Core Insights - Okta's fourth-quarter fiscal 2026 subscription revenues increased by 11.5% year over year, making up 98.2% of total revenues, driven by an expanding product portfolio [1][9] - New offerings contributed approximately 30% of fiscal fourth-quarter bookings, indicating a rising demand for advanced identity security capabilities [1][9] - The company reported nearly $1.3 billion in total contract value (TCV) and surpassed $3 billion in annual contract value (ACV), reflecting strong demand from large customers [2][9] Product and Market Dynamics - Higher deal values are a key indicator of portfolio strength, with transactions including newer products generating about 40% higher contract value [2] - Okta's expanding partner base has been a significant catalyst, with channel partners involved in 18 of the top 20 deals in the fourth quarter [3] - TCV through AWS grew more than 45% in fiscal 2026 to roughly $750 million, highlighting the effectiveness of Okta's go-to-market strategies [3] Competitive Landscape - Okta faces stiff competition in the security space from companies like SentinelOne and Palo Alto Networks [4] - SentinelOne focuses on endpoint security and threat detection through its AI-driven Singularity Platform, which may pose a challenge to Okta's offerings [5] - Palo Alto Networks is experiencing growth in areas like Zero Trust and SASE, with SASE annual recurring revenues increasing by 40% year over year [6] Financial Performance and Valuation - Okta shares have appreciated by 7.3% in the past month, outperforming the broader Zacks Computer and Technology sector, which declined by 3.5% [7] - The stock is currently considered undervalued, with a Value Score of D, trading at a forward 12-month price/sales ratio of 4.36X, higher than SentinelOne's 3.70X but lower than Palo Alto Networks' 10.13X [11] - The Zacks Consensus Estimate for fiscal 2026 earnings is $3.77 per share, indicating a 7.7% growth from the fiscal 2025 reported figure [16]

Core Insights - Okta (OKTA) is experiencing growth due to an expanding customer base and strong demand for identity solutions, ending fiscal 2026 with over 20,000 customers and a 6% year-over-year increase in clients with more than $100K in Annual Contract Value to 5,100 [1][9] Product Offerings - Okta's portfolio includes innovative products such as Okta Identity Governance, Okta Privileged Access, and AI-driven solutions, which contributed to 30% of the fiscal fourth-quarter bookings, aiding in market share growth [2][9] Security Framework - The company introduced the Blueprint for the Secure Agentic Enterprise, aimed at securing enterprises deploying agentic AI, addressing the fact that 88% of enterprises have faced AI agent security incidents, while only 22% treat agents as identities [4] Competitive Landscape - Okta faces significant competition from companies like SentinelOne and Broadcom, with SentinelOne focusing on endpoint and cloud security, while Broadcom emphasizes AI-powered proactive security solutions [5][6] Stock Performance and Valuation - Okta shares have declined by 9.4% year to date, underperforming the broader Zacks Computer and Technology sector's drop of 6.3% but outperforming the Zacks Security industry's decline of 12.2% [7] - The stock is considered undervalued with a Value Score of D, trading at a forward 12-month price/sales ratio of 4.31X, higher than SentinelOne's 3.92X but lower than Broadcom's 12.31X [11] Earnings Estimates - The Zacks Consensus Estimate for fiscal 2026 earnings is $3.77 per share, reflecting a 3.6% increase over the past 30 days and suggesting a 7.7% growth from fiscal 2025 [16]

