Stockideas

Okta, Inc
(NASDAQ:OKTA)
Okta, Inc

Okta, Inc. provides identity management platform for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; ...
Founded: 2009
IPO date: 2017-04-07
IPO price: $17
Full Time Employees: 6,037
CEO / Co-Founder: Todd McKinnon 
Sector: Technology
Industry: Software-Infrastructure
Next Earnings Date: 2023-03-01
Stock price: $65.09 (-3.47%)
okta stock
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 02, 2022

they reported strong growth in revenue and customer base, and the company also provided a positive outlook for the future. As much as I am not a big fan of their products I still had to use it everyday to sign in to work and it is not like I have a choice. Overall it was a positive earnings call and investors were impressed with the company's performance. Might be a good idea to take a look if it dips again. $okta

https://i.imgur.com/STxOQZe.png


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panw
By: raspberry lazy guy   💬 31   
   on Nov 17, 2022

Good ER and might be a good story for cybersec tomorrow. $s $okta $panw


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Okta Says Hundreds of Customers May Have Been Exposed by January Breach
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 23, 2022

https://www.cnet.com/news/privacy/okta-says-hundreds-of-customers-may-have-been-exposed-by-january-breach/

Okta, the authentication giant that provides identity services to more than 15,000 companies, suffered a data breach in January, Okta CEO Todd McKinnon confirmed Tuesday. 

This is ridiculous. It took them 2 months to tell people they have a breach happening two months ago. This shows how dysfunctional a security company can be. With the security features they promised your company can be badly impacted or even wipe out in 2 months easily.

$OKTA


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interesting earnings next week
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 27, 2021

$crwd. $Snow. $Okta. $Asan. $Docu. $Domo. $Estc. $ZS. Next week is gonna be interesting, lots of innovative high growth companies announcing their earnings next week.

https://i.imgur.com/t74lqCp.jpg


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Tech crash continued
By: ssmlee04 Community Lead :))   💬 98   
   on Mar 09, 2021

It feels like tech stock has nowhere else to go but down and a market crash for tech is imminent. A lot of great tech companies are retracing 20-40% from the top already. A lot of stocks have really bearish charts like this. And it does not feel like this is going to end well.

https://i.imgur.com/bhc7qyk.png

But if you look back at the past couple of years things are getting out of control. Take Tesla for example, it rallies around 20x in 2 years. And even with the 35-40% drop from all time-high it is still up 12 times from the dip 2 years ago. But when you look at the fundamentals you'll see there's not a lot changed in the past 2 years. The number of deliveries in 2019 is around 360,000 and around 500,000 in 2020. Also, the revenue is around 50-100% higher in 2021 than 2019. And it's way less than the increase in the stock price multiples.

SaaS stocks are also like that. Many good SaaS names like $okta, $net, $ayx, $crwd, $docu, $zm, $hubs are also up 5x - 10x from where it was 3 years ago. And they're not even close to profitability. And even with the 20-40% drop from all-time high they're still trading at p/s multiples of over 20-40.

A p/s ratio of 40 means if you assume the current revenue run rate can last, and if 100% of the revenue is paid back to you in earnings it would still take 40 years for this investment to break even. So, arguably, even with the 20-40% drop in the stock price lots of the SaaS companies still would not be considered cheap.

So maybe this crash in tech is just things going back to the norm. During year 2000 it took the Nasdaq index almost 2 years to drop 80% and run the course before another bull market starts. And if this one follows a similar pattern that would potentially mean we still have about 23 months to go before we can safely get back to investing in tech stocks again. But of course it would also be entirely different than the tech bubble case in 2000.

So what happens next in the stock market would potentially be the make or break moment for tech in the next couple of years. Finger crossed. $tsla ^IXIC


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Twilio delivers surprise adjusted profit as revenue growth accelerates, stock up 10%
By: ssmlee04 Community Lead :))   💬 98   
   on Feb 18, 2021

https://www.cnbc.com/2021/02/17/twilio-delivers-surprise-adjusted-profit-as-revenue-growth-accelerates.html

In my opinion the reason why it is up is very simple: the valuation of Twilio when compared to $ddog or $crwd or $net or $okta is simply way cheaper. Take Datadog for example both of them growth their revenue in the 60% yoy area but dog has p/s ratio of 60 while Twilio is 43. That means Twilio is easily 30-40% cheaper for the same level of growth. Same thing for $okta, it is growing around 40% yoy and it has a p/s ratio of 48, which again means Okta is easily 20-30% more expensive than Twilio for the same level of growth.

Market is honestly not very efficient these days. There are just a lot of hidden jewels for you to pick up. Twilio has been cheaper in that sense compare to those companies since Marh 2020 dip and maybe that's why Twilio is up 6x while datadog is only up 3.5x since and Okta is only up 3x since. But whether or not you can hold it thru the rally is another story.


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2020 SaaS review
By: ssmlee04 Community Lead :))   💬 98   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020. https://i.imgur.com/xL1w2F2.jpg

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

https://i.imgur.com/KWx3Ea2.png

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.

$ZS $DBX $ZUO $AYX $DOCU $SMAR $DOMO $SVMK $AVLR $TTD $PCOM $NOW $WDAY $PD $WORK $ZEN $TEAM $VEEV $CLDR $SHOP $FSLY $TWLO $ADBE $AAXN $CRM $OKTA $GOOG $DT $ZM $SPLK $WIX $COUP $MDLA $LPSN $APPN $EPAY $AKAM $APPS $FIVN $BL $PANW $PFPT $CRWD $DDOG $NET $HUBS $NEWR $APPF $RNG $ESTC $BILL $GDDY $DCT $ECOM $PLAN $SNOW $SUMO $FROG $ASAN $JAMF $ADSK


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Okta
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 03, 2020

Great earnings. Revenue is up another 42% from a year earlier. Guidance is also higher than expected.

