Okta (OKTA) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2024/02/27 2:01 am EST

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

Last quarter Okta reported revenues of $584 million, up 21.4% year on year, beating analyst revenue expectations by 4.2%. It was a solid quarter for the company, with a meaningful improvement in its gross margin and a decent beat of analysts' revenue 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 15.2% year on year to $587.6 million, slowing down from the 33.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 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 4.4%.

Looking at Okta's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Varonis delivered top-line growth of 8.1% year on year, beating analyst estimates by 1.6% and Qualys reported revenues up 10.5% year on year, inline with analyst estimates. Varonis traded up 2.7% on the results, Qualys was down 7.4%.

Read our full analysis of Varonis's results here and Qualys's results here.

Investors in the cybersecurity segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. Okta is down 0.6% during the same time, and is heading into the earnings with analyst price target of $87.7, compared to share price of $86.63.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.