OKTA

Okta Inc - Ordinary Shares - Class A

TMT


Presented:04/21/2023
Price:$75.96
Cap:$11.70B
Current Price:$78.65
Cap:$13.36B

Presented

Date04/21/2023
Price$75.96
Market Cap$11.70B
Ent Value$11.57B
P/E RatioN/A
Book Value$33.89
Div Yield0%
Shares O/S153.99M
Ave Daily Vol2,436,061
Short Int3.23%

Current

Price$78.65
Market Cap$13.36B
Okta, Inc. engages in the provision of an identity management platform for enterprises. It operates through the United States and International geographical segments. The firm's products include single sign-on, multi-factor authentication, API access management, authentication, user management, and lifecycle management. The company was founded by Todd McKinnon and J. Frederic Kerrest in 2009 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Datadog Inc. (DDOG), Crowdstrike Inc. (CRWD), Microsoft Corp. (MSFT), Okta Inc. (OKTA), Zscaler Inc. (ZS)

Highlights

The presenter is long shares of Okta Inc (OKTA) a leading provider of identity management software, believing recent self-inflicted issues with the stock are in the past (security breach PR, sales hires, etc.). He views OKTA as reasonably priced at 5.5x 2024 revenues vs peers DDOG (7.3x), CRWD (7.5x), ZS (6.8x) and thinks 2024 total revenue guidance of $2.155B to $2.170B, is likely conservative. Sentiment seems to be overblown to the downside as some investors are still worried about execution even though the company has had several quarters of much lower sales force attrition. His base case is close to 20% annual growth, which should drive a 50% upside in the stock over 18 months with a pretty limited downside if the company grows in line with consensus and the current revenue multiple holds. If OKTA does re-accelerate off of this year the company could also get the benefit of a higher multiple that would drive incremental upside.

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Idea Discussion

Commentor 1 - 2 weeks ago

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