KeyBanc Reiterates Sector Weight Rating on Okta, Inc (OKTA)

KeyBanc analyst Eric Heath reiterated a Sector Weight rating on Okta, Inc (NASDAQ: OKTA).

The analyst commented, "Reiterate Sector Weight following a solid F2Q beat on revenue and margins; however, F2Q cRPO upside likely a touch lower than expectations and F3Q cRPO guided below. FY25 revenue guide raised to +13% y/y, above cons. +12% y/y. FY25 FCF and EBIT margin guide raised 1pt and ~1.5pts, respectively. Mgmt noted a consistent, though still challenged macro backdrop impacting MAU and seat expansion, particularly in SMB. NRR downticked 1pt to 110% and is expected to slip further in F2H. Net new logos and >$100K customer adds improved slightly, but still subdued relative to FY24 levels. We remain positive on identity being a high priority within security, Okta's ability to be a consolidator of identity, and there being several product catalysts (IGA, PAM, CIAM, ITDR). However, we retain caution on potential lingering impacts from last year's breach to customer adds and the continued cRPO deceleration."

For an analyst ratings summary and ratings history on Okta, Inc click here. For more ratings news on Okta, Inc click here.

Shares of Okta, Inc closed at $96.54 yesterday.

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