Okta, Inc. (NASDAQ:OKTA) is gearing up to unveil its financial results for the second quarter of fiscal year 2024 on August 30th.
For the upcoming fiscal second quarter, the company is projecting non-GAAP earnings ranging between 21 and 22 cents per share. This estimate has remained unchanged at 21 cents per share for the past 30 days, according to the Zacks Consensus Estimate for earnings.
Anticipated revenues for this quarter fall in the bracket of $533 million to $535 million, indicating an 18% growth compared to the figures reported in the same period the previous year. The Zacks Consensus Estimate for revenues stands at $534.06 million, reflecting an increase of 18.2% compared to the same quarter last year.
Looking back at the previous four quarters, Okta has consistently surpassed the Consensus Estimate, boasting an average earnings surprise of 112.5%.
A Pre-Announcement Overview of Okta’s Status
Key Considerations
Okta’s second-quarter results for fiscal year 2024 are poised to illustrate the advantages stemming from the expanding utilization of identity solutions. The Okta Identity Cloud’s capacity to seamlessly consolidate and integrate existing applications, all while upholding security and stability, has been appealing to customers. The automation, data security, and cost reduction aspects of Okta products have been contributing positively.
The company’s client base has experienced growth, signifying a significant driver. Despite the challenging macroeconomic climate, Okta added 450 customers during the previous quarter, culminating in a total of 18,000 customers by the end of the first fiscal quarter. Notably, customers with an Annual Contract Value exceeding $100,000 demonstrated a 23% year-over-year increase.
Okta’s Workforce and Customer Identity Solutions
The adoption of Okta’s Workforce and Customer Identity solutions has been on the rise, and this momentum is expected to persist in the impending quarter’s report.
Furthermore, the company’s partner network, which includes major names like Google and Zoom, is likely to have contributed to top-line growth in the fiscal second quarter.
However, Okta’s results might have encountered headwinds from macroeconomic challenges that have impacted contract terms and deal sizes across small and medium-sized businesses as well as enterprises.
Featured Image: Megapixl © Timonschneider
