Identity management software maker Okta (OKTA) will be reporting results tomorrow afternoon. Here's what to look for.
Last quarter Okta reported revenues of $414.9 million, up 65.3% year on year, beating analyst revenue expectations by 6.72%. 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 36.4% year on year to $430.6 million, slowing down from the 57.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.30 per share.
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 6.64%.
Looking at Okta's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ForgeRock delivered top-line growth of 8.47% year on year, beating analyst estimates by 1.05% and Qualys reported revenues up 20.2% year on year, exceeding estimates by 2%. ForgeRock traded flat on the results, Qualys was up 3.14%. Read our full analysis of ForgeRock'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 1.08% over the last month. Okta is down 6.62% during the same time, and is heading into the earnings with analyst price target of $136.6, compared to share price of $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.