Okta (NASDAQ:OKTA) stock gained 73.6% in the first half of 2020, according to data from S&P Global Market Intelligence.
This month, shares of the cloud-based identity-management specialist have jumped nearly 10% through July 8, while the broader market has returned just over 2%. In 2020, shares of Okta, which held its initial public offering (IPO) in April 2017, are up 91%. That makes the stock one of the year's top-performing large-cap tech stocks.
We can attribute the stock's powerful performance this year to the company continuing its streak of posting strong financial results. It breezed by the Wall Street consensus earnings estimate in both the fourth quarter of fiscal 2020 and the first quarter of fiscal 2021.
On May 28, Okta released its fiscal Q1 results for the period ended April 30. Results got a boost from the COVID-19 pandemic, which drove a massive increase in the number of people working from home.
.... Adjusted for one-time items, net loss narrowed considerably to $8.1 million, or $0.07 per share, from $21.4 million, or $0.19 per share, in the year-ago quarter. That result crushed the adjusted loss per share of $0.17 that analysts had been expecting.
While Okta is reporting bottom-line losses, investors should know that it generates positive cash flows. In Q1, it generated $38.7 million in cash from operations, up 82% year over year. And it produced free cash flow of $29.8 million, up a whopping 126% from the year-ago period. ..."
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