OKTA Incurs Loss in Q3, Subscription Revenues Increase Y/Y

Okta, Inc. OKTA reported third-quarter fiscal 2022 adjusted loss of 7 cents per share that beat the Zacks Consensus Estimate by 69.6%. The company had reported earnings of 4 cents per share in the year-ago quarter.

Total revenues surged 61.3% year over year to $350.7 million and surpassed the consensus mark by 7.1%. The upside can be attributed to higher subscription revenues.

Subscription revenues (96% of total revenues) surged 62.9% year over year to $336.7 million. Professional services and other revenues (4%of total revenues) increased 31.4% year over year to $14 million.

Okta, Inc. price-consensus-eps-surprise-chart, Okta, Inc. Quote, Internet-Software and Services, Computer & Technology, Internet Software, Click to get this free report, Zacks Investment Research

– Zacks

Quarter Details

Location wise, revenues from the United States (78.7% of total revenues) in fiscal third quarter were $276.1million, up 51.3% year over year. International revenues (21.3% of total revenues) soared 114.1% year over year to $74.5 million.

Total calculated billings were $389 million, up 54.4% year over year. The uptick was driven by new and existing commercial as well as enterprise customers, and increased bookings.


Okta, Inc. Price, Consensus and EPS Surprise

Okta, Inc. price-consensus-eps-surprise-chart, Okta, Inc. Quote, Internet-Software and Services, Computer & Technology, Internet Software, Click to get this free report, Zacks Investment Research

Okta, Inc. price-consensus-eps-surprise-chart | Okta, Inc. Quote

Dollar-based retention rate in the trailing 12 months was 122%.

Remaining Performance Obligations (“RPO”) totaled $2.35 billion, up 49% year over year. Current RPO, expected to be recognized over the next 12 months, was $1.18 billion, up 57% year over year.

Okta’s total customer count was14,000, up 49% year over year.

Operating Details

Non-GAAP total gross profit surged 58.5% year over year to $269.8 million. Gross margin contracted 140 basis points (bps) to 76.9%.

Non-GAAP research and development expenses increased 81.2% year over year to $73.6 million. Non-GAAP sales and marketing, and general and administrative expenses, increased 61.1% and 81.1% year over year to $153.8 million and $52 million, respectively.

Non-GAAP total operating expenses increased 69.6% year over year to $279.4 million.

Non-GAAP operating loss was $9.5 million against operating income of $5.5 million in the year-ago quarter.

Balance Sheet

Okta had $2.48 billion in cash, cash equivalents, and short-term investments, as of Oct 31, 2021, compared with $2.47 billion as of Jul 31, 2021.


For fourth-quarter fiscal 2022, Okta expects revenues in the range of $358-$360 million, which indicates year-over-year growth of 53%.

Non-GAAP operating loss is expected in the range of $34-$35 million while non-GAAP net loss is anticipated in the band of 24-25 cents per share.

For fiscal 2022, revenues are expected in the range of $1.275-$1.277 billion, indicating year-over-year growth 53%.

Non-GAAP operating loss is expected in the range of $84-$85 million and non-GAAP net loss is anticipated between 52 cents and 53 cents per share.

Zacks Rank & Stocks to Consider

Currently, Okta carries a Zacks Rank #4 (Sell).

Okta shares are down 22.1%, underperforming the Zacks Internet-Software and Services industry’s decline of 6.3% and Computer & Technology sector’s return of 23.6% year to date. Long term earnings growth rate stands at 25%.

Some of the better-ranked stocks in the Computer & Technology sector are Nova Measuring Instruments NVMI, Advanced Micro Devices AMD and Pinterest PINS.

Currently, Nova Measuring sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Long term earnings growth rate stands at 32.2%.

Nova Measuring shares have returned 83% year to date compared with the Zacks Electronics-Semiconductors industry’s growth of 36.7% and the Computer & Technology sector’s return of 22.7%.

Long term earnings growth rate for AMD, a Zacks Rank #2 (Buy) stock, is currently pegged at 46.2%.

AMD shares have returned 62.6% year to date, outperforming the Electronics-Semiconductors industry’s growth of 36.7% and the Computer & Technology sector’s return of 22.7%.

Pinterest, currently carrying a Zacks Rank #2 (Buy) has a long-term earnings growth rate of 52.7%.


PINS shares are down 43.4%, underperforming the Zacks Internet Software industry’s decline of 17.8% and Computer & Technology sector’s return of 22.7% year to date.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report


Nova Ltd. (NVMI): Free Stock Analysis Report


Okta, Inc. (OKTA): Free Stock Analysis Report


Pinterest, Inc. (PINS): Free Stock Analysis Report


To read this article on Zacks.com click here.


