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1 year ago
Okta hit with 6 downgrades following Q3 earnings: 4 big analyst cuts
By: Investing | November 30, 2023
Okta downgraded at several firms after Q3
Following the announcement of its Q3 results, which suggested a slowing in revenue growth heading into fiscal 2025, Okta (NASDAQ:OKTA) experienced a series of downgrades by a number of Wall Street firms.
TD Cowen changed its rating for Okta from Outperform to Market Perform, adjusting the price target to $74.00 from the previous $100.00. “OKTA's financial performance is reflecting the impact of recent high-profile breaches involving the company's solutions, and we believe the stock remains range bound until cRPO growth can reaccelerate,” commented the analysts.
Piper Sandler also revised its rating for Okta, moving from Overweight to Neutral and setting a new price target at $75.00, down from $95.00. Wells Fargo downgraded their rating from Overweight to Equal Weight, with a revised price target of $70.00, lowered from $80.00.
KeyBanc shifted its rating from Overweight to Sector Weight. Similarly, Scotiabank cut its rating from Sector Outperform to Sector Perform for Okta.
Shares are currently down more than 3% pre-market today.
Bilibili hit with two downgrades after a Q3 miss
Bilibili (NASDAQ:BILI) received two downgrades after reporting Q3 results, which missed consensus estimates and sent the shares down more than 11% yesterday, as reported in real-time on InvestingPro.
Barclays downgraded Bilibili to Underweight from Equalweight and cut its price target to $10.00 from $15.00. Meanwhile, Nomura/Instinet cut its rating to Neutral from Buy.
Shares are currently down 2% in pre-market.
Two more downgrades
Exane BNP Paribas downgraded Nutrien (NYSE:NTR) to Neutral from Outperform with a price target of $76.13.
Nokia (NYSE:NOK) shares fell more than 1% pre-market today after JPMorgan downgraded the company to Neutral from Overweight and cut its price target to $4.39 from $5.60.
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1 year ago
Okta (OKTA) Exceeds Q3 Expectations, Provides Optimistic Full-Year Guidance
By: Investing | November 29, 2023
Identity management software maker Okta (NASDAQ:OKTA) announced better-than-expected results in Q3 FY2024, with revenue up 21.4% year on year to $584 million. The company expects next quarter's revenue to be around $586 million, in line with analysts' estimates. It made a non-GAAP profit of $0.44 per share, improving from its loss of $0 per share in the same quarter last year.
Is now the time to buy Okta? Find out by reading the original article on StockStory.
Okta (OKTA) Q3 FY2024 Highlights:
Revenue: $584 million vs analyst estimates of $560.4 million (4.2% beat)
EPS (non-GAAP): $0.44 vs analyst estimates of $0.29 ($0.15 beat)
Revenue Guidance for Q4 2024 is $586 million at the midpoint, above analyst estimates of $580.3 million
Free Cash Flow of $150 million, up from $49 million in the previous quarter
Gross Margin (GAAP): 75.2%, up from 71.4% in the same quarter last year
“Our Q3 performance was highlighted by solid top-line growth, record non-GAAP operating profit, and record free cash flow,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "We are particularly enthusiastic about the adoption of Okta Identity Governance and the general availability of Okta Privileged Access, which uniquely positions us as the only unified modern identity platform. Over 18,800 leading organizations around the world put their trust in Okta and we are thankful for their continued partnership."
Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ:OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.
Identity ManagementAs software penetrates corporate life, employees are using more apps every day, on more devices, in more locations. This drives the need for identity and access management software that help companies efficiently manage who has access to what, and ensure that access privileges are secure from cyber criminals.
Sales GrowthAs you can see below, Okta's revenue growth has been very strong over the last two years, growing from $350.7 million in Q3 FY2022 to $584 million this quarter.
This quarter, Okta's quarterly revenue was once again up a very solid 21.4% year on year. However, its growth did slow down compared to last quarter as the company's revenue increased by just $28 million in Q3 compared to $38 million in Q2 2024. While we'd like to see revenue increase by a greater amount each quarter, a one-off fluctuation is usually not concerning.
Next quarter, Okta is guiding for a 12.9% year-on-year revenue decline to $586 million, a further deceleration from the 33.3% year-on-year decrease it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 13.1% over the next 12 months before the earnings results announcement.
