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Okta: Q4 Earnings, Avoid This Stock For Now, Here's Why

Mar. 03, 2022 6:18 AM ETOkta, Inc. (OKTA)13 Comments


  • Okta put out topline guidance slightly above its previously discussed targets, pointing to an approximately 38% y/y  revenue increase.
  • The biggest blemish in its Q4 results is that its profit margins are rapidly moving in the wrong direction, and are guided to become more negative.
  • It becomes increasingly difficult to justify its elevated valuation of 16x forward sales.
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Investment Thesis

Okta (NASDAQ:OKTA) put out strong revenue guidance for the year ahead. However, its bottom line profitability is evidently moving in the wrong direction.

Management remarks that its acquisition of Auth0, an early-stage business, has a very different profitability profile from

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