Zacks Investment Research

News Related


Navient is forgiving the student debt of 66,000 borrowers. How to know if you're one of them

jetcityimage There was a great deal of interest in the recent news that Navient, one of the largest student loan servicers, would be canceling the debt of 66,000 borrowers. The ... Read more »

Vodafone Is Said to Have Explored Acquisition of Three UK

(Bloomberg) — British wireless carrier Vodafone Group Plc has recently explored a potential purchase of Three UK from CK Hutchison Holdings Ltd., people with knowledge of the matter said. Most ... Read more »

There's a Buying Frenzy in Cheap and Tiny Diamonds

1 / 3There’s a Buying Frenzy in Cheap and Tiny Diamonds (Bloomberg) — A surge in diamond demand that began in the early Covid lockdowns is showing no sign of ... Read more »

Asian Private Equity Firm PAG Weighs Hong Kong IPO

1 / 2Asian Private Equity Firm PAG Weighs Hong Kong IPO (Bloomberg) — Asia-focused investment firm PAG is considering an initial public offering in Hong Kong, according to people with ... Read more »

Bitcoin Extends Slide, Has Fallen More Than 50% From Record High

Bitcoin Extends Slide, Has Fallen More Than 50% From Record High (Bloomberg) — Bitcoin, the largest digital asset, extended its decline Saturday, and has now shed more than 50% from ... Read more »

Vedum: The decision on the hiring of Norway's new central bank governor won't be made this week

Minister of Finance Trygve Slagsvold Vedum (SP) told the newspaper Dagbladet that he does not want to rush when it comes to appointing a new central bank governor. This week, ... Read more »

3 reasons I'm avoiding buy-to-let and buying shares instead

Trader on video call from his home office Key points Many investors turn to buy-to-let properties to generate a passive income I believe this is a mistake due to the ... Read more »

2 penny stocks to buy right now

Private investor buying UK shares at home Could these low-cost UK shares be too good to miss? Here’s why I’m thinking of buying these top penny stocks for my own ... Read more »

Kohl's Said to Get $9 Billion Bid Backed by Investor Starboard

(Bloomberg) — A group backed by activist hedge fund Starboard Value LP is offering about $9 billion for retailer Kohl’s Corp., according to people familiar with the matter. Most Read ... Read more »

This 'Virtual Land' Project Is Dropping a New Token

Land ownership is fundamental to the human experience. From the first days of civilization, humans have been drawn to the idea of owning land. Today, in the digital age, a ... Read more »

5 Reasons Why Brands Should Think About Creating a Podcast Series in 2022

With the success of podcasts over the past few years, 2022 is destined to see more podcasts than ever before. One thing a lot of marketers ask is whether a ... Read more »

3 Alternatives to Consider When NFTs Become the Norm

NFTs can be used as security tokens, smart contracts, collectibles or even as a means to represent debt or equity in a company. With the surge of interest in NFTs, many ... Read more »

Changing the Narrative on Hiring is Now a Necessity. Here Are 3 Ways to Do It.

As an entrepreneur and business owner, hiring and employee retention are constantly top of mind. After all, the average cost of a bad hire equates to 30 percent of an employee’s first ... Read more »

Your Speed of Response Affects Your Bottom Line

Growing your business is about turning your leads into customers. With your competitors vying for the same customers, you want to make sure your leads choose you. But how do ... Read more »

Record number of new cabins sold in Norway last year

After a year of record sales of new cabins, cabin manufacturers expect further growth of sales and new construction in 2022. In 2021, 7,205 new holiday homes were sold, which ... Read more »

Procurement Is Not the Death of a Good Idea

In my experience, if you speak to most salespeople, they’ll tell you that the death of a good idea is whenever they engage with procurement. In my opinion, the death ... Read more »

5 Common Mistakes Leaders Make and How to Fix Them

The CEO of a business sets the tone regardless of the size or stage of the business. But many CEOs struggle with handling their everyday team-leading duties and miss the opportunity to ... Read more »

Webster (WBS) Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Webster Financial WBS reported fourth-quarter 2021 adjusted earnings per share of $1.31, which surpassed the Zacks Consensus Estimate of $1.10. The reported figure excluded noteworthy items, such as charges related ... Read more »

5 Things to Do Before You Franchise Your Business

As a business owner with multiple years of success and a value proposition that resonates with your target audience, growth and expansion are likely top of mind. You may already ... Read more »

Texas Capital (TCBI) Q4 Earnings Top Estimates, Costs Fall

Texas Capital Bancshares TCBI reported adjusted earnings per share of $1.19 for fourth-quarter 2021, surpassing the Zacks Consensus Estimate of 91 cents. Moreover, results compare favorably with the prior-year quarter’s ... Read more »

Q&A With Andy Howard, CEO of Climate Solutions Exchange

When it comes to carbon emissions, landowners can take matters into their own hands – Valuewalk Q4 2021 hedge fund letters, conferences and more When Andy Howard teamed up with ... Read more »

