Okta Inc. CEO Todd McKinnon smiled during an interview with Bloomberg Technology TV on Monday, April 4, 2022 at San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Okta Stocks soared 22% on Tuesday after cloud-based identity management companies provided a large number of fourth-quarter earnings and guidance estimates.
The move has accelerated the stock’s best date in more than a year.
Okta Posted Adjusted earnings were 78 cents per share, while revenue rose to 13% from the same period last year to $682 million. That’s more than analysts’ average estimated earnings of 73 cents per share and $666.6 million in revenue, according to LSEG.
Revenue in the first quarter should be between $678 million and $680 million, which is also the highest estimate.
On the company’s revenue call, CEO Todd McKinnon called it a “blow-out quarter” as bookings exceeded $1 billion in a period for the first time.
“We are excited about the momentum we are building into fiscal 2026 and are taking the right steps to improve our position as a leader in the identity market,” McKinnon said. “A growing number of customers are looking to consolidate their different and ineffective identity systems, and Okta is there to meet the most comprehensive identity security platform on the market today.”
OKTA allows companies to manage employee access or devices by providing tools such as single login and multi-factor authentication. After the stock fell 13% this year in 2024, the stock price is about 35% this year. High-profile data leak This allows access to client files through the support system.
After the latest results, some Wall Street companies have become more active in stocks, while Da Davidson and Mizuho are both improving their ratings. Da Davidson said the possibility of double-digit growth was “durable” as the company showed signs of stability.
Gregg Moskowitz of Ruisu said the company “undervalued” the upside of promised remaining performance obligations, or the company expects to recognize the subscription backlog of revenue next year.
“More broadly, Okta remains a clear leader in the crucial identity management market,” Moskowitz wrote. “Now we have a higher level of confidence that Okta will increasingly benefit from new products that have already begun to drive meaningful contributions.”
