Ahead of these two companies’ earnings reports later this month, here’s a preview of some key items to watch.
Image source: Intuit.
Intuit, provider of popular software platforms for tax prep (TurboTax), bookkeeping (QuickBooks), and personal finance (Mint), has seen a nice run-up this year, rising 42% year to date. That reflects Intuit’s strong traction in software solutions for small businesses and the self-employed as well as a robust tax season.
In addition, investors should look for more sharp revenue growth in the company’s small-business online ecosystem — a category that includes revenue from Intuit’s online small-business and self-employed group offerings. Online ecosystem revenue increased 38% year over year in fiscal Q3. Did it keep growing this rapidly in fiscal Q4?
As with Intuit, investors have been buying up Okta stock in 2019. Shares have surged nearly 110% year to date as investors have been impressed with the company’s soaring subscription revenue and free cash flow.
strength with enterprise customers.” data-reactid=”31″>In Okta’s most recent quarter (its first quarter of fiscal 2020), overall revenue jumped 50% year over year, driven by a 52% jump in subscription revenue. Bolstering the company’s subscription revenue, which accounted for 94% of total revenue, was strength with enterprise customers.
Investors will want to look for more strong growth in enterprise customers, as they can move the needle on Okta’s results. To gauge how well the company is doing at attracting these customers, look for Okta’s year-over-year growth rate in customers with more than $100,000 in contract value. These customers increased 53% year over year in fiscal Q1.
“The world’s largest organizations are increasingly realizing that identity is essential to their cloud, digital transformation, and security initiatives,” said CEO Todd McKinnon in the company’s first-quarter earnings release.
Was Okta able to sustain its impressive growth in large customers during fiscal Q2? We’ll find out when Okta reports its fiscal second-quarter results after market close on Wednesday, Aug. 28.
Fool.com‘ data-reactid=”37″>This article was originally published on Fool.com