Earnings To Watch: Okta (OKTA) Reports Q4 Results Tomorrow

Anthony Lee /
2023/02/28 2:48 am EST

Identity management software maker Okta (OKTA) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter Okta reported revenues of $481 million, up 37.2% year on year, beating analyst revenue expectations by 3.37%. It was a solid quarter for the company, with exceptional revenue growth and a meaningful improvement in gross margin.

Is Okta buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Okta's revenue to grow 27.8% year on year to $489.6 million, slowing down from the 63.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Okta Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.86%.

Looking at Okta's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Palo Alto Networks delivered top-line growth of 25.7% year on year, beating analyst estimates by 0.34% and Qualys reported revenues up 19.2% year on year, exceeding estimates by 0.55%. Palo Alto Networks traded up 5.44% on the results, Qualys was down 0.63%. Read our full analysis of Palo Alto Networks's results here and Qualys's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.05% over the last month. Okta is up 3.92% during the same time, and is heading into the earnings with analyst price target of $81, compared to share price of $71.92.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.