They're really becoming a standard in identity management. And when companies get bigger you'd have more incentives to manage access from your employees so this business does make sense. And they make logging in experience very intuitive. You just need to confirm it is you on your mobile device and then you're logged in. Also with Okta losing your devices or passwords is not a problem anymore because your admins can reset it for you easily too.

My previous employer changed our access management to this one. Also at the same time they ditched some old VPN solutions providers that's buggy at times. So yes they're able to upsell with solutions other than just log in.

Good company to invest in and have a bit of exposure in the long run.

$OKTA


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Okta expands appliances to attract enterprises
By: canada lazy guy   💬 1   
   on Sep 20, 2020

https://www.linkedin.com/pulse/okta-expands-alliances-attract-enterprises-sramana-mitra/

$Okta


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SaaS crashed in such a short period of time
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 23, 2019

https://boards.fool.com/for-those-of-you-new-to-this-kind-of-situation-34291318.aspx

This is a great thread that I was following earlier, the sentiment of this thread has been very optimistic starting this year and peaked around the time all SaaS like $CRWD, $OKTA, $ZS, $AYX and many others peaked, then the crash happened. I guess a lot of people probably get caught off guard when SaaS retraced 30-60% from the peak in such a short period. The crash does affect me but not in a lethal way. I had 20-30% in SaaS and other high growth pharmas and has already stop-lossed many of my SaaS positions a lot earlier. So it's not ideal but it won't kill me.

https://i.imgur.com/C2UNjeq.png

Maybe it's a good thing. A lot of SaaS has been up 1000% in less than 3 years. This is not normal. A correction is bound to happen and I think we're in one. What's scarier is Dow Jones and Nasdaq is still at all-time high and I can't imagine what would happen to those SaaS if those indexes decide to revert tomorrow.


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OKTA
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 19, 2019

Cybersecurity company. In case you don't know when you login to adobe cloud okta is handling your authentication in the back.


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PING S-1 brief walkthrough
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 10, 2019

https://www.sec.gov/Archives/edgar/data/1679826/000104746919004829/a2239513zs-1.htm

Their mission: Our mission is to secure the digital world through Intelligent Identity.

That's great. But isn't $OKTA already a leader in this area? Curious.

According to S-1 their Intelligent Identity Platform is comprised of 6 solutions that can be used for employees, clients, partners or IoT use cases:

  • secure single sign-on, or SSO;
  • adaptive multi-factor authentication, or MFA;
  • security control for applications and APIs, or Access Security;
  • personalized and unified profile directories, or Directory;
  • data governance to control access to identity data, or Data Governance; and
  • artificial intelligence and machine learning powered API security, or API Intelligence.

So far this can't be less thrilling for me. SSO and MFA is a standard for authentication nowadays. 3, 4, 5 is terminologies. Machine learning or artificial intelligence is such a hype.

And then it spend a few pages talk about IAM (Identity and Access Management). So you are doing sign-in right?

Also the company changed name basically right before the IPO.

We were incorporated in 2016 as Roaring Fork Holding, Inc., a Delaware corporation, in connection with the Vista Acquisition. Effective August 22, 2019, the name of our company was changed to Ping Identity Holding Corp.

Somehow I can't find much information about this company Roaring Fork Holding. Have they done something before 2016? There are no information on google or glassdoor whatsoever.

All of these seem very puzzling and potentially concerning to me.

$PING


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OKTA result
By: ssmlee04 Community Lead :))   💬 98   
   on Aug 29, 2019

q2 revenue growth 49% yoy, subscription revenue growth 51%, calculated billings grew 42%. 46% growth in customers with annual contract value greater than $100,000. And now they have over 1,200 of these $100,000. This is clearly a winner not sure how to open a position it's always going up. $okta


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hangingman
By: ssmlee04 Community Lead :))   💬 98   
   on Jun 11, 2019

A lot of the stocks displayed bearish reversal patterns today. MDB goes to 10% and then drop back to 2%. AYX goes to 15% before going back to 2%. RVLV was up 20% at a point and end up down 2%. This makes a lot of sense actually because those stocks went up too much and too quickly in the last couple of trading sessions and it had to come down at some point. Also, if you jump in in the early trading session today you would not know what to do by now, so chances are those price wouldn't trade above the high of today for those people to cover losses easily . If you visit AAPL in 2000 (2000-03-23) you'll find the price rallied to the top for 3-4 days and then from there it pulled back 40% in a very short period of time. This feels very much like what happened in the past few days.


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SAAS
By: tachyon Very lazy guy   💬 23   
   on Jun 03, 2019

All the SAAS company dropped a lot today. I wonder if this is the beginning of the great decline for those SAAS companies. A lot of them have P/S over 30 even early stage Amazon does't have a valuation this high.


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The chart looks eerily similar to AAPL a few weeks ago
By: riceland lazy guy   💬 1   
   on Jun 02, 2019

If you compare the daily charts for both you'll notice OKTA and AAPL looks really similar before the gap up. And ever since AAPL starts to fall around 20%. I feel like this is a good time to enter a short position on OKTA. SAAS is way too overprices it has to stop someday. The chance of a gap closing is very high. Also the market is not doing well recently and I can see the downtrend to continue a bit.


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