Cash Is KingIf you've followed StockStory for a while, you know that we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Okta's free cash flow came in at $150 million in Q3, up 2,523% year on year.
Okta has generated $395 million in free cash flow over the last 12 months, an impressive 18.1% of revenue. This high FCF margin stems from its asset-lite business model and strong competitive positioning, giving it the option to return capital to shareholders or reinvest in its business while maintaining a cash cushion.
Key Takeaways from Okta's Q3 Results Sporting a market capitalization of $11.91 billion, more than $2.13 billion in cash on hand, and positive free cash flow over the last 12 months, we believe that Okta is attractively positioned to invest in growth.
It was great to see Okta improve its gross margin and beat Wall Street's sales estimates this quarter, both driven by better-than-expected subscription revenue. Its adjusted operating income, free cash flow, EPS, and next quarter's revenue and EPS guidance also topped analysts' forecasts. Overall, this quarter's results seemed fairly positive and shareholders should feel optimistic. Investors were likely expecting more, however, and the stock is down 2.2% after reporting, trading at $70.99 per share.
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1 year ago
Okta Earnings: What To Look For From OKTA
By: Investing | November 28, 2023
Identity management software maker Okta (NASDAQ:OKTA) will be reporting earnings tomorrow afternoon. Here's what investors should know.
Last quarter Okta reported revenues of $556 million, up 23% year on year, beating analyst revenue expectations by 4.1%. It was a clean "beat and raise" quarter. It was good to see Okta beat analysts' revenue, non-GAAP operating profit, and EPS expectations this quarter. We were also glad that next quarter's revenue and non-GAAP operating profit guidance came in higher than Wall Street's estimates. Full year guidance was also raised across the board.
Is Okta buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Okta's revenue to grow 16.5% year on year to $560.4 million, slowing down from the 37.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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 4.8%.
Looking at Okta's peers in the cybersecurity segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Zscaler (NASDAQ:ZS) delivered top-line growth of 39.7% year on year, beating analyst estimates by 4.9% and Tenable reported revenues up 15.3% year on year, exceeding estimates by 1.6%. Tenable was down 9.4% on the results, and Zscaler was down 6.8%.
Read the full analysis of Zscaler's and Tenable's results on StockStory.
There has been positive sentiment among investors in the cybersecurity segment, with the stocks up on average 11.9% over the last month. Okta is up 7.2% during the same time, and is heading into the earnings with analyst price target of $89.8, compared to share price of $70.5.
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1 year ago
Okta, Inc. (OKTA) 'brand has been significantly degraded' - JMP Securities
By: Investing | November 27, 2023
JMP Securities downgraded shares of Okta, Inc. (NASDAQ:OKTA) to Market Perform from Under Review in a note Monday.
The firm, which does not have a price target on the stock, told investors that the recent security breach will lead to brand degradation and long-term customer expansion risk.
In late October, OKTA disclosed that an unidentified hacking group had accessed client files through a support system. OKTA shares tumbled following the news.
Analysts at JMP said that after examining the incident, evaluating Okta's response, and conducting their own due diligence with customers and industry experts, they believe "the brand has been significantly degraded, and customers are reconsidering their long-term strategic relationships with Okta."
"This represents a material change to our original investment thesis, which yields significant caution on our part, and we believe the path to further upside in the stock is limited, and we see the current risk/reward as balanced," the firm wrote.
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1 year ago
Okta (OKTA) Stock Extends Slide After Latest Cyber Breach
By: Schaeffer's Investment Research | October 23, 2023
• Okta's customer support system was breached by hackers
• Options traders and analysts are chiming in as well
Okta Inc (NASDAQ:OKTA) is down 9.3% at $68.55 at last glance, extending Friday's 11.6% slide after the company disclosed a cyber breach of its customer support system. Analysts were quick to comment on the news, with Evercore ISI moving the stock to its "tactical underperform" list, noting that the breach is the second in roughly two years. No fewer than three other analysts slashed their price targets as well.
Today's gap lower has OKTA breaking below its 320-day moving average, which kept last session's losses in check. On the short sell restricted (SSR) list amid the volatility, the shares are hovering around their 2023 breakeven level.
So far in the options pits today, 31,000 calls and 29,000 puts have been exchanged, which is seven times the average daily volume already. The weekly 10/27 80-strike call is the most active contract, with new positions being bought to open.
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1 year ago
Okta Inc. (OKTA) strengthens security after recent breach
By: Investing | October 20, 2023
Okta Inc . (NASDAQ:OKTA) announced on Friday that it had experienced a security breach, which was due to unauthorized access via a stolen credential in their customer support case-management system. The company's primary operational platform, however, remained unaffected.
The unauthorized access allowed hackers to view files related to recent support cases, compromising the company's customer support unit. The company was quick to clarify that the breach did not affect their main operational systems. David Bradbury, Okta's Chief Security Officer, emphasized this distinction, underscoring that the compromised system and the operational one were separate entities.
In response to the breach, Okta has implemented proactive protective measures and has notified customers who were impacted by the incident. The company is working diligently to ensure the security of its systems and safeguard against future breaches.
According to InvestingPro data, the company has a market cap of 12.4 billion USD and a negative P/E ratio of -20.60, indicating that it has not been profitable over the last twelve months. However, it's worth noting that analysts predict the company will be profitable this year, as per InvestingPro Tips.
Despite its recent security incident, Okta has shown a strong return over the last three months, with a 22.51% increase, and an impressive 57.1% return over the past year. This suggests that the company has been performing well in the market, even amidst challenges.
The company's revenue growth has been slowing down, with a quarterly growth of 23.01% in FY2024.Q2 compared to a 29.02% growth in LTM2024.Q2. It remains to be seen how this incident will impact the company's standing in the market going forward.
InvestingPro also highlights that Okta operates with a moderate level of debt and its liquid assets exceed short term obligations, which is a positive sign for investors. In addition, the company does not pay a dividend to shareholders, which is something potential investors should consider.
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1 year ago
Sycomore Asset Management Invests $3.06 Million in Okta, Inc. (OKTA)
By: MarketBeat | September 30, 2023
• Sycomore Asset Management purchased a new stake in Okta, Inc. (NASDAQ:OKTA) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 44,000 shares of the company's stock, valued at approximately $3,062,000...
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1 year ago
Neuberger Berman Group LLC Sells 164,598 Shares of Okta, Inc. (OKTA)
By: MarketBeat | September 8, 2023
• Neuberger Berman Group LLC lowered its holdings in Okta, Inc. (NASDAQ:OKTA) by 20.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 624,176 shares of the company's stock after selling 164,598 shares during the period. Neuberger Berman Group LLC owned approximately 0.27% of Okta worth $53,614,000 at the end of the most recent quarter...
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1 year ago
Okta stock jumps 10% on Q2 beat & better-than-expected guidance
By: Investing.com | August 30, 2023
Okta (NASDAQ:OKTA) shares surged more than 10% after-hours following the company's reported Q2 results, with EPS of $0.31 coming in better than the consensus estimate of $0.22. Revenue grew 23% year-over-year to $556 million, beating the consensus estimate of $534.67M.
Subscription revenue was $542M, representing an increase of 24% year-over-year. RPO, or subscription backlog, grew 8% year-over-year to $3.03 billion. cRPO, which is subscription backlog expected to be recognized over the next 12 months, increased 18% year-over-year to $1.77B.
“Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year,” said CEO Todd McKinnon.
For Q3/24, the company expects revenue in the range of $558-$560M, representing a growth rate of 16% year-over-year. EPS is seen at $0.29-$0.30.
For the full year, the company expects EPS of $1.17-$1.20, compared to the consensus of $0.91, and revenue of $2.21-$2.22B, compared to the consensus of $2.18B.
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1 year ago
Why Okta (OKTA) Stock Is Trading Up Today
By: Barchart | August 14, 2023
What Happened:
Shares of identity management software maker Okta (OKTA) jumped 5.06% in the morning session after the stock received a double upgrade from Goldman Sachs analyst Gabriela Borges who raised the rating from Sell to Buy and increased the price target from $77 to $91. The price target implied a potential 24% upside from where shares were traded before the upgrade.
