Okta Earnings: Robust Comeback Quarter, With Strong Growth and Profitability

We are raising our fair value estimate for no-moat Okta to $100 from $80 after the firm reported strong fourth-quarter results and provided guidance for fiscal 2025 ahead of our prior estimates. We were particularly impressed by the firm’s ability to post strong financial results and guidance despite its security breach in October and the ongoing macroeconomic uncertainty affecting customer buying behavior. We think investors, much like us, saw a lot to like in Okta’s financial results, with shares trading up sharply following the firm’s earnings report. Relative to our updated fair value estimate, we view Okta as fairly valued. For investors seeking cybersecurity exposure, we’d recommend wide-moat Fortinet and Palo Alto Networks as better companies to invest in instead of no-moat Okta.