Okta Sees A Sell Off As Investors Become Cautious About Cloud Stocks

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Okta Corporation (NASDAQ: OKTA) is a cloud security company that provides identity and access management tools that enable users to securely access cloud-based applications from various devices. Okta stock declined by about 16% over the last week, as investors appear to have turned more cautious with high-growth stocks, amid macroeconomic uncertainty. Okta is valued at ~20x projected 2020 revenues, compared to roughly 7x for Microsoft. Separately, the company’s mixed Q2 report in late August (which saw it report strong revenue growth, but remain loss-making), as well as its recent move to issue about $1 billion worth of convertible senior notes in a private offering (that could dilute existing shareholders), has also contributed to volatility. Below, we take a look at how the company has performed over the last few years and the outlook over the next two years.

View our interactive dashboard analysis on Why Did Okta Stock Crash 16% Last Week?

How does Okta’s Revenue Growth in 2019 compare with that in prior periods and what’s the forecast?

Total Revenues for Okta substantially increased from $257 Mil in 2018 to $399 Mil in 2019; an increase of 55.6%. This compares with Total Revenues growth of 59.5% in 2018 compared to 2017. We expect Total Revenues growth to be 40% in 2020.

How does Okta’s Total Expense in 2019 compare with that in prior periods and what’s the forecast?

Total Expense for Okta substantially increased from $367 Mil in 2018 to $525 Mil in 2019; an increase of 43.1%.

This compares with Total Expense growth of:

  • 45.4% in 2017 compared to 2016
  • 55.8% in 2018 compared to 2017

We expect Total Expense growth to be 14% in 2020.

How does Okta’s EBT in 2019 compare with that in prior periods and what’s the forecast?

EBT for Okta decreased by 13.9% from -$110 Mil in 2018 to -$126 Mil in 2019.

We expect EBT to come in at about -$40 million in 2020.

How do Okta’s Net Income and EPS in 2019 compare with that in prior periods and what’s the forecast?

For more information on Okta’s Net Income and EPS, view our interactive dashboard analysis.

 

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