Shares of Okta (NASDAQ:OKTA) gained in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2023. Earnings per share came in at $0.30, which beat analysts’ consensus estimate of $0.09 per share. Sales increased by 33.2% year-over-year, with revenue hitting $510 million. This beat analysts’ expectations of $489.58 million.
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Okta offered up impressive gains, particularly in subscription revenue, which was up 34% against this time last year, reaching a total of $495 million. Meanwhile, its subscription backlog reached $3.01 billion. That’s up 12% year-over-year. Contracted subscription revenue—revenue that should be brought in over the next 12 months—stands at $1.68 billion, up 25% versus Q4 2022.
Looking forward, management now expects revenue for Q1 2024 to be in the range of $509 million to $511 million, while EPS is expected to be in the range of $0.11 to $0.12. For reference, analysts were expecting $498.26 million in revenue and an EPS of -$0.01.
Overall, Wall Street has a consensus price target of $84 on Okta stock, implying 17.58% upside potential, as indicated by the graphic above.