Netflix Stock Tumbled 20% After Company Warns Of Fewer New Subscribers

Netflix Inc (NASDAQ:NFLX) stock plummeted by 20% on Friday pre-market trading after the streaming giant warned subscriber growth could slow in the beginning of 2022. The plunge would account for ... Read more »

5 Reasons Why FactSet (FDS) Stock Might be a Great Pick Now

A prudent investment decision involves buying well-performing stocks at the right time while selling those at risk. A rise in share price and strong fundamentals signal a stock’s bullish run. ... Read more »

Here's How Levi Strauss (LEVI) Looks Ahead of Q4 Earnings

Levi Strauss & Co. LEVI is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2021 earnings on Jan 26, after the closing bell. The Zacks Consensus ... Read more »

Securities Exchanges Benefitting From Market Volatility

The recent trend of increased trading volume continued its ascent last year, as market data provider Statista reported that the total value of global equity trading soared to more than ... Read more »

Xcel Energy (XEL) Strong on Capex and Clean Energy Plans

Xcel Energy Inc.’s XEL planned investments in enhancing clean-energy generation capacity and infrastructure plus a consistent expansion in its existing natural gas and electric customer base are key catalysts.In the ... Read more »

Community Health (CYH) Unit Declares Pricing of Senior Notes

Community Health Systems, Inc. CYH unit Community Health Systems, Inc. (“CHS”) announced the pricing of its public offering of senior secured notes worth $1,535 million. The notes carry an interest ... Read more »

Anthem (ANTM) Gears Up for Q4 Earnings: What's in the Cards?

Anthem, Inc. ANTM is scheduled to release fourth-quarter 2021 results on Jan 26, before the opening bell.ANTM’s bottom line outpaced estimates in three of the trailing four quarters and missed ... Read more »

10 Dividend ETFs Up At Least 4% This Year & Yielding At Least 3%

Dividend is among the investing themes that should be under radar amid the ongoing uncertainty in the markets caused by rising inflation and rising rate worries. Wall Street has been ... Read more »

Signet (SIG) Posts Stellar Holiday Results & Raises View

Signet Jewelers Limited SIG delivered a stellar performance this holiday season. Solid gains from growth initiatives like unique banner value propositions and advanced connected-commerce capabilities drove the holiday performance. SIG’s ... Read more »

Done Is Better Than Perfect and Other Lessons for the Hesitating Entrepreneur

I am so grateful to this week’s guest of SUCCESS Line for sharing their inspiring story. Tara is a mother, wife, real-estate agent, owner of a vegan restaurant and recent ... Read more »

CEO of Major Bank Receives $3 Million Salary Bump

It’s not a radical concept for CEOs to have exorbitant salaries. Alex Wroblewski | Getty Images In the wake of the pandemic and job losses, many CEOs and founders took ... Read more »

Be Smart About Taxes and Keep More of Your Hard-Earned Cash

Taxes can be costly. These costs cut into your income and can have devastating effects on your quality of life, especially in times of transition. Although marketing is my main business, ... Read more »

The Stock Market is Down Today: Here's Why & 3 Penny Stocks To Watch

The stock market is down today. This can be attributed to various reasons, including global economic conditions, interest rates, and company performance. However, there are also opportunities in times like ... Read more »

Is Boot Barn (BOOT) a Solid Growth Stock? 3 Reasons to Think " Yes "

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market’s attention and produce exceptional returns. However, it isn’t easy to find a ... Read more »

Zealand (ZEAL) Ends Enrollment in Short Bowel Syndrome Study

Denmark-based Zealand Pharma A/S ZEAL announced that it has completed enrollment of patients in the pivotal phase III EASE-SBS 1 study that is evaluating its long-acting GLP-2 analog, glepaglutide, for ... Read more »

Top Analyst Reports for Walmart, Micron & Enbridge

Friday, January 21, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Walmart ... Read more »

Charles River (CRAI) Stock Up 44% in a Year: Here's Why

Shares of Charles River AssociatesCRAI have returned 44% over the past year, outperforming 34.7% growth of the industry it belongs to in the said time frame. – Zacks Image Source: ... Read more »

Key Factors to Impact Boston Properties (BXP) in Q4 Earnings

Boston Properties, Inc. BXP is slated to report fourth-quarter and full-year 2021 results on Jan 25, 2022, after market close. BXP’s quarterly results are likely to reflect year over year ... Read more »

Tesla vs. Fisker: Which Electric Vehicle Stock is a Better Buy?

Today I’ll analyze and compare Tesla (TSLA) and Fisker (FSR) to determine which electric vehicle (EV) stock is currently the better investment. shutterstock.com – StockNews The electric vehicle (EV) industry ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic