OKTA question

I have never been able to latch onto OKTA, for whatever reason…mainly while I personally see the benefits in my own workplace, they seemed too narrow in focus. Meaning I wanted more CAP/TAM upside, but that was just me.

So looking at their most recent Q3-19 ER CC transcript, I noticed they “only” called for 40% growth in Q4-19 (they are a year ahead and not on normal calendar, fyi).


Then, surprisingly early, they previewed their early guidance for the 2020 fiscal year, and called for 30-33% growth.

Given they seem priced for perfection, is there any concern here, or are current OKTA stockholders just assuming this is sandbagging. Such a big drop made me think of ANET. For context, their entire fiscal 2019 is on track for 52-53% growth y/y.

Normally you expect a 50% grower to sandbag by calling for close to 40% growth…a drop to 30-33% seems a bit much.

Any thoughts here?



Hi Dreamer-

Last year, the first estimate they gave for this year was 343-348, or 32-34%.

Each quarter the estimate comes up.

Like you said, they are going to be 50%+.