Borges emphasized the appealing risk-to-reward ratio and envisaged a possible resurgence in Okta's calculated remaining performance obligation ( cRPO - a leading indicator of revenue) and (annual recurring revenue) ARR, predicting a rise back to the 15%-20% range from its earlier 10-15% status.
This anticipated progress is attributed to several factors, including "1) Okta anniversaries headwinds in its Customer IAM (Identity and Access Management) business tied to the merging of its organic and acquired product portfolios; 2) The Workforce segment stabilizes post go to market changes and a headwind from macro; 3) Okta ramps on cross-sell tied to new product cycles such as IGA (Identity Governance and Administration)and PAM (Privileged Access Management)."
After the initial pop the shares cooled down to $73.82, up 3.37% from previous close.
Is now the time to buy Okta? Access our full analysis report here, it's free.
What is the market telling us:
Okta's shares are very volatile and over the last year have had 27 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move was two months ago, when the stock dropped 14% on the news that the company reported first quarter results that exceeded analysts' revenue, subscription revenue, adjusted operating profit, free cash flow, and earnings per share (EPS) expectations. Margin improved significantly. Additionally revenue guidance for the next quarter and full year also came in ahead of Consensus. Operating income guidance for the next quarter and full year were roughly inline.
The key negative was that cRPO (current remaining performance obligations) guidance for the next quarter was below, and since since this a leading indicator of revenue, it seemed to drive the narrative and stock action. Additionally, management acknowledged the existence of macro challenges, particularly in new business acquisition across both small and medium-sized businesses (SMB) and enterprise segments. The company reported a shift in customer preferences, with requests for shorter contract terms and a greater emphasis on upsells rather than new business, resulting in smaller average deal sizes.
Following the results, J.P. Morgan analysts downgraded the stock's rating from Overweight (Buy) to Neutral (Hold) and lowered the price target from $95 to $85. The analysts attributed the downgrade to macroeconomic pressures impacting the company's growth prospects.
Similarly, BMO Capital analysts downgraded the stock's rating from Outperform (Buy) to Market Perform (Hold) and lowered the price target from $94 to $85.
Okta is up 6.2% since the beginning of the year, but at $73.82 per share it is still trading 31.1% below its 52-week high of $107.11 from August 2022. Investors who bought $1,000 worth of Okta's shares 5 years ago would now be looking at an investment worth $1,330.
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1 year ago
Okta jumps as Goldman double upgrades on 2nd-half trough in subscription revenue
By: Investing.com | August 14, 2023
Okta (NASDAQ:OKTA) gained over 4% in pre-open trading Monday after analysts at Goldman Sachs upgraded the stock, saying the risk/reward is now favorable with subscription revenue likely to trough in the 2nd-half.
Analysts upgraded the stock two notches to Buy from Sell and set a $91 price target, offering 27.5% upside to Friday's closing price.
Analysts see outperformance ahead as cRPO and ARR can accelerate back to 15%-20% from 10-15% as, "1) Okta anniversaries headwinds in its Customer IAM business tied to the merging of its organic and acquired product portfolios; 2) The Workforce segment stabilizes post go to market changes and a headwind from macro; 3) Okta ramps on cross-sell tied to new product cycles such as IGA and PAM."
Despite the overhang on the stock from Microsoft (NASDAQ:MSFT) competition, which is factored into their bull case scenario by discounting OKTA valuation by ~30% relative to peers, their latest analysis indicates a 3:1 upside/downside skew to their FY26 (CY25) projections.
Looking at catalysts for the stock, analysts said they believe EPS August 30th "may be the last estimate cut." Next, they consider Okta's PAM launch in 4Q, a trough in cRPO during the 2nd half, and a turning point in subscription growth.
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1 year ago
Quantinno Capital Management LP Has $3.14 Million Holdings in Okta, Inc. (OKTA)
By: MarketBeat | July 25, 2023
• Quantinno Capital Management LP grew its position in shares of Okta, Inc. (NASDAQ:OKTA) by 18.7% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 36,445 shares of the company's stock after buying an additional 5,740 shares during the quarter. Quantinno Capital Management LP's holdings in Okta were worth $3,143,000 as of its most recent filing with the Securities and Exchange Commission (SEC)...
