Okta (NASDAQ:OKTA) is set to post fourth quarter results on Wednesday after the closing bell.
Wall Street expects the identity and access management company to post EPS of $0.51 on revenue of $587.56 million.
Companies like Okta are seeing resilient demand for their services, thanks to expanded spending from enterprises facing increased threats of cyberattacks in recent years.
According to a Seeking Alpha analysis, the cybersecurity industry “is expected to grow significantly, reaching a market value of $300B by the end of 2023 and potentially $1.5T to $2T in the coming years.”
However, Okta is facing challenges, especially due to a recent security incident, where the company disclosed that hackers stole information on all users of its customer support system.
Earlier in November, Okta posted a weaker-than-expected 2025 revenue outlook.
“Okta’s recent security incident could undermine customer trust in the company and further slow growth,” pointed out Seeking Alpha analyst Richard Durant.
Jefferies analyst Brent Thill also said that hackers have gotten the best of the identity access management company, while adding that Microsoft is becoming a larger threat to Okta.
Seeking Alpha analyst Amrita Roy said that though the company is focused on improving profitability and has shown significant improvement in margins, yet slowing revenue growth due to the security breach raises concerns about future growth.
Over the last two years, the San Francisco-based company has beaten EPS and revenue estimates 100% of the time.
Seeking Alpha analysts are cautious and rated the stock a Hold but Wall Street analysts as well as Seeking Alpha’s Quant rating considers it Buy and above.
The stock gained over 20% in the last one year.
Over the last three months, EPS estimates have seen 34 upward revisions and no downward revisions, while revenue have seen 32 upward revisions versus one downward move.
