Okta, Inc. (NASDAQ:OKTA) Earnings Preview: Key Financial Insights

• Expected Earnings Growth: Okta's EPS is estimated to be $0.77, marking an 18.46% year-over-year increase.
• Revenue Growth: Projected revenue of approximately $680 million, indicating a 10% growth from the previous year.
• Stock Performance: Shares have surged by 33.1% over the past month, outperforming industry benchmarks.

Okta, Inc. (NASDAQ:OKTA) is a prominent player in the cloud identity management sector, providing identity solutions that help organizations securely connect people to technology. As the company prepares to release its quarterly earnings on May 27, 2025, analysts are keenly observing its performance metrics. Okta's strong demand for its identity solutions is expected to positively impact its financial results.

For the upcoming earnings release, Wall Street analysts estimate Okta's earnings per share (EPS) to be $0.77, aligning with the company's own non-GAAP earnings projection of 76 to 77 cents per share. This represents an 18.46% year-over-year increase, as highlighted by Zacks Investment Research. The revenue for this period is projected to be approximately $680 million, marking a 10% growth compared to the same period last year.

Okta has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 15.70%. This track record of exceeding expectations has contributed to the company's strong stock performance. Over the past month, Okta's shares have surged by 33.1%, outperforming both the Zacks S&P 500 composite and the Zacks Security industry.

Despite the positive outlook, Okta faces challenges such as stiff competition and high valuation. The company's price-to-earnings (P/E) ratio is approximately 759.71, indicating a high valuation relative to its earnings. Additionally, Okta's price-to-sales ratio stands at about 7.92, and its enterprise value to sales ratio is around 8.13. These metrics suggest that investors are paying a premium for Okta's growth potential.

Okta's financial health is supported by a relatively low debt-to-equity ratio of 0.15, indicating a low level of debt compared to its equity. The company also maintains a current ratio of about 1.35, demonstrating its ability to cover short-term liabilities with its short-term assets. As Okta prepares to release its earnings, investors will be closely monitoring these financial metrics and market expectations.