Core Insights - Okta (OKTA) shares rose 12.5% after reporting Q4 fiscal 2026 earnings of 90 cents per share, exceeding estimates by 6.36% and showing a 15.4% year-over-year increase. Total revenues reached $761 million, an 11.6% year-over-year growth, surpassing consensus by 1.59% [1][8]. Financial Performance - For fiscal 2027, Okta anticipates revenues between $3.17 billion and $3.19 billion, indicating a 9% growth from fiscal 2026. Non-GAAP earnings are expected to be between $3.74 and $3.82 per share [6][8]. - The Zacks Consensus Estimate for Okta's earnings has increased to $3.71 per share, suggesting a 6% growth over fiscal 2026. Revenue estimates are pegged at $3.18 billion, also indicating 9% growth [7]. Customer Growth and Market Position - Okta's customer base is expanding, with customers generating over $100K in Annual Contract Value increasing by 6% year-over-year to 5,100. The total customer count exceeded 20,000 by the end of fiscal 2026 [2]. - New identity and AI security products contributed to 30% of Q4 bookings, showcasing strong demand for Okta's innovative solutions [10][8]. Competitive Landscape - Okta's shares have underperformed, dropping 23.2% over the past 12 months, while the broader Zacks Computer & Technology sector and peers like Microsoft, Palo Alto Networks, and Cisco have shown positive returns [3]. - Okta's valuation is competitive, trading at a forward price/sales ratio of 4.46X, lower than Microsoft (8.45X), Cisco (4.92X), and Palo Alto Networks (10.78X) [14]. Strategic Partnerships - Okta benefits from a robust partner ecosystem, including major players like AWS, Google, and Microsoft. The partnership with Palo Alto Networks has been expanded to integrate identity solutions with security platforms [12]. - Channel partners were involved in 18 of Okta's top 20 deals in Q4 fiscal 2026, with contract value through AWS Marketplace growing over 45% to approximately $750 million [13]. Future Outlook - Okta expects Q1 fiscal 2027 revenues between $749 million and $753 million, indicating a 9% year-over-year growth, with non-GAAP earnings projected between 84 cents and 86 cents per share [9]. - The company holds a Zacks Rank 1 (Strong Buy), suggesting a favorable investment opportunity [18].

Core Insights - Okta has demonstrated strong performance in fiscal Q4 2026, driven by large enterprise engagement and contributions from newer products, including AI-focused offerings [2][3][4] New Products and Market Positioning - Okta Identity Governance (OIG) has gained over 2,000 customers in just over three years, representing significant progress [1][6] - Newer products accounted for approximately 30% of Q4 bookings, with an average contract uplift of around 40% when included in deals [1][6] - The introduction of AI-focused products, such as Auth0 for AI Agents and Okta for AI Agents, is seen as a major security catalyst, with early traction noted in the pipeline [5][7] Financial Performance - Okta reported nearly $1.3 billion in total contract value for Q4 and over $3 billion in annual contract value, with partner involvement in 18 of the top 20 deals [4][10][11] - The company ended Q4 with over $2.5 billion in cash and announced a $1 billion share repurchase program [4][13] Strategic Initiatives - Management is shifting more professional services work to partners, particularly global systems integrators, to enhance relationships and support large enterprises in AI adoption [12] - The company aims to establish itself as a standard for securing agentic AI and to grow faster with large customers [16] Fiscal 2027 Guidance - For fiscal 2027, Okta has guided for a total revenue growth of 9%, with a current RPO growth of 10% and a non-GAAP operating margin of 23% to 24% [14][15]

Financial Data and Key Metrics Changes - The company achieved a record total contract value of nearly $1.3 billion in Q4, surpassing a major milestone of $3 billion in annual contract value [15][16] - The company closed out FY 26 achieving the Rule of 40, indicating a balance of growth and profitability [15] - Cash flow remained strong, ending the quarter with over $2.5 billion in cash equivalents and short-term investments [16] Business Line Data and Key Metrics Changes - New products represented approximately 30% of Q4 bookings, with an average contract uplift of about 40% when included in deals [6][15] - Okta Identity Governance (OIG) now has over 2,000 customers, highlighting significant market demand for modern governance solutions [6] Market Data and Key Metrics Changes - The company noted that 91% of surveyed organizations are using AI agents, but only 10% have a governance strategy in place, indicating a significant market opportunity [7] - The total contract value generated through strategic go-to-market channels, including AWS Marketplace, grew over 45% in FY26 to approximately $750 million [16] Company Strategy and Development Direction - The company aims to secure AI as a top priority, focusing on becoming the standard for securing agentic AI [12][14] - Plans include increasing focus on larger customers and becoming the default identity security solution for the U.S. federal vertical and highly regulated industries [13] - The company is committed to leveraging partnerships with Global System Integrators to enhance customer engagement and transition to agentic systems [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the effectiveness of their go-to-market strategy, which has led to improved sales productivity [15][18] - The guidance for Q1 FY27 includes total revenue growth of 9%, with a non-GAAP operating margin of 23%-24% [19][20] - Management acknowledged the impact of shifting professional services to partners, which is expected to enhance long-term growth [20] Other Important Information - The company announced a $1 billion share repurchase program, repurchasing over 875,000 shares for a total cost of $79 million [17] - The company is focused on maintaining a healthy balance sheet while investing in growth acceleration across all business areas [17] Q&A Session Summary Question: Can you talk more about pricing for AI agent products? - Management indicated that the agentic products are crucial and noted that 30% of new bookings were from new products, with significant potential for growth in the future [24][25] Question: What are the go-to-market changes and international growth opportunities? - Management confirmed that the go-to-market structure is stable, with increased productivity and low attrition, and emphasized the importance of partnerships with Global System Integrators [32][35] Question: How does the company view competition in the identity market? - Management acknowledged confusion in the market regarding identity infrastructure versus identity security, emphasizing their unique position in offering both [45][46] Question: Can you clarify the revenue guidance and subscription growth? - Management explained that subscription revenue is growing faster than total revenue, with a focus on maintaining clarity around revenue mechanics [51][52] Question: How are customers evaluating alternatives for AI agent solutions? - Management noted that early adopters are considering various options but are drawn to Okta's compelling vision and established reputation in the market [90][91]

