Identity management software maker Okta (NASDAQ:OKTA) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Last quarter Okta reported revenues of $584 million, up 21.4% year on year, beating analyst revenue expectations by 4.2%. It was a solid quarter for the company, with a meaningful improvement in its gross margin and a decent beat of analysts' revenue estimates.
Is Okta buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Okta's revenue to grow 15.2% year on year to $587.6 million, slowing down from the 33.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.4%.
Looking at Okta's peers in the cybersecurity segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Varonis delivered top-line growth of 8.1% year on year, beating analyst estimates by 1.6% and Qualys (NASDAQ:QLYS) reported revenues up 10.5% year on year, inline with analyst estimates. Varonis traded up 2.7% on the results, Qualys was down 7.4%.
Read the full analysis of Varonis's and Qualys's results on StockStory.
Investors in the cybersecurity segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. Okta is down 0.6% during the same time, and is heading into the earnings with analyst price target of $87.7, compared to share price of $86.63.