$13 billion identity company Okta rose as high as 12% the day after reporting earnings, and Wall Street says it’s a result of ‘excellent momentum’

Okta’s stock rose as high as 12% a day after it reported its quarterly earnings — results that show “excellent momentum” for the nearly $13 billion company.

On Thursday, Okta reported a quarterly revenue of $125.2 million, a rise of 50% from the previous year, and well ahead of Wall Street’s expectations of $116.86 million.

Okta topped analyst expectations for next quarter too. Okta is predicting a revenue of $130 to $131 million, while Wall Street expected it to project $127.54 million.

With all that, it’s no surprise that Okta’s stock rose about 6% after hours on Thursday, and even higher still on Friday.

“The results are even better than we anticipated,” Jonathan Ho, partner at William Blair, told Business Insider. “That’s reflected in the stock moving up. Importantly, the companies talk about success and new opportunities which helps drive the case for further upside. The company seems to be doing better at winning more.”

What Ho means is that Okta has been adding more products, in addition to its core identity and access management product, which could lead to further growth. He says that Okta, which competes with the likes of Microsoft’s famed Active Directory, is still in the “early innings of its growth opportunity.”

“It helps sustain the growth profile for a longer period of time,” Ho said. “If they grow bigger and they only have one product, the growth will have to slow. Now it looks like it can continue longer.”

A “really big” market

Okta’s subscriber base grew by 52% from this time last year. Now, Okta has over 6,550 customers — 104 of whom pay over $100,000 a year, the company disclosed in its earnings report.

“The market we’re in is really really big. We’re really happy with the growth,” Okta CEO and co-founder Todd KcKinnon told Business Insider. “Part of it is just the business model that is just recurring subscription revenue. It allows us to grow very quickly.”.

In the past quarter, Okta launched Okta Access Gateway, which allows companies to use the company’s tools to log into on-premise apps, which Ho predicts will grow in us, given that many enterprises still rely on legacy software.

Read more:$9 billion Okta started in the cloud, but it’s extending into the data center for the first time to reflect the ‘reality’ of what customers need

Terry Tillman, managing director at SunTrust Robinson Humphrey, agrees about Okta’s expanding market opportunity, especially as the company invests in international expansion in Asia and Europe.

“They’ve been organically building new products,” Tillman told Business Insider. “They’re adding more products where they can drive revenue for a long period of time.”

Ho said that Okta is already seeing strong traction from ScaleFT, a server protection company that Okta acquired last July. Okta also announced in March that it will acquire an automation software company called Azuqua, although it’s still too early to see results.

Still, Richard Davis, managing director at Canaccord Genuity warns that while the company has “excellent momentum,” it’s possible that Okta will enter a period of dormant stock prices as investors have high expectations.

“Indeed, this is something we will monitor with a microscope over the coming quarters,” Davis wrote in a note. “…For the time being, investors crowd into stocks of companies that have long tails, predictable growth prospects, and Okta fits that description.

Read More



from Trend News Web http://bit.ly/2W4jNzp

Comments

Post a Comment

Popular posts from this blog

Allred: Tape appears to show R. Kelly sexually abusing girls

A man who said he was cleaning out an old videotape collection found what he thought was a recording of R&B singer R. Kelly in concert, but instead turned out to show a man who appeared to be Kelly sexually abusing girls, he and his attorney said Sunday. The man then turned the tape over to law enforcement, according to attorney Gloria Allred. She and her client, Gary Dennis, would not discuss the specifics of the tape during a news conference in New York. But Allred said it appears to show a separate incident from the 10 counts of aggravated sexual abuse that Kelly faces in Chicago, though she acknowledged she could not be “100 percent certain” that the man in the tape is Kelly. Steve Greenberg, an attorney for Kelly, noted that lack of certainty. “The doubt here is self-evident, with reporting that the man on the tape kinda, sorta looks like R. Kelly,” Greenberg said Sunday in an email. “That doesn’t make it him. It is not him.” The lawyer also said Kelly “denies that he is
Read more

Ranking Every No. 1 NBA Draft Pick from the Last 30 Years

Image
Gary Dineen/Getty Images 15. Larry Johnson, Charlotte Hornets, 1991 Johnson, an athletic marvel, came into the league with incalculable potential. He was Rookie of the Year in 1992, made the All-Star team in his second season and signed a 12-year, $84 million contract in 1993 that was the   largest   in league history at the time. Back problems sapped his bounce, but Johnson developed skills to compensate. The power forward shot 38.6 percent from deep and averaged 18.8 points, 7.2 rebounds and 4.6 assists in 1994-95 while making his second All-Star team. He was just as good the next year, posting averages of 20.5 points, 8.4 rebounds and 4.4 assists. Though decline set in following his move to the Knicks in 1996, Johnson was an effective player for the balance of his 10-year career. He ranks   10th   among No. 1 picks in the last 30 years with 69.7 win shares.          14. John Wall , Washington Wizards, 2010 Wall’s average of 9.2 assists is tops on our list, and his 1.7 ste
Read more

Attacks and bodyguards: The price of being a Colombian journalist

Image
Caucasia, Colombia – Leiderman Ortiz’s mother, sister, brother and nephew were visiting him in Caucasia in May 2010 when a loud blast went off outside the house where they were asleep. “I jumped out of my bed and started shouting, ‘Stay down, don’t move’,” Ortiz said. “My poor mother was screaming. She was terrified.” Unlike many others who have been targeted by the regular grenade attacks in Caucasia, a small city about 670km north of the Colombian capital Bogota, Ortiz isn’t a criminal. He writes about them. And the 2010 attack was the third of at least five known attempts or suspected attempts on the 45-year-old’s life. The first occurred in 2009 in Medellin when he was leaving an office and an armed individual was waiting for him. Ortiz saw the individual and called the police. The next year, the 2010 grenade attack occurred. Two days after that attack, another grenade was thrown into his garden. The following year, at least two suspected hitmen were paid to follow Ortiz, but
Read more