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Okta, Inc. (OKTA) Shares Bought by State Board of Administration of Florida Retirement System
By: MarketBeat | February 8, 2023
• State Board of Administration of Florida Retirement System grew its stake in shares of Okta, Inc. (NASDAQ:OKTA) by 1.4% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 161,000 shares of the company's stock after acquiring an additional 2,228 shares during the quarter. State Board of Administration of Florida Retirement System owned about 0.10% of Okta worth $9,156,000 at the end of the most recent quarter...
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Okta CEO says layoffs were 'the last thing I wanted to do' as company cuts 300 jobs
By: Morningstar | February 2, 2023
Company admits it hired too many workers for the current situation
The wave of software layoffs continued Thursday as Okta Inc. announced that it was cutting 300 jobs.
Chief Executive Todd McKinnon disclosed the layoffs, which will affect about 5% of Okta's (OKTA) employees, in an email to staffers Thursday that was also posted to the company's corporate blog.
"A workforce reduction like this is the last thing I wanted to do, and I am truly sorry," he said in the note.
McKinnon wrote that Okta's cuts come after the company grew too quickly in light of current economic circumstances. He said it also made some execution missteps.
"We entered fiscal 2023 with a growth plan based on the demand we experienced in the prior year," he said. "This led us to overhire for the macroeconomic reality we're in today. In addition, in the first half of [fiscal 2023], we faced our own execution challenges."
In a filing with the Securities and Exchange Commission, the company disclosed that it expects to take about $15 million of restructuring charges in its 2023 fiscal fourth quarter for payments expected to be made in the fiscal first quarter of 2024.
Workday Inc. (WDAY) and Splunk Inc. (SPLK) are among other software companies that announced layoffs this week, while SAP (SAP.XE) and Salesforce Inc. (CRM) have also moved to reduce their employee counts. Layoffs have affected workers in other categories of tech as well, and even the biggest companies haven't been immune from cutbacks.
Shares of Okta were ahead more than 6% in morning trading.
The stock's gains also come after Needham analyst Alex Henderson turned bullish on the name.
Henderson thinks that Okta has "righted" problems with execution that led to what he deems a conservative forecast for fiscal 2024.
"We think the growth bar set at 16%-17% in [fiscal year 2024/calendar year 2023] is easily beatable as it was set before evidence of the fixes kicked in," he wrote in a note to clients ahead of the layoff announcement, as he upgraded the stock to buy from hold and set a $90 price target. "The Customer business alone, at 45% of revenue and growing 30%-35%+, should be able to drive company-wide revenue to meet the [calendar year 2023/fiscal year 2024] guidance, we believe."
Henderson joins Stifel analyst Adam Borg, who upgraded Okta's stock to buy from hold earlier in the week.
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Okta Inc. (OKTA) No change still on gap watch
By: Options Mike | January 29, 2023
• $OKTA No change still on gap watch.
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Raymond James & Associates Decreases Holdings in Okta, Inc. (OKTA)
By: MarketBeat | January 25, 2023
• Raymond James & Associates trimmed its holdings in shares of Okta, Inc. (NASDAQ:OKTA) by 17.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 27,878 shares of the company's stock after selling 5,837 shares during the quarter. Raymond James & Associates' holdings in Okta were worth $1,585,000 at the end of the most recent reporting period...
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Ardevora Asset Management LLP Acquires New Position in Okta, Inc. (OKTA)
By: MarketBeat | January 24, 2023
• Ardevora Asset Management LLP acquired a new stake in Okta, Inc. (NASDAQ:OKTA) during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 391,800 shares of the company's stock, valued at approximately $22,282,000. Ardevora Asset Management LLP owned about 0.25% of Okta at the end of the most recent reporting period...
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Okta Inc. (OKTA) Trading on a island gap above and below. Nice flag pattern here, 75 key level to break
By: Options Mike | January 22, 2023
• $OKTA Trading on a island gap above and below. Nice flag pattern here, 75 key level to break.
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Bull of the Day: Okta (OKTA)
By: Zacks Investment Research | January 20, 2023
I last profiled Okta (OKTA) as the Bull of the Day in mid-October as shares slid to $50 per share.
It's time to revisit this Zacks #1 Rank again after more positive moves in earnings estimates from analysts.
Okta is an $11 billion provider of identity security for enterprises. This is a key service where password security is a continuous vulnerability point.
Primary products consist of Okta IT and Okta for Developers. Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory.
Okta for Developers includes Complete Authentication, User Management, Application Programming Interface Access Management and Developer Tools.
Here's what I wrote in October as shares collapsed to $50...
Estimates Higher, Stock Clobbered After Quarter Confusion and Management Moves
On August 31, Okta reported second-quarter fiscal 2023 adjusted loss of 10 cents per share, beating the Zacks Consensus Estimate by 66.67%. The company had reported a loss of 11 cents per share in the year-ago quarter.
Total revenues surged 43.2% year over year to $451.8 million and surpassed the consensus mark by 4.93%. The upside can be attributed to higher subscription revenues.
Subscription revenues (96.4% of total revenues) surged 43.6% year over year to $435.4 million. Professional services and other revenues (3.6% of total revenues) increased 32.7% year over year to $16.4 million.
