Okta Q2 FY1/25 Earnings Review

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Attaboy!

by Alex King, CEO, Cestrian Capital Research, Inc.

Okta started out very well as a public company. High growth, losses reducing over time, big order book and forward revenue visibility, all that. Then came the hubris; the acquisition of Auth0 in 2021 was completed at too high a price with too little clarity on the post-merger organization, who was to do what, when etc. The deal claimed the Okta careers of the then-CFO (problems with due diligence and subsequent reduction in deferred revenue balance) and a number of sales executives. That the CEO survived is a matter of board dynamics rather than any reasonable attribution of fault. Okta went on to have a terrible 2022, on fundamentals as well as on stock price; only recently has the company looked to be getting back on track. A remarkable feat of survival and rebuilding by the current CEO. Right now I would say the company and its stock have a bright future.

Here's the headline numbers. Below, for our paying subscribers here of all tiers, we dive into more detail on numbers, charts, price targets and stop levels.