Okta Earnings: Macro Headwinds Continue to Impact Okta’s Sales Motion Even as Profitability Grows

We are maintaining our $100 fair value estimate for no-moat Okta after the firm reported solid second-quarter results and raised its full-year guidance. Broad-based strength in both revenue and profitability exceeded our estimates, but behind this rosy picture, we saw weaknesses in customer additions and sentiment. Considering the broader picture, the macroeconomic environment continues to pressure the business, with continued scrutiny surrounding last year’s security breach still keeping investors cautious. With shares dipping after hours, we view Okta as modestly undervalued.