While the company's Q2 revenue was solid, leading indicators slipped and expectations for second half billings were lowered as Okta is facing some sales integration challenges with the recent Auth0 acquisition, with heightened attrition and some product confusion, to say nothing of a surprising sabbatical announcement from the COO.
And the implied growth of 19% from management projections is down from 27%.
OKTA shares got hit for 34% on September 1 after this report.
(end of October article excerpt)
What was so interesting after this quarter is how much the analysts retreated.
While 2022 EPS estimates naturally had to move higher on the big positive earnings surprise, there were upward revisions into 2023 too despite the company re-evaluating out-year targets.
In October, I noted that "Next year's consensus leaped higher from a loss of 60-cents to a loss of only 31-cents. But analysts also downgraded the stock across the board on other factors."
And what we saw was a herd of analysts lowering their estimates and growth expectations.
But now, after the most recent quarterly report, the spreadsheet jockeys are changing their tune...
Okta price target raised to $90 from $80 at Piper Sandler
Analyst Rob Owens continues to see multiple opportunities across his software universe, saying valuations appear "relatively de-risked and underlying trends prove resilient." However, he believes there is still more bad news to come, especially on the economic front. As such, 2023 "potentially sets up as a stock picker's year," Owens tells investors in a research note. His top five ideas include Okta (OKTA), Palo Alto (PANW), Crowdstrike (CRWD), ServiceNow (NOW) and CyberArk (CYBR).
Okta price target raised to $80 from $72 at KeyBanc
Analyst Michael Turits raised the firm's price target on Okta to $80 from $72 to reflect conversations with the channel and CIO respondents, and to reflect his updated outlook following survey response data. The analyst keeps an Overweight rating on the shares.
As you can see, the prospects for this key provider of "identity security" have rebounded considerably.
I will reiterate the same thing I wrote 3 months ago when I saw the value...
Bottom line on OKTA: With its unique market position, and buoyant topline growth of 28%, Okta should be a good long-term investment as it falls back to levels not seen since December of 2018.
What's changed is that EPS estimates for this year have done a complete 180 -- from projected losses of 32-cents to PROFITS of 31-cents!
This represents a 200%+ flip in profitability!
And this is derived from the topline climbing an unexpected leap above $2 billion, representing 16% growth.
New bottom line for OKTA: Shares look poised to breakout above $70-75 very soon. I would be on-board!
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Playbook: Software Stock Okta (OKTA) Can Run Down Overhead Levels
By: Schaeffer's Investment Research | January 18, 2023
• The latest stock pick from Playbook of the Week is a bullish play on OKTA
• OKTA has a lot of pessimism surrounding it that could unwind
Below is an excerpt from this yesterday's episode of Schaeffer's Playbook of the Week, featuring Schaeffer's Senior Market Strategist Matthew Timpane. Below, Matthew makes a bullish case for software stock Okta Inc (NASDAQ:OKTA).
"OKTA, a major player in two-factor authentication, had a powerful post-earnings gap back in December and has since been in a flaying pattern, per the chart below. It broke out of this downtrend and then successfully retested to start 2023, pulling right back into a volume shelf, making it quite the interesting setup.
We want to see this move above $70, and if so, we’ll get aggressive. If it gets above $70, we have quick levels it can run down. You have the $78-$77 area, and then all the way up to $90. However, keep an eye on the 200-day moving average that OKTA has to contend with as the trade evolves.
At last check, the shares are about to break that $70 pivot level, which is a key gamma strike. The stock's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) is 1.14, a put-heavy number that has typically led to rallies. Analyst ratings came in at 15 of 33 sporting "hold" or "strong sell" ratings, so there’s still plenty of room for upgrades. We’ve seen a lot of downgrades in the last two years as the growth story ended. You didn’t see these high-flyers in 2022.
OKTA's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 0.82, so while calls still outflank puts on an absolute basis, the closer the number is to 1.0, the more prevalent put traders are. Digging deeper, the 65-strike is forming a put wall for support that we'll use as a stop.
Options are comparatively cheap right now compared to the last year, per the Schaeffer's Volatility Index (SVI) of 57% that ranks higher than just 13% of readings from the past year. Furthermore, its Schaeffer's Volatility Scorecard (SVS) is rising and checks in at 72 out of 100, meaning OKTA has exceeded option traders' volatility expectations during the past year."
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Okta, Inc. (OKTA) Short Interest Update
By: MarketBeat | December 14, 2022
• Okta, Inc. (NASDAQ:OKTA) was the recipient of a significant decline in short interest during the month of November. As of November 30th, there was short interest totalling 6,840,000 shares, a decline of 21.3% from the November 15th total of 8,690,000 shares. Based on an average daily trading volume, of 4,490,000 shares, the days-to-cover ratio is currently 1.5 days...
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OKTA Decent size coming in at HOD ~ 12/23/22 $65 CALLS
By: Money Flow Mel | December 12, 2022
• $OKTA Decent size coming in at HOD ~ 12/23/22 $65 CALLS.
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Okta (OKTA) Given a $76.00 Price Target by Wells Fargo & Company Analysts
By: MarketBeat | November 23, 2022
• Okta (NASDAQ:OKTA - Get Rating) has been given a $76.00 target price by stock analysts at Wells Fargo & Company in a research report issued to clients and investors on Wednesday, Stock Target Advisor reports. Wells Fargo & Company's price target would suggest a potential upside of 49.78% from the stock's current price...
