JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

Core Insights - The market for Okta's stock is showing signs of improvement, with a potential upside of 20% as analysts raise their price targets and the company recovers from a 2023 security breach [1] - Okta's recent quarter demonstrated solid growth of 12.7%, outperforming consensus estimates, driven by a 13% increase in its core subscription channel [5][6] - Institutional buying activity has surged, reaching nearly $1.3 billion in Q1 2025, indicating strong investor confidence and ownership above 86% [10][11] Financial Performance - Okta's adjusted earnings of $0.78 beat estimates by $0.04, showcasing operational strength with margin gains and record profitability [6] - The company forecasts a 9.5% top-line growth for the year, exceeding consensus expectations by approximately 200 basis points [7] Analyst Sentiment - Analysts have made 17 revisions, including two upgrades and 16 price target increases, indicating a firming Moderate Buy rating and a bullish bias [3][4] - The price target has increased significantly, with a high-end range suggesting a potential stock price between $120 and $140, representing a 20% to 40% upside [4] Institutional Activity - Institutional buying has been consistently bullish, with a notable increase in activity at the end of 2024 and continuing into 2025 [10] - The company's strong cash flow and reduced debt position have attracted institutional interest, supporting future capital returns [11] Market Sentiment - Okta's stock price surged over 15% following positive guidance updates, moving above the critical 150-day EMA, which reflects a shift in market sentiment [12] - The stock faces potential resistance at the $112 level, but analysts believe it could surpass this threshold [12]

Todd McKinnon, chief executive officer of Okta Inc., smiles during a Bloomberg Technology television interview in San Francisco, California, U.S., on Monday, April 4, 2022.Okta shares soared 22% on Tuesday after the cloud-based identity management company delivered strong fourth-quarter earnings and beat estimates on guidance.The move put the stock on pace for its best day in more than a year. Okta posted adjusted earnings late Monday of 78 cents per share, while revenue increased 13% from a year earlier to ...

Core Insights - Okta's shares surged by as much as 19.9% following the release of its quarterly earnings results, reflecting positive sentiment among shareholders [1] Financial Performance - For fiscal Q4 2025, Okta reported revenue of $682 million, a 13% increase year over year, driven by subscription revenue growth of 13% to $670 million [2] - The company transitioned from a net loss of $44 million to a profit of $23 million, resulting in adjusted earnings per share (EPS) of $0.78, surpassing analysts' expectations of $668 million in revenue and $0.74 EPS [2] Cash Flow and Customer Metrics - Okta achieved record operating cash flow of $286 million and free cash flow of $284 million, representing increases of 64% and 71%, respectively [3] - The total customer base grew to 19,650, a 4% year-over-year increase, with high-value customers (spending $100,000 annually) rising by 7% to 4,800 [4] Future Outlook - The current remaining performance obligation (RPO) stands at $2.25 billion, up 15% year over year, while total RPO increased by 25% to $4.2 billion, indicating a reacceleration in sales [5] - For Q1, Okta forecasts revenue of approximately $679 million, a 10% increase at the midpoint, and full-year revenue guidance of $2.85 billion, also a 10% increase, exceeding expectations of $2.79 billion [6] - The stock is currently valued at around 30 times next year's expected earnings, suggesting an attractive valuation as growth stabilizes [7]

While earnings season is beginning to wind down, two big-name companies took to the confessional last night and this morning, sending their respective shares abuzz. In focus are On Holding AG (NYSE:ONON) and Okta Inc (NASDAQ:OKTA), last seen up 4.2% at $49.88 and 16.5% at $101.52, respectively.Swiss footwear maker ONON is enjoying the fruits of its fourth-quarter earnings and revenue beat, in which its adjusted earnings per share (EPS) came in at 37 cents, on revenue of $675 million. The company attributed ...

In many areas of enterprise software, there are many vendors claiming to be the absolute leaders of their space. Areas such as CRM (customer relationship management) and HCM (human capital management) have dozens of vendors. But the simple yet critical function ofWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. ...

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winn ...

