Positive. Okta sees growth in clientele, increased revenue, strong product capabilities, and positive outlook.

From Nasdaq: 2024-06-12 15:00:00

Okta (OKTA) sees growth in clientele with 19,100 total customers in Q1 FY2025, up 6% YoY. Those with over $100K ACV increase 12% YoY to 4,550. The company added 400 new customers, including 160 with $100K ACV. Okta blocks over 2 billion security attacks monthly. Revenue expected to grow at a CAGR of 25% from FY2022-2025.

Okta’s stock price at $89.14 leaves room for upside from a 52-week range of $65.04-$114.5. With a Zacks Rank #2 (Buy), the stock has positive Growth and Momentum Scores. Okta’s robust product capabilities are driving market share against competitors like Microsoft, IBM, and CyberArk. The company’s innovative portfolio is positioning it well for fiscal 2025, with revenue expected between $2.53 billion and $2.54 billion, a 12% YoY growth.

Okta expects subscription gross margin to remain around 83%, with non-GAAP operating income between $490-$500 million. Operating margin is forecasted between 19% and 20%. Non-GAAP earnings for fiscal 2025 are anticipated between $2.35 and $2.40 per share. The company holds a strong balance sheet with around $1.2 billion in net cash and a 22% free cash flow margin for fiscal 2025.



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