reaction - Okta's shares rose by 4.39% to $85.22 following the earnings report [21].

Key TakeawaysOkta reported earnings and revenue that exceeded estimates as the business security software provider's subscriptions grew.The company also predicted current-quarter adjusted EPS and sales that were above forecasts.CEO Todd McKinnon said the results were "underpinned by continued strong profitability and cash flow." Shares of Okta (OKTA) rose Wednesday, a day after the business security software provider posted better-than-expected results and current-quarter guidance as subscription revenue ro ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Data and Key Metrics - Q3 results highlighted strong profitability and cash flow driven by continued spend efficiencies [7] - Total revenue growth for Q4 FY25 is expected to be 10% to 11%, with current RPO growth of 9%, non-GAAP operating margin of 23%, and free cash flow margin of approximately 32% [19] - Full-year FY25 outlook raised to total revenue growth of 15%, non-GAAP operating margin of 22%, and free cash flow margin of approximately 25% [19] - Preliminary FY26 outlook estimates total revenue of $2.77 billion to $2.78 billion, representing growth of approximately 7%, with a non-GAAP operating margin of at least 22% and free cash flow margin of at least 24% [20][21] Business Line Performance - The cohort of $1 million+ ACV customers continues to be the fastest-growing segment, now representing approximately $1 billion in ACV [9][11] - Upsell and cross-sell activity was strong in Q3, with workforce customers buying more workforce products and customer identity products [11] - Approximately 15% of Q3 bookings came from new products, including Okta Identity Governance, Privileged Access, Device Access, Fine Grain Authorization, Identity Threat Protection, and Identity Security Posture Management [18] Market Performance - The public sector remains a strong area, with half of the top 10 deals in Q3 coming from the U.S. Federal vertical [9][10] - The company made significant progress in the public sector, with a $5 million ARR deal with a large North American technology company and a significant deal with the U.S. Department of Defense [36][105] Strategy and Industry Competition - The company is deepening its relationship with its partner ecosystem, with all top 10 deals in Q3 involving partners, representing approximately $20 million in ACV [8][10] - Okta is advancing its vision of providing secure identity solutions through product innovation, including the expansion of its Okta Secure Identity Commitment [12] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Access Management for the eighth consecutive year [13] - Go-to-market specialization is a key focus, with plans to further specialize the global go-to-market strategy to align with IT security and developer buying centers [14][15] Management Commentary on Operating Environment and Future Outlook - The macro environment remains consistent, with organizations scrutinizing budgets and rationalizing software spend, leading to lower assumptions for seats and MAUs [17] - The company is optimistic about the direction of the business, with a focus on security, growth, and scale [15] - The threat environment is increasingly hostile, with identity becoming a primary attack vector, making Okta's technology more important than ever [12] Other Important Information - The company showcased over 30 products, features, and capabilities at its Octane event, with in-person attendance up over 25% compared to last year [12] - The company is investing in AI-driven products like Identity Threat Protection, which uses AI to monitor security risks throughout a session [51] Q&A Session Summary Question: Guidance and Conservatism - The company is no longer incorporating additional conservatism in its guidance related to the October 2023 security incident, with FY25 revenue growth now expected to be 15%, up from the initial 10% guidance [23][27] - The company expects a more balanced approach to guidance in the future, with growth slowing as the company matures [29] Question: Partner Ecosystem and Large Deals - The company is seeing strong progress with its partner ecosystem, with all top 10 deals in Q3 involving partners, including GSIs, ISVs, marketplaces, and traditional VARs [37][38] - A significant $5 million ARR deal with a large North American technology company was driven by Zero Trust transformation, with more phases expected to follow [36] Question: New Products and Net Retention - Approximately 15% of Q3 bookings came from new products, with Okta Identity Governance representing one-third of the contract value in workforce deals [18][49] - Net retention rates are under pressure due to lower seat and MAU assumptions, but the company expects this to stabilize as newer products gain traction [54] Question: Go-to-Market Specialization - The company is planning further specialization in its global go-to-market strategy, with a focus on aligning with IT security and developer buying centers [14][80] - The company expects this specialization to drive growth, with potential short-term cost increases outweighed by long-term growth benefits [79] Question: Customer Identity Performance - The Customer Identity business is now over $1 billion, with growth driven by customer experience improvements and security needs [86] - The company is focusing on developer-facing markets to accelerate growth in this segment [88] Question: International Business - The international business has faced tougher macroeconomic conditions, particularly in Europe, but the company sees significant growth opportunities and is investing in partnerships to drive growth [162][164] Question: Emerging Products and Pricing - The company is exploring simplified pricing models for its emerging products, with a focus on good, better, best pricing tiers [158] - Products like Privileged Access and Identity Threat Protection are expected to provide significant pricing uplifts, similar to Okta Identity Governance [155]

Okta (OKTA) reported $665 million in revenue for the quarter ended October 2024, representing a year-over-year increase of 13.9%. EPS of $0.67 for the same period compares to $0.44 a year ago.The reported revenue represents a surprise of +2.40% over the Zacks Consensus Estimate of $649.42 million. With the consensus EPS estimate being $0.57, the EPS surprise was +17.54%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Okta (OKTA) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.54%. A quarter ago, it was expected that this cloud identity management company would post earnings of $0.61 per share when it actually produced earnings of $0.72, delivering a surprise of 18.03%.Over the last four quarter ...

Core Insights - Okta's stock surged over 15% following the release of its third-quarter earnings, which exceeded consensus estimates for both earnings and revenue [1][3] - The company reported adjusted earnings of 67 cents per share, a 52% increase year-over-year, and revenue of $665 million, reflecting a 14% growth [1][2] - Okta's subscription revenue also grew by 14% to $651 million, surpassing the consensus estimate of $635 million [2] Financial Performance - The earnings report indicated that analysts had anticipated earnings of 58 cents per share and revenue of $650 million [2] - For the upcoming January quarter, Okta forecasts revenue growth of 10.5% to $668 million, exceeding the expected $651 million [2] Market Reaction - Following the earnings announcement, Okta's stock price rose to $94.58 in extended trading, recovering from a 12% decline earlier in 2024 [3] - Prior to the earnings report, Okta had a Relative Strength Rating of 24 out of a possible 99, indicating weaker performance compared to peers [3] Competitive Landscape - The company faces growing competition from Microsoft, which poses a challenge to its market position [4]

Todd McKinnon, CEO and co-founder of Okta, speaks during the BoxWorks 2019 Conference in San Francisco, California, on Oct. 3, 2019.Shares of Okta popped more than 18% in extended trading on Tuesday after the identity management company released third-quarter results that beat analysts' estimates and offered rosy guidance.Here's how the company did:Earnings per share: 67 cents adjusted vs. 58 cents expected by LSEG.Revenue: $665 million vs. $650 million expected by LSEG.Okta helps companies manage employees ...

Okta (OKTA) is set to release third-quarter fiscal 2025 results on Dec. 3.For the fiscal third quarter, it anticipates non-GAAP earnings in the range of 57-58 cents per share. Revenues are expected in the range of $648-$650 million, indicating growth of 11% from the year-ago period’s reported figure.The Zacks Consensus Estimate for earnings has remained steady at 57 cents per share, indicating year-over-year growth of 29.55%. The consensus mark for revenues is pegged at $649.42 million, indicating an increa ...

In its upcoming report, Okta (OKTA) is predicted by Wall Street analysts to post quarterly earnings of $0.57 per share, reflecting an increase of 29.6% compared to the same period last year. Revenues are forecasted to be $649.42 million, representing a year-over-year increase of 11.2%.Over the last 30 days, there has been an upward revision of 2.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial fo ...