Financial Data and Key Metrics Changes - The company reported a record bookings quarter, crossing $1 billion in total contract value for the first time [25][37] - RPO increased by 25%, surpassing $4 billion, driven by an increase in the weighted average term length for deals [25][26] - Operating margin grew by approximately nine points, and free cash flow margin increased by six points for FY 2025 [22] Business Line Data and Key Metrics Changes - Over 20% of Q4 bookings were from new products, including Okta Identity Governance and privilege access [5][6] - Okta Identity Governance has over 1,300 customers contributing over $100 million in annual contract value [6][7] - The combined business from Okta Lifecycle Management and Okta Workflows is approximately $300 million, totaling over $400 million in governance-related business [7] Market Data and Key Metrics Changes - The company added 25 customers in Q4 with $1 million-plus annual contract value, growing the total base of such customers by 22% to 470 [26] - Revenue from AWS Marketplace grew over 80% in FY 2025, with over $1 billion in aggregate total contract value since the partnership began [28] Company Strategy and Development Direction - The company aims to transform into one of the most secure companies globally and reignite growth through product innovation and partner ecosystem prioritization [3][14] - FY 2026 priorities include elevating the industry with the Okta Secure Identity Commitment, winning IT and security with Okta, and winning developers with Auth0 [14][15][17] - The company is focusing on further specialization in its sales teams to better serve customer needs [12][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market opportunities, particularly in identity security as organizations modernize their systems [39][41] - The macro environment remains consistent, with identity being a foundational layer for large companies [39][41] - Management is optimistic about the federal government market, citing opportunities to modernize legacy identity systems [151][153] Other Important Information - The company announced the promotion of Eric Kelleher to chief operating officer, focusing on growth and the Okta Secure Identity Commitment [18] - The company is excited about the momentum built going into FY 2026 and is taking steps to advance its position in the identity market [19][20] Q&A Session Summary Question: Guidance Prudence - Management acknowledged the strong Q4 performance and indicated that while they are optimistic, they remain prudent in their guidance for FY 2026 [34][41] Question: CRPO Guidance - Management explained that Q1 typically has lower expectations due to seasonality, and they are focused on executing well throughout the year [50][53] Question: Seat-Based Headwinds - Management noted that while seat-based headwinds persist, the success in governance and new products is offsetting these challenges [68][75] Question: $1 Million Cohort Growth - Management indicated that there is significant growth potential with large customers, and they are just scratching the surface of IT spend opportunities [81][84] Question: Auth0 Go-to-Market Strategy - Management discussed the transition to specialized sales teams for Auth0, emphasizing the complexity of the products and the need for focused expertise [90][95]

Core Insights - Okta reported revenue of $682 million for the quarter ended January 2025, reflecting a year-over-year increase of 12.7% [1] - The company's EPS was $0.78, up from $0.63 in the same quarter last year, exceeding the consensus estimate of $0.73 by 6.85% [1] - The revenue surpassed the Zacks Consensus Estimate of $668.8 million, resulting in a surprise of 1.97% [1] Financial Metrics - Remaining performance obligations stood at $4.22 billion, exceeding the five-analyst average estimate of $3.83 billion [4] - Current remaining performance obligations (cRPO) were reported at $2.25 billion, compared to the average estimate of $2.14 billion [4] - Total customers reached 19,650, slightly below the average estimate of 19,810 [4] - The TTM Dollar Based Net Retention Rate was 107%, matching the average estimate [4] - Subscription revenue was $670 million, surpassing the average estimate of $654.53 million, representing a year-over-year increase of 13.4% [4] - Revenue from professional services and other was $12 million, below the average estimate of $13.78 million, indicating a year-over-year decline of 14.3% [4] Stock Performance - Okta's shares have returned -4% over the past month, compared to a -1.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]

Okta (OKTA) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.85%. A quarter ago, it was expected that this cloud identity management company would post earnings of $0.57 per share when it actually produced earnings of $0.67, delivering a surprise of 17.54%.Over the last four quarters ...