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1 year ago
122,699 Shares in Okta, Inc. (OKTA) Bought by Deepwater Asset Management LLC
By: MarketBeat | July 20, 2023
• Deepwater Asset Management LLC acquired a new stake in shares of Okta, Inc. (NASDAQ:OKTA) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 122,699 shares of the company's stock, valued at approximately $10,582,000. Okta makes up 5.0% of Deepwater Asset Management LLC's investment portfolio, making the stock its 11th largest holding. Deepwater Asset Management LLC owned approximately 0.05% of Okta at the end of the most recent reporting period...
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1 year ago
Yarbrough Capital LLC Has $709,000 Stock Holdings in Okta, Inc. (OKTA)
By: MarketBeat | June 23, 2023
• Yarbrough Capital LLC boosted its position in shares of Okta, Inc. (NASDAQ:OKTA) by 115.3% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 8,216 shares of the company's stock after buying an additional 4,400 shares during the quarter. Yarbrough Capital LLC's holdings in Okta were worth $709,000 as of its most recent SEC filing...
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1 year ago
Okta, Inc. (OKTA) Shares Bought by Rosenblum Silverman Sutton S F Inc. CA
By: MarketBeat | June 15, 2023
• Rosenblum Silverman Sutton S F Inc. CA grew its position in Okta, Inc. (NASDAQ:OKTA) by 10.0% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 47,208 shares of the company's stock after acquiring an additional 4,290 shares during the period. Rosenblum Silverman Sutton S F Inc. CA's holdings in Okta were worth $3,226,000 at the end of the most recent quarter...
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2 years ago
Okta (OKTA) down 20% after earnings, analysts downgrade
By: Investing.com | June 1, 2023
Okta (NASDAQ:OKTA) shares dropped nearly 20% in pre-open Thursday after the cybersecurity company reported Q1 results.
While EPS of $0.22 and revenue of $518 million (up 25% year-over-year) came in better than the consensus estimates of $0.12 and $511M, respectively, the negative stock reaction was likely a result of increasing macro pressures.
Subscription revenue grew 26% year-over-year to $503M. RPO, or subscription backlog, grew 9% year-over-year to $2.94B. Meanwhile, cRPO, which is a subscription backlog expected to be recognized over the next 12 months, was $1.70B, representing a 20% year-over-year growth.
"While macroeconomic pressures are increasing, we are well positioned to advance our leadership position by delivering valuable product innovation to our customers while delivering non-GAAP profitable growth to our shareholders," said Todd McKinnon, chief executive officer and co-founder of Okta.
For Q2/24, the company expects EPS in the range of $0.21-$0.22, compared to the consensus of $0.17, and revenue in the range of $533-$535M, compared to the consensus of $527.87M.
For the full year, the company expects EPS of $0.88-$0.93, compared to the consensus of $0.78, and revenue of $2.175-$2.185B, compared to the consensus of $2.17B.
At least two analysts downgraded Okta shares following yesterday's results. BMO analysts moved to Market Perform and cut the price target to $85 per share from the prior $94.
"Our stock rating is driven by our view that mid-teens type of growth, or lower, leaves limited upside in the shares. Hence, our downgrade is rooted in two beliefs: 1) limited upside to current FY24 CRPO/ rev/billings estimates, and 2) limited multiple upside. As we get closer to year-end, we expect to revisit our views on the potential lift from IGA/PAM vs. the run rate of the core identity business," they said.
JPMorgan analysts downgraded to Neutral from Overweight with the price target also set at $85 per share.
"We continue to view OKTA as a leader in its markets and well positioned to benefit from Identity migration to the cloud longer term. But with growth expected to deteriorate near term, and cash flow not yet at levels to support valuation, we see more favorable risk-reward elsewhere within our coverage and are stepping to the sidelines," analysts explained in a note.
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2 years ago
Okta (OKTA) beats Q1, but stock plunges 13% on macro concerns
By: Investing.com | May 31, 2023
Okta (NASDAQ:OKTA) shares dropped more than 13% after-hours following the company’s reported Q1 results. While EPS of $0.22 and revenue of $518 million (up 25% year-over-year) came in better than the consensus estimates of $0.12 and $511.02M, respectively, the negative stock reaction was likely due to increasing macro pressures.