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Okta (OKTA) PT Lowered to $66.00 at KeyCorp
By: Market Beat | November 16, 2022
• Okta (NASDAQ:OKTA - Get Rating) had its target price decreased by equities research analysts at KeyCorp from $70.00 to $66.00 in a report released on Wednesday, Stock Target Advisor reports. The brokerage presently has an "overweight" rating on the stock. KeyCorp's target price would suggest a potential upside of 23.55% from the stock's current price...
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$OKTA Investor Day 11/19 at 12 pm PST
By: Money Flow Mel | November 8, 2022
• $OKTA Investor Day 11/19 at 12 pm PST.
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Okta and Workday upgraded at Guggenheim on valuation metrics
By: Investing.com | November 7, 2022
Guggenheim analysts upgraded shares of Workday (NASDAQ:WDAY) from Sell to Neutral and Okta Inc (NASDAQ:OKTA) from Neutral to Buy in separate notes released on Monday.
The analysts maintained the firm's price target on Workday shares at $142, telling investors they moved to upgrade the stock based on the "recent market turmoil" that has sent shares down below their current price target and even below their original target from August 11.
"WDAY shares have declined 23% since 8/10 (vs. the IGV down 23% and S&P500 down 10%). We continue to believe that it will be challenging for WDAY to hit its long-term targets of sustainable 20%+ subscription revenue growth and $10B of total organic revenue by FY26 (which is implied)," they wrote. "That said, we view WDAY shares at fairly valued at 5.7x EV/NTM Subscription, or ~1 turn higher than our estimated intrinsic value of WDAY's existing recurring revenue if it was run hyper-efficiently, yet never grew (or declined) again."
In addition, the analysts maintained the firm's $65 per share price target on Okta, explaining that while they recognize the company is facing challenges that could take several quarters to address, they find the current valuation levels "too compelling to ignore."
"Trading at an EV/NTM Recurring Revenue multiple of 3.6x, we believe the stock is currently trading below the intrinsic value of a typical Software company assuming no growth or declines (refer to our What Price is Right? Weekly note) and more than pricing in issues surrounding salesforce attrition, product delays, C-suite turnover, and negative headlines concerning security incidents," the analysts explained.
"Okta was viewed as the premier asset in the Access Management space, and competitors in the space – FORG and PING –are being taken private at 8.9x and 8.2x EV/NTM Recurring Revenue, respectively. While our upgrade is not necessarily based on the potential of a similar outcome for OKTA (although we recognize the possibility), we see current levels offering asymmetrical risk/reward with little downside and significant upside potential," the analysts added.
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Morgan Stanley Trims Okta (OKTA) Target Price to $65.00
By: MarketBeat | November 4, 2022
• Okta (NASDAQ:OKTA - Get Rating) had its price target lowered by stock analysts at Morgan Stanley from $93.00 to $65.00 in a research report issued on Friday, The Fly reports. Morgan Stanley's price objective would suggest a potential upside of 29.61% from the company's current price...
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Bull of the Day: Okta (OKTA)
By: Zacks Investment Research | October 10, 2022
Okta (OKTA) is a $9 billion provider of identity security for enterprises. This is a key service where password security is a continuous vulnerability point.
Primary products consist of Okta IT and Okta for Developers. Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory.
Okta for Developers includes Complete Authentication, User Management, Application Programming Interface Access Management and Developer Tools.
Estimates Higher, Stock Clobbered After Quarter Confusion and Management Moves
On August 31, Okta reported second-quarter fiscal 2023 adjusted loss of 10 cents per share, beating the Zacks Consensus Estimate by 66.67%. The company had reported a loss of 11 cents per share in the year-ago quarter.
Total revenues surged 43.2% year over year to $451.8 million and surpassed the consensus mark by 4.93%. The upside can be attributed to higher subscription revenues.
Subscription revenues (96.4% of total revenues) surged 43.6% year over year to $435.4 million. Professional services and other revenues (3.6% of total revenues) increased 32.7% year over year to $16.4 million.
While the company's Q2 revenue was solid, leading indicators slipped and expectations for second half billings were lowered as Okta is facing some sales integration challenges with the recent Auth0 acquisition, with heightened attrition and some product confusion, to say nothing of a surprising sabbatical announcement from the COO.
And the implied growth of 19% from management projections is down from 27%.
OKTA shares got hit for 34% on September 1 after this report.
Analysts Run In the Aftermath
The reactions after the quarter have been interesting. While this year's EPS estimates naturally had to move higher on the big positive earnings surprise, there were upward revisions into next year too despite the company re-evaluating out-year targets.
Next year's consensus leaped higher from a loss of 60-cents to a loss of only 31-cents.
But analysts also downgraded the stock across the board on other factors.
Stifel analyst Adam Borg lowered the firm's price target on Okta to $85 from $115 and kept a Hold rating on the shares following a "disappointing quarter" that included go-to-market integration and execution issues with Okta/Auth0.
Borg also noted the uncertainty around COO/Co-founder Kerrest taking a one-year sabbatical, Chief Product Officer Jolly leaving the company, a lowering of fiscal year billings guidance and the re-evaluating of its existing FY26 targets.
