Okta reported earnings after market close today. Revenue was $556M vs. $534M expected. Adjusted EPS was $0.31 vs. $0.21 expected. Revenue grew 23% YoY while subscription revenue grew 24% YoY. It was a good quarter and very similar to the previous one. But instead of tanking, the share is up 10+% after the report.
In the earning release, Okta CEO made the following statement:
Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year. We are building on our position as the leading independent identity partner. Both new and existing customers are getting tremendous value from the Okta platform as they seek to simplify their infrastructure while increasing security by integrating identity into their most important projects. We’re confident in our long-term opportunity and driving innovation for our customers, while delivering non-GAAP profitable growth to our shareholders.
Unlike last quarter, the CEO didn’t mention the “macro pressure” in the current quarter’s release. The company also raised its full-year revenue guidance to $558M - $560M, from $533M - $535M. It signals a more optimistic outlook ahead and investors finally can breathe a sigh of relief.
As an Okta shareholder, I am so glad I hold onto the stock. (My cost basis is ~$62.) OKTA 0.00%↑ stock is presently very reasonably valued and it could potentially go higher even after the 10% bump after hours.