Key Highlights:
- Shares of Okta soared after the company’s guidance and fourth-quarter results came in well above analyst projections.
- Stock was up 24% at $108.36 in premarket trading, on track to open at a 52-week high.
- Fourth-quarter loss narrowed to $44 million from $153 million.
- Adjusted earnings of 63 cents a share beat forecasts by 12 cents.
- Revenue jumped to $605 million from $510 million, surpassing projections.
- Company expects adjusted earnings of $2.24 to $2.29 a share on $2.5 billion to $2.51 billion in revenue for fiscal 2025, exceeding current estimates.
- First-quarter guidance: adjusted earnings of 54 cents to 55 cents a share on $603 million to $605 million in revenue, above current forecasts.
The digital identity verification provider Okta saw a significant increase in its stock value following the release of its impressive fourth-quarter financial results. Investors were pleased to see that both the company’s guidance and actual performance exceeded analyst expectations by a considerable margin.
Strong Financial Performance
Improved Losses and Earnings
Okta reported a remarkable decrease in its fourth-quarter loss, dropping from $153 million to just $44 million. Additionally, the company’s adjusted earnings stood at 63 cents per share, surpassing analyst forecasts by 12 cents. This positive momentum was further emphasized by a substantial revenue increase from $510 million to $605 million, outperforming initial projections.
Forward-looking Projections
Looking ahead, Okta remains optimistic about its future financial prospects. The San Francisco-based company anticipates posting adjusted earnings between $2.24 and $2.29 per share on revenues ranging from $2.5 billion to $2.51 billion for fiscal year 2025. These figures are notably higher than current estimates, indicating a strong growth trajectory for the business.
Positive First-quarter Guidance
In the short term, Okta’s outlook for the first quarter is also promising. With expected adjusted earnings of 54 to 55 cents per share on revenues totaling between $603 million and $605 million, the company has once again outperformed current forecasts, setting a positive tone for the upcoming period.
Overall, Okta’s impressive financial results and optimistic projections have instilled confidence among investors and underline the company’s position as a key player in the digital identity verification market.