Okta Earnings: What To Look For From OKTA

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Okta Earnings: What To Look For From OKTA

Identity management software maker Okta (OKTA) will be announcing earnings results tomorrow after market close. Here’s what to expect.

Okta beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $646 million, up 16.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Is Okta a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Okta’s revenue to grow 11.2% year on year to $649.6 million, slowing from the 21.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.

Okta Total Revenue
Okta Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Okta has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.

Looking at Okta’s peers in the cybersecurity segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 4.7%, and CrowdStrike reported revenues up 28.5%, topping estimates by 2.8%. Varonis traded down 10.7% following the results while CrowdStrike was also down 4.6%.

Read our full analysis of Varonis’s results here and CrowdStrike’s results here.

There has been positive sentiment among investors in the cybersecurity segment, with share prices up 17% on average over the last month. Okta is up 6.3% during the same time and is heading into earnings with an average analyst price target of $96.45 (compared to the current share price of $77.83).

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