Shares Of OKTA (OKTA) Are Soaring Today For Many Reasons

(CTN News) – In the premarket session, OKTA (OKTA) shares jumped 27.7% after the company reported an impressive quarter.

The fourth quarter results exceeded Wall Street’s revenue estimates and were accompanied by strong free cash flow. In addition, OKTA provided an optimistic revenue forecast for the next quarter, in line with analysts’ expectations.

In addition, the company increased its outlook for FY’25 and now expects revenue growth of 10% to 11%, a non-GAAP operating margin of 18% to 19%, and a free cash flow margin of approximately 21%. Based on the “stable but still challenging macroeconomic environment,” management emphasized conservatism baked into its guidance.

Furthermore, the outperformance suggests that the recent security incident, which was reported in October 2023 and affected some of the company’s products, had a relatively minimal impact on its financial position, which is reassuring to investors.

Furthermore, the company is focused on optimizing its cost structure following recent layoffs that affected 400 positions. Currently, Okta is focusing on growing its headcount in lower-cost regions like India and Poland. Overall, the company had a successful quarter, giving investors more reasons to remain optimistic.

What is the right time to purchase OKTA? Our full analysis report is available here.

Here is what the market tells us:

Okta’s stock price has been highly volatile over the past year, with 14 5% moves. However, moves of this magnitude are extremely rare even for Okta, which indicates it had a significant impact on the market’s perception.

Last year, we wrote about how the stock gained 14.7% when the company reported a “beat and raise” quarter against low expectations. In all three areas, revenue, non-GAAP operating profit, and earnings per share were above Wall Street’s expectations.

The company’s current remaining performance obligations (CRP) increased 18% year over year, exceeding the high end of its previous guidance, which was 15%.

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