Financial Data and Key Metrics Changes - The company achieved a record total contract value of nearly $1.3 billion in Q4, surpassing a major milestone of $3 billion in annual contract value [15][16] - The company closed out FY 2026 achieving the Rule of 40, indicating a balance of growth and profitability [15] - The balance sheet remains strong with over $2.5 billion in cash equivalents and short-term investments [16] Business Line Data and Key Metrics Changes - New products represented approximately 30% of Q4 bookings, with an average contract uplift of about 40% when included in deals [6][15] - Okta Identity Governance (OIG) now has over 2,000 customers, highlighting significant market demand for modern governance solutions [6] Market Data and Key Metrics Changes - The total contract value generated through strategic go-to-market channels, such as AWS Marketplace, grew over 45% in FY26 to approximately $750 million [16] - The company expects total revenue growth of 9% for Q1 FY 2027 and for the full year FY 2027, with a non-GAAP operating margin of 25%-26% [19][20] Company Strategy and Development Direction - The company aims to secure its position as the standard for securing agentic AI, focusing on large customers and the U.S. federal vertical [12][13] - The strategy includes leveraging partnerships with Global System Integrators to enhance customer relationships and drive growth [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for identity solutions, particularly in the context of AI and agentic systems [5][7] - The company is optimistic about the potential of new products, particularly in the AI market, and believes that identity security is foundational for future software development [9][14] Other Important Information - A $1 billion share repurchase program was announced to take advantage of perceived undervaluation [17] - The company is transitioning more of its professional services business to partners, which is expected to enhance long-term growth despite a short-term revenue impact [20] Q&A Session Summary Question: Can you talk more about pricing for AI agent products? - Management noted that AI agent products are crucial and had a strong quarter, with significant potential for future growth, although they are still relatively small compared to overall revenue [24][25] Question: What are the go-to-market changes and international growth opportunities? - Management confirmed that the go-to-market structure is stable, with increased productivity and low attrition, and emphasized the importance of partnerships with Global System Integrators [32][34] Question: How does the company view competition in the identity market? - Management acknowledged confusion in the market regarding identity infrastructure versus identity security, emphasizing their unique position in offering both [45][46] Question: Can you provide insights on the pricing model for agentic products? - Management explained that pricing is still being refined, with a focus on capturing value based on the number of connections agents make [62][63] Question: How does the company view the growth profile of Auth0? - Management expressed optimism about Auth0's potential, noting that the CIAM market is evolving and that Auth0 for AI Agents is positioned to deliver significant value [76][79]

Financial Data and Key Metrics Changes - The company achieved a record total contract value of nearly $1.3 billion in Q4, surpassing a major milestone of $3 billion in annual contract value [13][14] - The company maintained the Rule of 40, achieving a balance between growth and profitability [12] - The cash flow in Q4 was strong, ending the quarter with over $2.5 billion in cash equivalents and short-term investments [14][15] Business Line Data and Key Metrics Changes - New products represented approximately 30% of Q4 bookings, with an average contract uplift of about 40% when included in deals [4][21] - Okta Identity Governance (OIG) now has over 2,000 customers, indicating strong market demand for modern governance solutions [4][5] Market Data and Key Metrics Changes - The total contract value generated through the strategic go-to-market channel, AWS Marketplace, grew over 45% in FY26 to approximately $750 million [14] - The company is seeing strong performance from large enterprises and partner engagement, which are critical for future growth [11][12] Company Strategy and Development Direction - The company aims to secure AI as a top priority, focusing on becoming the standard for securing agentic AI [9][10] - There is a strategic shift to deepen relationships with Global System Integrators to enhance growth and customer engagement [32][34] - The company is committed to driving growth through product innovation, go-to-market specialization, and leveraging channel partners [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about surpassing $3 billion in revenue on the way to $5 billion and then $10 billion, emphasizing the importance of identity in security [11][19] - The guidance for Q1 FY27 includes total revenue growth of 9% and a non-GAAP operating margin of 23%-24% [17][18] - Management acknowledged the impact of shifting more professional services to partners, which may lower professional services revenue but is expected to fuel long-term growth [18] Other Important Information - The company announced a $1 billion share repurchase program, repurchasing over 875,000 shares for a total cost of $79 million [15] - The company is focused on capturing the growing opportunity in the AI market, with AI agents expected to become a significant part of enterprise software [7][11] Q&A Session Summary Question: Can you talk more about pricing for AI agent products? - Management highlighted that AI agent products are crucial and had a strong quarter, with significant potential for future growth [21][22] Question: What are the go-to-market changes and international growth opportunities? - Management noted that the go-to-market structure is stable, with increased productivity and low attrition, and emphasized the importance of partnerships with Global System Integrators [28][32] Question: How does the company view competition in the identity market? - Management acknowledged confusion in the market regarding identity infrastructure versus identity security, emphasizing the company's unique position in both areas [39][42] Question: Can you clarify the subscription revenue guidance? - Management explained that the subscription revenue is growing faster than total revenue, with a focus on long-term growth despite a conservative guidance approach [46][47]

