Okta Inc. (OKTA)

[TFMG]

$OKTA COULD DOUBLE IN 2 YEARS, LONG TERM HOLD

Thursday's earnings report by NASDAQ:OKTA was a blow out and the guidance was outstanding. Due to the market weakness on Friday the stock did not rally as much as it should have, within the coming days investors may get a better entry point into the stock, but if you are a long term investor and willing to hold this stock for 4/5 years , just buy it asap and you will be well rewarded. The company is aggressively tapping new markets and going after the biggest companies in the world as clients. Educational institution are to the forefront of the strategy also and is a huge market worldwide. One major strength is that their technology is so unique, they are sought to provide their service,trade disputes and political unrest does not hamper their growth or reduce the target market.


EARNINGS CALL HIGHLIGHTS
We kicked off fiscal year '20 with another strong quarter; total revenue grew 50%; subscription revenue grew 52%; calculated billings grew 53%; and we generated positive free cash flow of $13 million. We added 450 new customers in the quarter, bringing our total customer count to over 6,550. Once again, we made broad additions across our enterprise customer base with 53% growth in customers with annual contract value greater than $100,000.
For the second quarter, we expect total revenue of $130 million to $131 million, representing a growth rate of 37% to 38%; non-GAAP operating loss of $14.9 million to $13.9 million; non-GAAP net loss per share of $0.11 to $0.10, assuming shares outstanding of approximately 115 million.

For the full fiscal '20; we are raising our guidance and now expect total revenue of $543 million to $548 million, representing a growth rate of 36% to 37%; non-GAAP operation loss of $667 million to $62 million; non-GAAP net loss per share of $0.49 to $0.45, assuming shares outstanding of approximately $116 million.

AVERAGE ANALYSTS ESTIMATE $112
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT

COMPANY PROFILE
Okta , Inc. provides an enterprise-grade identity management services. Its products include single sign-on, multi factor authentication, API access management, API products and integration network services.