It’s not too late to invest in Okta Inc (NASDAQ: OKTA) even though it has rallied some 60% over the past four months, says a Bank of America analyst.Okta stock could climb to $135Copy link to sectionMadeline Brooks double upgraded the identity and access management company from underperform to “buy” this morning after it published a strong Q4 earnings report and issued upbeat future guidance. Okta stock opened about 20% up today but the BofA analyst is convinced it could continue to rally and hit $135 over ...

Key TakeawaysOkta shares surged in extended-hours trading Wednesday after the company topped quarterly estimates and raised its full-year sales forecast amid growing momentum from larger customers.The company said it had acquired 120 customers in the fourth quarter with at least $100,000 annual contract value.Okta shares may find overhead chart resistance at $108 and $145 from prior price action.Okta (OKTA) shares surged 23% in extended-hours trading on Wednesday evening after the cloud identity software ma ...

Financial Data and Key Metrics Changes - For FY '24, the company achieved a non-GAAP operating profit of 14%, a significant improvement from negative 1% the previous year [2] - Free cash flow margin increased to 22%, up from 3% last year, indicating strong cash generation capabilities [2] - The company reported record profitability and cash flow in Q4, suggesting robust financial health [18] Business Line Data and Key Metrics Changes - The weighted average term length for contracts signed in Q4 reached a two-year high, reflecting increased customer commitment [2] - The number of million-dollar-plus ARR contracts increased by over 30% year-over-year, highlighting strong demand from large customers [2] - The company added 150 customers in the quarter, although the sequential decline in new customer adds indicates a shift towards upselling existing customers rather than acquiring new ones [2] Market Data and Key Metrics Changes - The company noted that large enterprises are more willing to invest in technology compared to mid-enterprise and smaller businesses, which is reflected in the strong performance of million-dollar deals [67] - The indirect channel partners now account for over 40% of the business mix, up from about one-third two years ago, indicating a growing reliance on partnerships for revenue generation [22] Company Strategy and Development Direction - The company is focusing on a "hunter-farmer" model to enhance new customer acquisition while also driving upsells within the existing customer base [36] - The launch of new products like Okta Identity Governance and Okta Privileged Access is aimed at capturing larger market opportunities and enhancing the overall product suite [19] - The company is committed to security as its top priority for FY '25, with significant investments planned to bolster security measures and product capabilities [60] Management's Comments on Operating Environment and Future Outlook - Management described the macro environment as stable but challenging, with expectations that this will be the new normal moving forward [67] - The company is optimistic about its future, citing a strong pipeline of products and functionality powered by Okta AI [20] - Management emphasized the importance of learning from past security incidents to enhance customer trust and product security [45] Other Important Information - The company closed the acquisition of Spera Security, enhancing its identity security offerings [8] - A new initiative called the Okta Secure Identity Commitment was launched to lead the industry in combating identity attacks [59] Q&A Session Summary Question: What is the early traction with Privileged Access? - Management noted that early access customers are seeing positive results and synergy with the rest of the platform, indicating strong initial adoption [56] Question: How is the macro environment affecting performance? - Management indicated that large organizations are more willing to invest in technology, which is reflected in the strong performance of large deals [67] Question: What is the outlook for customer account growth? - Management acknowledged that the customer account trend is influenced by a shift towards upselling existing customers, but emphasized that this is not the new normal and growth is a priority [73] Question: What are the expectations for contract duration? - Management reported an uptick in contract duration across major categories, indicating increased customer commitment [75] Question: How is the company addressing the security incident? - Management stated that the specific issue from October is behind them, but they continue to focus on enhancing security measures and customer communication [45][62]

For the quarter ended January 2024, Okta (OKTA) reported revenue of $605 million, up 18.6% over the same period last year. EPS came in at $0.63, compared to $0.30 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $586.25 million, representing a surprise of +3.20%. The company delivered an EPS surprise of +23.53%, with the consensus EPS estimate being $0.51.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

Okta (OKTA) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.53%. A quarter ago, it was expected that this cloud identity management company would post earnings of $0.30 per share when it actually produced earnings of $0.44, delivering a surprise of 46.67%.Over the last four quarter ...

ME @ Okta and/or its affiliates. All rights reserved. okta 5 111% TTM Dollar-based net retention rate(1) at January 31, 2024 6 okta | --- | --- | |--------------------------------------|-----------------------------------------------------------------------------| | | Okta Trust: Cloud security certifications with 99.99% uptime | | | Vendor neutrality supports best-of-breed stack | | The Okta Identity Cloud | Cloud-first: Providing hybrid access from cloud to ground | | Delivers a unified identity solution ...

