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Okta Beats Q4 Estimates but Guides to Slowest Growth Since IPO

Guidance points to the slowest post‑IPO growth, prompting investors to recalibrate expectations.

Overview

  • Revenue rose 11% to $761 million in Q4 with adjusted EPS of $0.90, and net income reached $63 million.
  • Management projected Q1 revenue of $749 million to $753 million and adjusted EPS of $0.84 to $0.86, implying roughly 9% growth, the weakest since 2017.
  • Full‑year outlook calls for $3.17 billion to $3.19 billion in revenue and adjusted EPS of $3.74 to $3.82.
  • Remaining performance obligations increased 15% year over year to about $4.83 billion, and the COO said meaningful seat reductions have not appeared in results.
  • Shares rebounded about 11% as several firms maintained bullish ratings with lower targets, while leadership highlighted securing AI agents as a new demand driver.