Okta (OKTA) Reports Earnings Tomorrow: What To Expect

Identity management software maker Okta (OKTA) will be announcing earnings results tomorrow afternoon. Here’s what to look for.

Okta beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $617 million, up 19.1% year on year. It was a solid quarter for the company, with optimistic revenue guidance for the next quarter and a decent beat of analysts’ ARR (annual recurring revenue) estimates.

Is Okta a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Okta’s revenue to grow 13.8% year on year to $632.6 million, slowing from the 23.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Okta has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.

Looking at Okta’s peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 12.9%, beating analysts’ expectations by 4.4%, and Rapid7 reported revenues up 9.2%, topping estimates by 1.9%. Varonis traded up 14.7% following the results while Rapid7 was also up 9.7%.

Read our full analysis of Varonis’s results here and Rapid7’s results here.

Investors in the cybersecurity segment have had steady hands going into earnings, with share prices flat over the last month. Okta is up 3.7% during the same time and is heading into earnings with an average analyst price target of $115.4 (compared to the current share price of $97.73).

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