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Here's What Key Metrics Tell Us About Okta (OKTA) Q1 Earnings

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For the quarter ended April 2024, Okta (OKTA - Free Report) reported revenue of $617 million, up 19.1% over the same period last year. EPS came in at $0.65, compared to $0.22 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $604.33 million, representing a surprise of +2.10%. The company delivered an EPS surprise of +20.37%, with the consensus EPS estimate being $0.54.

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 82.9% estimated by 10 analysts on average.
  • Gross margin- Professional services and other: -24% versus -4.6% estimated by 10 analysts on average.
  • Current remaining performance obligations (cRPO): $1.95 billion versus the five-analyst average estimate of $1.92 billion.
  • Remaining performance obligations: $3.36 billion versus $3.33 billion estimated by five analysts on average.
  • Total Customers: 19,100 versus the three-analyst average estimate of 19,235.
  • Revenue- Subscription: $603 million versus $589.30 million estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +19.9% change.
  • Revenue- Professional services and other: $14 million compared to the $15 million average estimate based on 11 analysts. The reported number represents a change of -6.7% year over year.
View all Key Company Metrics for Okta here>>>

Shares of Okta have returned +3.2% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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