He continues to believe Okta is going after a large identity market opportunity and said the "valuation is not overly demanding," but Borg views the stock as "squarely in the penalty box."
Mizuho analyst Gregg Moskowitz lowered the firm's price target on Okta to $110 from $150 and kept a Buy rating on the shares after the company reported "mixed" Q2 results and lowered its FY23 billings outlook, due largely to sales integration challenges associated with core OKTA and Auth0.
While "disappointed" by the results and outlook, Moskowitz notes Okta's valuation and its position as "the leader in the critically important" identity/access management market.
BTIG analyst Gray Powell lowered the firm's price target on Okta to $117 from $152 and kept a Buy rating on the shares. The company's Q2 results were "mixed" with a slight beat on current RPO offset by issues with Auth0 integration, sales attrition, and a weak macro environment driving a cut in its FY23 billings guidance.
Powell concluded that while he was disappointed by the quarter, he remains positive on Okta's 25% long-term growth story and was also "somewhat encouraged" by the company's increased focus on improved profitability.
Morgan Stanley analyst Hamza Fodderwala downgraded Okta to Equal Weight from Overweight with a price target of $93, down from $150. While Fodderwala still views Okta as a long-term share winner in Identity and Access Management, which the analyst identifies as "a large and rapidly growing market opportunity," recent sales execution issues and ongoing challenges with respect to integrating the Auth0 acquisition from last year leave the company without an effective go-to-market vehicle.
Fodderwala says the company strategic advantage "will take time to recover." Sales execution issues, challenges with M&A integration and a tough macro backdrop add up to leave limited visibility on a return to stabilization.
Finally, on September 15, Jefferies analyst Joseph Gallo initiated coverage of Okta with a Buy rating and $90 price target. The stock's 73% decline year-to-date on "myriad issues," including the cyber incident, macro environment and sales integration, is an "overcorrection."
Gallo sees an attractive entry point for a "leading cyber asset." He believes Okta has a "fantastic product" with a "large and underpenetrated" market.
Bottom line on OKTA: With its unique market position, and buoyant topline growth of 28%, Okta should be a good long-term investment as it falls back to levels not seen since December of 2018.
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Okta (OKTA) Earns Underperform Rating from Analysts at Evercore ISI
By: MarketBeat | October 6, 2022
• Evercore ISI began coverage on shares of Okta (NASDAQ:OKTA - Get Rating) in a report issued on Thursday, The Fly reports. The brokerage set an "underperform" rating and a $45.00 price target on the stock. Evercore ISI's price target suggests a potential downside of 24.36% from the stock's current price...
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Okta, Inc. (OKTA) CFO Sells $168,905.16 in Stock
By: MarketBeat | September 19, 2022
• Okta, Inc. (NASDAQ:OKTA - Get Rating) CFO Brett Tighe sold 2,844 shares of the business's stock in a transaction on Friday, September 16th. The stock was sold at an average price of $59.39, for a total transaction of $168,905.16. Following the completion of the transaction, the chief financial officer now directly owns 36,337 shares in the company, valued at approximately $2,158,054.43. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link...
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Jefferies Initiates Coverage of Cyber Stocks - Okta a 'Fantastic Buying Opportunity'
By: Sam Boughedda | September 15, 2022
In separate research notes Thursday, a Jefferies analyst initiated coverage of cyber stocks Zscaler (NASDAQ:ZS), Palo Alto Networks (NASDAQ:PANW), Okta, Inc. (NASDAQ:OKTA), and Fortinet (NASDAQ:FTNT).
He initiated coverage of Zscaler with a Hold rating and $200 per share price target, saying the company is positioned well, but it is reflected in its valuation.
"A pioneer in network security, Zscaler is in the early stages of monetizing its position via its unique internet architecture while meeting pressing customer demand for consolidation of security functionalities," wrote the analyst. "ZS has astutely leveraged this position via its GTM prowess, resulting in significant growth and share gains. However, 15x EV/CY23E rev seems fairly priced, with appreciation driven by upside that we believe is likely to be more muted than prior years."
The analyst assumed coverage of Palo Alto Networks, maintaining a Buy rating and setting a $220 price target.
"PANW’s recent results appear immune to macro as it's accelerated billings growth 3 straight Qs. PANW’s combination of holistic platform (spend consolidator) levered to the cloud as well as prudent FY23 guidance creates an appealing set up for our fav cyber platform with shares trading at 8x EV/ CY23E rev—attractive for an asset delivering 20%+ rev growth/OPM LT," he explained.
Okta was initiated with a Buy rating and a $90 per share price target, with the analyst stating it is a fantastic buying opportunity.
"Myriad issues (cyber incident, macro, & sales integration) have plagued Okta this year, leading to a share overcorrection (-73% ytd; 4x EV/CY23E rev). This has, in our view, created an attractive entry point for a leading cyber asset. While we do not discount the amount of work in front of the company (likely to take a few quarters), we highlight a fantastic product, coupled with a large and underpenetrated market," wrote the analyst.
Finally, on Fortinet, the analyst initiated a Buy rating and $65 price target saying the company represents a rare blend of growth and GAAP profitability as it "continues to execute on its vision of converged security & networking."