Subscription revenue grew 26% year-over-year to $503M. RPO, or subscription backlog, grew 9% year-over-year to $2.94 billion. Meanwhile, cRPO, which is a subscription backlog expected to be recognized over the next 12 months, was $1.70B, representing a 20% year-over-year growth.
For Q2/24, the company expects EPS in the range of $0.21-$0.22, compared to the consensus of $0.17, and revenue in the range of $533-$535M, compared to the consensus of $527.87M.
For the full year, the company expects EPS of $0.88-$0.93, compared to the consensus of $0.78, and revenue of $2.175-$2.185B, compared to the consensus of $2.17B.
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2 years ago
Prudential PLC Makes New Investment in Okta, Inc. (OKTA)
By: MarketBeat | May 18, 2023
• Prudential PLC purchased a new stake in shares of Okta, Inc. (NASDAQ:OKTA) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 9,304 shares of the company's stock, valued at approximately $636,000...
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2 years ago
Blue Grotto Capital LLC Invests $10.25 Million in Okta, Inc. (OKTA)
By: MarketBeat | May 4, 2023
• Blue Grotto Capital LLC bought a new position in Okta, Inc. (NASDAQ:OKTA) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 150,000 shares of the company's stock, valued at approximately $10,250,000. Okta makes up about 2.5% of Blue Grotto Capital LLC's holdings, making the stock its 16th largest holding. Blue Grotto Capital LLC owned about 0.09% of Okta at the end of the most recent reporting period...
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2 years ago
Jefferies raises Okta’s (OKTA) price target to $105, says CIAM is a huge opportunity
By: Investing.com | April 18, 2023
Jefferies raised its price target on Okta, Inc (NASDAQ:OKTA) to $105.00 from $100.00 while maintaining a Buy rating, and highlighting that Customer Identity Access Management (CIAM) represents a huge opportunity.
According to the firm, CIAM is an emerging segment within the identity market, with a stronger link to ROI compared to other areas of IAM, due to its impact on customer experience. Jefferies’ research indicates that the CIAM market is worth $8 billion in 2023, and is projected to grow at a CAGR of 29%, reaching $12.5B by 2025. This is significantly larger, over 160%, than estimates provided by industry analysts.
If Okta captures 7% of Jefferies’ projected CIAM TAM for 2025, there is a possibility of an 11-19% increase in total subscription revenue. Currently, Okta's CIAM market share accounts for 6.6% of Jefferies’ anticipated CIAM TAM for the 2022 upside scenario. The firm expects Okta to maintain mid-30s revenue growth until 2025.
Jefferies highlighted CIAM’s strategic importance for the company. Firstly, it helps to counter the competitive threat posed by Microsoft (NASDAQ:MSFT) in the Workforce. Recent investigations show that two F100 customers have changed their minds and are considering other pure-play identity vendors, just a year after signing with Microsoft. Secondly, the firm believes that CIAM will become the larger business in the long run, as Okta aims to achieve a 50/50 split between Workforce and Customer, compared to the current split of 39%.
Jefferies increased its revenue estimate for 2025 by 6% to $2.6B, representing a year-over-year growth of 19%, and reflecting heightened confidence in the sustainability of Okta's top-line durability.
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2 years ago
Okta, Inc. (OKTA) Shares Acquired by Assenagon Asset Management S.A.
By: MarketBeat | March 21, 2023
• Assenagon Asset Management S.A. boosted its position in Okta, Inc. (NASDAQ:OKTA) by 3,773.1% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 522,448 shares of the company's stock after acquiring an additional 508,959 shares during the quarter. Assenagon Asset Management S.A. owned 0.33% of Okta worth $35,699,000 at the end of the most recent quarter...
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2 years ago
Okta, Inc. (OKTA) Tough earnings day, but found itself day 2. gap fill close
By: Options Mike | March 4, 2023
• $OKTA Tough earnings day, but found itself day 2. gap fill close, may run to then, then I'd wait for the 8D to catch up.
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2 years ago
Okta stock surges as Wall Street thinks software company is 'partially out of the woods'
By: Morningstar | March 2, 2023
Analysts say Okta 'still has work to do,' but forecast for more than double the profit Wall Street expected 'remains abundantly prudent'
Okta Inc. shares rallied Thursday as Wall Street greeted the identity-management software company's forecast of profitability for the year with cautious optimism as it navigates a tight cloud-software spending environment.
