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1. Company Snapshot

1.a. Company Description

Okta, Inc.provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally.The company offers Okta Identity Cloud, a platform that offers a suite of products and services, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data; Lifecycle Management that enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Access Gateway that enables organizations to extend the Okta Identity Cloud from the cloud to their existing on-premise applications; and Advanced Server Access to secure cloud infrastructure.


It also provides Auth0 products, including Universal Login that allows customers to provide login experience across different applications and devices; Attack Protection, a suite of security capabilities that protect from malicious traffics; Adaptive Multi-Factor Authentication that minimizes friction to end users; Passwordless authentication enables users to login without a password and supports in various login methods; Machine to Machine provides standards-based authentication and authorization; private Cloud that allows customers to run a dedicated cloud instance of Auth0; and Organizations that enables customers to independent configurations, login experiences, and security options.It offers customer support, training, and professional services.It sells its products directly to customers through sales force and channel partners.


The company was formerly known as Saasure, Inc.Okta, Inc.was incorporated in 2009 and is headquartered in San Francisco, California.

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1.b. Last Insights on OKTA

Breaking News: Okta Inc. reported a double beat in its Q4 earnings for the 2026 fiscal year, with revenue increasing 11.6% year over year due to strong subscription growth. The company's EPS also surpassed expectations. Okta's Q4 results were driven by solid subscription growth, and the company highlighted promising AI opportunities. Some analysts have been questioning the company's growth, but the recent earnings beat may help alleviate those concerns. A few analysts recommend a buy, while others advise a hold, no sell recommendation was found.

1.c. Company Highlights

2. Okta's Strong Q4 Fiscal 2026 Earnings: A Closer Look

Okta reported a strong Q4 fiscal 2026, with total revenue growth driven by continued strength with large enterprises, partner engagement, and contributions from new products. The company's actual EPS came out at $0.9, beating estimates of $0.85. The financial performance was robust, with a record amount of total contract value of nearly $1.3 billion. Okta's balance sheet remains healthy, with over $2.5 billion in cash, cash equivalents, and short-term investments. The company is focused on driving growth and has implemented a $1 billion share repurchase program.

Publication Date: Mar -06

📋 Highlights
  • New Product Growth:: Emerging products (e.g., Okta for AI Agents) contributed 30% of Q4 bookings, with 40% average contract uplift when included, up from prior 33% estimates.
  • Financial Projections:: Guidance for FY27 targets $3 billion in revenue, with $5 billion and $10 billion milestones expected in subsequent years, supported by $2.5 billion in cash reserves.
  • Agentic AI Market Position:: Okta targets a $80 billion Total Addressable Market (TAM) for Agentic AI, leveraging pre-integrated solutions like Okta for AI Agents, which address urgent customer needs in securing rogue agents.
  • Operational Efficiency:: Share repurchase program of $1 billion and improved free cash flow margin guidance (27–28% in FY27) reflect focus on disciplined cost management and growth visibility.

Revenue Growth and Margin Analysis

Okta's subscription revenue growth is faster than total revenue, and the company is committed to exceeding or meeting guidance. The emerging product portfolio, including Okta for AI Agents and Auth0 for AI Agents, reported a 40% uplift in revenue. As Brett Tighe noted, "the 40% uplift is over the entire contract, not just the 59% of the business that the new products represent." The company's focus on large deals and large customers has been a driver of its consistency, with a strong pipeline for FY '27 and beyond.

Valuation Metrics and Future Prospects

Okta's valuation metrics indicate a premium valuation, with a P/E Ratio of 60099.14 and P/S Ratio of 4623.99. The EV/EBITDA ratio is 52.46, suggesting that the market is pricing in significant growth expectations. The company's guidance for FY '27 expects total revenue growth of 9%, non-GAAP operating margin of 25% to 26%, and a free cash flow margin of 27% to 28%. Analysts estimate next year's revenue growth at 9.3%, indicating a consistent growth trajectory.

