Compared to Estimates, Okta (OKTA) Q3 Earnings: A Look at Key Metrics
For the quarter ended October 2023, Okta (OKTA) reported revenue of $584 million, up 21.4% over the same period last year. EPS came in at $0.44, compared to $0.00 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $559.76 million, representing a surprise of +4.33%. The company delivered an EPS surprise of +46.67%, with the consensus EPS estimate being $0.30.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Okta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross margin- Subscription: 78% versus the 10-analyst average estimate of 81.4%.
Gross margin- Professional services and other: -25% compared to the -8.2% average estimate based on nine analysts.
Remaining performance obligations: $3.07 billion versus $3.10 billion estimated by seven analysts on average.
Current remaining performance obligations (cRPO): $1.83 billion compared to the $1.78 billion average estimate based on six analysts.
Total Customers: 18,800 versus the four-analyst average estimate of 18,778.
TTM Dollar Based Net Retention Rate: 115% versus the two-analyst average estimate of 113.5%.
Revenue- Subscription: $569 million compared to the $544.99 million average estimate based on 12 analysts. The reported number represents a change of +22.1% year over year.
Revenue- Professional services and other: $15 million compared to the $14.33 million average estimate based on 12 analysts. The reported number represents a change of -1.2% year over year.
View all Key Company Metrics for Okta here>>>
Shares of Okta have returned +5.4% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Okta, Inc. (OKTA) : Free Stock Analysis Report
