Okta (OKTA) Q4 Earnings: What To Expect

Jabin Bastian /
2022/03/01 7:01 am EST
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Identity management software maker Okta (OKTA) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Okta reported revenues of $350.6 million, up 61.3% year on year, beating analyst revenue expectations by 7.08%. It was a very strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

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 53.2% year on year to $359.7 million, improving on the 40.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 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 6.67%.

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. SailPoint (NYSE:SAIL) delivered top-line growth of 31.2% year on year, beating analyst estimates by 19.1% and Rapid7 (NASDAQ:RPD) reported revenues up 34% year on year, exceeding estimates by 3.94%. SailPoint was up almost 9% on the results, Rapid7 was down 0.54%. Read our full analysis of SailPoint's results here and Rapid7's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with the average share price declining 4.55% over the last month. Okta is down 7.6% during the same time, and is heading into the earnings with analyst price target of $269, compared to share price of $182.84.

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.