Q4 FY26 Investor Presentation March 4, 2026 © Okta and/or its affiliates. All rights reserved. © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient's Internal Use Only. Safe Harbor This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, business strategy and plans, market trends and ...

Core Insights - Okta (OKTA) is expected to report fourth-quarter fiscal 2026 results on March 04, with projected revenues between $748 million and $750 million, reflecting a year-over-year growth of 10% [1] - The current Remaining Performance Obligations (RPO) is anticipated to be between $2.445 billion and $2.450 billion, indicating a year-over-year growth of 9% [1] - Non-GAAP earnings are forecasted to be in the range of 84-85 cents per share, based on approximately 185 million diluted weighted-average shares outstanding [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for earnings has remained steady at 85 cents per share, showing a year-over-year growth of 8.97% [2] - The consensus revenue estimate is pegged at $749.10 million, indicating an increase of 9.84% from the previous year's quarter [2] - Okta has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 9.05% [2] Customer Growth and Product Development - Okta's expanding product portfolio, particularly in security and identity governance, is expected to drive client acquisition and revenue growth [3] - The company reported a 7% year-over-year increase in customers with more than $100 thousand in Annual Contract Value (ACV), totaling 5,030 [3] - Okta exited the third quarter of fiscal 2026 with over 20,000 customers and $4.292 billion in Remaining Performance Obligations, indicating strong subscription revenue growth prospects [4] Innovation and Market Position - Okta's focus on innovation, including new products like Okta Identity Governance and Okta for AI agents, is anticipated to provide significant value to customers [5] - The company's emphasis on securing AI agents is expected to be a major growth driver, with over 100 customers engaged in trials for these solutions, representing more than $200 million in existing annual recurring revenue [6] Earnings ESP and Zacks Rank - According to the Zacks model, Okta has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), which typically indicates a favorable outlook for earnings performance [7]

Core Insights - Okta and SailPoint both exceeded Q3 2026 earnings expectations, but their financial paths are markedly different [1] Financial Performance - Okta reported $742 million in revenue, a 12% year-over-year increase, and achieved $43 million in GAAP net income [1][2] - SailPoint generated $282 million in revenue, reflecting a 20% growth, but incurred a GAAP operating loss of $36 million [1][3] - Okta's operating cash flow surged 37% to $218 million, while SailPoint's operating cash flow was $54 million [2][4] Cash Position and Valuation - Okta holds $2.46 billion in cash, significantly more than SailPoint's $298 million, allowing for aggressive investment and margin pressure management [5] - SailPoint's price-to-sales ratio stands at 12.7x, compared to Okta's 5.6x, indicating a valuation disconnect despite SailPoint's higher growth rate [5][6] Market Expectations and Analyst Ratings - SailPoint trades at 119x forward earnings, while Okta trades at 24x forward earnings, reflecting differing market expectations [6] - Analysts show a slight preference for SailPoint with 86% buy ratings compared to Okta's 64% [6] Future Outlook - Okta's Q4 revenue guidance is set at $748-750 million, suggesting an 11% growth, while SailPoint anticipates $290-294 million in revenue [7] - Okta's focus on large customer wins and AI product adoption may help sustain profitability, whereas SailPoint needs to demonstrate scalability and reduced losses [7][8]