Identity management software maker Okta (OKTA) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Okta beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $646 million, up 16.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Okta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Okta’s revenue to grow 11.2% year on year to $649.6 million, slowing from the 21.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Okta has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Okta’s peers in the cybersecurity segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 4.7%, and CrowdStrike reported revenues up 28.5%, topping estimates by 2.8%. Varonis traded down 10.7% following the results while CrowdStrike was also down 4.6%.
Read our full analysis of Varonis’s results here and CrowdStrike’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 17% on average over the last month. Okta is up 6.3% during the same time and is heading into earnings with an average analyst price target of $96.45 (compared to the current share price of $77.83).
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