If there is anything Okta Inc (NASDAQ:OKTA) is known for, it’s the higher than normal gains. The California, US-based company had by June gained by 93.7% since the beginning of the year and by 426% since its IPO in April of 2017. For the 12 months till June 7, the stock price had shot up by a wowing 128%.
The enterprise identity management company has yielding great returns to its shareholders to the extent that it has for the good part of its trading life remained a hot cake for investors.
Quarterly Earnings Report
When the company last released its quarterly earnings results, it had adjusted earnings per share of -$0.19 on a revenue of $128 million, representing a year-over-year rise of 50%. The earnings beat analysts’ estimates of $117 million in revenue and -$0.21 in adjusted earnings per share.
Okta Inc generated most of its revenue from its subscription services, accounting for 94% for the quarter. In the second quarter, analysts expect Okta Inc to post earnings of $130 million, a 37% rise on year-over-year basis, and earnings per share of -$0.10. The company’s projections were above analysts’ expectations of -$0.14 in earnings per share on revenue of $127.54 million.
Long Term Projections
The way things are at Okta Inc, the stock isn’t profitable. Despite this, things are expected to get better, and investors will begin to earn profits. Over the next 5 years, the company’s earnings per share is expected to grow by a handsome 25% per year.
Even though Okta is clearly not a short term investment, its long term growth metrics make it clearly a worthy long term bet for investors.