Okta reported strong Q3 earnings last Wednesday afternoon. Okta beat both revenue and earnings expectations. Q3 revenue was $481M vs. $465.37M expected. EPS was breakeven vs. -$0.24 expected. Okta’s revenue grew 37% YoY, which is quite impressive under the current environment. Overall it’s a much better quarter than the previous disastrous one where OKTA 0.00 stock tanked 33% after the report. Okta also forecast profitability on an adjusted basis for the fourth quarter and for fiscal 2024 despite the macroeconomic headwinds. The stock surged 25+% the day after the report.
In their press release, Okta CEO made the following statement:
We’re pleased with our third quarter results and the early traction of our refined go-to-market strategy as identity continues to be a long-term, strategic investment for our customers… With our Workforce Identity and Customer Identity Clouds, the market’s leading identity cloud platforms, we are delivering the innovation and simplicity our customers need to solve their complex identity challenges. We remain focused on go-to-market execution, spend efficiency measures, and increasing profitability as we navigate an evolving macro environment.
In their previous earnings report, Okta mentioned that they had some issues integrating Auth0’s salesforce post acquisition. It sounds like they are resolving these issues and they are back on track. I bought someOKTA 0.00 at ~$60 after the previous earnings report. I was mostly underwater after I bought it.OKTA 0.00 was hovering around $50 right before the report. I am so glad that I held onto it and I am finally above water.OKTA 0.00 is the dominant player in the identity cloud market and it’s an essential piece of software for most enterprises. Their only big competitor is Microsoft but I don’t think companies want to be so dependent on Microsoft. I believeOKTA 0.00 is a great long term buy and the stock price can easily double once the current business cycle turns around.