Okta Set to Report Q1 Earnings Results Amidst Positive Sentiment
May 25, 2023
☀️ Okta Inc., a leading identity management software solutions provider, is set to report its first quarter earnings results for the fiscal year 2023 on May 31, 2023. With the recent news sentiment mainly positive and a history of mixed earnings results, investors are curious about what this earnings season could bring. In this article, we’ll take a look at Okta‘s fundamental and technical analysis, as well as historical guidance and analyst estimates, to give investors a better sense of what to expect from the upcoming earnings call.
Fundamental Analysis
| ReportDate | NetIncome | TotalRevenue | DilutedEPS | unit | |
|---|---|---|---|---|---|
| Q4 | 2023-01-31 | -152.9 | 510.2 | -0.95 | million USD |
| Q3 | 2022-10-31 | -208.9 | 481.0 | -1.32 | million USD |
| Q2 | 2022-07-31 | -210.5 | 451.8 | -1.34 | million USD |
| Q1 | 2022-04-30 | -242.7 | 414.9 | -1.56 | million USD |
| Q4 | 2022-01-31 | -241.2 | 383.0 | -1.56 | million USD |
Okta‘s fundamentals have been strong with the company posting revenue growth quarter after quarter. In the company’s most recent fiscal year 2022, Okta reported approximately $1.83 billion in revenue, up from $1.44 billion in the previous fiscal year, representing a YoY growth of around 26%. That being said, the company’s net income has continued to be negative, with the most recent quarter’s net income reported at -152.9 million USD. However, this has improved from the previous quarters, indicating that the company is working towards profitability.
Okta has also introduced new products and features in the past quarter, which could potentially influence the upcoming earnings results. In late April, the company announced the acquisition of a security technology firm Auth0 for $6.5 billion in stock making its largest acquisition till date. Investors will likely be looking for management to provide clarity on how they plan to synergize with their business, as well as improvements in the company’s sales and marketing strategy moving forward.
Technical Analysis
| since | low | high | change | change% | |
|---|---|---|---|---|---|
| 1D | 2023-05-23 | 83.1 | 86.8 | -2.0 | -2.4 |
| 5D | 2023-05-17 | 77.5 | 86.8 | 3.1 | 3.8 |
| 1M | 2023-04-24 | 66.8 | 86.8 | 10.3 | 14.0 |
| 3M | 2023-02-22 | 66.8 | 87.9 | 10.9 | 15.0 |
Okta‘s past three-month price performance has been on an uptrend, with the stock trading at around $86.8 which represents a 10.9% increase from three months prior. Over the last one-month period, Okta‘s stock price increased by 14.0%. Yet, the stock has struggled in the past week, down by 2.4%. The recent dip may be attributable to broad market fluctuations as well as profit-taking before earnings season, indicating that investors remain cautious about the upcoming earnings release.
Historical Guidance
Okta‘s past earnings performance has been mixed. In the previous quarter, Okta missed analyst estimates for revenue, with numbers coming in at $510.2 million compared to the forecast of $514.2 million, though still posting a YoY growth of approximately 33%. Adjusted EPS also missed estimates, coming in at -$0.95 vs. -$0.77 expected by analysts. However, the sentiment was positive from Management as they affirmed their guidance for fiscal year 2023 which was of $2.25 billion to $2.30 billion in total revenue which represents growth of approximately 25% YoY.
Analyst Estimates
According to Morningstar, analyst estimates for Q1 2023 Adjusted EPS is -$0.27 which has remained level from initial estimates last week and current expectations for the quarter match with those from the past quarter. Investors will be looking for Okta to post strong growth compared to its historical periods and possibly to beat analyst estimates to ensure that they are on track with guidance for revenue growth.
Conclusion
In conclusion, Okta is set to report its Q1 2023 earnings results against a background of mixed performance but an overall positive outlook from analysts and management. The technical analysis reveals that the stock has been on an uptrend but there has been a slight dip in the recent week likely due to concerns about the upcoming earnings release and general market fluctuations. There is an expectation that the introduction of new features as well as the acquisition of Auth0 will drive Okta towards profitability and investors will be keen to see any updates from management on these initiatives. Overall, the earnings call is shaping up to be an interesting one, with important takeaways for investors looking to invest in the identity management space.
Related Posts
Recent Posts
