Is Okta a Buy After Losing $848 Million Last Year?
Okta (NASDAQ: OKTA) investors had low expectations ahead of the company's fourth-quarter earnings report. The digital identity services provider is enjoying strong growth as more businesses move to the cloud, but its stock is still down sharply over the past year on worries about slowing gains ahead. And in recent months, Wall Street has been punishing growth stocks that haven't yet demonstrated the ability to consistently generate profits -- a category that includes Okta.
The company didn't have much good news to report on the profitability front this week -- it's projecting that losses will continue at least through the current fiscal year. But Okta's core business is well-positioned to target a big piece of a roughly $80 billion annual market for identity and cybersecurity services.
The positive momentum in Okta's sales trends shows no signs of slowing. For its fiscal Q4, which ended Jan. 31, revenue was up 63% year over year to $383 million, which easily topped management's early December forecast for a roughly 53% increase.
Source Fool.com