"Businesses will rely on a hybrid environment for the foreseeable future and the combined cyber/networking market is massive, making durable & efficient growth feel achievable. Shares trade at just 22x EV/ CY23E FCF vs large-cap median 25x which we believe offers downside protection to complement share gains," stated the analyst.
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Okta, Inc. in 'Disarray' but Guggenheim Decides to Upgrade
By: Investing.com | September 2, 2022
A Guggenheim analyst upgraded shares of Okta, Inc. (NASDAQ:OKTA) to Neutral from Sell, lowering the price target to $65 from $75 per share in a note Friday.
Even so, the analyst said the company is in "disarray."
"The integration of Auth0 is not going well, sales force attrition is at historically high levels, new product launches have been delayed, there have been a slew of negative headlines around security incidents, its co-founder and COO is taking a year sabbatical, and its chief product officer is departing: when it rains, it pours," declared the analyst.
However, he acknowledged that the opportunity in front of the company is "massive, and in some cases, untapped."
"Execution clearly needs to improve for the company to capture this large and emerging opportunity. While these improvements will likely not be a one (or two or three…)-quarter event – with more than one-third of the company’s value lost in one day and with the stock trading at 5.3x EV/NTM recurring revenue … enough is enough," added the analyst, who concluded that while they recognize they might be early, they see execution issues and bad news as now priced.
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Formerly Sacred Now Rotting Silicon Valley Dictum of “Growth at All Costs” Crushes Okta: Shares Collapse 80% from Peak
By: Wolf Richter | September 2, 2022
• Huge losses, but now revenue growth is slowing. Hilariously, executives refer to the huge losses as “profitability.”
Okta was founded in 2009, went public in April 2017, and isn’t a newbie startup anymore. But last night, it reported another huge net loss for its second quarter ended July 31, of $210 million, on $452 million in revenues. Its losses have increased every year since it started disclosing them seven years ago and now total over $2 billion.
But since the infamous February 2021, when the hype-and-hoopla show came unglued, these types of stocks began to plunge, and I started tracking them in my Imploded Stocks column. Today Okta joined the club that already has hundreds of members. And it did so with flying colors. Its shares [OKTA] kathoomphed 35% so far today, to about $59 at the moment, back where they’d first been in August 2018, and down by 80% from the peak in – you guessed it – February 2021 (data via YCharts):
Okta, which sells services to companies that allow their employees to securely access corporate cloud-based systems, has been following the Silicon Valley dictum of using investor money to buy revenue growth – 42% revenue growth in Q2 – no matter what the costs, because the stock price will keep rising if revenues grow, regardless of the net losses because growth-befuddled investors will ignore net losses and focus on some homemade metrics and revenue growth, according to this dictum.
This formerly sacred and now rotting business model worked for years: Okta’s shares shot higher from its IPO price of $17 to its first-day close of $23.51, for a 38% first-day pop, and then shot higher from there to ultimately $294 intraday on February 12, 2021, before it all came unglued. And it has so far generated over $2 billion in net losses doing just that, with no end in sight.
Today’s plunge of the stock – just the latest in the 16-month implosion – ostensibly occurred because the company lowered its guidance for its billings and revenues for the rest of the year.
During the earnings call (transcript via Seeking Alpha), executives blamed the lowered guidance mostly on “sales challenges,” “integration challenges,” and “sales attrition” related to Auth0, which Okta had agreed to acquire on March 3, 2021, during peak hype-and-hoopla, for $6.5 billion in stock.
The acquisition was just another way in which Okta attempted to buy revenue growth. And now the deal isn’t working out so well.
CEO Todd McKinnon blamed “challenges related to the integration of the Auth0 and Okta sales organizations” in part for the cut in guidance. “I recognize we have more work to do to regain our momentum. We’ve taken some decisive actions that we believe will get us back on track,” he said.
CFO Brett Tighe blamed the cut in guidance on “sales integration challenges” and on “heightened sales attrition, which resulted in a lower-than-expected capacity build as we move through the year,” and added that “a smaller portion” of the blame for the reduced outlook is “related to the macro environment.”
And as you’d expect when an earnings call takes place while the stock is kathoomphing in the background, there was a lot of linguistic hilarity, including about the huge net losses.
No one during the earnings call – particularly not the analysts – made any fuss about the net loss in the quarter, or the prior net losses. On the contrary, CEO Todd McKinnon said, “We produced better than expected profitability” – the term “profitability” having replaced the unpleasant term “net loss” – and the analysts ran with it.
Other executives chimed in about “improving our profitability outlook,” etc. etc., meaning that they want to reduce the net losses from huge and growing to hopefully slightly less huge and declining.
Alas, for Q1 and Q2 of the company’s fiscal year 2023, it lost $453 million, a 17% bigger net loss, I mean bigger profitability or whatever, than in the same period in 2021. Its net losses, I mean profitability or whatever, have increased every year since it started disclosing them with fiscal year 2016 (ended January 31, 2016) now totaling over $2 billion, including the $848 million last year and the $453 million in the first half of this year (fiscal 2023):
Trying to get these losses under control, now in this new environment, means layoffs. Okta has started the process, as many of the other companies on my Imploded Stocks list have done. But as with the other denizens on that list, the scale of the layoffs is still minuscule.