SAN FRANCISCO--(BUSINESS WIRE)--Okta, Inc. (NASDAQ:OKTA), the leading independent identity partner, today announced three new executive appointments on its go to market team as customers embrace the increasing importance of Identity. Eric Kelleher has been promoted to President, Customer Experience & Communications, Ed Daly has been promoted to Chief Customer Officer (CCO), and Christine Halvorsen has joined Okta as the company’s first Chief Technology Officer (CTO) for Public Sector. These appointments ...

Revenue Growth - Q4 revenue grew 19% year-over-year to $605 million, with subscription revenue increasing 20% to $591 million[4][5] - Full year fiscal 2024 total revenue was $2.263 billion, a 22% increase year-over-year, with subscription revenue up 23% to $2.205 billion[8] - For Q1 fiscal 2025, the company expects total revenue of $603 million to $605 million, representing 16% to 17% year-over-year growth[9] - Full year fiscal 2025 revenue guidance is $2.495 billion to $2.505 billion, representing 10% to 11% year-over-year growth[9] - Total revenue for the three months ended January 31, 2024, was $605 million, an increase from $510 million in the same period last year[30] - Subscription revenue for the twelve months ended January 31, 2024, reached $2,205 million, up from $1,794 million in the previous year[30] Financial Performance and Margins - Non-GAAP operating income for fiscal 2024 was $310 million, or 14% of total revenue, compared to a non-GAAP operating loss of $10 million in fiscal 2023[8] - Non-GAAP operating income for fiscal 2025 is expected to be $455 million to $465 million, yielding an operating margin of 18% to 19%[14] - Non-GAAP diluted net income per share for fiscal 2025 is projected to be $2.24 to $2.29[14] - Non-GAAP free cash flow margin for fiscal 2025 is expected to be approximately 21%[14] - Non-GAAP gross margin for the twelve months ended January 31, 2024, was 80%, up from 78% in the prior year[38] - Non-GAAP operating income for the twelve months ended January 31, 2024, was $310 million, compared to a non-GAAP operating loss of $10 million in the previous year[40] - Non-GAAP net income for Q1 2024 was $113 million, compared to $52 million in Q1 2023, showing a significant improvement[44] - Non-GAAP net margin improved to 19% in Q1 2024 from 10% in Q1 2023[44] - Net loss for Q1 2024 was $44 million, a reduction from $153 million in Q1 2023[44] Cash Flow and Liquidity - Record operating cash flow of $174 million and free cash flow of $166 million, representing 29% and 28% of total revenue respectively[4][5] - Cash and cash equivalents increased to $334 million as of January 31, 2024, compared to $264 million the previous year[33] - Net cash provided by operating activities for the twelve months ended January 31, 2024, was $512 million, a significant increase from $86 million in the previous year[36] - Free cash flow for Q1 2024 was $166 million, up from $72 million in Q1 2023[48] - Free cash flow margin increased to 28% in Q1 2024 from 14% in Q1 2023[48] - Net cash provided by operating activities for Q1 2024 was $174 million, compared to $76 million in Q1 2023[48] - The company updated its definition of free cash flow in fiscal 2024 to include on-premise software purchases[47] Remaining Performance Obligations - Current remaining performance obligations (cRPO) grew 16% year-over-year to $1.952 billion[4][5] Stock-Based Compensation and Restructuring Costs - Stock-based compensation expense for the twelve months ended January 31, 2024, was $684 million, slightly up from $677 million in the prior year[36] - Stock-based compensation expense for Q1 2024 was $161 million, slightly down from $164 million in Q1 2023[44] - Restructuring costs for Q1 2024 were $28 million, up from $15 million in Q1 2023[44] Assets and Shares - Total assets as of January 31, 2024, were $8,989 million, down from $9,307 million the previous year[33] - Non-GAAP weighted-average shares used to compute non-GAAP net income per share, diluted, were 179,249 in Q1 2024, up from 174,026 in Q1 2023[44] Net Loss and Non-GAAP Metrics - Net loss for the twelve months ended January 31, 2024, was $355 million, an improvement from a net loss of $815 million in the prior year[30] - Non-GAAP net income (loss) per share, basic, for the twelve months ended January 31, 2024, was not explicitly stated but is calculated based on non-GAAP net income and GAAP weighted-average shares[42]

Okta (OKTA) closed at $82.30 in the latest trading session, marking a +1.38% move from the prior day. This change lagged the S&P 500's 2.11% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 2.96%.The cloud identity management company's stock has dropped by 4.56% in the past month, falling short of the Computer and Technology sector's gain of 1.69% and the S&P 500's gain of 3.08%.Analysts and investors alike will be keeping a close eye on the performance of Okta in ...

Okta (OKTA) closed the latest trading day at $88.86, indicating a -0.65% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.82%.The cloud identity management company's shares have seen an increase of 10.12% over the last month, surpassing the Computer and Technology sector's gain of 8.1% and the S&P 500's gain of 5.3%.Analysts and investors alike will be keeping a close eye on the performance of Okta ...