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Integration Network and Identity Management Company Okta Inc reported better than expected fourth earnings Thursday after the market close. Subscription revenue surged by 46% to $158.5 million. The results reflected the growing importance of identity

Okta network 

Okta Inc NASDAQ: OKTA Reported Earnings After Close Thursday

($0.89) Beat ($0.97) EPS AND $180.2M Beat $165.40 Million Revenue Forecast 

Earnings

Okta reported revenue of $167.3 million beating what analysts polled by FactSet expected $156.6 million. The company also reported a narrower loss than expected of 1 cent per share excluding some items, while analysts anticipated a loss of 5 cents per share.

The net loss was $50.5 million compared to a loss of $30.8 million in the previous year quarter. .

 

Okta Inc NASDAQ: OKTA

Market Reaction -After hours 137.00 +7.95 (+6.16%)

Okta Q4 2020 Financial Summary

 Highlights

  • Subscription revenue surged by 46% to $158.5 million. The results reflected the growing importance of identity.
  • Margins remained under pressure from elevated R&D expenses as the company continues to invest in the Integration Network and Identity Platform.
  • For the fourth quarter, total calculated billings jumped by 42% year-over-year to $225 million.
  • Total customers increased by 30% to 7,950 while customers with ACV above $100,000 climbed by 41% to 1,467. The total remaining performance obligations (RPO) soared by 66% to $1.21 billion.
  • The current RPO, which is revenue expected to be recognized over the next 12 months, climbed by 54% to $592.3 million.

The company was benefited from the unparalleled cloud-based platform and continued execution. The company is still in the early days of a massive addressable market to modernize identity for the workforce and customers.

Okta Q4 2020 Customers Trend

Separately, Okta said it has successfully implemented the Okta Identity Cloud to securely manage and streamline access to critical technology for its global workforce and customer base. In the fourth quarter of FY20, Okta grew its total customers to more than 7,950 organizations.

Outlook

The company offered mixed guidance for the first quarter, expecting a loss of 24 to 23 cents excluding some items, while analysts polled by FactSet estimated a loss of 14 cents. However, the company expects revenue of $171 million to $173 million for the first quarter, while analysts estimated $166.4 million, according to FactSet. 

For fiscal 2021, the company predicts revenue to grow by 31-33% to the range of $770-780 million and adjusted loss in the range of $0.42-0.37 per share. The consensus estimates a loss of $0.27 per share on revenue of $756.28 million for the full year.

About Okta Okta is the leading independent provider of identity for the enterprise. The Okta Identity Cloud enables organizations to securely connect the right people to the right technologies at the right time. With over 6,500 pre-built integrations to applications and infrastructure providers, Okta customers can easily and securely use the best technologies for their business. Over 7,950 organizations, including 20th Century Fox, JetBlue, Nordstrom, Slack, Teach for America and Twilio, trust Okta to help protect the identities of their workforces and customers.

 Source: Okta; AlphaStreet

From The Traders Community News Desk

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