Okta (OKTA) shares rallied nearly 15% to an intraday high of $81.55 Thursday, just a quarter after posting their strongest day ever, after Okta Chief Executive Todd McKinnon pledged profitability in 2024. This time around, that profitability forecast ended up being more than twice what Wall Street had been expecting, but many analysts had likely been taking a wait-and-see approach.
Citi Research analyst Fatima Boolani, who has a neutral rating on the stock and an $87 price target, called Okta's report a "high-octane turnaround in motion." The outlook continues to be underpinned by "'hyperconservatism'/prudence against still-tough macro (mostly Americas, weakness seeping into enterprise) and suboptimal sales productivity hangover."
The hangover Boolani is referring to is Okta's refocusing of its sales force following its $6.5 billion acquisition of identity-platform Auth0 (pronounced "Auth Zero"), which closed in May After inheriting a large sales force from Auth0, Okta experienced initial difficulties in coordinating who was selling what products.
"While Okta admittedly appears partially out of the woods, this being the first quarter of self-help-led recovery plus our skittishness on renewals/shortening contract duration/new logos, keep our optimism/rating in check," Boolani said.
Jefferies analyst Joseph Gallo, who has a buy rating and a $100 price target, said Okta's outlook "remains abundantly prudent," and that results had been "better-than-feared" given "tempered expectations."
Guggenheim analyst John DiFucci, who has a buy rating and a $90 price target, said Okta is just trying to "keep it simple" to set up another beat-and-raise quarter.
"While our field work indicates some improvement in Okta's go-to-market motion, the company still has work to do," DiFucci said. "Regardless, we continue to believe that there's little risk in FY24 guidance."
Morgan Stanley analyst Hamza Fodderwala, who has an equal-weight rating and an $84 price target, said the real surprise from the report was that the company's operating-margin forecast was more than 400 basis points above the consensus, "highlighting the inherent [operating] leverage and best-in-class unit economics of OKTA."
Okta forecast adjusted earnings of 11 or 12 cents a share on revenue of $509 million to $511 million for the first quarter, and full-year earnings of 74 to 79 cents a share on revenue of $2.16 billion to $2.17 billion.
Analysts surveyed by FactSet had forecast a break-even top line on a per-share basis for the first quarter on revenue of $498.5 million, and 36 cents a share on revenue of $2.15 billion for the year. By Thursday, the Wall Street consensus had risen to 10 cents a share on revenue of $510.4 million for the first quarter, and 72 cents a share on revenue of $2.17 billion for the year.
Of the 41 analysts who cover Okta, 26 have buy-grade ratings, 11 have hold ratings, and four have sell ratings. Of those, 28 hiked their price targets on the stock, resulting in an average price target of $89.75, up from a previous $80.36.
Even with a 20% gain over the past three months, Okta's stock is still down 57% over the past 12 months, while the S&P 500 has declined 10%, and the tech-heavy Nasdaq Composite has dropped 17%.
Over the past year, the iShares Expanded Tech-Software Sector ETF (IGV) has fallen 18%, the Global X Cloud Computing ETF (CLOU) has dropped 19%, the First Trust Cloud Computing ETF (SKYY) has dropped 28%, and the WisdomTree Cloud Computing Fund (WCLD) has plummeted 33%.
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2 years ago
Okta (OKTA) surges 15% after beat-and-raise quarter, analysts upgrade as 'stability is restored'
By: Investing.com | March 2, 2023
Shares of Okta (NASDAQ:OKTA) are trading about 15% higher in pre-market after the cybersecurity company gave a robust full-year forecast.
Okta reported adjusted Q4 EPS of $0.30 on revenue of $510 million, beating the consensus for earnings of $0.21 on revenue of $489.8M. Revenue soared 33%, driven by the 34% surge in subscription revenue to $495M. Okta also reported calculated billings of $710M, beating the consensus of $661.3M.
“We’re pleased with our fourth quarter financial performance and the continued improvement of our go-to-market execution,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta.
“Identity remains a top priority for organizations around the world and Okta is the only independent and neutral platform that brings market leading solutions for both workforce and customer identity at scale. Despite an evolving macroeconomic environment, we’re more excited than ever to advance our leadership position in a massive market as Okta delivers on non-GAAP profitable growth.”
