Okta (OKTA) CEO Todd McKinnon weighed in on the ongoing debate over quarterly earnings reports, suggesting that corporate America might benefit from less obsession with short-term numbers and more focus on strategic, long-term conversations with investors. Speaking on Yahoo Finance’s Opening Bid, McKinnon said, “I think I’d be OK either way. I do like the opportunity to talk to investors every quarter about the business and the future and the vision of what we’re trying to do.” At the same time, he cautioned that the industry sometimes becomes too fixated on the results of a single quarter, noting that reporting a little less frequently could allow for deeper, more meaningful discussions about the company’s long-term plans.
Okta recently posted strong second-quarter results, beating expectations on both revenue and earnings. The company reported $728 million in revenue, surpassing consensus estimates of $711 million, and earnings per share came in at $0.91 versus the $0.84 forecast, according to Bloomberg data. Fueled in part by robust demand from global organizations and government agencies, the results led Okta to raise its full-year revenue guidance to a range of $2.875 billion to $2.885 billion, representing a 10% to 11% year-over-year increase. However, the company’s third-quarter forecast is more cautious, projecting $728 million to $730 million in revenue, or 9% to 10% growth. Okta shares have gained roughly 14% year to date, slightly outpacing the S&P 500 (^GSPC), which is up 13%.
McKinnon’s remarks come amid a broader debate sparked by former President Trump’s suggestion to eliminate quarterly earnings reports in favor of semi-annual updates. For a company like Okta, which is still competing for market share against giants such as Microsoft (MSFT) and Palo Alto Networks (PANW), quarterly reporting remains a critical way for investors to track execution. With the stock trading around $90, well below its pandemic-era peak of over $290, investor patience for long-term promises is limited.
Analysts offered a mix of optimism and caution. JPMorgan’s Brian Essex highlighted Okta’s record sales pipeline, strong public sector wins, and efforts to consolidate the fragmented identity market, maintaining an Overweight rating with a $92.77 price target while noting that converting opportunities into sustained growth is key. Meanwhile, Evercore ISI analyst Peter Levine praised Okta’s well-executed quarter and its $100 million acquisition of Axiom Security, which strengthens the company’s private access management capabilities—a potential “key identity layer” as businesses increasingly deploy AI agents. Levine’s firm issued an Outperform rating with a $130 target, though he noted that net revenue retention remains at 106%, down from 110% a year ago, with a full rebound unlikely until fiscal 2027.
McKinnon’s perspective reflects a growing conversation in corporate America: balancing the need for transparency and quarterly updates with the value of long-term strategic engagement with investors, particularly in rapidly evolving sectors like cybersecurity and AI.
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