Last week, Okta’s head of global sourcing, Jody Simon, announced on LinkedIn that the “entire US Sourcing Team at Okta has been eliminated.” Later Okta confirmed that 24 people were laid off, around 0.4% of its total global workforce. So that’s not going to cut costs by a whole lot, but it shows that they’re now grappling with the end of an era.
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Earnings Preview: Okta Inc. (NASDAQ: OKTA)
By: 24/7 Wall St. | August 30, 2022
• Here is a preview of four companies set to report results late Wednesday or early Thursday.
Okta
Enterprise software company Okta Inc. (NASDAQ: OKTA) has seen its share price sink by nearly 66% over the past 12 months. A short-lived data breach in January caused little damage. Okta’s identity services remain in demand as the industry consolidates, primarily through private equity acquisitions of Okta’s competitors. The company has been investing in customer acquisition, and that is expensive. After posting a 52-week low in late May, shares have added nearly 14%, and a solid earnings report after Wednesday’s close could push the shares higher.
Of 30 analysts covering the stock, 22 have a Buy or Strong Buy rating, and another seven rate the stock at Hold. At a share price of around $89.80, the implied upside on the stock, based on a median price target of $140.00, is about 55.9%. At the high price target of $193.00, the upside potential is nearly 115%.
Second-quarter revenue is forecast at $430.66 million, up 3.8% sequentially and by 36.5% year over year. Okta is expected to post a loss per share of $0.30 for the quarter, three cents worse than the prior quarter’s loss and 19 cents worse than the year-ago loss. For the full 2023 fiscal year ending in January, analysts are looking for a loss per share of $1.11, compared with a year-ago loss of $0.46 per share, on sales of $1.82 billion, up 40%.
Okta is not expected to post a profit in 2023 or 2024. The multiple for estimated 2025 earnings of $0.37 per share is 240.2. The stock’s 52-week range is $77.01 to $276.30, and Okta does not pay a dividend. Total shareholder return for the past year is negative 66.8%.
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Okta (OKTA) Given New $150.00 Price Target at Mizuho
By: MarketBeat | August 17, 2022
• Okta (NASDAQ:OKTA - Get Rating) had its target price dropped by investment analysts at Mizuho from $165.00 to $150.00 in a research note issued to investors on Wednesday, The Fly reports. Mizuho's target price suggests a potential upside of 41.48% from the company's previous close...
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Okta Inc (OKTA) Stock Poised to Overcome Long-Term Resistance
By: Schaeffer's Investment Research | August 18, 2022
• The 40-day moving average could help OKTA overcome pressure at the $110 level
• There is still room for upgrades among the brokerage bunch
Cloud concern Okta Inc (NASDAQ:OKTA) was last seen up 0.5% to trade at $102.24. The equity has been testing a floor at the $100 over the past couple of weeks, though it still carries 54.6% year-to-date deficit. It looks like the security may soon bounce off that area of support, though, as it is currently flashing a historically bullish signal, which has preceded sharp moves higher in the past.
More specifically, OKTA just came within one standard deviation of its 40-day moving average, which has mostly supported shares since early July. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, three similar signal have been observed in the last three years. After 67% of these occurrences, the stock was higher, averaging a one-month gain of 9%. A similar move from its current perch could place OKTA firmly above the $110 region, which has capped gains since May.
Though the brokerage bunch is already mostly optimistic towards OKTA, there is still room for upgrades. Of the 23 analysts in question, eight still carry a tepid "hold" rating. An unwinding of short interest could also generate tailwinds, as the 7.55 million shares sold short make up 5.1% of the equity's available float.
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Okta (OKTA) Now Covered by Guggenheim
By: MarketBeat | August 12, 2022
• Research analysts at Guggenheim assumed coverage on shares of Okta (NASDAQ:OKTA - Get Rating) in a note issued to investors on Friday, MarketBeat.com reports. The firm set a "sell" rating and a $89.00 price target on the stock. Guggenheim's price target suggests a potential downside of 13.16% from the company's previous close...
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Okta, Inc. (OKTA) Receives Average Recommendation of "Moderate Buy" from Analysts
By: MarketBeat | July 29, 2022
• Okta, Inc. (NASDAQ:OKTA - Get Rating) has been given an average rating of "Moderate Buy" by the twenty-nine ratings firms that are presently covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $162.64...
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Piper Sandler Cuts Okta (OKTA) Price Target to $130.00
By: MarketBeat | July 13, 2022
• Okta (NASDAQ:OKTA - Get Rating) had its price target reduced by research analysts at Piper Sandler from $150.00 to $130.00 in a research report issued on Wednesday, The Fly reports. Piper Sandler's price objective points to a potential upside of 35.76% from the company's previous close...
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Cathie Wood's ARK Invest Sells 11,175 Shares of Okta Inc. (OKTA)
By: Ark Invest Daily | June 21, 2022
• Cathie Wood & Ark Invest's trade activity from today 6/21.
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Cathie Wood & Ark Invest's Sells 69,929 Shares of Okta Inc (OKTA)
By: Ark Invest Daily | June 6, 2022
• Cathie Wood & Ark Invest's trade activity from today 6/6.
