The stock price of cloud identity management provider Okta Inc (OKTA: NSD) increased by more than 23% following the release of its Q4 fiscal year 2024 results.
Key Insights from Okta’s Q4 Report:
Below are the key highlights from Okta’s Q4 earnings.
- Okta reported revenue of $605 million, exceeding analyst expectations. This represents a 19% year-over-year increase. The consensus estimate for revenue was $587.2 million.
- Okta’s subscription revenue, the main source of income, grew by 20%.
- Okta’s remaining performance obligation (RPO) increased by 13% to $3.385 billion.
Stock Target Advisor’s Analysis on Okta:
In positioning Okta Inc. within the investment landscape, Stock Target Advisor analysts commend the company for positive cash flow over the last four quarters along with high market capitalization and superior revenue growth. However, the company demonstrates negative total free cash flow, low earnings growth, and high leverage, which warrants caution.
We assign Okta a slightly bearish stock rating with a flat projector price change over the next 12 months. Falling slightly short of the average analyst target price of $88.50, we anticipate a static forecast for the stock.
The sector in which Okta operates, Software – Infrastructure on the NSD exchange, has been demonstrating positive momentum. With average 1-month returns of 4.7% and 1-week returns of 2.54%, it makes Okta a reasonable consideration for prospective investors.
Conclusion:
Okta’s Q4 report and future outlook paint a positive picture for the company. The market reacted favorably, with the stock price reflecting the company’s strong performance and promising future.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
