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Why Okta, Inc. (OKTA) Went Down On Wednesday
Why Okta, Inc. (OKTA) Went Down On Wednesday

Yahoo

timea day ago

  • Business
  • Yahoo

Why Okta, Inc. (OKTA) Went Down On Wednesday

We recently published a list of . In this article, we are going to take a look at where Okta, Inc. (NASDAQ:OKTA) stands against other worst-performing stocks. Okta Inc. declined by 16.16 percent on Wednesday to end at $105.22 apiece as investors soured on the company's weak outlook guidance for the rest of the year. In a statement, Okta, Inc. (NASDAQ:OKTA) said it is now 'factoring in potential risks related to the uncertain economic environment' for the remainder of fiscal year 2026. In the first quarter, Okta, Inc. (NASDAQ:OKTA) swung to a net income of $62 million from a $40 million net loss in the same period last year. Revenues were higher by 11.5 percent to $688 million from $617 million year-on-year. A mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication. For the second quarter, the company expects revenues to grow by 10 percent to a range of $710 million to $712 million, as well as revenues of $2.85 billion to $2.86 billion for the full fiscal year of 2026. 'The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases. We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers,' said Okta, Inc. (NASDAQ:OKTA) CEO Todd McKinnon. Overall, OKTA ranks 2nd on our list of worst-performing stocks. While we acknowledge the potential of OKTA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Okta Inc (OKTA) Q1 2026 Earnings Call Highlights: Strong Profitability Amid Cautious Outlook
Okta Inc (OKTA) Q1 2026 Earnings Call Highlights: Strong Profitability Amid Cautious Outlook

Yahoo

time4 days ago

  • Business
  • Yahoo

Okta Inc (OKTA) Q1 2026 Earnings Call Highlights: Strong Profitability Amid Cautious Outlook

Revenue Growth (Q2 FY26): Expected growth of 10%. Current RPO Growth (Q2 FY26): Expected growth of 10% to 11%. Non-GAAP Operating Margin (Q2 FY26): Expected at 26%. Free Cash Flow Margin (Q2 FY26): Expected at approximately 19%. Revenue Growth (FY26): Expected growth of 9% to 10%. Non-GAAP Operating Margin (FY26): Expected at 25%. Free Cash Flow Margin (FY26): Expected at approximately 27%. Warning! GuruFocus has detected 6 Warning Sign with OKTA. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Okta Inc (NASDAQ:OKTA) reported strong financial performance in Q1 FY26, with record operating profitability and profit margin. The company experienced significant growth in its governance portfolio, with products like Okta Identity Governance and lifecycle management showing substantial adoption. Okta Inc (NASDAQ:OKTA) saw a nearly 400% increase in workflow executions over the past three years, indicating strong integration into customer IT infrastructures. The company is making strides in innovation, particularly with new products like Identity Security Posture Management and Okta Privileged Access, which address evolving cyber threats. Okta Inc (NASDAQ:OKTA) is well-positioned in the US public sector, with strong performance in Q1 and strategic investments yielding positive results. Okta Inc (NASDAQ:OKTA) has introduced additional conservatism in its guidance due to macroeconomic uncertainties, which could impact future performance. The company is facing headwinds in net revenue retention (NRR), which has declined for the fourth consecutive quarter. There is potential uncertainty in the US federal vertical, which could affect Okta Inc (NASDAQ:OKTA)'s federal business due to economic and political factors. Despite strong Q1 results, Okta Inc (NASDAQ:OKTA) is cautious about the macroeconomic environment, which could impact growth in the latter half of FY26. The company's go-to-market specialization is still in early stages, and while initial signals are positive, the long-term success of this strategy remains to be seen. Q: You've layered in additional conservatism into your guidance. What factors influenced this decision, and how do you see these impacting Q1 and future quarters? A: Todd McKinnon, CEO, explained that while Q1 was strong and on track, the guidance reflects a cautious approach due to macroeconomic uncertainties. Brett Tighe, CFO, added that while no macro impact was seen in Q1, the guidance includes potential risks due to the current economic environment, maintaining less conservatism than in previous models. Q: Can you elaborate on the go-to-market specialization and its impact on your business? A: Todd McKinnon noted that the specialization into Okta and Auth0 sellers is progressing well, with strong performance from Auth0 and a solid pipeline build. Eric Kelleher, COO, emphasized that specialization has proven effective in the past and is expected to enhance focus and enablement, benefiting both Okta and its customers. Q: How is the new suite-based pricing for the Okta platform performing, and what are the expectations? A: Todd McKinnon stated that the suite-based pricing introduced in Q1 is showing positive results, with customers opting for bundled products in good, better, best configurations. This approach leverages Okta's broad product portfolio and appeals to customers seeking strategic consolidation around identity. Q: What is the outlook for the customer identity side of the business, particularly with Auth0? A: Todd McKinnon highlighted that Auth0 had a strong Q1, driven by large customer deals. The introduction of Auth for GenAI is expected to further enhance demand, especially among smaller companies innovating in AI, indicating a broad-based opportunity for growth. Q: How does Okta plan to address the emerging market for non-human identities (NHIs) and AI agents? A: Todd McKinnon explained that Okta's comprehensive solution, including Identity Security Posture Management and Privileged Access, positions it well to manage NHIs. The company is focused on innovating and executing to maintain its lead in this growing market, emphasizing the importance of identity in AI-driven environments. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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