Breakeven On The Horizon For Okta, Inc. (NASDAQ:OKTA)

Okta, Inc. (NASDAQ:OKTA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Okta, Inc. operates as an identity partner in the United States and internationally. With the latest financial year loss of US$355m and a trailing-twelve-month loss of US$136m, the US$13b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Okta will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Okta

Consensus from 40 of the American IT analysts is that Okta is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$5.3m in 2027. Therefore, the company is expected to breakeven roughly 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 48%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Okta given that this is a high-level summary, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 18% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Okta which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Okta, take a look at Okta's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Valuation: What is Okta worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Okta is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Okta’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.