Security demand is unbreakable
BREAKING NEWS
After a truly tough year, Okta has finally started putting all the pieces together and is up big after reporting earnings yesterday.
WHAT HAPPENED
Okta has been in the basement thanks to a bungled acquisition of Auth0 that started raising concerns right when the economy weakened. Since then Okta has completely turned things around and is now back to a position of strength thanks to rising demand for security services like the ID product at Okta's core. Okta's revenue surged 23% YoY to $535 million thanks to a huge backlog and increasing demand from the Asia-Pacific region thanks to a specific expansion into the Indian market.
CURRENT STATUS
More importantly, Okta is getting costs under control and expects yearly EPS to be over $1.10. This is a great sign that they've finally started executing better and are on a good path to real growth and profitability. Their backlog is now over $3 billion and the amount of their backlog they expect to service in the next year has risen 18% YoY. They simply keep making money and get better at executing contracts.
WHY IT MATTERS
After a tough year, it's really encouraging to see stocks like Okta find success as demand for security services stays strong. There are some strong wins in the B-tier of tech stocks after all. The market loved to see this as well and Okta stock rose over 10% in morning trading.