For this quarter, Okta sees EPS between $0.11 and $0.12 on revenue of $510M (up or down $1M), ahead of the consensus for flat EPS on revenue of $497.9M. For FY24, Okta projects EPS in the range of $0.74-0.79 on revenue of $2.16-2.17B, which compares to the market estimate for FY earnings of $0.32 per share on sales of $2.16B.
In the aftermath of the earnings report, TD Cowen analysts upgraded Okta shares to Outperform from Market Perform with a price target of $100 per share (the prior $70).
“Our upgrade is based on: 1) Strong FQ4 results and improved FY24 guidance; 2) Focus shifting to profitable growth as FY24 operating & FCF margin should dramatically expand on the heels of prior & expected disciplined cost mgmt; 3) Ongoing healthy trends realized across the Identity arena given its mission criticality,” the analysts said in a note.
On the other hand, BofA analysts reiterated an Underperform rating on Okta shares as challenges to growth are still there.
“In our view, the quarter’s positives only mask the negative underlying growth trends… Our thesis is unchanged and we view the stock jump as an overreaction. We remain concerned about new business growth, saturation across the existing customer base, and the infancy of the Customer Identity market,” they wrote in a client note.
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2 years ago
Okta FQ4 results beat estimates, co guides FY 2024 total revenue in-line
By: Seeking Alpha | March 1, 2023
• Okta (NASDAQ:OKTA): FQ4 Non-GAAP EPS of $0.30 beats by $0.21.
• Revenue of $510M (+33.2% Y/Y) beats by $20.42M.
• Subscription revenue was $495 million, an increase of 34% year-over-year.
• RPO, or subscription backlog, was $3.01 billion, an increase of 12% year-over-year.
• , which is contracted subscription revenue expected to be recognized over the next 12 months, was $1.68 billion, up 25% compared to the fourth quarter of fiscal 2022.
• Total calculated billings was $710 million, an increase of 18% year-over-year.
• Sees FQ1 2024 total revenue of $509 million to $511 million. The consensus FQ1 2024 revenue estimate is $498.26M.
• Sees FQ1 2024 non-GAAP diluted net income per share of $0.11 to $0.12. The consensus FQ1 2024 EPS estimate is -$0.01.
• Sees FY 2024 total revenue of $2.155 billion to $2.170 billion. The consensus FY 2024 revenue estimate is $2.17B.
• Sees FY 2024 non-GAAP diluted net income per share of $0.74 to $0.79. The consensus FY 2024 EPS estimate is $0.31.
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2 years ago
Twenty Acre Capital LP Purchases 13,100 Shares of Okta, Inc. (OKTA)
By: MarketBeat | February 22, 2023
• Twenty Acre Capital LP increased its position in Okta, Inc. (NASDAQ:OKTA) by 30.3% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 56,300 shares of the company's stock after acquiring an additional 13,100 shares during the period. Okta comprises about 3.6% of Twenty Acre Capital LP's investment portfolio, making the stock its 15th biggest holding. Twenty Acre Capital LP's holdings in Okta were worth $3,202,000 at the end of the most recent reporting period...
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2 years ago
Okta (OKTA) stock drops as Bank of America starts at underperform on lack of catalysts
By: Investing.com | February 13, 2023
Bank of America analysts initiated research coverage on Okta (NASDAQ:OKTA) with an Underperform rating and a $64 per share price target, which suggests a downside risk of over 16%.
The analysts see a heightened risk of slowing growth and limited margin upside due to Microsoft (NASDAQ:MSFT) competition, pricing erosion, channel conflicts, and other structural challenges.
“The Street is modeling 18% revenue growth over the next two years; however, we think that is too optimistic and instead model growth of 16%...Street consensus is calling for Okta’s CIAM business to grow 28% 4-yr CAGR, yet we believe this target is aggressive and model instead a more modest growth rate of 23%,” they wrote in an initiation note.
Along these lines, the analyst's FY24/25 estimates are 2% and 11% below consensus, respectively.
“We expect the stock to underperform, even after the -60% decline over the last 12 months,” the analysts added.
Okta shares are down almost 3% in pre-market.
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