Strategic Focus and Competitive Advantage

Okta is focused on identity as a strategic aspect of security, with AI acting as a catalyst. The company's portfolio of new products, including Identity Governance, Privileged Access, and Identity Security Posture Management, represented approximately 30% of Q4 bookings. Okta's Auth0 for AI Agents and Okta for AI Agents are still in the early stages but are expected to become a significant opportunity in the future. As Todd McKinnon highlighted, "we're poised to deliver the infrastructural foundation for the agentic enterprise, which is a pressing urgent problem for customers."

3. NewsRoom

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Okta: Bigger Deals And Renewed Growth, Thanks To Agentic AI

Mar -06

Source: seekingalpha.com

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Here Are Friday’s Top Wall Street Analyst Research Calls: BorgWarner, CoreWeave, Intuit, Marvell Technology, Netflix, Okta, Regeneron Pharmaceuticals, Trade Desk, and More

Mar -06

Source: 247wallst.com

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Okta (NASDAQ:OKTA) Trading 8.7% Higher Following Strong Earnings

Mar -06

Source: defenseworld.net

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Why Okta Stock Popped Today

Mar -06

Source: fool.com

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Okta Earnings Beat, But Growth Questions Remain

Mar -05

Source: marketbeat.com

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Okta shares rally on strong earnings as Jefferies analysts see room for revenue upside

Mar -05

Source: proactiveinvestors.com

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OKTA Shares Jump on Solid Q4 Earnings Beat, Revenues Increase Y/Y

Mar -05

Source: zacks.com

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Okta Surges on Strong Q4 Results and Promising AI Opportunities

Mar -05

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.87%)

6. Segments

Subscription

Expected Growth: 15%

Okta's subscription growth is driven by increasing demand for cloud-based identity and access management solutions, fueled by digital transformation, remote work, and cybersecurity concerns. The company's innovative products, strategic partnerships, and expanding global presence also contribute to its rapid growth.

Professional Services and Other

Expected Growth: 10%

Okta's Professional Services and Other segment growth is driven by increasing adoption of its identity cloud platform, expansion into new markets, and strategic partnerships. The 10% growth rate is also fueled by the rising demand for digital transformation, cloud migration, and cybersecurity solutions, as well as Okta's investments in customer success and support services.

7. Detailed Products

Okta Identity Cloud

A suite of cloud-based identity and access management solutions that enable organizations to securely connect people and technology.

Okta Workforce Identity

A comprehensive identity and access management solution for employees, providing secure access to applications, resources, and data.

Okta Customer Identity

A customer identity and access management solution that enables organizations to manage customer identities and access to applications and resources.

Okta B2B Integration

A solution that enables organizations to securely integrate with business partners and suppliers, while managing access and identities.

Okta Advanced Server Access

A solution that provides secure, fine-grained access control to servers, applications, and data, while protecting against unauthorized access.

Okta ThreatInsight

A threat detection and response solution that identifies and responds to identity-based threats in real-time.

8. Okta, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Okta's products and services are highly specialized and integrated, making it difficult for customers to find substitutes.

Bargaining Power Of Customers

Okta's customers have some bargaining power due to the availability of alternative identity and access management solutions, but Okta's strong brand and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

Okta has a diverse supplier base, and its suppliers have limited bargaining power due to the company's strong market position and negotiating power.

Threat Of New Entrants

The identity and access management market is highly competitive, and new entrants can easily disrupt the market with innovative solutions, posing a significant threat to Okta's market share.

Intensity Of Rivalry

The identity and access management market is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.75%
Debt Cost 3.95%
Equity Weight 83.25%
Equity Cost 8.82%
WACC 8.01%
Leverage 20.13%

11. Quality Control: Okta, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dropbox

A-Score: 5.9/10

Value: 6.2

Growth: 7.9

Quality: 7.3

Yield: 0.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Okta

A-Score: 4.9/10

Value: 1.9

Growth: 9.0

Quality: 7.1

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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WEX

A-Score: 4.7/10

Value: 5.8

Growth: 6.9

Quality: 6.8

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Nutanix

A-Score: 4.4/10

Value: 3.3

Growth: 8.3

Quality: 6.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

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Akamai

A-Score: 4.1/10

Value: 3.2

Growth: 5.6

Quality: 5.3

Yield: 0.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

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Squarespace

A-Score: 4.1/10

Value: 4.5

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

80.72$

Current Price

80.72$

Potential

-0.00%

Expected Cash-Flows