Okta beat analysts’ expectations on earnings and revenue for the second quarter. However, the company’s guidance for the October quarter fell behind the Street’s estimates.
The cloud-based identity and access management company reported a quarterly loss of -5 cents per share, faring better than analysts’ estimate of a loss of -11 cents a share. The losses were also narrower from the year-ago period’s -15 cents loss.
Revenue for the quarter surged +49% year-over-year to $140.5 million, topping the $131.2 million expected by analysts.
Looking ahead, Okta projected a loss of -12 cents to -13 cents a share for the quarter ending October, compared to analysts' estimate of -9 cents loss per share.
The company’s revenue forecast of $143.5 million for the third quarter is below the $140.5 million that the Street had predicted.
In recent times, Okta has been apparently focused on adding very large enterprise customers. According to the company, it had a total of 1,222 customers with annual contract value above $100,000 as of last quarter.
OKTA's Aroon Indicator triggered a bullish signal on October 16, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 204 similar instances where the Aroon Indicator showed a similar pattern. In of the 204 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where OKTA's RSI Indicator exited the oversold zone, of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 05, 2024. You may want to consider a long position or call options on OKTA as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for OKTA just turned positive on November 01, 2024. Looking at past instances where OKTA's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
OKTA moved above its 50-day moving average on November 06, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where OKTA advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where OKTA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
OKTA broke above its upper Bollinger Band on November 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.942) is normal, around the industry mean (30.111). P/E Ratio (0.000) is within average values for comparable stocks, (161.802). Projected Growth (PEG Ratio) (1.824) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (7.485) is also within normal values, averaging (56.120).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. OKTA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. OKTA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of an enterprise-grade identity management services
Industry PackagedSoftware