Okta (BSP:O1KT34) Gross Margin % : 76.03% (As of Jan. 2024)

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What is Okta Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Okta's Gross Profit for the three months ended in Jan. 2024 was R$2,262 Mil. Okta's Revenue for the three months ended in Jan. 2024 was R$2,976 Mil. Therefore, Okta's Gross Margin % for the quarter that ended in Jan. 2024 was 76.03%.

The historical rank and industry rank for Okta's Gross Margin % or its related term are showing as below:

BSP:O1KT34' s Gross Margin % Range Over the Past 10 Years
Min: 54.33 Med: 70.08 Max: 74.33
Current: 74.33

During the past 10 years, the highest Gross Margin % of Okta was 74.33%. The lowest was 54.33%. And the median was 70.08%.

BSP:O1KT34's Gross Margin % is ranked better than
82.53% of 2628 companies
in the Software industry
Industry Median: 41.71 vs BSP:O1KT34: 74.33

Okta had a gross margin of 76.03% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Okta was 0.10% per year.

Okta Gross Margin % Historical Data

The historical data trend for Okta's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Okta Gross Margin % Chart

Okta Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

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72.80

73.89

69.54

70.61

74.33

Okta Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															72.75	72.59	73.20	75.17	76.03

Competitive Comparison of Okta's Gross Margin %

For the Software - Infrastructure subindustry, Okta's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Okta's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Okta's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Okta's Gross Margin % falls into.

Okta Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Okta's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	8272.4	/	11129.887
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11129.887 - 2857.475)	/	11129.887
	=	74.33 %

Okta's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	2262.4	/	2975.511
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2975.511 - 713.139)	/	2975.511
	=	76.03 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Okta (BSP:O1KT34) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Okta had a gross margin of 76.03% for the quarter that ended in Jan. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Okta Gross Margin % Related Terms

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Okta (BSP:O1KT34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Okta Inc (BSP:O1KT34) » Definitions » Gross Margin %

Comparable Companies

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Traded in Other Exchanges

OKTA:USA OKTA:Mexico 0OK:Germany

Address

100 First Street, Suite 600, San Francisco, CA, USA, 94105

Website

https://www.okta.com

Okta is a cloud-native security company that focuses on identity and access management. The San Francisco-based firm went public in 2017 and focuses on two key client stakeholder groups: workforces and customers. Okta's workforce offerings enable a company's employees to securely access its cloud-based and on-premises resources. The firm's customer offerings allow its clients' customers to securely access the client's applications.

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