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Okta Inc (OKTA) Stock Surges After Earnings Results
By: Schaeffer's Investment Research | June 3, 2022
• Okta reported narrower-than-expected first-quarter losses
• The stock is rebounding from its recent three-year low
Okta Inc (NASDAQ:OKTA) is experiencing a strong post-earnings surge today, up 12.4% to trade at $105.33, after the IT name's better-than-expected first-quarter results and an upbeat forecast. Analysts are chiming in with mixed sentiment, with six price-target cuts and four price-target hikes directed at OKTA so far.
This positive price action has Okta stock continuing to rebound off its May 24 three-year low of $77.01. Still, the stock's 40-day moving average, which has guided the stock lower since November, is keeping today's rally in check.
Options traders are targeting the equity at eight times the intraday average. So far, 20,000 calls and 15,000 puts have crossed the tape. Expiring today, the weekly 6/3 110-strike call is the most popular, with new positions being bought to open here.
Meanwhile, short interest has risen 23.2% during the most recent two-week reporting period. Now, the 6.85 million shares sold short account for 4.6% of the stock's available float.
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Okta Announces First Quarter Fiscal Year 2023 Financial Results
By: Yahoo | June 2, 2022
• Q1 revenue grew 65% year-over-year; subscription revenue grew 66% year-over-year
• Remaining performance obligations (RPO) grew 43% year-over-year to $2.71 billion; current remaining performance obligations (cRPO) grew 57% year-over-year to $1.41 billion
SAN FRANCISCO, June 02, 2022--(BUSINESS WIRE)--Okta, Inc. (Nasdaq: OKTA), the leading independent identity provider, today announced financial results for its first quarter ended April 30, 2022.
"We delivered solid first quarter results highlighted by strength in new customer additions, dollar-based net retention rate, and the success we’re having with large customers as they continue their journey to the cloud," said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "Organizations around the world have made it clear that identity is the foundation for their digital transformation projects and zero trust security environments. Okta is the recognized leader in identity and we’re confident in our ability to capture more of the massive market opportunity."
First Quarter Fiscal 2023 Financial Highlights:
• Revenue: Total revenue was $415 million, an increase of 65% year-over-year. Subscription revenue was $398 million, an increase of 66% year-over-year. On an Okta standalone basis (excluding $66 million attributable to Auth0), total revenue grew 39%.
• Remaining Performance Obligations (RPO): RPO, or subscription backlog, was $2.71 billion, an increase of 43% year-over-year. cRPO, which is contracted subscription revenue expected to be recognized over the next 12 months, was $1.41 billion, up 57% compared to the first quarter of fiscal 2022.
• Calculated Billings: Total calculated billings was $389 million, an increase of 7% year-over-year. Calculated billings includes the effect of billings process improvements that were enacted at the end of the first quarter of fiscal 2022. Calculated billings increased 52% when viewed on a like-for-like basis, which includes the full effect of the billings process improvements in the first quarter of fiscal 2022.
• GAAP Operating Loss: GAAP operating loss was $240 million, or 58% of total revenue, compared to a GAAP operating loss of $91 million, or 36% of total revenue, in the first quarter of fiscal 2022.
• Non-GAAP Operating Loss: Non-GAAP operating loss was $41 million, or 10% of total revenue, compared to non-GAAP operating loss of $16 million, or 6% of total revenue, in the first quarter of fiscal 2022.
• GAAP Net Loss: GAAP net loss was $243 million, compared to a GAAP net loss of $109 million in the first quarter of fiscal 2022. GAAP net loss per share was $1.56, compared to a GAAP net loss per share of $0.83 in the first quarter of fiscal 2022.
• Non-GAAP Net Loss: Non-GAAP net loss was $43 million, compared to non-GAAP net loss of $13 million in the first quarter of fiscal 2022. Non-GAAP basic and diluted net loss per share was $0.27, compared to non-GAAP basic and diluted net loss per share of $0.10 in the first quarter of fiscal 2022.
• Cash Flow: Net cash provided by operations was $19 million, or 5% of total revenue, compared to net cash provided by operations of $56 million, or 22% of total revenue, in the first quarter of fiscal 2022. Free cash flow was $11 million, or 3% of total revenue, compared to $53 million, or 21% of total revenue, in the first quarter of fiscal 2022.
• Cash, cash equivalents, and short-term investments were $2.49 billion at April 30, 2022...
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Earnings Previews: Okta Inc. (NASDAQ: OKTA)
By: 24/7 Wall St. | June 1, 2022
• Here is a look at three firms scheduled to release quarterly results after markets close Thursday.
Okta
Enterprise software company Okta Inc. (NASDAQ: OKTA) has seen its share price sink by nearly 63% over the past 12 months. A data breach in January to one of Okta’s support sub-contractors has unleashed the expected storm of lawsuits. As it turns out, apparently just two Okta customers were affected, but the company’s failure to deal with the breach in a timely and efficient way had the company’s CEO continuing to defend the firm as recently as last week.
Okta came public just over five years ago and while it has consistently beaten EPS estimates, it has posted a profit in only three of 20 quarters. The company needs to do better than that.
Of 30 analysts covering the stock, 24 rate the shares a Buy or Strong Buy, and the other six have Hold ratings. At a share price of around $83.10, the implied upside on the stock based on a median price target of $195.00 is about 135%. At the high price target of $290.00, the upside potential is nearly 250%.
First-quarter revenue is forecast at $388.77 million, up 1.5% sequentially and 54.9% year over year. Okta is expected to post a loss per share of $0.34 for the quarter, 16 cents worse than the prior quarter’s loss and 24 cents worse than the year-ago loss. For full fiscal 2023, ending in January, analysts are looking for a loss per share of $1.24, compared with a year-ago loss of $0.46 per share, on sales of $1.78 billion, up 37%. Okta is not expected to post a profit in 2023 or 2024. The multiple for estimated 2025 earnings of $0.85 per share is 96.2. The stock’s 52-week range is $77.01 to $276.30, and Okta does not pay a dividend. Total shareholder return for the past year is negative 62.7%.
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Cathie Wood's ARK Invest Sells 25,996 Shares of Okta Inc. (OKTA)
By: Ark Invest Daily | May 27, 2022
• Cathie Wood & Ark Invest's trade activity from today 5/27.
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Okta (OKTA) Given New $150.00 Price Target at Morgan Stanley
By: MarketBeat | May 18, 2022
• Okta (NASDAQ:OKTA - Get Rating) had its price objective reduced by Morgan Stanley to $150.00 in a research report issued to clients and investors on Wednesday, Stock Target Advisor reports. The brokerage presently has a "na" rating on the stock. Morgan Stanley's price objective would indicate a potential upside of 93.08% from the stock's current price...
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Okta Inc. PUT WRITERS active in to the 09/16/22 $55 PUTS at the BID
By: Money Flow Mel | May 19, 2022
• $OKTA PUT WRITERS active in to the 09/16/22 $55 PUTS at the BID.
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$OKTA 100K share #darkpool print at $91.43
By: Money Flow Mel | May 10, 2022
• $OKTA 100K share #darkpool print at $91.43.
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$OKTA Weekly. #OKTA loss of long term trend line and now testing March '20 lows
By: ReciKnows | May 8, 2022
• $OKTA Weekly. #OKTA loss of long term trend line and now testing March '20 lows.
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Interesting OKTA Put And Call Options For June 10th
By: Nasdaq.com | April 29, 2022
Investors in Okta Inc (Symbol: OKTA) saw new options become available this week, for the June 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the OKTA options chain for the new June 10th contracts and identified one put and one call contract of particular interest.
The put contract at the $125.00 strike price has a current bid of $10.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $125.00, but will also collect the premium, putting the cost basis of the shares at $114.95 (before broker commissions). To an investor already interested in purchasing shares of OKTA, that could represent an attractive alternative to paying $127.53/share today.
Because the $125.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.04% return on the cash commitment, or 69.87% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Okta Inc, and highlighting in green where the $125.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $130.00 strike price has a current bid of $9.95. If an investor was to purchase shares of OKTA stock at the current price level of $127.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $130.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.74% if the stock gets called away at the June 10th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if OKTA shares really soar, which is why looking at the trailing twelve month trading history for Okta Inc, as well as studying the business fundamentals becomes important. Below is a chart showing OKTA's trailing twelve month trading history, with the $130.00 strike highlighted in red:
Considering the fact that the $130.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.80% boost of extra return to the investor, or 67.80% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 80%, while the implied volatility in the call contract example is 81%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $127.53) to be 53%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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Okta (OKTA) Reaches New 1-Year Low at $135.28
By: ABMN | April 24, 2022
• Okta, Inc. (NASDAQ:OKTA – Get Rating) reached a new 52-week low during mid-day trading on Friday . The company traded as low as $135.28 and last traded at $135.61, with a volume of 40340 shares. The stock had previously closed at $138.77...
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$OKTA Unusual #darkpool activity ~ 100K Shares at $137.97
By: Money Flow Mel | April 18, 2022
• $OKTA Unusual #darkpool activity ~ 100K shares at $137.97.
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-$0.34 EPS Expected for Okta, Inc. (OKTA) This Quarter
By: ABMN | April 16, 2022
• Wall Street analysts expect Okta, Inc. (NASDAQ:OKTA – Get Rating) to report ($0.34) earnings per share (EPS) for the current quarter, according to Zacks. Ten analysts have issued estimates for Okta’s earnings. The highest EPS estimate is ($0.31) and the lowest is ($0.35). Okta reported earnings of ($0.10) per share in the same quarter last year, which indicates a negative year over year growth rate of 240%...
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Okta (OKTA) PT Lowered to $200.00
By: ABMN | April 13, 2022
• Okta (NASDAQ:OKTA – Get Rating) had its price objective dropped by investment analysts at Morgan Stanley from $270.00 to $200.00 in a report issued on Wednesday, The Fly reports. Morgan Stanley’s price objective suggests a potential upside of 39.51% from the stock’s current price...
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$OKTA Unusual #darkpool activity ~ 210K shares at $150.98
By: Money Flow Mel | April 13, 2022
• $OKTA Unusual #darkpool activity ~ 210K shares at $150.98.
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Okta (OKTA) Stock Rating Lowered by Raymond James
By: MarketBeat | March 23, 2022
• Okta (NASDAQ:OKTA - Get Rating) was downgraded by Raymond James from an "outperform" rating to a "market perform" rating in a research report issued on Wednesday, The Fly reports.
A number of other brokerages have also weighed in on OKTA...
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